Texas' legal challenge of the offshore drilling moratorium FULL TEXT

Texas' legal challenge of the offshore drilling moratorium FULL TEXT IN PDF FORMAT Case 4:10-cv-02866 Document 1 Filed in TXSD on 08/11/10

Statement by Gov. Rick Perry on Texas Challenge of Offshore Drilling Moratorium

Gov. Rick Perry today (08/11/10) issued the following statement regarding Texas’ lawsuit against the Obama Administration over its offshore drilling moratorium:

“Once again, the Obama Administration has demonstrated a flagrant disregard for the rights and economies of states and the well-being of those whose jobs depend upon a safe and vibrant energy industry, many of whom live in Texas,” Gov. Perry said. “It is unfortunate Texas must take such action against the federal government, but I will do everything in my power to preserve our state’s economy and the jobs that feed our families. The jobs and livelihoods of too many Texans are at stake for them to be denied a voice by the Obama Administration and their federal bureaucracy.”

Court documents filed by the State set forth that the Administration unilaterally imposed its offshore drilling ban without properly coordinating with the State of Texas. Further, the Administration also improperly failed to consider the moratorium’s economic impact on Gulf Coast states, including Texas. Under the Outer Continental Shelf Lands Act (OCSLA), the Interior Secretary must coordinate with affected states and weigh a moratorium’s economic impact before imposing an offshore drilling ban. Despite the OCSLA’s requirements, the Obama Administration did not consult with Texas on either issue.

State of Texas Challenges Federal Government's Offshore Drilling Moratorium

AUSTIN – Texas Attorney General Greg Abbott today (08/11/10) filed a legal challenge to the Obama Administration’s offshore drilling moratorium. The State’s legal challenge charges the Administration with violating a federal law that requires the Secretary of Interior to consult with affected states before imposing an offshore drilling moratorium. Filed on behalf of the State of Texas, Governor Rick Perry and Land Commissioner Jerry Patterson, today’s legal action names the following defendants: the U.S. Department of the Interior (DOI); DOI Secretary Kenneth Salazar; the Bureau of Ocean Energy Management, Regulation and Enforcement – formerly known as the Minerals Management Service – and BOEM Director Michael Bromwich.

“The federal government ignored the State of Texas and failed to comply with the law when the Secretary of the Interior unilaterally imposed the Administration’s offshore drilling ban,” Attorney General Abbott said. “Under federal law, affected states are guaranteed the right to participate in offshore drilling-related policy decisions, but the Obama Administration did not bother to communicate, coordinate or cooperate with Texas. Worse, the Secretary of the Interior failed to consider the economic consequences of his decision, which will cost the Texas economy millions of dollars – and threatens far too many hard-working Texans’ jobs.”

Court documents filed by the State set forth that the Administration unilaterally imposed its offshore drilling ban without properly coordinating with the State of Texas. Further, the Administration also improperly failed to consider the moratorium’s economic impact on Gulf Coast states, including Texas. Under the Outer Continental Shelf Lands Act (OCSLA), the Interior Secretary must coordinate with affected states and weigh a moratorium’s economic impact before imposing an offshore drilling ban. Despite the OCSLA’s requirements, the Obama Administration did not consult with Texas on either issue.

On July 12, Interior Secretary Ken Salazar announced the current offshore drilling moratorium without any prior notice to or communication with the State of Texas – despite the fact that Texas refines more oil than any other state. As the State’s complaint explains, an economic impact analysis produced by Louisiana State University has projected that Texas will suffer a $622 million decrease in Gross State Product because of the six-month moratorium. Thus, Texas clearly meets the statutory definition of an “affected State” under the OCSLA. Nonetheless, the Department of the Interior did not give the State of Texas an “opportunity to participate” in the federal government’s decision-making process – which constitutes a violation of the OCSLA and the Administrative Procedure Act.

As the State’s legal challenge asserts, the Administration’s failure to consult Texas led the Secretary of Interior to implement an unjustified, arbitrary and capricious policy that will inflict economic harm upon coastal communities – particularly those that are most dependent upon offshore drilling for jobs and tax revenue. The legal action seeks a court order declaring that the State of Texas must be provided a reasonable opportunity to participate in the formulation of the Secretary’s offshore policy. Further, the Secretary must give due consideration to the drilling moratorium’s economic impact.

Today’s legal challenge targets the Administration’s second offshore drilling moratorium. The first drilling moratorium, which was also imposed without proper notice to – or consultation with – the State, was retracted by the Administration after multiple private parties successfully sued the Administration in a federal district court. A June 22 decision in the federal district court for the Eastern District of Louisiana enjoined the Administration from enforcing its moratorium. Undeterred by the court ruling – and once again without notice to or consultation with Texas – the Interior Secretary simply withdrew the initial moratorium and imposed a second offshore drilling ban on July 12, which halts all drilling operations in water depths of greater than 500 feet.

Assistant Attorneys General Nicholas Canaday III and Nichole Bunker-Henderson with the Environmental Protection and Administrative Law division will serve as lead counsel to the State of Texas in this case.

TEXT CREDITS :

• Office of the Governor Rick Perry Office of the Governor P.O. Box 12428
  Austin, Texas 78711 Phone: (512) 463-2000 Fax: (512) 463-1849
• Texas Attorney General Office of the Attorney General PO Box 12548 Austin, TX 78711-2548 Physical Address: Office of the Attorney General 300 W. 15th Street Austin, TX 78701 e-mail: greg.abbott@oag.state.tx.us Main agency switchboard: (512) 463-2100 By FAX: (512) 475-2994