Will Trump Scuttle Obama's Offshore Drilling Bans?

authordefault
on

by Patrick Parenteau, Vermont Lawย School

President Obama gave environmental advocates a Christmas present when he announced in late December that he wasย banning oil and gas drillingย in huge swaths of the Arctic and Atlantic oceans. This action โ€œindefinitelyโ€ protects almost 120 million acres of ecologically important and highly sensitive marine environments from the risks of oil spills and other industrialย impacts.

President Obama acted boldly to conserve important ecological resources and solidify his environmental legacy. But by making creative use of an obscure provision of a 1953 law, Obama ignited a legal and politicalย firestorm.

Republicans and oil industry trade groups are threatening to challenge the ban in court or through legislation. They also contend that the Trump administrationย can act directlyย to reverse it. But a close reading of the law suggests that it could be difficult to undo Obamaโ€™s sweepingย act.

The power toย withdraw

Congress passed the law now known as theย Outer Continental Shelf Lands Actย in 1953 to assert federal control over submerged lands that lie more then three miles offshore, beyond state coastal waters. Section 12(a) of the law authorizes the president to โ€œwithdraw from disposition any of the unleased lands of the outer Continentalย Shelf.โ€

Starting in 1960 with the Eisenhower administration,ย six presidentsย from both parties have used this power. Most withdrawals were time-limited, but some were long-term. For example, in 1990 President George H. W. Bush permanently banned oil and gas development in Californiaโ€™s Monterey Bay, which later became aย national marine sanctuary.

President Obama used section 12(a) in 2014 to protectย Alaskaโ€™s Bristol Bay, one of the most productive wild salmon fisheries in the world. In 2015 he took the same step for approximately 9.8 million acres in the biologically richย Chukchi and Beaufort seas.

Obamaโ€™s latest action bars energy production in 115 million more acres of the Chukchi and Beaufort seas โ€“ an area known as the โ€œArctic Ring of Lifeโ€ because of its importance to Inupiat Peoples who have lived there for millennia. The order also withdraws 3.8 million acres off the Atlantic Coast from Norfolk, Virginia to Canada, including several unique and largely unexploredย coral canyons.

Why Obamaย acted

In aย Presidential Memorandumย on the Arctic withdrawals, Obama provided three reasons for his action. First, he asserted, these areas have irreplaceable value for marine mammals, other wildlife, wildlife habitat, scientific research and Alaska Native subsistence use. Second, they are extremely vulnerable to oil spills. Finally, drilling for oil and responding to spills in Arctic waters poses unique logistical, operational, safety and scientificย challenges.

In ordering the Atlantic withdrawals, Obamaย citedย his responsibility to โ€œensure that the unique resources associated with these canyons remain available for futureย generations.โ€

Market forces support Obamaโ€™s action. Royal Dutch Shellย stopped drillingย in the Chukchi Sea in 2015 after spending US$7 billion and drilling in what proved to be a dry hole. Since 2008 the Interior Department hasย canceled or withdrawnย a number of sales in Alaskan waters due to low demand. Shell, ConocoPhillips, Statoil, Chevron, BP and Exxon have all to some degreeย abandoned offshore Arctic drilling.


The Beaufort and Chukchi seas are zones of the Arctic Ocean off the coast of northern Alaska.ย Mohonu/Wikipedia,ย CC BYSA

Low oil prices coupled with high drilling costs make business success in the region a risky prospect. Lloydโ€™s of Londonย forecast this scenarioย in a 2012 report that called offshore drilling in the Arctic โ€œa unique and hard-to-manageย risk.โ€

What happensย next?

Critics of President Obamaโ€™s action, including the state of Alaska and the U.S. Chamber of Commerce, say they mayย challenge Obamaโ€™s order in court, in hopes that the Trump administration will opt not to defend it. But environmental groups, whichย hailed Obamaโ€™s action, will seek to intervene in any suchย lawsuit.

Moreover, to demonstrate that they have standing to sue, plaintiffs would have to show that they have suffered or face imminent injury; that this harm was caused by Obamaโ€™s action; and that it can be redressed by the court. Market conditions will make this veryย difficult.

The Energy Information Administration currentlyย projectsย that crude oil prices, which averaged about $43 per barrel through 2016, will rise to only about $52 per barrel in 2017. Whether these areas will ever be commercially viable is an open question, especially since rapid changes are taking place in the electricity and transportation sectors, and other coastal areas are open for leasing in Alaskaโ€™s near-shore waters and the Gulf ofย Mexico.

