Gulf Coast States Sue Interior Department Over New Rule Targeting Offshore Oil Company Cleanup Costs

Three Gulf Coast states, including Louisiana, Texas, and Mississippi, are leading a lawsuit against the Interior Department (ODM) for a new rule aimed at securing billions of dollars from offshore oil companies for cleanup of abandoned wells and platforms. The rule requires companies considered at risk of bankruptcy to purchase supplemental bonds to cover the costs of activities such as deconstructing offshore oil and gas platforms. Republican attorneys general from Louisiana and Texas have asked the U.S. District Court for the Western District of Louisiana to overturn the rule, claiming it aims to put small and mid-size independent oil and natural gas companies out of business.