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An Update on the Offshore Oil and Gas Development Ban

AUTHOR(s)

Offshore drilling rig during daytime.

 
On January 20, President Trump issued several executive orders taking aim at former President Biden’s offshore oil and gas development bans, as well as overturning several other actions designed to boost climate protections.1Jarrett Renshaw, Trump repeals Biden’s efforts to block oil drilling on US coasts, Artic, Reuters (Jan. 20, 2025, 7:40 PM), https://www.reuters.com/business/energy/trump-repeals-2023-memo-barring-arctic-oil-drilling-some-16-million-acres-2025-01-21/. The last time President Trump tried to undo one of these withdraws under the Outer Continental Shelf Lands Act (“OCSLA”) by issuing an executive order, his actions were found to be unconstitutional and unlawful by an Alaskan district court.2League of Conservation Voters v. Trump, 363 F. Supp. 3d 1013 (D. Alaska 2019). However, these new Executive Orders are the law of the land unless similar court or Congressional action is taken.

Climate Protections Under former President Biden

Prior to leaving office on January 6, former President Biden issued a presidential memorandum directing the withdrawal of more than 625 million acres of land in areas of the Gulf of Mexico, Florida, California, Washington, and Oregon.3Memorandum for the Secretary of the Interior, Withdrawal of Certain Areas of the United States Outer Continental Shelf from Oil and Natural Gas Leasing, No 2025-01464, 90 FR 6743 (Jan. 6, 2025), https://www.federalregister.gov/documents/2025/01/17/2025-01464/withdrawal-of-certain-areas-of-the-united-states-outer-continental-shelf-from-oil-and-natural-gas. He did so using the power granted to the president under OCSLA. In those areas, oil and gas exploration and development are banned. This withdraw of 625 million acres was on top of 16 million acres previously withdrawn in the Artic Ocean in 2023.4Biden-Harris Administration Takes Major Steps to Protect Artic Land and Wildlife in Alaska, U.S. Department of the Interior (Sept. 6, 2023), https://www.doi.gov/pressreleases/biden-harris-administration-takes-major-steps-protect-arctic-lands-and-wildlife-alaska#:~:text=The%20proposed%20rule%2C%20previewed%20in,new%20oil%20and%20gas%20leasing. The withdrawal also cancelled seven oil and gas leases previously leased during the first Trump term and made it so there was no new oil and gas leasing in the entire United States Artic Ocean.5Id.

January 20 Executive Orders

On January 20, President Trump issued several executive orders addressing what he coined the ‘National Energy Emergency,’ (collectively, herein the “January 20 EO’s”).6Executive Order, Declaring a National Energy Emergency (Jan. 20, 2025), n.p., https://www.whitehouse.gov/presidential-actions/2025/01/declaring-a-national-energy-emergency/. Specifically, in the executive order titled “Unleashing American Energy” (herein the “Unleashing American Energy EO”), President Trump states that it is the policy of the United States to encourage energy exploration and production on federal lands, including on the Outer Continental Shelf.7Executive Order, Unleashing American Energy (Jan. 20, 2025), n.p., https://www.whitehouse.gov/presidential-actions/2025/01/unleashing-american-energy/. While the Unleashing American Energy EO does not specifically rescind former President Biden’s OCSLA withdrawals from January 6, it requires all agency heads to review all regulations burden domestic energy production and use, and implement action plans to rescind or revise these regulations.8Id.

