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Tag: U.S. Department of the Interior

  • Empire Wind wins injunction to resume $5B offshore project | Long Island Business News

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    received a preliminary court injunction that allows construction to continue on its $5 billion wind project off Long Island. 

    The U.S. District Court for the District of Columbia granted the injunction after Empire LLC challenged the federal governments stoppage issued last month. The suspended the leases of Empire Wind and four other offshore wind power projects, including Long Island’s Sunrise Wind on Dec. 22, citing a Pentagon complaint that the wind turbine blades would cause radar interference and create a national security risk. 

    Ørsted, the company behind Long Island’s Sunrise Wind project, announced last week it was also filing a court challenge to its lease suspension order from the Department of the Interior’s Bureau of Ocean Energy Management, to be followed by a motion for a preliminary injunction.    

    Empire filed its civil suit on Friday, Jan. 2 challenging the Department of the Interior’s order to suspend its project and sought a preliminary injunction to allow construction of the project, which it claims is 60 percent complete, while the litigation proceeds. 

    “Empire Wind will now focus on safely restarting construction activities that were halted during the suspension period,” , the company behind the Empire Wind project, said in a written statement. “In addition, the project will continue to engage with the U.S. government to ensure the safe, secure and responsible execution of its operations.” 

    Once completed in 2027, Empire Wind, being developed under contract with the New York State Energy Research and Development Authority, is expected to supply enough power to electrify 500,000 homes. The project has created nearly 4,000 jobs within the offshore lease area and through its revitalization of the South Brooklyn Marine Terminal, according to the company. 

    “We just received word that a federal judge in Washington has sided with us and the company Equinor, and other companies who are providers of offshore wind,” Gov. Kathy Hochul said via emailThe developer Equinor sued because the Trump administration arbitrarily issued a stop work order on a project that had been underway, contemplated for over a decade as part of our [renewable] energy strategy. We’re going to continue doing what we have to do every single step of the way, but for now the wind turbines will be turning on.” 

    Matt Cohen, Long Island Association president and CEO expressed support for the Long Island wind projects: “Today’s federal court ruling lifting the stop work order on offshore wind projects is a win for New York’s economy and jobs, ensuring that Empire Wind already in development can continue building and will power Long Island with clean, reliable energy in the near future, and we urge the same outcome for Sunrise Wind.” 


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    David Winzelberg

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  • US rejects bid to buy 167 million tons of coal on public lands for less than a penny per ton

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    BILLINGS, Mont. (AP) — Federal officials rejected a company’s bid to acquire 167 million tons of coal on public lands in Montana for less than a penny per ton, in what would have been the biggest U.S. government coal sale in more than a decade.

    The failed sale underscores a continued low appetite for coal among utilities that are turning to cheaper natural gas and renewables such as wind and solar to generate electricity. Emissions from burning coal are a leading driver of climate change, which scientists say is raising sea levels and making weather more extreme.

    President Donald Trump has made reviving the coal industry a centerpiece of his agenda to increase U.S. energy production. But economists say Trump’s attempts to boost coal are unlikely to reverse its yearslong decline.

    The Department of Interior said in a Tuesday statement that last week’s $186,000 bid from the Navajo Transitional Energy Co. (NTEC) did not meet the requirements of the Mineral Leasing Act.

    Agency representatives did not provide further details, and it’s unclear if they will attempt to hold the sale again.

    The leasing act requires bids to be at or above fair market value. At the last successful government lease sale in the region, a subsidiary of Peabody Energy paid $793 million, or $1.10 per ton, for 721 million tons of coal in Wyoming.

    President Joe Biden’s administration sought to end coal sales in the Powder River Basin of Montana and Wyoming, citing climate change.

    A second proposed lease sale under Trump — 440 million tons of coal near an NTEC mine in central Wyoming — was postponed last week following the low bid received in the Montana sale. Interior Department officials have not said when the Wyoming sale will be rescheduled.

    NTEC is owned by the Navajo Nation of Arizona, New Mexico and Utah.

    In documents submitted in the run-up to the Montana sale, NTEC indicated the coal had little value because of declining demand for the fuel. The Associated Press emailed a company representative regarding the rejected bid.

