Gabriella Quesada
Edited by Ann Vadakkan, Sahith Mocharla, Jia Lin, and Roohie Sheikh
Averaging about 6.3 million barrels of crude oil per day in 2024, the Permian Basin is the highest-producing oil field in the United States. Located across West Texas and southeastern New Mexico [1], the large sedimentary basin spans over 60 counties in Texas, making the Lone Star state a top global producer in the oil and gas industry. However, this petroleum goldmine faces grave economic peril, potentially placing the production of over 40% of the nation’s oil and nearly 500,000 [2] jobs in danger due to the basin overlapping with a small, spiny-scaled, light brown reptile: the dunes sagebrush lizard [3]. For years, the Center for Biological Diversity has advocated for the lizard to be declared an endangered species due to a decrease in the species’ population correlated with increased drilling over the past 15 years.The small reptile is tied to sandy landscapes where shinnery oaks are common; this tree is multi-purposeful, providing specific habitat needs for this particular species, including shelter, a breeding ground, and nutrients. While providing this many habitat needs can be beneficial, any possible benefits have been stifled by the fact that the lizards’ ties to this tree mean it thrives in the heart of hydraulic fracking in West Texas. While it may seem apparent that the species should be given additional protections, such as endangered species classification, doing so has caused mounting opposition. Since the U.S. Fish and Wildlife Service (FWS) placed the dunes sagebrush lizard on the endangered species list on May 20th of 2024, Texas leaders–including the state’s Attorney General, Ken Paxton–have filed legal challenges [4] and targeted the Biden administration for going beyond their federal jurisdiction. The classification of the species as an endangered species and the subsequent legal battles underscore the broader issue of the “weaponization” of environmental laws [5]. This case exemplifies the growing conflict between federal environmental regulations and state economic interests, particularly in energy-producing regions like Texas.
The concept of environmental laws being “weaponized” refers to the strategic use of environmental regulations to influence or obstruct economic activities, particularly by politicians. This phenomenon often emerges when federal environmental protections are perceived as overreaching or as tools for halting industries vital to certain regions, such as energy production in Texas. For example, the basis for Ken Paxton’s lawsuit [6], according to him, was the alleged use of flawed data by the FWS to mark the species as endangered in a greater effort to undermine Texas’s energy sector. In support of the Texas Attorney General’s case against FWS, he alleges that the governmental organization relied on “arbitrary assumptions” about oil and gas development's impact on the species and included speculative climate-related concerns. He further claims these possible assumptions led the FWS to not properly account for voluntary conservation programs already in place by local landowners and industry stakeholders, particularly those in the Permian Basin, where more than 200 entities participate in habitat protection agreements that allow them to continue operations with minimal regulatory interference [7]. Within these programs, there is the Shinnery Oak Restoration Projects [8], focusing on restoring this tree species that the lizard heavily relies on, and the Texas Conservation Plan for the Dune Sagebrush Lizard (TCP), encouraging oil nad gas operators to implement conservation measures to reduce habitat fragmentation [9]. However, voluntary environemntal agreements such as these have relatively weak levels of accountability without the threat of penalty for noncompliance [10]. Unfortunately, for the two programs previously stated, there are no direct legal penalties triggered for noncompliance. This is where the stark contrast in state-led voluntary programs differ from federal regulation by the FWS. Declaring the species endangered under the Endangered Species Act (ESA) [11], triggers a list of potential legal impacts including civil penalties up to $25,000 per incident and criminal fines up to $50,000 and up to one year in prison for each offense.
However, these federally mandated restrictions to maintain the specie’s habitat are what lead oil and gas titans to believe the FWS’s decision was a strategic tool to indirectly impose restrictions on their industry [12]. The Texas Railroad Commission (RRC), which oversees the state’s oil and gas industry, has also expressed concerns over how the FWS came to its decision, yet their vested interest in the state’s oil production does not go unnoticed by the media. People are left to dissect the situation for themselves concerning the purity of FWS’s decision, yet interestingly, since the dunes sagebrush lizard’s new classification, the media has had nearly no comments on the impact(s) this has had on the reptile, focusing entirely on the conflict between Texas oil titans and the federal government [13]. The now contentious reptile represents the transformation of environmental laws into battlegrounds between economic and political interests.
