Federal committee exempts US Gulf drilling activities from Endangered Species Act
On 31 March, the Endangered Species Committee, a US federal committee, voted unanimously to exempt US Gulf oil and gas activities, including drilling, from the “avoidance or minimization measures” mandated by the Endangered Species Act.
This exemption was based on a national security determination by US Defense Secretary Pete Hegseth. That determination focused on lawsuits brought by non-governmental organizations (NGOs) about the biological opinions that analyze oil and gas activities in the Gulf and that require certain actions to protect listed species. Secretary Hegseth had said that the litigation created a substantial risk that the biological opinions would halt oil and gas activity in the Gulf and prevent new federal approvals. The potential disruption of domestic oil production, he argued, was a matter of national security.
The Endangered Species Act, passed in 1973, requires federal agencies to avoid actions that could jeopardize a listed species or destroy its critical habitat. In most cases, agencies resolve these issues through planning, consultation and mitigation. The Endangered Species Committee, which was formed as part of an amendment to the act in 1978, may grant exemptions when a project of “significant national or regional importance” faces unresolvable conflicts with Endangered Species Act requirements.
Following the decision, the Center for Biological Diversity, one of the NGOs that had filed suit against the government, amended its challenge to add a claim that Secretary Hegseth’s national security determination violates the Administrative Procedure Act.
Another NGO, the Natural Resource Defense Council, filed a separate legal challenge claiming that the committee violated and exceeded its authority.
Marine Minerals Administration to unify BOEM, BSEE
The US Department of the Interior (DOI) has begun a phased plan to establish the Marine Minerals Administration, which will combine the functions of the Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety and Environmental Enforcement (BSEE).
In a statement, the DOI said the primary aim of the move is to enhance coordination and improve efficiency across offshore leasing, permitting, inspections and environmental oversight, while keeping all regulatory protections and safety standards unchanged.
This approach aligns with changes in offshore energy development, highlighting the necessity for an integrated method of managing both conventional and emerging resources like critical minerals.
“The establishment of the Marine Minerals Administration marks a strategic step toward a more modern, coordinated approach to offshore resource management. The agency will better align resource planning, leasing decisions and operational oversight under a unified structure, reducing duplication and improving decision making across the full lifecycle of offshore development,” the DOI statement read.
All statutory authorities and protections will remain in place throughout the transition.
Click here to see more about the Marine Minerals Administration.
US EPA finalizes revisions to 2024 Clean Air Act rules covering gas flaring
On 6 April, the US Environmental Protection Agency (EPA) finalized revisions to certain aspects of the 2024 Clean Air Act rules for oil and natural gas.
The 2024 rule phased out routine flaring of associated natural gas from new sources, while allowing owners and operators to perform temporary flaring for up to 24 hours in maintenance situations. In a statement, the EPA referenced “serious concerns” that the rule provided a limited time frame that was not enough for owners and operators to troubleshoot and repair equipment.
Under the revised rule, owners and operators will now be able to utilize temporary flaring for up to 72 hours. During exigent circumstances where site access is limited due to extreme inclement weather, temporary personnel shortage, or supply chain issues due to circumstances outside the owner or operator’s control, the final rule provides additional time beyond the 72 hours. Owners and operators will be required to keep records and report when such situations occur.
The original rule also required continuous monitoring of the net heating value (NHV) of vent gas from flares and enclosed combustion devices (ECD). The revised rule adjusts the NHV monitoring and testing provisions so that owners and operators do not need to perform NHV sampling from flares or ECD, except where inert gases or other miscellaneous scenarios are present.
EU ministers call for new windfall tax on energy profits
Economy and finance ministers from Italy, Germany, Spain, Portugal and Austria are asking the European Union (EU) for a tax on energy surplus profits to curb energy price increases.
In a letter addressed to EU Climate Commissioner Wopke Hoekstra dated 3 April, the ministers advocated reviving and boosting a tax mechanism similar to the EU’s 2022 “solidarity contribution,” which taxed approximately €28 billion on excess fossil fuel profits during the post-Ukraine war price spike. That tax applied to taxable profits above a 20% increase of the average yearly taxable profits over the previous four years. It was a voluntary and temporary measure – 15 of the 27 member states applied the tax, while eight adopted an equivalent national measure. All of these states had stopped the tax by 2025.
Outside the EU, the United Kingdom also had implemented a windfall profits tax on oil and gas companies in 2022 (the Energy Profits Levy). That tax is currently set to expire in 2030.