The OCSLA withdrawals taken by former President Biden were completely rescinded by the executive order titled “Unleashing Alaska’s Extraordinary Resource Potential” (herein the “Alaska EO”), also dated January 20.9Executive Order, Unleashing Alaska’s Extraordinary Resource Potential (Jan. 20, 2025), n.p., https://www.whitehouse.gov/presidential-actions/2025/01/unleashing-alaskas-extraordinary-resource-potential/. The Alaska EO states that it is the policy of the United States to expedite the permitting and leasing of energy and natural resource projects in Alaska, as well as prioritize the development of Alaska’s liquified natural gas (“LNG”) potential.10Id. Specifically, it grants to all the heads of executive departments and agencies the power to rescind, revoke, revise, amend, defer, or grant exemptions from any and all regulations that are inconsistent with the policy stated between January 20, 2021 and January 20, 2025. 11Id. As for leasing off the coast of Alaska, the Alaska EO rescinds any cancellations of leases within the Artic National Wildlife Refuge, places a temporary moratorium on all activities and privileges granted to those in the December 8, 2024 Coastal Plain Oil and Gas Leasing Program Record of Decision, rescinds the November 2024 Coastal Plain Oil and Gas Leasing Program Supplemental Environmental Impact Statement, and reinstates environmental and oil and gas leasing reports from the first Trump term.12Id.

Could These Executive Orders be Overturned?

OCSLA allows for the President of the United States to withdraw any of the unleased lands of the Outer Continental Shelf from oil and gas development at any time.1343 U.S.C.A. § 1341 (a) (West). In 2017, President Trump, in his first term, tried to issue an executive order modifying former President Obama’s withdrawal of lands in the Artic, which effectively reversed the withdrawal.14Tim Briscoe, To Do, and Not to Undo: The Issue of Presidential Authority Under the Outer Continental Shelf Lands Act, Environmental Law Institute (Nov. 29, 2017), https://www.eli.org/vibrant-environment-blog/do-and-not-undo-issue-presidential-authority-under-outer-continental-shelf. President Trump’s executive order was unsuccessful when challenged in the District Court of Alaska; the Court stating that only Congress, not the president, has the power to revoke a withdrawal of land from oil and gas development under OCSLA.15League of Conservation Voters v. Trump, 363 F. Supp. 3d 1013 (D. Alaska 2019).

Whereas the January 20 EO’s don’t explicitly reverse the OCSLA withdraws made under former President Biden, they do empower executive agencies and departments to evaluate and make changes to any actions that are inconsistent with the continuation and expansion of oil and gas development.16Executive Orders, Declaring a National Energy Emergency, Unleashing American Energy, & Unleashing Alaska’s Extraordinary Resource Potential. Whether these January 20 EO’s can be overturned will be an issue for the courts, as climate groups are expected to take aim at these executive orders. One way around any court interference could be Congressional action, as the Outer Continental Shelf is governed by the laws of the Federal Government.1743 U.S.C.A. § 1331 (a) (West).

Other Challenges to the Offshore Oil and Gas Development Ban

The executive orders are not the only challenge to former President Biden’s OCSLA withdrawals.  On January 1, 2025, the states of Alaska, Alabama, Mississippi, and Louisiana, joined by the American Petroleum Institute and the Gulf Energy Alliance, filed a lawsuit against the Biden Administration in the District Court of the Western District of Louisiana. 18Louisiana et. al. v. Biden et. al., 2:25-cv-00071 (W.D. La. filed January 17, 2025). The plaintiffs are asking the court to declare Biden’s actions unlawful and to enjoin the enforcement of the withdrawal.19Id.

The withdrawal is also being challenged in an East Texas District Court. In the State of Texas v. Biden, the State of Texas joined by W&T Offshore Inc., are also asking for declaratory and injunctive relief.20State of Texas v. Biden, 9:25-cv-00010 (E.D. Tx. filed January 20, 2025). The plaintiffs state that OCSLA does not give the president the power to permanently withdraw lands from oil and gas development; that only Congress has the power to do so.21Id. However, it is uncertain whether these courts will even decide the legal questions in these cases.  Similarly to the Ninth Circuit in League of Conservation Voters v. Biden (formerly League of Conservation Voters v. Trump), the courts could declare the cases moot since the January 20 EO’s halt all enforcement of the OCSLA withdrawals.22See League of Conservation Voters v. Biden, 843 F. App’x 937 (9th Cir. 2021). The courts could also decide these issues and end the legal tennis match between oil and gas developers and climate activists once and for all.

