A coalition of US states and energy industry organizations filed a lawsuit on Friday against the Biden administration, challenging two presidential memoranda that withdraw over 627 million acres of offshore waters from future oil and gas leasing. The suit, filed with the US District Court for the Western District of Louisiana, argues that the withdrawals exceed the president’s authority under the Outer Continental Shelf Lands Act (OCSLA) and violate constitutional principles, including the separation of powers and the Property Clause.
The petitioners comprise Republican-led states Louisiana, Alabama, Alaska, Georgia, and Mississippi, alongside the American Petroleum Institute and Gulf Energy Alliance. Coastal states rely heavily on revenue from offshore energy leases under OCSLA, and the plaintiffs argue this action will lead to severe economic consequences for jobs in industries tied to offshore oil and gas production. They also argue that the withdrawals undermine the interests of states in managing their own economic and environmental priorities, which they argue Congress explicitly recognized when enacting OCSLA.
The Property Clause of the US Constitution grants Congress exclusive authority to regulate federal lands and resources. The plaintiffs argue that President Biden’s actions improperly usurp this authority by effectively removing vast portions of the outer continental shelf from leasing “forever,” without clear congressional authorization. They contend that while OCSLA allows the president to withdraw certain areas from leasing, this authority is limited and cannot be used to override OCSLA’s core purpose of promoting the “expeditious and orderly development” of offshore resources.
The plaintiffs further claim that the withdrawal memoranda amount to an unconstitutional delegation of legislative power. Congress may delegate certain powers to the executive branch but it must provide clear guidelines (intelligible principles) to direct how that authority is exercised. The plaintiffs argue that OCSLA’s provision allowing the president to “withdraw from disposition any of the unleased lands of the outer Continental Shelf” offers no meaningful limitations or criteria. Accordingly, they claim that this gives the president nearly unlimited discretion to ban leasing for any reason, at any time, and even permanently. The plaintiffs assert that President Biden’s withdrawal of over 627 million acres demonstrates the dangers of such unfettered authority.
The plaintiffs are seeking an injunction to block the enforcement of the withdrawal orders. This legal challenge follows prior litigation against the Biden administration’s attempts to pause oil and gas leasing, which the same court struck down in 2022.
