Energy
Federal Judge Throws Out Environmental Review for Wyoming’s Largest Oil Project
A federal judge has invalidated the environmental review for the Converse County Oil and Gas Project — Wyoming's largest planned oil and gas development — but drilling continues under a separate planning document, leaving the future of the 5,000-well project in legal uncertainty.
The ruling found that the Bureau of Land Management's environmental impact statement for the massive project failed to adequately assess cumulative impacts on air quality, water resources, and wildlife habitat in the Converse County region of the Powder River Basin.
The Converse County project, which would authorize up to 5,000 new oil and gas wells across a sprawling area of northeastern Wyoming, has been a flashpoint in the debate between energy development and environmental protection in the state.
Despite the court setback, the BLM confirmed it is still issuing drilling permits in the project area under a separate resource management plan that predates the contested environmental review. Companies including Three Crown Energy have announced plans to drill four wells in the second quarter of 2026 — two in Johnson County and two in Campbell County.
"The rigs keep working," said Wyoming Petroleum Association spokesperson Mark Gifford. "This ruling affects the long-term expansion plans, but existing operations are unaffected."
Environmental groups that brought the lawsuit celebrated the decision as a significant check on unconstrained drilling in the region. "This is exactly why environmental review exists," said Western Watersheds Project attorney Lisa McGee. "You can't rubber-stamp a project of this magnitude without accounting for the real impacts on Wyoming's land and water."
The ruling could affect long-term planning for oil and gas development in the Powder River Basin, which remains one of the most productive energy regions in the country. Wyoming's economy is heavily dependent on mineral extraction, and the state's political leaders have been vocal in supporting expanded drilling.
Governor Mark Gordon's office said it was reviewing the ruling. The BLM has not indicated whether it will appeal or conduct a new environmental review.
West Texas Intermediate crude was trading at $64.51 per barrel at the time of the ruling, its highest level in six months.
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