Alaska Files Lawsuit Against Federal Government Over Restrictions on Oil and Gas Leases

The state of Alaska has filed a lawsuit against the federal government, claiming the Department of Interior (DOI) executed an “unlawful detour” by restricting oil and gas lease auctions to around 400,000 “impracticable to develop” acres within the 19.6-million acre Arctic National Wildlife Refuge (ANWR).

Alaska contends that by confining leases to 400,000 acres, the administration breached the 2017 Tax Cuts and Jobs Act, which mandated the DOI to conduct two lease auctions within Section 1002—a 1.5-million acre area authorized for potential oil and gas development by Congress in 1980.

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The expired bid deadline on Jan. 6 marked the conclusion of the second Congressionally mandated sale as stipulated by the 2017 Tax Cuts and Jobs Act, which directed the Bureau of Land Management to conduct two lease sales within seven years of its enactment.

Officials from Alaska expressed concerns that the “last-minute actions to restrict and complicate” oil and gas development within ANWR’s Section 1002 dissuaded potential bidders.

Alaska Department of Natural Resources Commissioner John Boyle stated that the November restrictions have caused “total dysfunction.”

Alaska Governor Mike Dunleavy criticized the Biden administration’s “irrational opposition” to responsible energy development in the Arctic, arguing that it leads the U.S. towards energy dependence rather than utilizing its significant resources.

Trump has pledged to overturn the ANWR restrictions with an executive order on “Day One.” Dunleavy stated that the lawsuit remains necessary.

“We’ve heard the incoming president indicate that his administration will, thankfully, take a different approach and open up the areas designated for development,” he stated. “However, we cannot afford to wait for that—we must contest this unlawful action now.”