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A powerful shot of hope and optimism was injected into Louisiana and numerous other states when a Louisiana federal judge issued a nationwide preliminary injunction ruling that the ban on new oil and gas leases imposed by the Biden Administration must be lifted.
Finding that the ban failed to offer “any rational explanation” for its imposition, the court, through the grant of the injunction, reversed a January 2021 executive order by President Biden that halted lease sales on federal lands and in federal waters and requires the Department of Interior to immediately restart its leasing program.
Twelve other states joined Louisiana in the suit in opposition to the ban. We should note that not only is this decision significant for the oil and gas industry itself, but also because the sale of the leases and resulting royalties generate millions of dollars in revenues for federal, state, and local governments.
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