DC Circuit NEPA ruling could upend offshore oil leasing lawsuit

By Niina H. Farah | 01/14/2025 06:44 AM EST

Industry, greens and government attorneys are at odds about the impact of the ruling for a pending challenge to a congressionally mandated Gulf of Mexico oil and gas lease sale.

 An oil rig in 2010 near the Deepwater Horizon wellhead in the Gulf of Mexico.

An oil rig in the Gulf of Mexico. Chris Graythen/AFP via Getty Images

A contested court ruling overturning the White House’s power to regulate environmental reviews is looming over a pending legal dispute about the risks posed by a 2023 offshore oil and gas lease sale.

Last year, the U.S. Court of Appeals for the District of Columbia Circuit issued a surprise ruling finding the White House Council on Environmental Quality could not issue National Environmental Policy Act regulations for how federal agencies comply with the statute.

The decision has raised questions about how courts should proceed in a number of other pending NEPA lawsuits, particularly since both parties in the case — the Marin Audubon Society and the Biden administration — have asked a full panel of active D.C. Circuit judges to reconsider the decision on CEQ’s authority.

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On Friday, the American Petroleum Institute and Chevron USA said if the lower court was inclined to wait to resolve a case involving a lease sale in the Gulf of Mexico, it would then be able to “address all potential changes in the NEPA landscape together.”

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