The United States Department of the Interior (DOI) is in charge of preserving and running federal lands and national parks.

 

 

The United States Department of the Interior (DOI) is in charge of preserving and running federal lands and national parks. One of its duties is to allocate and issue oil drilling permits and licenses to various private oil drilling companies to drill on public lands for oil. Under the Trump administration, such permits and licenses were issued by the DOI on a liberal basis. Many described the mantra of the DOI as “drill baby drill”. Then, the Biden administration took over and the DOI changed its mantra to more of an environmentally sensitive agency and the DOI created new regulations to require much more formalities in the applications for drilling and many more studies and data to prove that such drilling is more environmentally sound. The DOI has now been very slow at issuing such oil drilling permits and licenses and in fact, has issued very few over the last few years.
You are a CEO of a oil drilling company and your company’s permits and/or license applications have been consistently being denied which is costing your company serious revenues and profits. Also, the less oil being drilled the more likely the price of gasoline will reduce for the public. Finally, the more drilling permits and/or licenses your company gets, the more jobs your company can create.
Your company now wants to “fight back” against the DOI’s apparently new philosophy that such oil drilling permits and licenses should not be issued very often and the new regulations making it harder for such permits and licenses to be issued.
How can those with “legal standing” fight back against the DOI implementation of the new regulations (that make it much more difficult to secure approval of a oil drilling permit or license) by using the three branches of the federal government and how these three branches have general controls over agencies, albeit indirectly at times. Explain. (Hint– at least two online video lectures this term explain the controls/checks on the three branches of the federal government has over federal agencies)

Sample Solution

As CEO of an oil drilling company facing permit denials due to the DOI’s new regulations, you have several avenues to “fight back” using the three branches of the federal government. Here’s a breakdown of how you can leverage each branch, keeping in mind the indirect nature of some of these controls:

1. The Judicial Branch (Courts):

  • Legal Standing: Your company clearly has legal standing as it is directly and adversely affected by the DOI’s actions. This is essential to bring a case.
  • Administrative Procedure Act (APA) Challenges: You can sue the DOI, alleging that the new regulations are:
    • Arbitrary and Capricious: Argue that the DOI’s shift in policy is not based on sound reasoning or evidence, but rather on political whim. Point to the previous “drill baby drill” approach and argue the pendulum has swung too far without sufficient justification.
    • Procedurally Deficient: Claim the DOI did not follow proper notice and comment procedures when implementing the new regulations. The APA requires agencies to allow public input, and if this was rushed or inadequate, you have grounds for challenge.
    • In Violation of Statutes: Argue that the new regulations conflict with existing laws passed by Congress that govern oil drilling on public lands.
  • Takings Clause (5th Amendment): If the permit denials effectively deprive your company of the economic use of its leasehold rights on public land, you might have a “takings” claim. This is a difficult argument to win, but it asserts the government has taken your property without just compensation.
  • Example: Your lawsuit could claim the DOI’s environmental impact studies are excessively burdensome and not scientifically justified, thus making it impossible to get permits.

2. The Legislative Branch (Congress):

  • Oversight Hearings: Request that relevant congressional committees hold hearings on the DOI’s implementation of the new regulations. These hearings can bring public attention to the issue and pressure the DOI to change its policies.
  • Legislative Action: Lobby Congress to:
    • Amend Existing Laws: Seek to amend the statutes that give the DOI authority over oil drilling permits. This would require a change in the law itself, making it harder for the DOI to impose strict regulations.
    • Appropriations Riders: Attach riders to appropriations bills that restrict the DOI’s ability to use funds to enforce the new regulations. This is a powerful tool, but it’s often used in contentious budget battles.
  • Example: Lobby for legislation that sets specific timelines for DOI permit decisions, effectively limiting delays.

3. The Executive Branch (President):

  • Executive Orders: While less likely given the current administration’s environmental stance, a future president could issue an executive order directing the DOI to revise its regulations or streamline the permitting process.
  • Appointments: The president appoints the head of the DOI. A change in administration could lead to the appointment of a Secretary of the Interior who is more sympathetic to the oil and gas industry.
  • Office of Information and Regulatory Affairs (OIRA) Review: Regulations often go through OIRA, which reviews their cost and benefits. Lobby for OIRA to scrutinize the DOI’s regulations more closely, arguing that the economic costs of restricting drilling outweigh the environmental benefits.
  • Example: A future administration could prioritize energy independence and direct the DOI to expedite oil drilling permits.

Important Considerations:

  • Political Climate: The success of your efforts will heavily depend on the political climate and which party controls each branch of government.
  • Public Opinion: Shaping public opinion about the balance between energy production and environmental protection is crucial. Highlight the potential for job creation and lower gas prices.
  • Financial Resources: Legal challenges and lobbying efforts are expensive. Be prepared to invest significant resources.
  • Coalitions: Forming coalitions with other affected businesses and industry groups can increase your political influence.

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