In a significant development, the Department of Justice (DOJ) has moved to halt ongoing legal challenges against the Biden Administration’s ban on liquid natural gas (LNG) export applications.
The DOJ’s motion reflects the incoming Trump Administration’s commitment to overturning the controversial ban upon taking office, effectively rendering the lawsuits moot.
The decision is being celebrated by industry advocates and constitutional rights groups as a win against executive overreach. Loren Seehase, Senior Counsel at the Liberty Justice Center, called the move a “major victory” for both the rule of law and the tens of thousands of Americans whose livelihoods depend on the oil and gas industry.
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“No federal officer or agency has the authority to enact a blanket ban on LNG export approvals,” Seehase said. “The Biden Administration disregarded federal law and the Constitution by immediately and indefinitely halting the approval process. We look forward to seeing this unconstitutional ban struck down—whether through the courts or by the incoming President.”
The Natural Gas Act of 1938 governs the approval process for LNG export licenses, presuming such licenses are in the public interest unless proven otherwise. For decades, this framework guided policy, with the Department of Energy (DOE) explicitly rejecting blanket bans on export licenses as recently as July 2023, citing a lack of factual or legal basis.
However, in January 2024, the Biden Administration announced an indefinite suspension of all new LNG export license approvals—a stark departure from over 80 years of precedent. The decision was met with widespread criticism, including legal challenges from states, industry groups, and constitutional advocates.
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In May 2024, the Liberty Justice Center and the Pelican Institute for Public Policy filed a lawsuit challenging the ban, arguing it violated the Natural Gas Act, the separation of powers, and exceeded the executive branch’s authority. Sixteen states also joined the fight, filing a separate lawsuit through their attorneys general.
Today’s motion by the DOJ to halt these challenges indicates that the incoming Trump Administration’s anticipated policy reversal will address the plaintiffs’ concerns without further court intervention.
The move comes as President-elect Donald Trump prepares to take office with a promise to reinvigorate the U.S. oil and gas industry. Trump has pledged to undo the Biden Administration’s energy policies, which he argues have stifled economic growth and energy independence.
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“This decision to halt legal challenges is a clear signal that better policies are on the horizon,” said a representative of the Pelican Institute. “We are optimistic about what this means for American workers, businesses, and energy security.”
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