UPDATE: The Interior Department reports that no one submitted bids in this week's lease sale in the Arctic National Wildlife Refuge. The deadline for bids was Monday.
Attorneys for the state of Alaska filed a lawsuit Monday to try to invalidate a federal lease sale for oil and gas drilling in the Arctic National Wildlife Refuge. The lawsuit says the Biden administration is offering so little land for lease and has put so many restrictions on it that the lease sale doesn’t comply with the law.
So the state, a stalwart supporter of drilling in the refuge, is asking a judge not to let the federal government issue leases to oil companies. The role reversal is the latest wrinkle in a long saga over what to do with the coastal plain of the refuge, in the northeast corner of Alaska.
After decades of hot debate in Congress, Sen. Lisa Murkowski championed a provision in a 2017 tax law mandating two lease sales, of at least 400,000 acres each, on the coastal plain of the refuge.
The first was held in 2021, in the final days of the Trump administration. As a measure of industry interest, it was a dud. None of the big oil companies offered a bid. Two private firms won leases but then relinquished them. The main bidder was the state-owned Alaska Industrial Development and Export Authority.
In 2023, the Biden administration cancelled the leases, saying the process was flawed.
The state, citing an earlier congressional estimate, said it was in line to get more than $1 billion in lease revenues, plus royalty payments and the indirect economic benefits that come with more industrial activity.
Bids for the second sale were due Monday, and they’re scheduled to be unsealed Friday. The state lawsuit notes that this time, the government made only a third of the coastal plain available for bidding.
“Worse,” the legal complaint says, “it makes the lands available for lease impossible or impracticable to develop by significantly restricting surface use and occupancy. In essence, the [lease sale conditions] are designed
to inhibit and deter, rather than promote, development of the Coastal Plain’s mineral resources.”
The Biden administration says its restrictions are the best way to balance all of the laws it has to follow. Before the 2017 law ordering lease sales, Congress set other goals for the Arctic Refuge, including conserving birds and wildlife, and protecting subsistence hunting and fishing opportunities.
If the lawsuit succeeds the Trump administration could get a do-over to offer more land for lease and under terms that would facilitate drilling.