    Most power plants using fuel from NTEC’s Spring Creek mine in Montana and Antelope mine in Wyoming are scheduled to stop burning coal in the next decade, according to an analysis by The Associated Press.

    Spring Creek also ships coal overseas to customers in Asia. Increasing those shipments could help it offset lessening domestic demand, but a shortage of port capacity has hobbled prior industry aspirations to boost coal exports.

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  • In rift with Biden, Manchin vows to block oil, gas nominee

    In rift with Biden, Manchin vows to block oil, gas nominee

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    WASHINGTON (AP) — In a sign of a deepening rift among Democrats on energy issues, conservative Democratic Sen. Joe Manchin says he will not move forward on President Joe Biden’s nominee to oversee oil and gas leasing at the Interior Department.

    Manchin, of West Virginia, chairs the Senate Energy and Natural Resources Committee and has great influence on energy and environmental issues in the closely divided Senate. In an op-ed Friday, he cited a leaked memo signed by nominee Laura Daniel-Davis that proposed charging oil companies higher rates for drilling off the Alaska coast.

    Manchin said the higher rates backed by Daniel-Davis for the proposed drilling project in Alaska’s Cook Inlet “were explicitly designed to decrease fossil energy production at the expense of our energy security.″

    Even though he had supported Daniel-Davis in the past, “I cannot, in good conscience, support her or anyone else who will play partisan politics and agree with this misguided and dangerous manipulation of the law,″ Manchin wrote in the Houston Chronicle.

    The dispute over Daniel-Davis’s nomination comes as the Biden administration nears a decision on a major oil project in Alaska that many environmental groups say would be a blight on Biden’s climate legacy.

    Climate activists are outraged that Biden appears open to the huge Willow project on Alaska’s North Slope, which they call a “carbon bomb” that would break his campaign pledge to curtail oil drilling on public lands and waters.

    Approval of the project would risk alienating young voters who have urged stronger climate action by the White House as Biden approaches a 2024 reelection campaign.

    At the same time, Alaska Native leaders with ties to the petroleum-rich North Slope support ConocoPhillips Alaska’s proposal. They say the Willow Project would bring much-needed jobs and billions of dollars in taxes and mitigation funds to the vast, snow- and ice-covered region nearly 600 miles (965 kilometers) from Anchorage.

    Alaska’s bipartisan congressional delegation, Republican Gov. Mike Dunleavy and state lawmakers also support the project.

    Daniel-Davis, who currently serves as Interior’s principal deputy assistant secretary for lands and minerals management, would not directly decide the fate of the Willow project, but Manchin and Alaska’s two Republican senators have criticized what they consider her lukewarm support for oil drilling on public lands and water. Daniel-Davis oversees Interior’s Bureau of Land Management, Bureau of Ocean Energy Management, Bureau of Safety and Environmental Enforcement and Office of Surface Mining Reclamation and Enforcement.

    She was first nominated for the assistant secretary position nearly two years ago, but her bid has stalled because of the concerns of Manchin and Senate Republicans. Biden renominated her for the post in January.

    In a statement Friday, the White House said Biden “nominated Laura Daniel-Davis because she has worked to conserve public lands, protect wildlife and address climate change for three decades, while prioritizing a collaborative and partnership-based approach. She is well-qualified for this position and we look forward to her moving forward in the confirmation process.″

    Melissa Schwartz, a spokeswoman for Interior Secretary Deb Haaland, said Interior was “very disappointed” to learn of Manchin’s opposition to Daniel-Davis after he supported her during two committee hearings and votes over the past two years.

    “Laura Daniel-Davis has served this administration, as she has two others, with a dedication that we should aspire to see in every public servant,″ Schwartz said in an email. “She will continue to lead this portfolio at Interior and implement President Biden’s direction, stated consistently and clearly since Day One, with respect to carefully balancing the role that public lands and waters play as we face the climate crisis.”

    Daniel-Davis is one of several Biden nominees whom Manchin has opposed. Another is Gigi Sohn, who withdrew her nomination to the Federal Communications Commission after Manchin opposed her.

    Manchin also voted against Daniel Werfel’s nomination to lead the Internal Revenue Service. Werfel was confirmed Thursday with support from several Republicans.