Despite the specificity of this particular species and individual region in Texas, the controversy relates to one of the most common debates in American politics: federal versus state rights. From one perspective, the federal government is trying to promote biodiversity through the protection of the dunes sagebrush lizard’s habitat, and since its habitat overlaps with a prominent oil drilling site, restricting such practices can simultaneously contribute to the growing climate change efforts, which the Biden administration has addressed as a central priority. Taking a different approach, the Permian Basin’s extraordinary production levels certainly position the Lone Star state as a prominent target against efforts to transition the U.S. economy towards cleaner energy sources. While there are ways to target environmental progress through regulation of Texas’s oil production, the possible use of seemingly “backdoor” methods, such as through the declaration of an endangered species in the area, could be considered illegal or intrusive and greatly undermine the legitimacy of the FWS. This agency is under the legal purview of two main acts: the Endangered Species Act (ESA) and the Administrative Procedure Act (APA). Both laws require FWS to base decisions on “the best scientific and commercial data available.” [14][15] When the agency’s decisions appear arbitrary or unsupported by reliable data, affected parties, such as the Texas oil and gas industry in this case, can challenge these actions. Exemplifying this best, is the recent Supreme Court decision in June 2024 to overrule the Chevron Doctrine [16], a legal principle established by the 1984 Supreme Court Case Chevron U.S.S., Inc. v. Natural Resources Defense Council, Inc., which created a two step process for courts to use in reviewing agency’s actions. Essentially, the overturning of this process shifts some power from federal agencies like the FWS to the courts in interpreting ambiguous language like “critical habitat” in the ESA. As the lawsuit filed by Paxton remains active, it will be interesting to see this new judicial shift in action. If the lawsuit finds the FWS guilty of the alleged actions, not only do past decisions come into question, but also future environmental efforts will face further scrutiny–making them more challenging to pursue. Currently, the dunes sagebrush lizard meets the Endangered Species Act’s requirements due to threats concerning habitat loss, fragmentation, and degradation from development by the oil and gas industry [17]. With Paxton’s lawsuit, filed against the FWS in September of 2024, ongoing, tensions between local and federal actors continue to increase. This conflict raises critical concerns for future federal-state relations in managing natural resources, especially as the Biden administration continues to try to pave the path toward sustainable energy.
However, the phenomenon of the “weaponization” of environmental legislation does not only surface when the FWS uses its authority to protect a species but also in the absence of such decisions. In 2015, the FWS decided against listing the greater sage-grouse–a bird species found throughout the western U.S.,southern Alberta, and Saskatchewan–as endangered. Wyoming and Montana viewed this as a victory, as it allowed them to avoid regulations that would have affected oil drilling sites overlapping with the bird's habitat [18]. However, the battle from conservationists continues as they believe the potential for the future listing of the species remains high. With this potential threat to the state’s oil and gas industries, local stakeholders have proactive land-use plans to prevent federal intervention to protect the greater sage-grouse’s habitat. The Bureau of Land Management (BLM) released these habitat conservation efforts, which were adopted by Wyoming, Montana, Nevada, and Colorado [19]. The plans demonstrated a sense of collaboration between state agencies, landowners, stakeholders, and the oil companies. While it seems that conservation efforts have fostered a collaborative environment, the question remains as to whether it is right for local actors to have to make such proactive efforts in response to their fears of federal involvement. The federal-state relationship remains frayed, leaving a sense of uncertainty as to whether future environmental protections produce results similar to the greater sage grouse [20], local collaboration, or more closely resemble the current debacle in West Texas: heated litigation between local and state actors.
Examining the impacts of wildlife on the petroleum industry reveals a broader struggle in American environmental policy, where balancing conservation and economic interests sparks contentious debates and differing approaches. As local entities seek to retain their autonomy in land and resource management, the potential for conflict with federal mandates persists, prompting questions over the effectiveness and fairness of the current regulatory framework. This ongoing tension underscores the need for a more nuanced approach to environmental legislation–one that genuinely incorporates the voices of local stakeholders while upholding the federal responsibility to protect vulnerable species. Ultimately, the fate of species like the dunes sagebrush lizard and the greater sage-grouse may depend on finding common ground between ecological integrity and economic sustainability, challenging lawmakers and communities alike to craft solutions that benefit both the environment and local economies. As these legal battles continue, they serve as a litmus test for the future of environmental policy in America, revealing the intricacies between conservation, economic necessity, and the political landscape.
