Jan 29, 2021
Biden yanks just-approved drilling permits for additional review
Should Canada retaliate as Biden moves to kill Keystone XL?
The Biden administration is yanking scores of drilling permits that were issued by agency workers without the approval of political appointees despite a temporary order for such reviews.
The Interior Department on Friday notified affected oil and gas producers that roughly 70 permits were improperly issued and the companies need to seek new approvals.
The permits fell afoul of a temporary Interior Department order that for two months puts those decisions in the hands of top agency officials, rather than delegating them to workers in Bureau of Land Management offices around the country.
“Approximately 70 permits were approved without proper review following the issuance of a department directive that temporarily elevates review of permitting activities,” said Interior spokeswoman Melissa Schwartz. “Operators have been notified that those applications for permits to drill must be resubmitted for appropriate and timely review. Interior continues to approve permits and will transmit final decisions as soon as possible.”
The approvals were invalid under the Interior Department’s Jan. 20 secretarial order requiring agency brass to authorize drilling permits, easements, hiring and other decisions, according to a notification letter seen by Bloomberg News.
Companies also are being assured they do not face penalties for any drilling or other activities they started under the invalidated permits, though they are being ordered to cease those operations while seeking new approvals.
Top Interior Department officials have used the temporary new process to approve dozens of drilling permits since Jan. 20, when President Joe Biden was inaugurated. At least 33 have been authorized for offshore oil and gas wells in the Gulf of Mexico, according to a Bloomberg News review of government data.
The permit changes are separate from a government pause on new oil and gas leasing that was ordered by Biden on Wednesday. Biden’s order does not affect permitting and other activity on existing oil and gas leases.