Louisiana v. Biden

In May 2021, HLLI filed an amicus brief on behalf of counties in Utah and Colorado in support of a motion by Louisiana and twelve other States seeking to preliminarily enjoin the federal government’s unlawful moratorium on oil and gas leasing on federal lands and offshore waters.

Just a week after President Biden took office, he issued Executive Order 14008, directing the Secretary of the Interior to “pause new oil and gas leases on public lands or in offshore waters pending completion of a comprehensive review and reconsideration of Federal oil and gas permitting and leasing practices.”  The Secretary of the Interior did just that, issuing Order No. 3395, which temporarily suspended issuing any fossil fuel-related lease, amendment to a lease, affirmative extension of a lease, contract, or other agreement, or permit to drill. In addition, an agency located within the Department of the Interior responsible for managing federal land issued a “Fact Sheet” discussing the “pause” directive with respect to new oil and natural gas leasing on public lands and offshore waters, concurrent with a comprehensive review of the federal oil and gas program.

The federal government undertook these actions without any notice or comment period and without any informal process for affected counties, states, and other entities to provide input. Louisiana and twelve other states affected by the moratorium filed suit and moved for a preliminary injunction.

As HLLI argued in its amicus brief in support of the states’ motion, the federal leasing moratorium was unlawful as oil and gas leasing sales were required by the Mineral Leasing Act of 1920, 30 U.S.C. 181 (the “MLA”). The MLA requires the Bureau of Land Management (“BLM”) to hold quarterly lease sales for each state in which lands are available. The only reason that BLM can fail to hold such quarterly lease sales under the statute is a lack of eligible lands. Lands were already scheduled for auction in March and April 2021 before BLM cancelled them, citing only Executive Order 140008 for its action. HLLI argued that BLM’s action violated the Administrative Procedure Act because it was both arbitrary and capricious and not in accordance with the law.

The leasing moratorium imposed significant harm on amici counties. Because they have significant federal lands managed by BLM, and because counties cannot collect property taxes from the federal government, they require funds from other sources to provide public services to their inhabitants. Federal mineral leases and the development of oil, gas, and mineral resources on BLM lands fill this role for many western counties, including amici curiae. The oil, gas, and mining industries pay hundreds of millions of dollars in direct production taxes, mineral royalties, and property taxes to counties where that development occurs, while also providing critical economic activities, including jobs, to county residents.

The U.S. District Court for the Western District of Louisiana agreed with HLLI and the plaintiff states, and granted Louisiana’s motion for a preliminary injunction.

While the federal government appealed to the U.S. Court of Appeals for the Fifth Circuit, which vacated the injunction order, and litigation also proceeded in another district court, the federal government has resumed oil and gas leases, albeit at a reduced volume.

On August 22, 2024, the court entered judgment and permanently enjoined the defendants from: (A) Enforcing the Title VI disparate-impact requirements contained in 40 C.F.R. § 7.35(b), (c) and 28 C.F.R. § 42.104(b)(2) against any entity in the State of Louisiana, or requiring compliance with those requirements as a condition of past, existing, or future awards of financial assistance to any entity in the State of Louisiana; and (B) Enforcing against any entity in the State of Louisiana any EPA disparate-impact requirement under Title VI or cumulative-impact-analysis requirement under Title VI that has not been ratified by the President pursuant to 42 U.S.C. § 2000d-1 and is not contained in the EPA regulations implementing Title VI within 40 C.F.R. Part 7.

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