The Royal Dutch Shell drilling rig Kulluk broke loose and ran aground near Kodiak Island in the Gulf of Alaska as it was being towed to Seattle for winter maintenance in December 2012. This Coast Guard overflight video shows the harsh conditions along Alaskaโ€™s coast inย winter.

Alternatively, Donald Trump could issue his own memorandum in office seeking to cancel Obamaโ€™s. However, section 12(a) does not provide any authority for presidents to revoke actions by their predecessors. It delegates authority to presidents to withdraw land unconditionally. Once they take this step, only Congress can undoย it.

This issue has never been litigated. Opponents can be expected to argue that Obamaโ€™s use of section 12(a) in this manner is unconstitutional because it violates the so-called โ€œnondelegation doctrine,โ€ which basically holds that Congress cannot delegate legislative functions to the executive branch without articulating some โ€œintelligibleย principles.โ€

However, one could argue that Obamaโ€™s action was based on an articulation of intelligible principles gleaned from the stated policies of the OCSLA, which recognizes that the โ€œthe outer Continental Shelf is a vital national resource reserve held by the Federal Government for the public.โ€ The law expressly recognizes both the energy and environmental values of the OCS. Thus President Obamaโ€™s decision reflects a considered judgment that the national interest is best served by protecting the unique natural resources of these areas, while at the same time weaning the nation from its dangerous dependence on fossilย fuels.

The section 12(a) authority is similar in some respects to the authority granted by theย Antiquities Act, which authorizes the president to โ€œreserve parcels of land as a part of [a] national monument.โ€ Like the OCSLA, the Antiquities Act does not authorize subsequent presidents to undo the designations of their predecessors. Obama has alsoย used this power extensivelyย โ€“ most recently, last week when he designatedย two new national monumentsย in Utah and Nevada totaling 1.65 millionย acres.

Some laws do include language that allows such actions to be revoked. Examples include theย Forest Service Organic Administration Act, under which most national forests were established, and theย 1976 Federal Land Policy and Management Act, which sets out policies for managing multiple-use public lands. The fact that Congress chose not to include revocation language in the OCSLA indicates that it did not intend to provide suchย power.

What can the new Congressย do?

Under Article IV of the Constitution, Congress has plenary authority toย dispose of federal propertyย as it sees fit. This would include the authority to open these areas to leasing for energy development. Members of Alaskaโ€™s congressional delegation are considering introducing legislation to override Obamaโ€™s drilling ban. But Democrats could filibuster to block any such move, and Republicans โ€“ who will hold a 52-48 margin in the Senate โ€“ would need 60 votes to stopย them.

On the other hand, Congress may be content to let President-elect Trump make the first move and see how it goes in court. If Trump attempts to reverse the withdrawal, environmental groups contesting his decision would face some of the same obstacles as an industry challenge to Obamaโ€™s action. It could be especially challenging for environmental groups to show that the claim is โ€œripeโ€ for judicial review, at least until a post-Obama administration acts to actually open up these areas for leasing. That may not occur for some time, given the weak market for the oil in theseย regions.

In the meantime, this decision is a fitting capstone for a president who has done everything within his power to confront the existential threat of climate change and rationally move the nation and the world onto a safer and more sustainableย path.

Patrick Parenteauย is professor of law at Vermont Lawย School.

This article was originally published onย The Conversation. Read theย original article.

Image credit:ย DeSmog

authordefault

Related Posts

Analysis
on

The celebrity investor pitched โ€˜Wonder Valleyโ€™ with no committed investors, no Indigenous partnership, and about 27 megatonnes of projected annual emissions.

The celebrity investor pitched โ€˜Wonder Valleyโ€™ with no committed investors, no Indigenous partnership, and about 27 megatonnes of projected annual emissions.
on

City Council OKs private equity firmโ€™s purchase of Entergy gas utility, undermining climate goals and jacking up prices for the cityโ€™s poorest.

City Council OKs private equity firmโ€™s purchase of Entergy gas utility, undermining climate goals and jacking up prices for the cityโ€™s poorest.
on

With LNG export terminals already authorized to ship nearly half of U.S. natural gas abroad, DOE warns build-out would inflate utility bills nationwide.

With LNG export terminals already authorized to ship nearly half of U.S. natural gas abroad, DOE warns build-out would inflate utility bills nationwide.
Analysis
on

We reflect on a year of agenda-setting stories that charted the political influence of fossil fuel interests in the UK and beyond.

We reflect on a year of agenda-setting stories that charted the political influence of fossil fuel interests in the UK and beyond.