A lawsuit filed by Louisiana, Mississippi, Texas and several oil and gas trade associations is challenging a federal rule that the plaintiffs say could hamper oil and gas exploration and production, The Center Square reports.
The rule, which went into effect June 29, requires oil and gas companies operating on the outer continental shelf without investment-grade credit ratings to acquire additional financing to cover potential decommissioning costs for old wells.
According to the plaintiffs, the rule has the potential to destroy thousands of jobs and result in billions in compliance costs for small, independent operators.
The government says the rule is necessary to prevent taxpayers from having to cover decommissioning costs for the operators.
Read more from The Center Square.