US judge gives NMFS more time to finish study needed to allow Gulf of Mexico drilling

A federal judge in Maryland gave the National Marine Fisheries Service (NMFS) another 5 months to complete a new study on protecting marine life in the US Gulf of Mexico, avoiding a potential halt to new and existing federal offshore oil and gas development.

In August, District Judge Deborah Boardman of the US District Court in Maryland gave NMFS until Dec. 20 to redo the biological opinion because it failed to protect the endangered Rice’s whale and other marine life (OGJ Online, Oct. 21, 2024). A valid biological opinion is a legal requirement for federal offshore drilling.

Industry warned that the initial order did not give the regulator enough time to finish a new report, and that the judge’s decision to vacate the biological opinion in December could put American energy supply and economic security in jeopardy.

On Oct. 21, Judge Boardman approved an emergency request to give NMFS more time to complete the study, ruling that she would vacate the existing biological opinion on May 21, 2025, if NMFS fails to complete a new one.

NMFS started work on a revised biological opinion but told the court that the review could take until spring 2025.

The case dates back about 4 years when certain environmental groups filed a lawsuit challenging the legality of NMFS’ biological opinion.

The industry welcomed the time extension, with National Ocean Industries Association president Erik Milito noting that the ruling should avert potential permitting and operational risks in Gulf of Mexico operations that could inject uncertainty into the market.

 “We must continue to support and protect the Gulf of Mexico’s energy production to ensure stability and growth for our nation and reduce dependence on volatile global markets and adversarial nations such as Russia or Iran," Milito said. He also noted that lower production from the Gulf of Mexico could put more inflationary pressure on consumers.

API senior vice-president and general counsel Ryan Meyer said API was committed to working with NMFS to complete the new biological opinion.  “Today’s ruling provides only temporary relief and work still must be done to avoid disruptions to the backbone of our nation’s energy supply,” Meyers said.

The Gulf of Mexico produces about 2 million b/d of oil and supports nearly 435,000 jobs, NOIA said. API said the Gulf of Mexico accounts for about 14% of total US crude production and 2% of its natural gas production.