On the first day of his second term, President Trump signed a Presidential Memorandum (the “Memorandum”), effective as of January 21, 2025, withdrawing “from disposition for wind energy leasing all areas within the Offshore [sic] Continental Shelf (OCS) as defined in section 2 of the Outer Continental Shelf Lands Act.” The Memorandum both temporarily prevents consideration of any new or renewed wind energy leasing in any OCS area, and also orders federal agencies not to issue “new or renewed approvals, rights of way, permits, leases, or loans for onshore or offshore wind projects pending the completion of a comprehensive assessment and review of Federal wind leasing and permitting practices.” Under the plain terms of the Memorandum, the pause on permitting or other approvals, leases or loans, does not have a time limit and extends broadly to both offshore and onshore wind projects, either within the United States or on the OCS.

While the Memorandum expressly states that it does not revoke or otherwise affect rights under existing leases in the withdrawn areas, it further instructs the Secretary of the Interior to “conduct a comprehensive review of the ecological, economic, and environmental necessity of terminating or amending any existing wind energy leases, identifying any legal bases for such removal, and submit a report with recommendations to the President.” As such, the status of existing wind leases would appear to be subject to the Interior Secretary’s review (i.e., North Dakota governor Doug Burgum, who is expected to be confirmed). This review also suggests that further Presidential Memoranda relating to wind energy leasing within the OCS could be forthcoming in future months.

Parties to existing contracts in this space should be aware of the Memorandum and its implications. While existing leases are expressly stated not to be impacted, the prevention of new leases, and the order to conduct a comprehensive review of termination or amending existing wind energy leases, could have significant consequences. Depending on the specific wording of contractual clauses, governmental actions can qualify as a force majeure event allowing a party to be excused from certain obligations or damages resulting from unforeseen circumstances beyond the parties’ reasonable control. It is crucial to carefully analyze those provisions to confirm whether such a clause is applicable or if other options are available, including whether there may be any notice or timing requirements in order to claim reliance on such a clause.

For further information or questions, contact a member of the Seward & Kissel team.