Biden administration delays Gulf oil and gas lease sale due to litigation and uncertainty

The Biden administration has indefinitely postponed a major oil and gas lease sale, Lease Sale 261, mandated by the Inflation Reduction Act (IRA) due to legal uncertainty. The Bureau of Ocean Energy Management (BOEM) delayed the sale after adding last-minute environmental restrictions, which led to litigation from the fossil fuel industry and Louisiana. A preliminary injunction was granted to the plaintiffs, but the U.S. Court of Appeals allowed BOEM to delay the sale until November 8. The next arguments in the case are set for November 13. The delay has drawn criticism from industry groups, while bipartisan leaders have called for the sale to proceed without restrictions.