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Lawsuit seeks to stop federal rule on oil, gas exploration | National

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www.thecentersquare.com – By Steve Wilson | The Center Square – 2024-08-29 11:51:00

(The Center Square) – A lawsuit is challenging a federal rule that three states and trade organizations say could hamper oil and gas exploration and production for small, independent operators on the outer continental shelf.

The rule could result in billions in compliance costs for the operators, according to the plaintiffs.

The lawsuit also says the rule will destroy 36,000 jobs, take away $10 billion in gross domestic product and cost the government more than $500 million in oil and gas royalties in 10 years. The complaint also says the Biden Administration’s agenda has been to “throttle the production (of oil and gas) on multiple fronts since day one.”

The Department of Interior, through the Bureau of Energy Management, issued a rule requires oil and gas companies without investment-grade credit rating operating on the outer continental shelf to acquire additional financing to cover potential decommissioning costs for old wells. The rule went into effect June 29. 

The plaintiffs, which include the states of Texas, Louisiana and Mississippi along with several oil and gas trade associations, filed a lawsuit June 17 in the U.S. District Court for the Western District of Louisiana asking for a stay on the effectiveness of the rule or an injunction stopping its implementation. 

The government says the rule is needed to prevent taxpayers from having to cover potential decommissioning costs for these operators.

In the complaint, the plaintiffs counter that in 75 years of offshore leasing, the government has assumed $58 million in decommissioning liabilities, less than 0.03% of the $208 billion in royalties and related revenue the government has received in the past 40 years. 

The plaintiffs say in their complaint the rule would require $6.9 billion in additional financing for the smaller operators. 

“But BOEM knows — or should know — that nobody will be able to provide those bonds, so the lessees will be unable to meet the Rule’s requirement,” the complaint says. “The upshot? Those small and mid-size lessees — which produce over a third of the oil and natural gas from the Outer Continental Shelf — will face potentially existential consequences.

“When they cannot meet the government’s demand for additional bonds, they can be subjected to civil penalties, forced to stop oil and gas production, and banned from operating in the Gulf.”

According to the complaint, surety bond companies told BOEM that they didn’t have the capacity to provide such bonds. 

Mallory Wynne, a partner in Jones Walker’s Corporate Practice Group and a member of the commercial transactions team, told The Center Square that the oil and gas companies posting bonds to secure liabilities and the BOEM’s requirement for supplemental bonds is nothing new. 

Wynne said the new rule may increase the cost doing business in the Gulf of Mexico for smaller lessees and operators. 

Seth Levine is a partner in Jones Walker’s Corporate Practice Group and co-chair of the Industrial, Petrochemical and Advanced Manufacturing Industry Team.

“The rule may result in increased costs of compliance for many lessees,” Levine told the Center Square. “The rule might cause oil and gas companies to reassess and restructure the allocation of risk in transactions involving acquisitions and divestitures of lease interests.”

The American Petroleum Institute has requested to join the lawsuit, along with the Center for Biological Diversity, Healthy Gulf, the Ocean Conservancy and Louisiana Mid-Continent Oil and Gas Association, which have all filed amicus briefs. Wynne said additional intervenors are possible. 

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The Center Square

‘Historic’ Wisconsin spring election sees precincts run out of ballots | Wisconsin

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www.thecentersquare.com – Jon Styf – (The Center Square – ) 2025-04-01 21:05:00

(The Center Square) – Seven locations in Milwaukee ran out of ballots, causing voting delays on Election Day.

But any voter in line by 8 p.m. was allowed to vote in what Milwaukee Election Commission Spokesperson Melissa Howard called a “historic” election in terms of spring turnout on Tuesday.

Milwaukee expanded the use of ExpressVote machines and sent couriers with ballots to the polling locations that ran out of paper ballots.

Ballots running out has “never occurred here in the city” Howard told reporters on Tuesday.

The election included three key ballot items statewide headlined by the Wisconsin Supreme Court election, which Susan Crawford led with 57.6% of the vote compared to 42.4% for Brad Schimel with 47% of precincts reporting by 9 p.m. on Tuesday.

Vote counting was expected to continue into early Wednesday at central count locations in places such as Milwaukee County. Early votes could not begin to be counted until polls closed at 8 p.m.

Early results showed 61% of the first 41% of voters approved of adding a voter identification requirement to the Wisconsin constitution. Voter ID is already law and the ballot initiative would also add it to the state constitution.

The race for superintendent of the state’s Department of Public Instruction was also undetermined with incumbent Jill Underly holding 55% of the vote and challenger Brittany Kinser holding 45% with 43% of precincts reporting as of 9 p.m.

The Supreme Court race gained national intrigue as Elon Musk and President Donald Trump weighed in on the race with support for Schimel over the weeks before the election.

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The Center Square

White House says Trump’s tariffs will be ‘perfect deal’ for U.S. | National

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www.thecentersquare.com – Brett Rowland – (The Center Square – ) 2025-04-01 15:42:00

(The Center Square) – The White House said Tuesday that President Donald Trump and his tariff team are preparing to roll out a “perfect deal” for Americans on Wednesday, when Trump is expected to announce his plans.

Trump plans to unveil reciprocal tariffs on Wednesday on all nations that put duties on U.S. imports, which the president has been calling “Liberation Day” for American trade. Trump’s plans have roiled U.S. and global markets, but the president has yet to get into specifics ahead of Wednesday’s planned announcement. 

“The president said last night he has made a decision and a determination,” White House Press Secretary Karoline Leavitt said Tuesday. “He is going to announce that decision tomorrow.”

Leavitt said Trump was working with his trade and tariff team to finalize the deal, which she said would be a “perfect deal for the American people.”

