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Biden Administration bans offshore oil and gas leasing in most US federal waters
On 6 January, then-US President Joe Biden announced a ban on future oil and gas leasing on the US East Coast; the eastern US Gulf of Mexico; the Pacific coasts off of Washington, Oregon and California; and portions of the Northern Bering Sea in Alaska. The withdrawals have no expiration date and would effectively shut down any new drilling in the areas.
The withdrawal will not have significant impact on activity in some areas – for instance, there are currently no active oil and natural gas leases in US waters off the eastern Atlantic coast. The state of California has had a moratorium on issuing leases in its state waters since 1969, and there hasn’t been a federal lease sale in the area since 1984. However, the ban will also affect 44 million acres of the Northern Bering Sea in northwest Alaska.
Although President Donald Trump has indicated that he will undo President Biden’s bans, that could prove difficult since they would likely require an act of Congress to repeal. The law President Biden cited allows the president to withdraw portions of the US Outer Continental Shelf from mineral leasing, including leasing to drill for oil and gas, if the areas are deemed too sensitive to drill.
In a statement, API President and CEO Mike Sommers criticized the ban: “Congress and the incoming administration should fully leverage the nation’s vast offshore resources as a critical source of affordable energy, government revenue and stability around the world. We urge policymakers to use every tool at their disposal to reverse this politically motivated decision and restore a pro-American energy approach to federal leasing.”
Click here to read more about the withdrawal of US federal waters from offshore leasing.
EPA finalizes rules on marine pollution, methane fees
In late 2024, the US Environmental Protection Agency (EPA) passed regulations around marine pollution and methane emissions.
The first regulations, issued on 9 October, apply to non-recreational vessels 79 ft or longer and focus on controlling marine pollution during normal vessel operations. Among other things, the regulations set performance standards for marine pollution control devices. Also, they state that the US Coast Guard will develop specific compliance and enforcement guidelines.
The new regulations became effective on 8 November. Until the Coast Guard finalizes its implementation, which is expected within two years, the current Vessel General Permit requirements will remain in place.
The second regulation, issued on 12 November, facilitates the implementation by the US Congress to collect a Waste Emissions Charge. The charge applies to waste emissions from oil and gas facilities that report emissions of more than 25,000 metric tons of CO2e to the Greenhouse Gas Reporting Program, beginning with methane emissions reported in 2024. The charge starts at $900/metric ton of emissions beyond the 25,000 metric ton threshold. That fee increases to $1,200/metric ton in 2025 and $1,500 for 2026 and beyond.
US Coast Guard issues regulations for Safer Seas Act on assault reporting
The US Coast Guard released new safety requirements under the Safer Seas Act as of 23 December. These requirements, which were part of the 2022 US Defense Bill, focus on preventing and reporting sexual assault and harassment (SASH) on commercial vessels in US waters. The rules mainly apply to vessels that:
- Have sleeping quarters for 10 or more people;
- Operate for at least 72 hours on the US Continental Shelf; and
- Are not passenger ships.
Ships must comply with these rules by their first scheduled drydocking after December 2024, unless they already had drydock maintenance between December 2022 and December 2024. Underwater Inspection in Lieu of Dry-Docking (UWILD) does not count as drydocking for this requirement.
Currently, these requirements do not exist as detailed regulations. IADC, along with other stakeholder groups, has been engaging with US Coast Guard officials to understand how these rules affect:
- Mobile offshore drilling units under the Outer Continental Lands Act;
- Tank ships operating for more than 72 hours on the US Continental Shelf; and
- Oil operations in the US Gulf of Mexico, including the Louisiana Offshore Oil Platform.
Texas RRC updates rules on handling oil and gas waste
In December, the Texas Railroad Commission (RRC) adopted new rules regulating oil and gas waste management facilities in the state. The regulations cover, among other things, rock and other material pulled from the ground during drilling.
The rule updates requirements on the design, construction, operation, monitoring and closure of waste management units, and will improve the RRC’s ability to track and collect data on oilfield waste transported throughout Texas.
The new rules also codify informal guidance that the RRC developed over the course of several decades to give operators and the public certainty on how regulations of waste management facilities are carried out.
The RRC said it believes the adopted rules will enhance its oversight of waste management facilities.
Click here to read the finalized Texas RRC rules on oil and gas waste management.
