American Oil and Gas Reporter - March 2023 - 17

IndustryDigest
Gulf Lease Sale 259
Set For March 29
NEW ORLEANS-While
acknowledging its obligation to do so
before April 1 under a federal law passed
last summer, the U.S. Bureau of Ocean
Energy Management has announced it
will hold an oil and gas lease sale in the
Gulf of Mexico on March 29.
The National Ocean Industries
Association also points to the same law,
HR 5376, the " Inflation Reduction Act
(IRA) of 2022, " as a key reason the Biden
administration is set to hold its first Gulf
lease sale since November 2021.
" Importantly, offshore oil and gas
Lease Sale 259 was mandated by the
IRA, which was signed into law by
President Biden in August, " relates
NOIA President Erik Milito. " Our
national energy needs clearly support a
commitment to continued U.S. offshore
energy development. U.S. Gulf of
Mexico offshore energy production is a
key component of a national energy
strategy that will ensure Americans can
continue to have access to fundamental
domestic energy that is produced safely,
sustainably and responsibly. "
According to BOEM, Lease Sale 259
will offer approximately 13,600 blocks
on 73.3 million acres in the Western,
Central, and Eastern planning areas on
the U.S. Outer Continental Shelf. The
lease sale will be accessible through a
link on www.boem.gov. The bureau
says the opening and reading of the bids
will begin at 9 a.m. Central Daylight
Time. BOEM must receive all bids via
the U.S. Postal Service only no later
than 10 a.m. CDT on March 28.
" Operations in the U.S. Gulf of
Mexico adhere to the highest safety and
environmental standards, " Milito says.
" The multitude of companies involved in
offshore energy development are
working collaboratively to shrink an
already small carbon footprint. From
electrifying operations to deploying
innovative solutions that reduce the size,
weight, and part count of offshore
infrastructure-thus increasing safety
and decreasing emissions-the U.S. Gulf
of Mexico hosts a high-tech revolution.
" Oil produced from the U.S. Gulf of
Mexico has a carbon intensity one-half
that of other producing regions, " he
adds. " The technologies used in
deepwater production-which
represents 92% of the oil produced in
the U.S. Gulf of Mexico-place this
region among the lowest carbon
intensity oil-producing regions in the
world. Policies that restrict domestic
offshore development require imports
to make up the shortfall, and that
supplemental production comes from
higher-emitting operations in other
countries. "
BOEM says the final notice of sale, a
copy of the record of decision affirming
the sale, a map of the lease sale area and
instructions for bidding are available at
http://www.boem.gov/sale-259. ❒
Appeals Court Overturns
Decision On Rule To
Limit Section 401(d) Reach
SAN JOSE, CA.-A federal appeals
court has overturned a lower court's
decision to vacate a Trump-era Clean
Water Act regulation that limits states'
and tribes' ability to erect permitting
barriers to interstate pipelines.
The Feb. 21 decision in American
Rivers v. American Petroleum Institute
by the U.S. Court of Appeals for the
Ninth Circuit reverses a federal district
court order, which granted a voluntary
remand and vacated a regulation the
Environmental Protection Agency
issued under President Trump. The
February ruling determines that a court
granting a voluntary remand lacks
authority to also vacate the regulation
without first deeming it unlawful.
" Because Congress set forth in the
(Admninistrative Procedures Act) a
detailed process for repealing rules, the
panel held that it could not endorse a
judicial practice that would help
agencies circumvent that process, " court
publications read. When EPA
promulgated the regulation in 2020, it
said the regulation would prevent state
and tribal authorities from using Section
401(d) of the CWA to stymie interstate
pipeline projects. The Trump
administration described the revisions
as a way to stop other jurisdictions from
indefinitely delaying or blocking
projects and return CWA certification to
its original purpose (AOGR, May 2022,
pg. 12).
The coalition challenging the 2020
rule includes several states,
environmental groups and tribes, the
ruling notes, while a different set of
Independent Petroleum Association of America Chairman Steve Pruett (foreground),
president and chief executive officer of Elevation Resources, testifies at a field hearing
of the U.S. House of Representatives Energy & Commerce Committee in Midland
alongside University of Texas-Permian Basin professor and Geosciences Department
Chair Michael Zavada. According to IPAA, Pruett's remarks warned that regulatory uncertainty,
permitting delays and labor and supply chain shortages were limiting U.S. oil
and gas output. Joining Pruett and Zavada in testifying about the importance of the oil
and gas industry were Midland Mayor Lori Blong and Midland Hispanic Chamber of
Commerce Chairman Adrian Carrasco. Congressman August Pfluger, R-Tx., who hosted
the hearing, said it demonstrated the Permian Basin's innovation, unending entrepreneurial
spirit and strong community.
MARCH 2023 17

http://www.boem.gov/sale-259 https://www.nxtbook.com/nxtbooks/aogr/202205/index.php#/p/12 https://www.nxtbook.com/nxtbooks/aogr/202205/index.php#/p/12 http://www.boem.gov

American Oil and Gas Reporter - March 2023

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