US Federal Judge blocks Biden's pause on new oil and gas leases

London (Quantum Commodity Intelligence) - The Biden administration's suspension of new oil and gas leases on federal lands and waters was blocked Tuesday by a federal judge in Louisiana who said the White House does not have the legal right to stop leasing federal territory for fossil fuel production without approval from Congress, reports various media sources.

US District Judge Terry Dougherty preliminary injunction ruling came after a lawsuit was filed in March by 12 states.

Doughtery also said the states suing the federal government will be harmed immediately as the Biden pause prevents them from collecting lease bids and bonuses from oil and gas companies.

Drilling on federal land and water, such as the Gulf of Mexico and offshore Alaska, generated almost $6 billion in government revenue in 2020, according to the Wall Street Journal.

The suspension of new oil and gas leases was initiated by the US Interior Department, which said it would comply with Tuesday's ruling, but said it would continue a review of current leasing practices, which President Biden has requested in January as part of his order to pause the federal oil and gas program.

The suit was filed by the states of Louisiana, Alabama, Alaska, Arkansas, Georgia, Mississippi, Missouri, Montana, Nebraska, Oklahoma, Texas, Utah, and West Virginia.