A federal judge has ordered the resumption of quarterly oil and gas lease sales on federal land in North Dakota, which were suspended by the Biden administration. The decision is expected to enable a revenue stream of $100 million to royalty owners in the state.
The move had been challenged by environmental groups who argued that it would exacerbate climate change and damage wildlife habitats. However, U.S. District Judge Terry Doughty ruled that the government did not adequately justify its suspension of the lease sales.
"Congress expressly authorized leasing federal lands for mineral development," wrote Doughty in his ruling. "The Court does not believe Interior's interpretation is reasonable."
The decision was welcomed by industry groups who have long relied on these lease sales as a critical source of revenue. According to Lynn Helms, director of North Dakota's Mineral Resources Department, "the ruling is good news for royalty owners, tribes, and local governments who rely on this income."
North Dakota is one of several states where oil and gas production has soared in recent years thanks to advances in hydraulic fracturing technology. The state ranks second only to Texas in terms of crude oil production.
Critics argue that continued reliance on fossil fuels will undermine efforts to combat climate change and accelerate global warming. However, supporters say that responsible extraction can be done without harming the environment or sacrificing economic growth.
Regardless of one's views on energy policy, there can be no doubt that today's ruling will have significant implications for North Dakota's economy and its residents' livelihoods.