Trump Officials in Talks With Wind Developers to Buy Back Leases

Article content(Bloomberg) — The Trump administration is talking with some offshore wind developers about buying back the leases they purchased from the federal government years ago to develop energy projects along the US coast. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe potential reimbursements — meant to cover the original lease purchase price — are seen as the latest push by the administration to thwart a nascent US offshore wind industry that’s anathema to President Donald Trump. He has long criticized wind farms as ugly, bird-killing monstrosities and vowed no new wind turbines will be installed in the country under his watch. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentCompanies that agree to relinquish the leases would forfeit all rights to continue developing offshore wind farms on the tracts, said people familiar with the matter who asked not to be named because private discussions are ongoing. In some cases, the returned payments could be earmarked for US oil, gas and coal projects instead, the people said. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe conversations are coming at the request of the developers themselves, generally those that are in early stages of the project-development process, said one of the people.Article contentInterior Department representatives did not immediately respond to a request for comment. “Stay tuned!” said White House spokeswoman Taylor Rogers.

The Financial Times earlier reported that talks were being conducted.Article contentThe model for the discussions is a $1 billion settlement brokered between the government and TotalEnergies SE that was announced earlier this week. Under that agreement, Total is recovering the fees it paid for two leases purchased in 2022 near North Carolina and New York. The company has also pledged to invest an equal amount in developing US gas and power projects. Article contentArticle contentThe buyback approach has been used before to extricate the US government from leases, particularly after litigation. After former President George W. Bush’s Interior Department sold shale oil leases in Utah in 2008, the auction was subsequently challenged in court. Months later, the agency under former President Barack Obama ordered the withdrawal of those leases, with leaseholders refunded the bids they’d paid for the territory.Article contentCurrent talks have involved a number of developers with existing wind leases on the US outer continental shelf, people familiar with the matter said. Potential deals could be part of legal settlements to resolve litigation over Interior Department moves against some projects, they said.Article contentThe prospect of lease relinquishment may be more attractive to developers with recently acquired leases — those that haven’t done significant work to design, permit or build the projects. Significant work is unlikely to proceed under Trump, who issued an order halting permitting of offshore wind projects and ruled out the sale of new leases within hours of taking office last year. Article contentThe calculus is likely to be much different for the handful of developers that are in the final stages of construction and have invested billions to build the offshore wind farms. Initial leases have generally cost a fraction of that.Article contentUnder Trump, the Interior Department has moved on multiple fronts to thwart the development of offshore wind farms, using broad orders and stop-work decrees to shut down permitting, construction and other activities under leases sold earlier. Developers and affected states have mounted a series of so far mostly successful lawsuits challenging the moves.Article contentTrending This TSX stock was a top gainer on the week with a 40% upside possible based on its growing market share, analyst says Investor Why waiting to lock in your variable rate often backfires Mortgages Quebec demands Air Canada’s CEO resignation in 92 to 0 vote Airlines Markets could be making the wrong call on interest rates Investor Trump’s signature to appear on U.S. currency, breaking precedent Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. This TSX stock was a top gainer on the week with a 40% upside possible based on its growing market share, analyst says Investor Why waiting to lock in your variable rate often backfires Mortgages Quebec demands Air Canada’s CEO resignation in 92 to 0 vote Airlines Markets could be making the wrong call on interest rates Investor Trump’s signature to appear on U.S. currency, breaking precedent Economy