  • 1
    Jarrett Renshaw, Trump repeals Biden’s efforts to block oil drilling on US coasts, Artic, Reuters (Jan. 20, 2025, 7:40 PM), https://www.reuters.com/business/energy/trump-repeals-2023-memo-barring-arctic-oil-drilling-some-16-million-acres-2025-01-21/.
  • 2
    League of Conservation Voters v. Trump, 363 F. Supp. 3d 1013 (D. Alaska 2019).
  • 3
    Memorandum for the Secretary of the Interior, Withdrawal of Certain Areas of the United States Outer Continental Shelf from Oil and Natural Gas Leasing, No 2025-01464, 90 FR 6743 (Jan. 6, 2025), https://www.federalregister.gov/documents/2025/01/17/2025-01464/withdrawal-of-certain-areas-of-the-united-states-outer-continental-shelf-from-oil-and-natural-gas.
  • 4
    Biden-Harris Administration Takes Major Steps to Protect Artic Land and Wildlife in Alaska, U.S. Department of the Interior (Sept. 6, 2023), https://www.doi.gov/pressreleases/biden-harris-administration-takes-major-steps-protect-arctic-lands-and-wildlife-alaska#:~:text=The%20proposed%20rule%2C%20previewed%20in,new%20oil%20and%20gas%20leasing.
  • 5
    Id.
  • 6
    Executive Order, Declaring a National Energy Emergency (Jan. 20, 2025), n.p., https://www.whitehouse.gov/presidential-actions/2025/01/declaring-a-national-energy-emergency/.
  • 7
    Executive Order, Unleashing American Energy (Jan. 20, 2025), n.p., https://www.whitehouse.gov/presidential-actions/2025/01/unleashing-american-energy/.
  • 8
    Id.
  • 9
    Executive Order, Unleashing Alaska’s Extraordinary Resource Potential (Jan. 20, 2025), n.p., https://www.whitehouse.gov/presidential-actions/2025/01/unleashing-alaskas-extraordinary-resource-potential/.
  • 10
    Id.
  • 11
    Id.
  • 12
    Id.
  • 13
    43 U.S.C.A. § 1341 (a) (West).
  • 14
    Tim Briscoe, To Do, and Not to Undo: The Issue of Presidential Authority Under the Outer Continental Shelf Lands Act, Environmental Law Institute (Nov. 29, 2017), https://www.eli.org/vibrant-environment-blog/do-and-not-undo-issue-presidential-authority-under-outer-continental-shelf.
  • 15
    League of Conservation Voters v. Trump, 363 F. Supp. 3d 1013 (D. Alaska 2019).
  • 16
    Executive Orders, Declaring a National Energy Emergency, Unleashing American Energy, & Unleashing Alaska’s Extraordinary Resource Potential.
  • 17
    43 U.S.C.A. § 1331 (a) (West).
  • 18
    Louisiana et. al. v. Biden et. al., 2:25-cv-00071 (W.D. La. filed January 17, 2025).
  • 19
    Id.
  • 20
    State of Texas v. Biden, 9:25-cv-00010 (E.D. Tx. filed January 20, 2025).
  • 21
    Id.
  • 22
    See League of Conservation Voters v. Biden, 843 F. App’x 937 (9th Cir. 2021).

Baylee focuses on surface use issues, oil and gas lease analysis, and curing title defects. During law school, Baylee clerked at Oliva Gibbs, where she gained experience working on upstream energy title and transactional matters, providing a solid foundation for her transition to associate attorney at the firm.

Baylee is actively involved in her community and participates in various programs and events with the Houston Bar Association, the Houston Young Lawyers Association, and the Houston Alpha Delta Pi Alumnae Association. In her free time, Baylee enjoys exploring new walking trails with her dog Milo and trying out new Houston restaurants.

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