A federal judge has ordered the resumption of oil and gas lease sales on federal land in North Dakota. The Biden administration had suspended these sales, but this move was challenged by a coalition of energy industry groups and state officials.
The quarterly lease sales are expected to generate around $100 million for royalty owners in North Dakota each year. This revenue stream supports local communities and provides critical funding for schools, infrastructure projects, and other public services.
In his ruling, U.S. District Judge Terry Doughty cited the economic importance of the oil and gas industry to North Dakota's economy. He also noted that the Biden administration had failed to provide sufficient justification for its decision to suspend the lease sales.
"Given the significant economic impact that these leases have on Western states like North Dakota, it is important that they continue," said Doughty in his ruling.
The suspension of lease sales had been part of President Biden's efforts to address climate change by reducing fossil fuel extraction on federal lands. However, opponents argued that this policy would harm local economies without making a meaningful impact on global emissions.
North Dakota is one of several states where energy development plays an outsized role in the economy. According to state officials, more than 60% of all crude oil produced in America comes from federal lands located within their borders.
Following the judge's ruling, energy companies will be able to bid on new leases as early as next month. This could lead to increased drilling activity and production levels in coming years if prices remain favorable.
As always with such decisions there will be supporters and detractors however what seems clear is that there will be an increase once again in drilling activity which could boost employment figures as well as ensuring vital funding streams remain available for local services such as schools etcetera who rely heavily upon them.