In a victory against government overreach and abuse of power, the Department of Justice has filed a motion to halt the legal challenges to the Biden Administration’s ban on the authorization of new and pending liquid natural gas (LNG) export applications. The Department has requested the court to stay the legal challenges because the incoming Trump Administration has indicated that it will overturn the ban after taking office, rendering legal challenges moot.
“No federal officer or agency has the authority to enact a blanket ban on the approval of LNG export applications. The Biden Administration disregarded federal law and the Constitution by immediately and indefinitely halting the approval process,” said Loren Seehase, Senior Counsel at the Liberty Justice Center. “We look forward to seeing this unconstitutional ban struck down—whether through the courts or by the incoming President—and see this as a major victory for the rule of law and for the tens of thousands of Americans across the country whose livelihoods rely on the oil and gas industry.”
Since 1938, the Natural Gas Act has regulated the approval process for LNG export licenses, presuming that such licenses are almost always in the public interest and therefore directing the Secretary of the Department of Energy to approve the applications unless a specific application is proven to be contrary to the public interest. As a result, as recently as July of 2023, the Department of Energy specifically rejected a petition calling for a blanket ban on all export licenses—stating outright that the agency “had no factual or legal basis” to enact such a ban.
In an abrupt departure from over 80 years of precedent—and a violation of the separation of powers—the Biden Administration and the Department of Energy announced an immediate and indefinite halt to the approval of all new LNG export licenses in January of 2024.
The Liberty Justice Center and the Pelican Institute for Public Policy jointly filed a legal challenge the ban in May, arguing that the ban contravenes the Natural Gas Act’s mandate, violates the separation of powers, and exceeds the executive branch’s designated authority by attempting to create law.
Sixteen states also jointly filed a lawsuit challenging the ban through their attorneys general.
Today’s filing by the Department of Justice will halt the legal challenges to the ban until the incoming administration takes office and revokes the ban.
The Liberty Justice Center and Pelican Institute’s legal filings in Oil & Gas Workers Association v. Biden are available here.