In a move aimed at safeguarding the Rice’s whale species, the Biden administration has imposed fresh restrictions on oil and gas companies operating in the Gulf of Mexico. This decision comes after the administration settled with a coalition of environmental groups last month. The Bureau of Ocean Energy Management (BOEM), responsible for managing energy development in federal waters, issued a Notice to Lessees and Operators (NTL) detailing enhanced protections for the endangered Rice’s whale.
However, this decision has sparked controversy, with the National Ocean Industries Association’s President Erik Milito criticizing the administration’s approach. Milito expressed concerns that the move sidesteps legal requirements and the public process, leading to unwarranted restrictions on U.S. energy production. He further argued that the NTL and the broader Stipulated Stay Agreement hinder America’s energy production capabilities and jeopardize both jobs and energy independence.
Under the newly issued NTL, BOEM introduced an extensive protection zone in the Gulf of Mexico with various conditions for industry operators. These include the requirement for specially-trained visual observers on all vessels in the area, speed limits of 10 knots for all ships regardless of size, and daytime-only travel through the area. These recommendations will be incorporated as stipulations in Lease Sale 261, a forthcoming offshore oil and gas lease auction. Additionally, BOEM has removed around 11 million acres of potential oil-rich lease blocks from that sale.
Milito emphasized that the federal government’s push to expand these protections could impact various ocean users and industries. He expressed concern about the proposed designation of critical habitat for the Rice’s whale and the potential restrictions it might impose on the Gulf Coast economy and the wider U.S. economy.
The backdrop to this action involves a stipulated stay agreement between the National Marine Fisheries Service (NMFS) and environmental groups, which temporarily paused related litigation. The agreement came after the NMFS faced a lawsuit from the environmental coalition over its assessment of the impacts of oil industry activities on marine wildlife in the Gulf of Mexico.
Critics like American Petroleum Institute (API) and its Vice President of Upstream Policy, Holly Hopkins, have decried these restrictions as detrimental to American energy and security. API argues that the proposed actions lack justification based on existing data and operational experience and unfairly target the oil and gas sector, while not equally affecting other industries using the maritime area.