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California Challenges Federal Oil and Gas Leases

California v. Norton, 150 F.Supp.2d 1046 (N.D. Cal. 2001).

Roy A. Nowell, Jr., 3L

A recent federal court ruling has prevented the suspension of oil and gas leases off the coast of California. The controversy involves a decision by the Mineral Management Service (MMS) to suspend oil and gas leases on California's outer continental shelf that were originally issued between 1968 and 1984. A “suspension” of the leases would effectively extend the lease terms that would otherwise expire. California claimed that the federal government must analyze the environmental impacts of potential oil exploration before approving the suspension. The court ruled that the MMS suspensions meet the definition of "federal activity" as defined by the Coastal Zone Management Act (CZMA) and therefore must meet consistency requirements of California’s coastal zone management program. The court's determination effectively halts any possible oil exploration that would have occurred in the lease areas until further environmental studies are completed. The Federal government plans an appeal to the Ninth Circuit Court of Appeals. Water Log will report on the appeal in a future issue.

University of Mississippi