Federal court invalidates 1M+ acres of oil leases over sage grouse protections
A federal judge ruled the BLM failed to prioritize sage grouse habitat in oil lease approvals.
Why it matters: The ruling reinforces environmental regulatory enforcement impacting energy development and legal counseling on federal land use policies.
- Chief Judge Brian Morris invalidated oil and gas leases covering over 1 million acres in Wyoming, Montana, and the Dakotas.
- The court found the Bureau of Land Management neglected to prioritize development outside greater sage-grouse habitats as mandated by 2015 policy.
- The greater sage-grouse population has declined 80% since 1965 amid ongoing habitat loss and climate impacts.
- Implementation is delayed to allow time for a government appeal, affecting thousands of leases across the Great Plains.
On June 15, 2026, Chief Judge Brian Morris of the U.S. District Court for the District of Montana invalidated oil and gas leases spanning more than one million acres across Wyoming, Montana, and the Dakotas. The court ruled that the Bureau of Land Management (BLM) failed to comply with agency policy established in 2015, which requires prioritizing oil and gas development outside of designated greater sage-grouse habitats.
The greater sage-grouse, a bird symbolic of the health of the sagebrush ecosystem, has suffered an 80% population decline since 1965. Each year, approximately 1.3 million acres of sagebrush habitat are lost due to climate change and human development, placing additional pressure on the species' survival. As Alison Holloran, Executive Director of Audubon Rockies, noted, "Sound public lands management is critical to halting the decline of the Greater Sage-grouse, a bird that is tied to the health of sagebrush country itself."
This ruling impacts thousands of leases covering the Great Plains, signaling increased judicial scrutiny over the BLM's environmental considerations in federal land management. However, the court's order is not immediately effective, allowing the administration time to appeal, which may delay any enforcement action. Legal professionals advising energy companies and land managers should closely monitor developments, as the decision underscores the legal risks tied to federal lease approvals where habitat protections are at issue.
By the numbers:
- 1 million+ acres of oil and gas leases invalidated — impacted by the June 15, 2026 ruling
- 80% decline in greater sage-grouse population since 1965 — reflecting severe habitat challenges
- 1.3 million acres lost annually — sagebrush ecosystem decline due to climate and development