2023 Q1

National Niche Supplemental Environmental Impact Statement Prepared for Gulf of Mexico Lease Sales 259 and 261 Pursuant to the Inflation Reduction Act of 2022, the Bureau of Ocean Energy Management (BOEM) is required to hold two Gulf of Mexico oil and gas lease sales: Lease Sale 259 by the end of March and Lease Sale 261 by the end of September 2023. On January 9, 2023, BOEM announced it has prepared a Final Supplemental Environmental Impact Statement (EIS) to inform the lease sale process. • Final EIS • Note to Stakeholders: BOEM Issues Final Environmental Analysis for Upcoming Gulf of Mexico Oil and Gas Lease Sales (1/9/2023) ****************************************************** Judge Dismisses Big Oil Conspiracy Lawsuit The anti-trust suit, filed in a California court, alleged the Trump administration and U.S. oil producers conspired with Russia and Saudi Arabia in 2020 to keep oil and gasoline prices high. Among defendants named in the lawsuit were the American Petroleum Institute, Chevron Texaco, ExxonMobil, Occidental Petroleum, Phillips 66, Devon Energy and Energy Transfer. When the lawsuit was dismissed, U.S. District Judge Jeffrey White wrote that “The complaint simply does not allege sufficient plausible facts…” to proceed, and he barred the plaintiffs from re- filing an amended version of the suit.The judge also wrote:“The court lacks jurisdiction over a complaint that ‘requires an inquiry into’ whether foreign nations entered an agreement with defendants at the behest of the President of the United States.” ****************************************************** Louisiana Ruling Sides with Carbon Capture & Storage Project In December 2022, Federal Judge Shelly Dick of the Middle District Court of Louisiana ruled

in favor of a motion for a preliminary injunction against the moratorium imposed by Livingston Parish’s government over building test wells and seismic testing in the area and denied a motion from Livingston to dismiss the lawsuit.The federal judge sided with Air Products, ruling the company can move forward with plans for test wells to store carbon dioxide emissions under Lake Maurepas, after a local ordinance aimed to block the project. Air Products can now proceed with plans to drill Class V injection wells and open a $4.5-billion hydrogen manufacturing complex in Ascension Parish, Louisiana by 2026 that would store its carbon output a mile beneath Lake Maurepas. ****************************************************** Permian Basin Smog Plan Deferred by Biden Administration The Environmental Protection Agency (EPA) is not currently actively considering labeling parts of the Permian Basin as violating federal air quality standards for ozone; however, the issue could be revived. In an agenda of planned regulations released in January, the administration deemed the measure “inactive,” indicating finalization of a plan is not expected in the next six to twelve months. Per EPA’s emailed statement,“If EPA decides to advance this action, EPA would initiate the redesignations process by sending a notification letter to the appropriate state governors soliciting their input and recommendations.As part of a potential redesignations effort, EPA would also provide an opportunity for public comment on the action.” The smog created in the Permian Basin is being attributed to violations of federal air quality standards for ozone, which forms when ground level organic compounds and other air pollution from sources such as tailpipes, smokestacks and oil wells react with sunlight. Oil producers lobbied for a slowdown on the policy, but this deferral was viewed as detrimental to public health by conservationists. Texas Oil and Gas Association president Todd Staples stated,“Carbon dioxide,

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G rowth T hrough E ducat i on - J anuary / F ebruary / M arch 2023

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