American Oil and Gas Reporter - October 2018 - 18

IndustryDigest
Longwell sued the federal
government in 2013, Pendley continues,
and in July 2015, Judge Leon ordered
DOI to expedite a final decision. That
came when then-Interior Secretary Sally
Jewell cancelled the lease in March
2016, he says, on the grounds that
BLM's prelease environmental
assessment violated the National
Environmental Policy Act and the
National Historic Preservation Act.

MSLF's suit alleged that Jewell's
action was arbitrary and capricious
under the Administrative Procedure
Act, and Leon agreed. In his opinion,
the judge notes, "The secretary of
interior canceled Solenex's lease after
33 years without notice and based on a
supposed prelease violation of NEPA
and NHPA. Additionally, the secretary
cancelled Solenex's 27-year-old APD
after twice approving it and similarly

Dearing Compressor and Pump Co.
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Engineered Packages for the Energy Market

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giving no indication the underlying
lease was invalid.
"As such, even assuming the
authority to administratively cancel
leases, the failure to consider the
reliance interests at stake in cancelling
plaintiff's lease and the accompanying
APD after three decades is 'arbitrary,
capricious, an abuse of discretion, or
otherwise not in accordance with law,'"
Leon's opinion reads.
It later adds, "This 'wait and see'
approach-although convenient from a
policy perspective-wreaks havoc on
the interests of individual
leaseholders. The secretary's
cancellation of Solenex's lease,
without notice, is precisely the sort of
action that undermines the
government's credibility at the
bargaining table and increases the cost
of its engagements." r

EIA Says U.S.A. Is Now
World's Top Oil Producer

with roots in the Appalachian Basin
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18 THE AMERICAN OIL & GAS REPORTER

WASHINGTON-The U.S. Energy
Information Administration estimates
the United States now is the largest
global crude oil producer, likely
surpassing Russia and Saudi Arabia. In
its latest Short-Term Energy Outlook,
EIA calculates U.S. production topped
Russia in June and August for the first
time since February 1999, after
surpassing Saudi output in February.
The EIA says while it doesn't
publish crude oil forecasts for Russia
or Saudi Arabia in the Short-Term
Energy Outlook, it expects that U.S.
crude production will continue to
exceed the other countries' outputs for
the remaining months of 2018 and
through 2019.
U.S. crude oil production,
particularly from light sweet grades, has
increased rapidly since 2011, the
agency says. The oil price decline in
mid-2014 resulted in U.S. producers
reducing their costs and temporarily
scaling back production. However, EIA
says, after crude oil prices increased
early in 2016, investment and
production began increasing later that
year. By comparison, it notes Russia
and Saudi Arabia have maintained
relatively steady crude oil production
growth in recent years.
The nation's new oil-producing
ranking has been anticipated for several
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American Oil and Gas Reporter - October 2018

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