BOEM postpones Lease Sale 261 due to litigation

Offshore staff

NEW ORLEANS – The Bureau of Ocean Energy Management (BOEM) has announced that it is postponing Lease Sale 261, previously scheduled for Nov. 8, pending the outcome of a lawsuit over oil and gas development and federal protection of an endangered species of whale.

The move comes after a US appeals court on Oct. 26 temporarily paused a lower court order requiring the BOEM to expand the auction, which was originally scheduled to be held in September. Oral arguments are scheduled for Nov. 13 in New Orleans.

In a statement, BOEM said: “Until the court rules, BOEM cannot be certain of which areas or stipulations may be included in the sale notice. Potential bidders in Lease Sale 261 should not submit bids until BOEM provides additional instruction. BOEM will hold any bids already received and will hold the sale after it receives further direction from the Court of Appeals.”

The oil and gas industry and the state of Louisiana had sued the Interior Department in August over its decision to scale back the auction to reduce conflicts with Rice's whale habitat.

The American Petroleum Institute (API) released a statement from Vice President of Upstream Policy Holly Hopkins on the Department of the Interior Bureau of Ocean Energy Management (BOEM) decision to delay Lease Sale 261:

“From issuing the weakest five-year program for offshore leasing in US history to repeatedly delaying congressionally-mandated lease sales, the Department of the Interior continues to demonstrate its willingness to ignore the clear and growing need to expand American energy leadership and reduce reliance on foreign energy sources. Beyond the sale that was postponed today, there will be no offshore sales until 2025 – the longest gap in offshore sales since 1966. The US oil and natural gas industry stands ready to support the nation's energy security through reliable, lower carbon-intensive energy produced here in the US Gulf of Mexico, but the Interior Department’s inconsistent policies undermine the certainty needed to invest in future production.”

11.02.2023