Governor Gordon assures Gillette City Hall that legal action against “regulatory flood” is being prepared

GILLETTE, Wyoming – Dozens of people gathered at the Gillette College Technical Center Tuesday afternoon for a town hall meeting with Gov. Mark Gordon to discuss federal actions that could directly affect Campbell County.

Several other politicians and industry representatives also traveled to Gillette, including Brian Nesvik, director of Wyoming Game and Fish, and James Young, director of government and political affairs for the National Mining Association.

On paper, the discussion was about a number of changing rules, including protection of sage grouse, but concerns about changing regulations in the energy industry dominated the two-hour conversation. The panelists themselves also spoke for most of the allotted time, leaving the audience with only the final 30 minutes for questions, which frustrated some in the audience.

However, in his opening remarks, Gordon assured those in attendance that he was working closely with Wyoming’s attorney general to prepare litigation over recent rule changes related to coal and oil, adding that a successful lawsuit would require precision.

“We’re working really diligently with our agents to make sure we can make the most effective and best arguments,” Gordon said, also stressing the importance of cases being heard in a sympathetic district court. “We’re now trying to get to the Tenth Circuit and get another ruling that will allow us to go to the Supreme Court.”

Certain rule changes enacted by the Bureau of Land Management this spring could have a direct impact on Wyoming’s oil industry, and particularly on coal production in the Powder River Basin. First, the BLM announced plans to phase out coal mining in the Powder River Basin by ceasing to issue new coal leases on public lands in the region.

Because supply from current leases can still be phased out, the agency predicted that continuous production would continue until 2041.

The decision was sharply criticized by state and local authorities, who announced they would challenge the ruling in court. Wyoming has already joined a lawsuit alongside Utah to challenge a similar rule change by the BLM regarding public lands.

Despite assurances that he was working on legal plans to protect the coal industry, Gordon was quick to stress that he supports a wide range of energy delivery methods, including nuclear power, as part of his all-opportunity approach to energy policy.

When asked by an audience member about his support of carbon capture, Gordon made it clear that he would fight to keep Wyoming’s coal industry alive, calling it an essential part of his policy. Wyoming coal would also play a role in powering new power plants and increasing energy demand across the country.

“I am convinced that carbon capture has a role to play in the future of coal mining and coal-fired power generation, and I think it is important that we at least look at the possibilities. … I have no interest in turning our back on coal one iota,” Gordon said.

He further explained that while CO2 capture may not yet be as efficient as it could be, it is an important contribution to reducing the costs of building new power plants or further integrating renewable energy sources.

“If we as a nation decide that carbon is not that big of a problem, that’s fine. There will still be people investing in power plants in Campbell County that burn Powder River coal,” Gordon said.

In addition to coal, concerns about changes to oil lease bonds were of particular importance to viewers.

The changes would drive up current federal lease prices and potentially price small oil producers in the state out of the market. Vicki Kissack, a local oil producer, expressed concerns to Gordon about pursuing an independent legal battle over the rule changes.

In his response, Gordon said that cooperation with other energy-producing countries was a better long-term strategy than taking legal action alone.

“It’s important that we work with other energy states like West Virginia, North Dakota and Louisiana and some others to make sure we can present the best case, the case that will go all the way to the Supreme Court and hopefully stop some of what I call ‘regulation with impunity,'” Gordon said.

By crafting their policies through the “rule change process,” the BLM and other federal agencies no longer have to do as thorough upfront work with affected communities as would be required for new environmental laws, Gordon said. The National Environmental Policy Act is designed to give local citizens, the government and other stakeholders an opportunity to learn about environmental law changes that could put their community at risk.

In a press conference following the meeting, Gordon noted that challenging the changes in federal rules in court was one of the few tools available to counter the Biden administration’s “flood” of regulations. The state, he said, also recently hired a major law firm with close ties to Washington, DC, to better prepare for legal challenges.

Gordon also said he would try to return to Gillette that evening to hear from other Gillette community shareholders, many of whom were at work during the afternoon town hall meeting.