Appeals Court Blocks Alaska Oil and Gas Leasing Plan

A federal appeals court blocked oil and gas leases off the Coast of Alaska, throwing out leases that were granted by the Bush Administration.

According to the three judges, the Interior Department neglected to make a proper assessment of the impact drilling would have on the environment. The court halted the program until a full review is conducted. The decision gives Interior Secretary Ken Salazar time to reassess the oil and gas lease sales and determine the depth of the risk to the environment.

Oil and Gas Lease AttorneyThe Bush Administration auctioned off oil and gas leases along Alaska’s coast which, according to geological estimates, could contain up to 19 billion barrels of oil. That is more than the reserves of Mexico, Nigeria, and Kazakhstan combined.

However, native Eskimos and environmental groups insist that it would be reckless to encourage drilling in these Arctic waters without understanding the depth of the dangers posed to the natural landscape. Conservationists argue that there is a significant threat posed to marine wildlife in the region due to the possibility of oil spillage. Environmental groups and native communities support the court's decision. The American Petroleum Institute released a statement saying that the court's decision would deal a severe blow to the economy, especially during this recession.  

Earlier this year, Salazar revoked oil and gas leases granted by the Bush Administration in Utah due to environmental concerns. Since the new administration took over, Salazar has also overseen the auction of oil and gas leases in the Gulf of Mexico.

Oil and Gas Attorney

Oil and gas leases are complex contracts negotiated by specialized lawyers called oil and gas lease attorneys. If you have questions regarding oil and gas leases or run into problems trying to negotiate an oil and gas lease, an experienced attorney can help.

Contact an oil and gas lease attorney, at Arnold & Itkin LLP for a free consultation. 

 

 

 
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