Federal appeals court scrutinizes environmentalists' objections to Gulf Coast oil and gas lease

A contested oil and gas lease sale in the Gulf of Mexico reportedly may proceed despite objections from environmentalists.

The Court of Appeals for the 5th U.S. Circuit Monday questioned the arguments of a group of environmentalists who were opposed to a lower court's decision to include 6 million acres in an injunction involving oil and gas lease sale in the Gulf of Mexico.

The Center for Biological Diversity, Friends of the Earth, Sierra Club and Turtle Island Restoration Network had argued to the federal district court of Louisiana had improperly ordered the acreage added back. The decision, they argued, would prevent the environmentalists from ever getting to see the rare whale, of which an estimated 50 remain, E&E News reported.

During Monday’s hearing, Judge Catharina Haynes questioned if the environmental groups had demonstrated harm from the lower court’s decision.

“I’d like to see a dinosaur but I’m not going to. The fact that you’d like to see something, while I understand that’s important, does that matter?” Judge Catharina Haynes asked during Monday’s hearing.

The Interior Department’s Bureau of Ocean Energy Management last summer reached a deal with environmental groups this summer to remove 6 million acres from the Lease Sale 261 in the Gulf of Mexico to protect Rice whale, a species reportedly first identified as distinct in 2021. A federal district court in Louisiana had ordered the bureau to add the 6 million acres back into the congressionally mandated sale.

The oil and gas industry has argued there’s not enough evidence about the new species to justify the economic impacts of limiting the lease sale.

A decision from the court of appeals may be issued as soon as this week, according to people familiar with the matter.