    Wyoming Sen. John Barrasso, the top Republican on the energy panel, hailed Manchin’s latest announcement. “Laura Daniel-Davis has done everything she can to undermine American energy production. As I have said before, her nomination should be withdrawn,″ Barrasso tweeted.

    But Jennifer Rokala, executive director of the liberal Center for Western Priorities, called Manchin’s “flip-flop” on Daniel-Davis “baffling, hypocritical and short-sighted.″ Daniel-Davis will continue to oversee oil and gas leasing in her current role, “with or without Manchin’s support for a promotion,″ Rokala said. “But now the White House and Interior Department have no reason to keep catering to Manchin’s whims.″

    In his op-ed, Manchin sharply criticized the Biden administration’s implementation of the Inflation Reduction Act, or IRA, a key climate, tax and health care bill that Manchin helped craft.

    “While the Biden administration has continued to play political games and incorrectly frame the IRA as a climate change legislation, the truth is that the IRA is about securing America’s energy independence for the coming century,″ Manchin wrote.

    “The Biden administration continues to ignore congressional intent on critical components of the IRA … to illogically advance a partisan climate agenda and appease radical activists,″ Manchin added. He said the Interior and Treasury departments “have explicitly and unabashedly violated the letter of the law … in an effort to elevate climate goals above the energy and national security of this nation.”

    Manchin has repeatedly slammed Treasury for issuing guidelines that allow car makers in Europe and Asia to bypass requirements that significant portions of electric-vehicle batteries be produced in North America.

    “This is wrong and it must stop,″ Manchin wrote.

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  • US gets 1 bid for oil and gas lease in Alaska’s Cook Inlet

    US gets 1 bid for oil and gas lease in Alaska’s Cook Inlet

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    The U.S. government on Friday said it received one bid for the right to drill offshore for oil and gas in Alaska’s Cook Inlet near habitat for bears, salmon, humpback whales and endangered beluga whales.

    Hilcorp Alaska LLC submitted the sole bid — $63,983 for an area covering 2,304 hectares or 5,693 acres.

    The company is a unit of Hilcorp, which is the largest privately held oil and gas exploration and production company in the United States. It already has leases to drill for oil and gas in onshore areas of Cook Inlet, which stretches from Anchorage to the Gulf of Alaska.

    The Bureau of Ocean Energy Management, which conducted the sale via livestream, was offering leases for 193 blocks totaling some 958,000 acres (388,000 hectares) but received just one bid for one block.

    The U.S. Interior Department in May said it would not move forward with the Cook Inlet lease sale due to a “lack of industry interest.” But over the summer, Congress passed legislation that called for a Cook Inlet lease sale by year’s end and two Gulf of Mexico lease sales next year. The provisions were part of the Inflation Reduction Act, a sprawling package that also included major investments to fight climate change.

    Environmentalists criticized the sale, saying oil and gas leases undermine efforts to address climate change. They also expressed concern that an oil spill could harm wildlife, subsistence gathering and commercial and sport fishing.

    Hilcorp said it was proud of its work to revitalize natural gas production in Cook Inlet, which it said nearly two-thirds of Alaskans depend on to heat and power their homes and businesses.

    “We look forward to continuing to responsibly produce Alaskan oil and natural gas, create Alaskan jobs and contribute to the state’s economy for decades to come,” the company said in a statement.

    Dyani Chapman, the director of Alaska Environment, a nonprofit organization, said Alaska should be looking forward to a cleaner, greener future in the coming year.

    “Instead, we’re closing out 2022 with a lease for more dirty, dangerous offshore drilling,” Chapman said in a statement. “For the sake of our beluga whales, northern sea otters, salmon and more, we urge companies to recognize that drilling in Cook Inlet should be left in the past.”

    Environmental groups earlier this month sued the Biden administration over the sale, saying an environmental review failed to adequately evaluate how it would affect whales. It also argued that a greenhouse gas emissions analysis was based on flawed modeling and that the review failed to consider “a reasonable range of alternatives” for the lease sale.

    The Cook Inlet basin is Alaska’s oldest producing oil and gas basin, dating back to the 1950s, according to the U.S. Bureau of Land Management.

    The Bureau of Ocean Energy Management says the new lease will be awarded after a 90-day evaluation process to ensure the public receives fair market value. The Department of Justice will also review the sale for antitrust considerations.

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