Margaret river offshore drilling lease approved by federal court
The U.S. District Court for the District of South Dakota ruled Thursday that South Dakota’s oil and gas industry has failed to properly defend itself against criticism of the leasing and that the federal government cannot take away the royalties of its oil and gas industry until the lawsuit is resolved.
A U.S. District Court judge in Sioux Falls in April ruled that the State Petroleum Council of South Dakota had failed to follow procedures when awarding royalty payments, including payment by an oil company based in a foreign country, which is usually done by a state petroleum council member.
Judge David R. Williams, in his ruling, said the council had not been notified that any oil company had requested payments for an offshore drilling project by the Dakota Access pipeline and that the payment was made without due process. The court also found that State Petroleum Council failed to properly consult the oil company or submit a brief with a full analysis of costs and benefits.
“No state oil and gas council is required to engage in any activity without first seeking public comments on the project,” Williams wrote, calling on the federal government to step in. “All oil and gas leases for exploration, production, or development in the state of South Dakota must comply with the federal government’s policies, procedures, and processes.”
The judge ruled that because the leaseholder did not immediately notify State Petroleum Council after the company submitted its brief, “State Petroleum Council did not have the time, resources, or expertise to analyze the costs and benefits of the [Cedar Ridge Pipeline] leasing proposal … and did not submit a complete analysis of the oil and gas facts to ensure State Petroleum Council was informed of all relevant facts to support its proposed lease proposal.”
The lawsuit against the Dakota Access pipeline was brought by more than one Native American tribe and a Native American business group. The judge was joined in the decision by U.S. Circuit Judge William A. Collyer.
“This is yet another blow to the industry, which is paying the price for decades of irresponsible public behavior,” said David O’Leary, executivXO 카지노e director of Oil Change International, which, in a stateme에그 벳nt, condemned “these overreaching legal threats.”
The lawsuit argues that state law author점보카지노izes the oil and gas industry to pay fees and royalties, while the court is concerned that the state must spend “millions of dollars on this litigation,” especially considering the cost of the litigation and other legal fees.
South Dakota Attorney General Marty Jackley said in a statement: