The finding in favor of regulators was already ruled by a magistrate judge, however conservation group Northern Plains Resource Council filed a further lawsuit against the federal Bureau of Land Management (BLM) and took the case the Federal court.
The conservation group said BLM had not properly studied the potential effects of developing coal bed methane before it started issuing leases from 1997 to 2001, AP said.
Northern Plains had argued BLM had not given members of the public a chance to comment and had leased coal bed methane without going-over management plans for methane development.
BLM put forward the case that it had honored its obligations under federal environmental law and other regulations.