The federal government has reached a settlement to strip endangered species protections from the dunes sagebrush lizard, a small reptile whose range overlaps the Permian Basin, the nation's largest oil-producing region. The agreement resolves a lawsuit filed by Texas Attorney General Ken Paxton and requires judicial approval in Midland, Texas.
In May 2024, the U.S. Fish and Wildlife Service designated the dunes sagebrush lizard as endangered after determining that oil and gas development in the Permian Basin had made the species' habitat loss "effectively permanent." That decision invoked the federal Endangered Species Act, which can limit development in areas deemed critical to a species' survival.
But the agency now says it committed a "serious and fundamental" error in reaching that conclusion. In a court filing on Wednesday accompanying the settlement, the U.S. Department of Justice said the Fish and Wildlife Service improperly assumed habitat restoration would not be possible and discounted experimental conservation efforts that "showed promise." According to the Justice Department, that mistake resulted in "an incomplete and potentially inaccurate assessment of the potential and ongoing conservation efforts in New Mexico and Texas."
Under terms of the settlement, the Fish and Wildlife Service will undertake additional review and must decide within two years whether the dunes sagebrush lizard should be classified as endangered or as threatened. The agency did not admit to wrongdoing beyond acknowledging an error in its evaluation of habitat restoration prospects.
Texas Attorney General Ken Paxton filed the lawsuit in September 2024 seeking to overturn the final rule that had afforded the lizard endangered status. Paxton characterized the Biden-era rule as politically motivated, arguing that it could hinder energy production and constrain private landowners' business activities. Paxton did not immediately respond to requests for comment on Thursday.
The settlement comes amid a broader pattern of regulatory rollbacks under President Donald Trump, who has prioritized reducing regulatory burdens for industry and expanding domestic energy production. Critics of those policy shifts contend they diminish environmental protections for air, water and public health.
The dunes sagebrush lizard's mapped range covers approximately 1.25 million acres, or 1,953 square miles, according to the Fish and Wildlife Service. The broader regional context highlights Texas' significance to U.S. energy output: in 2024 Texas accounted for 43% of national crude oil production and 28% of natural gas gross withdrawals, the U.S. Energy Information Administration reported.
The settlement requires the endorsement of a federal judge in Midland, Texas, before the Fish and Wildlife Service can proceed with its planned re-evaluation. Until that review is completed and a new decision issued within the two-year window, the agency's prior designation stands under the terms set by the settlement process.
Summary
The federal government has agreed to remove endangered status for the dunes sagebrush lizard as part of a settlement with Texas Attorney General Ken Paxton. The Fish and Wildlife Service acknowledged a critical error in its earlier conclusion about the infeasibility of habitat restoration and will re-evaluate the species' classification within two years, subject to court approval.
Key Points
- The administration will revoke endangered protections for the dunes sagebrush lizard, pending judge approval in Midland, Texas.
- The Fish and Wildlife Service acknowledged a "serious and fundamental" error in assuming habitat restoration was not possible and in discounting experimental conservation efforts.
- Energy and land-use sectors are directly implicated, given the lizard's range overlaps the Permian Basin and Texas' role in national crude and natural gas production.
Risks and Uncertainties
- Judicial approval is required in Midland, Texas, creating legal uncertainty about the settlement's implementation.
- The Fish and Wildlife Service must complete a new review and make a classification decision within two years, leaving the species' long-term regulatory status unresolved for that period.
- Policy shifts tied to federal regulatory rollbacks may draw criticism for weakening environmental protections, with potential reputational and compliance implications for energy and land management stakeholders.