The federal government has reached an agreement to eliminate endangered species protections for a lizard species inhabiting America’s top oil-producing area, bringing closure to legal action filed by Texas Attorney General Ken Paxton.
In May 2024, the U.S. Fish and Wildlife Service had classified the dunes sagebrush lizard as an endangered species, determining that petroleum extraction activities in the Permian Basin had rendered the destruction of its natural environment “effectively permanent.”
However, federal wildlife officials now acknowledge they committed a “serious and fundamental” mistake by incorrectly concluding that environmental restoration was impossible, while also undervaluing experimental conservation programs that “showed promise,” according to a Wednesday court document filed by the U.S. Department of Justice as part of the agreement.
This mistake “led to an incomplete and potentially inaccurate assessment of the potential and ongoing conservation efforts in New Mexico and Texas,” the Justice Department stated.
A federal judge in Midland, Texas must give final approval to the settlement.
This development represents another environmental policy reversal under President Donald Trump, a Republican who has worked to eliminate regulations in an effort to lower industry costs and increase domestic energy production. Opponents argue his initiatives reduce safeguards for air, water and public health.
Paxton’s office did not immediately respond to requests for comment on Thursday.
The legal challenge filed in September 2024 aimed to overturn the final regulation protecting the lizard, which was implemented during then-Democratic President Joe Biden’s term in office.
Paxton argued the regulation was politically driven, could harm energy production, and jeopardized private property owners’ capacity to operate their businesses.
The Fish and Wildlife Service, operating under the U.S. Department of the Interior, had declared the lizard endangered through the federal Endangered Species Act, which limits development in areas considered essential for a species’ continued existence.
According to the settlement terms, the agency will conduct additional analysis and make a determination within two years on whether to categorize the lizard as endangered or threatened.
The agency did not acknowledge any misconduct beyond recognizing its mistake concerning habitat restoration possibilities.
Paxton, a Republican, is campaigning for a U.S. Senate position and maintains strong support for Trump.
The dunes sagebrush lizard inhabits an area covering 1.25 million acres (1,953 square miles), based on Fish and Wildlife Service data.
In 2024, Texas was responsible for 43% of the country’s crude oil production and 28% of its natural gas gross withdrawals, according to the U.S. Energy Information Administration.
