BLM, Oil Interests Face Conservation Lawsuit Over Sage Grouse Lease Sales
Conservation groups sued the Bureau of Land Management and oil firms in March 2026, challenging large-scale leases on sage grouse habitat in Wyoming and Montana.
Why it matters: The case highlights shifting regulatory compliance burdens for legal professionals advising energy clients, as conservation groups seek to overturn federal policy changes. Law firms and in-house counsel must track potential changes to public land leasing processes and environmental review obligations.
- Western Watersheds Project and Center for Biological Diversity sued BLM and intervening oil companies in March 2026.
- The lawsuit challenges BLM's authorization of leases on over 1 million acres in Wyoming and Montana habitat.
- BLM launched a public comment window starting December 19, 2025, on 112 parcels in Wyoming.
- Federal and industry attorneys argue the leasing process complies with environmental laws and regulatory mandates.
Western Watersheds Project and the Center for Biological Diversity, along with other environmental organizations, filed their lawsuit against the Bureau of Land Management (BLM) and oil companies in March 2026. They seek to overturn federal leasing decisions that opened sagebrush habitat in Wyoming and Montana—critical for the greater sage-grouse—to new oil and gas activity.
- BLM opened a 30-day comment period on December 19, 2025, for the proposed sale of 112 lease parcels (120,927 acres) in Wyoming, closing January 22, 2026.
- The plaintiffs argue that policy changes finalized by BLM on December 6, 2025, rolled back protections for sage-grouse across nine states, undermining compliance with the National Environmental Policy Act (NEPA) and the Federal Land Policy & Management Act.
- Randi Spivak, public lands director at the Center for Biological Diversity, stated, “There’s no scientific support for claims that these plans will save sage grouse, and no public support for them either.” (CBD release)
- In court filings, federal and industry lawyers maintain the leasing was lawful, met all required environmental review standards, and followed adjusted regulatory guidance.
The lawsuit illustrates ongoing tension between resource development and endangered species management. Lawyers representing BLM and industry assert that the agency acted within its statutory mandate and regulatory discretion, while conservationists seek stricter judicial scrutiny of habitat management amendments.
No court ruling or preliminary injunction has been issued as of April 2026. Legal practitioners advising clients on federal leasing or compliance should monitor the case closely for guidance on the evolving intersection of environmental policy and land use.
By the numbers:
- 1M+ acres — Sage grouse habitat under lease challenged in the lawsuit.
- 112 — Number of Wyoming lease parcels BLM proposed in December 2025.
- 9 — Western states impacted by BLM's revised sage-grouse management plan.
Yes, but: No preliminary injunction or court ruling has yet been issued, so leasing activity continues for now.
What's next: Parties await a decision on motions for preliminary relief in federal court, expected by mid-2026.