Blanco bid to block GoM lease sale denied

Aug. 15, 2006
Federal District Court Judge Kurt Engelhardt has denied the State of Louisiana's motion for a preliminary injunction in the case of Kathleen Blanco, governor of Louisiana, vs. Johnnie Burton, director, MMS.

Offshore staff

NEW ORLEANS -- Federal District Court Judge Kurt Engelhardt has denied the State of Louisiana's motion for a preliminary injunction in the case of Kathleen Blanco, governor of Louisiana, vs. Johnnie Burton, director, MMS.

Blanco sought to stop the MMS from holding Western Gulf of Mexico Lease Sale 200, arguing that the sale was in violation of a number of established regulations. Although the decision could be appealed, the MMS is proceeding with plans for the sale, to be held as scheduled on Aug. 16, 2006, in New Orleans.

"The Court's decision will allow the MMS to continue its plans for producing additional energy supplies for the nation," said Burton. "Domestic energy consumption is on the rise, so domestic offshore production should be on the rise as well to help meet that need."

While the court denied Louisiana's request for a preliminary injunction, the state could appeal the ruling. The case on the merits of Louisiana's claims is still pending. The MMS has requested an expedited hearing on that case, although no date has been set.

The MMS estimates that the 20.9 million acres available in Lease Sale 200 could result in the production of 136 to 262 MMbbl of oil and 0.810 to 1.440 tcf of natural gas.

08/15/06