US Louisiana Court Blocks Biden Executive Order "No Authority to Ban Oil Drilling"
13 States Win Lawsuit Challenging 'Mining Ban' Administrative Order
[Asia Economy Reporter Byunghee Park] U.S. President Joe Biden signed an executive order shortly after his inauguration in January banning oil and gas drilling on federally owned public lands. This was a measure to reduce greenhouse gas emissions.
Fourteen states opposed the executive order and filed lawsuits in March. Thirteen states including Louisiana, Texas, and Alabama submitted complaints to the U.S. District Court for the Eastern District of Louisiana, while Wyoming separately filed a lawsuit in the U.S. District Court for the District of Wyoming.
On the 15th (local time), a ruling was issued by the U.S. District Court for the Eastern District of Louisiana located in Monroe, Louisiana, siding with the 13 plaintiff states.
According to The Wall Street Journal, Judge Terry Doughty ruled that the federal government does not have the legal authority to halt oil and gas drilling on public lands without congressional approval. Judge Doughty pointed out that the 13 states that filed the lawsuit suffered damages due to the federal government's decision. Judge Doughty was appointed during the previous Donald Trump administration.
The 13 states participating as plaintiffs in this lawsuit are Louisiana, Alabama, Alaska, Arkansas, Georgia, Mississippi, Missouri, Montana, Nebraska, Oklahoma, Texas, Utah, and West Virginia.
The U.S. Department of the Interior stated that it will comply with the ruling of the Louisiana federal district court but is currently conducting an evaluation of the oil and gas drilling policies. It also announced that it will release a report containing a multifaceted assessment of the energy development program and future alternatives, considering various factors such as environment, employment, and energy development.
The federal government grants energy companies the rights to drill for oil and gas on public lands and shares the revenue generated from this process with the state governments where the public lands are located. It is known that the federal government earned $6 billion in revenue from drilling rights last year.
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Judge Doughty stated that this ruling involves not only potentially billions of dollars in local government revenue and jobs but also funds for coastal restoration in Louisiana. Since a portion of the revenue generated from allowing drilling rights is used for coastal environmental restoration in Louisiana, it is interpreted that permitting drilling can also contribute to environmental policies.
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