McGirt v. Oklahoma’s Potentially Sweeping Regulatory Implications for the Oil & Gas Industry

The U.S. Supreme Court’s recent decision in McGirt v. Oklahoma held that land in eastern Oklahoma reserved for the Creek Nation since the 19th century remains a reservation for the purpose of a federal statute that gives the federal government exclusive jurisdiction to try certain major crimes committed by “[a]ny Indian” in “the Indian country.” As a result, Oklahoma state courts had no jurisdiction to convict petitioner Jimcy McGirt, an enrolled member of the Seminole Nation of Oklahoma, of three serious sexual offenses that took place on the reservation.

The decision, which commentators are describing as “stunning,” will have regulatory consequences far beyond defining the criminal jurisdiction of state and federal courts. In addition to potentially important tax implications, the decision may give tribes significant new administrative authority over oil and gas production in the region. These regulatory consequences are sure to be the subject of extensive litigation before federal agencies and courts for years to come. In the discussion that follows, we highlight some key takeaways for companies with a stake in oil and gas development in the affected region.