[1] Permian basin Permian Basin Information, https://www.rrc.texas.gov/oil-and-gas/major-oil-and-gas-formations/permian-basin/#:~:text=The%20Permian%20Basin%20is%20an,area%20of%20southeastern%20New%20Mexico (last visited Oct 31, 2024)
[2] The Permian Basin Oil and Gas Project chevron.com, https://www.chevron.com/what-we-do/energy/oil-and-natural-gas/assets/permian#:~:text=The%20geology%20of%20the%20Permian,the%20basin’s%20natural%20resource%20potential (last visited Oct 31, 2024)
[3] Dunes sagebrush lizard (Sceloporus Arenicolus): U.S. Fish & Wildlife Service FWS.gov, https://www.fws.gov/species/dunes-sagebrush-lizard-sceloporus-arenicolus (last visited Oct 31, 2024)
[4] Attorney general Ken Paxton sues Biden administration over attempt to undermine Texas Oil and gas industries by Weaponizing Environmental Law Texas Attorney General, https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-biden-administration-over-attempt-undermine-texas-oil-and-gas (last visited Oct 31, 2024)
[5] Texas sues Biden administration over Lizard’s endangered status, cites oil industry threat, https://www.usnews.com/news/world/articles/2024-09-23/texas-sues-biden-administration-over-lizards-endangered-status-cites-oil-industry-threat (last visited Oct 31, 2024)
[6] Attorney general Ken Paxton sues Biden administration over attempt to undermine Texas Oil and gas industries by Weaponizing Environmental Law Texas Attorney General, https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-biden-administration-over-attempt-undermine-texas-oil-and-gas (last visited Oct 31, 2024)
[7] Paxton has filed suit over the classification of a lizard impacting the oil & gas industry Dallas Express, https://dallasexpress.com/state/paxton-sues-biden-over-lizard-classification/ (last visited Oct 31, 2024)
[8] Landmark Conservation Agreements Keep Dunes Sagebrush Lizard off the Endangered Species List in NM, TX | U.S. Department of the Interior, https://www.doi.gov/news/pressreleases/Landmark-Conservation-Agreements-Keep-Dunes-Sagebrush-Lizard-off-the-Endangered-Species-List-in-NM-TX (last visited Dec 2, 2024)
[9] Texas Conservation Action Plan, https://tpwd.texas.gov/huntwild/wild/wildlife_diversity/nongame/tcap/ (last visited Dec 4, 2024).
[10] The Limits of Voluntary Environmental Agreements Earth.Org, https://earth.org/penalties-required-the-limits-of-voluntary-environmental-agreements/ (last visited Dec 2, 2024)
[11] The Endangered Species Act: Overview and implementation, https://crsreports.congress.gov/product/pdf/R/R46677 (last visited Oct 31, 2024)
[12] Texas lizard added to Endangered Species list over the oil and gas industry’s objections The Texas Tribune, https://www.texastribune.org/2024/05/22/texas-dunes-sagebrush-lizard-endagered-list-permian-basin-oil/ (last visited Oct 31, 2024)
[13] Texas sues Biden administration over Lizard’s endangered status, cites oil industry threat, https://www.usnews.com/news/world/articles/2024-09-23/texas-sues-biden-administration-over-lizards-endangered-status-cites-oil-industry-threat (last visited Oct 31, 2024)
[14] Summary of the Administrative Procedure Act EPA. EPA, https://www.epa.gov/laws-regulations/summary-administrative-procedure-act#:~:text=(1946),on%20notices%20of%20proposed%20rulemaking (last visited Oct 31, 2024)
[15] The Endangered Species Act: Overview and implementation, https://crsreports.congress.gov/product/pdf/R/R46677 (last visited Oct 31, 2024)
[16] U.S. Supreme Court Strikes Down Chevron Doctrine—What You Need to Know | White & Case LLP, https://www.whitecase.com/insight-alert/us-supreme-court-strikes-down-chevron-doctrine-what-you-need-know (last visited Dec 2, 2024)
[17] The Federal Register Federal Register :: Request Access, https://www.federalregister.gov/documents/2024/05/20/2024-11025/endangered-and-threatened-wildlife-and-plants-endangered-species-status-for-the-dunes-sagebrush#:~:text=We%20have%20determined%20that%20the%20dunes%20sagebrush%20lizard%20is%20endangered,open%20cracks%20in%20the%20shale (last visited Oct 31, 2024)
[18] Sage against the Machine Earthjustice, https://earthjustice.org/feature/greater-sage-grouse-sage-against-the-machine (last visited Oct 31, 2024)
[19] Sage-grouse: Habitat Management Plans: Bureau of Land Management Sage-grouse Habitat Plans | Bureau of Land Management, https://www.blm.gov/programs/fish-and-wildlife/sagegrouse/blm-sagegrouse-plans (last visited Oct 31, 2024)
[20] Court halts drilling on 630 square miles of federal oil leases in Key Sage Grouse Habitat Center for Biological Diversity, https://biologicaldiversity.org/w/news/press-releases/court-halts-drilling-on-630-square-miles-of-federal-oil-leases-in-key-sage-grouse-habitat-2021-06-10/ (last visited Oct 31, 2024)
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