The tariffs Trump is expected to announce Wednesday will go into effect immediately, Leavitt said.

House Speaker Mike Johnson, R-La., said Trump steered the U.S. economy to new heights in his term and plans to the same this time. 

“You have to trust the president’s instincts on the economy. Why? This isn’t blind faith. Remember what he accomplished in the first administration. Before COVID, we had the greatest economy in the history of the world. Not the U.S, the whole world,” Johnson said. “Every demographic was doing better because we cut taxes, cut regulations and we made a better economic environment for everyone to succeed.”

Johnson said Trump’s proposed reciprocal tariff policy “is one that makes a lot of common sense.” Johnson said he ultimately expects other countries to reduce tariffs on American products

“This is a different world, it’s a much more integrated, complex economy. And the president’s absolutely right when he says we have to think about America’s interest first because if we don’t, we’re not going to maintain our status as the great super power,” Johnson said. “If we raise and match their tariff policy, I think ultimately what happens is you get back to a free trade agreement. These countries that engaged in this disparity – this raw deal for Americans for so long – it’ll get their attention and they’ll, I think, reduce their tariffs on us.”

Johnson said Trump’s plans for “Liberation Day” on April 2 could include challenges.

“It may be rocky in the beginning, but I think that this will make sense for Americans and it will help all Americans,” the House Speaker said.

U.S. Trade Representative Jamieson Greer said Trump’s tariff plan will help U.S. workers.

“No American President in modern history has recognized the wide-ranging and harmful foreign trade barriers American exporters face more than President Trump,” said Greer. “Under his leadership, this administration is working diligently to address these unfair and non-reciprocal practices, helping restore fairness and put hardworking American businesses and workers first in the global market.”

Last week, Trump announced a 25% tariff on imported automobiles, duties that he said would be “permanent.” The White House said it expects the auto tariffs on cars and light-duty trucks will generate up to $100 billion in federal revenue.

Trump said eventually he hopes to bring in $600 billion to $1 trillion in tariff revenue in the next year or two. Trump also said the tariffs would lead to a manufacturing boom in the U.S., with auto companies building new plants, expanding existing plants and adding jobs.

Trump predicts his protectionist trade policies will create jobs, make the nation rich and help reduce both trade deficits and the federal government’s persistent deficits.

The “Liberation Day” tariffs come after months of talk since Trump took office in January. On the campaign trail, Trump frequently called “tariff” the most beautiful word in the English language.

Some economists have predicted Trump’s tariffs could mean higher prices for U.S. consumers. The Budget Lab at Yale modeled a broad 20%, but noted “it is highly uncertain whether this is the policy that will be announced April 2.” The model suggests that prices would by 2.1% to 2.6% in the short run, the equivalent of an average per household consumer cost of $3,400 to 4,200 in 2024 dollars.

Leavitt said Tuesday that Trump’s tariff plan was long-term when asked how they could affect senior citizens living on a fixed income.

“Tomorrow’s announcement is to protect future generations of the senior citizens you mentioned,” she said. “It’s for their kids and their grandkids. To ensure that there are jobs here in the United States of America for their children to live the American dream.”

Last week, S&P Global said U.S. consumers could reduce spending in the near-term.

“We think Americans will soon pull back on purchases, dealing a blow to the world’s biggest economy, which is largely fueled by consumer spending,” the credit-rating agency said, noting a recession was possible in the next year.

Business groups, including the U.S. Chamber of Commerce and American Farm Bureau Federation, have urged Trump to back off tariff threats.

Trump has promised that his tariffs would shift the tax burden away from Americans and onto foreign countries, but tariffs are generally paid by the people who import the foreign products. Those importers then have a choice: Absorb the loss or pass it on to consumers through higher prices. The president also promised tariffs would make America “rich as hell.”

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Republicans introduce bill to repeal gun control rule on pistol braces | National

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www.thecentersquare.com – By Thérèse Boudreaux | The Center Square – (The Center Square – ) 2025-04-01 14:18:00

(The Center Square) – A Biden-era rule placing greater constraints on millions of legal American gun owners could be struck down if newly introduced Republican legislation becomes law.

Companion bills introduced by Sen. Roger Marshall, R-Kan., and Rep. Andrew Clyde, R-Ga., would undo a 2023 ruling by the Alcohol, Tobacco, Firearms and Explosives (ATF) that classified pistols modified with stabilizing braces as short-barreled rifles and thus placed them under the National Firearms Act.

The action required all owners of pistols modified with stabilizing braces to pay a $200 fee, register their name with the U.S. Department of Justice and obtain federal approval to construct or transfer a short-barreled rifle or short-barreled shotgun.

“‘Shall not be infringed’ is crystal clear – and the Biden-era abuses of the Constitutionally protected rights of gun owners across the country need to be undone,” Marshall said in a statement Tuesday. “The SHORT Act takes a step toward rolling back nonsensical regulations that the National Firearms Act has placed upon gun owners.”

A 2021 report by the Congressional Research Service estimated that between 10 and 40 million stabilizing braces and similar components are in civilian hands. Supporters of the rule say it will increase safety.

Both the Gun Owners of America and the National Association of Gun Rights, who called the Biden-era rule unconstitutional when it was implemented, expressed support for the legislation.

“The SHORT Act is a long overdue step toward restoring the rights of Americans, freeing gun owners from the burdensome and outdated regulations of the National Firearms Act,” NAGR political affairs director Hunter King said. “By removing short-barreled rifles, shotguns, and similar firearms from egregious federal regulations, gun owners would be able to exercise their Second Amendment freedoms without oppressive government interference.”

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