The ruling noted the challenges were based on arguments that the government scheduled the sale without properly following procedures under the National Environmental Protection Act.
Energy companies including Shell, BP, Chevron and ExxonMobil offered a combined $192 million for drilling rights on federal oil and gas reserves in the Gulf of Mexico.
The ruling officially vacated a federal judge’s January 2022 order blocking the sale, and ordered dismissal of the case. “Even if we agreed with the environmental groups that the sale failed to comply with the National Environmental Policy Act, the result will be the same: The highest bidders will receive their leases,” the appellate court said.
The American Petroleum Institute, an industry group, praised Friday’s ruling, calling it a “positive step toward more certainty and clarity for energy producers.”
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