All Oil, Gas Leases in Alaska Wildlife Refuge Cancelled

All Oil, Gas Leases in Alaska Wildlife Refuge Cancelled
The cancellations are due to alleged legal shortcomings in environmental clearance.
Image by AKauroraPhotos via iStock

The USA Department of the Interior (DOI) has rescinded seven oil and gas leases awarded by the Trump administration in the Arctic National Wildlife Refuge over alleged legal shortcomings in environmental clearance.

The decision announced by the department in a press release Wednesday means all nine leases issued under the Coastal Plain Leasing Program have now been canceled following a review ordered by the Biden government.

The leases covered over 430,000 acres and were to last 10 years. But on January 21, 2021, a day after his inauguration, President Joe Biden ordered the DOI to review the program through Executive Order 13990. Interior Secretary Deb Haaland then issued Order No. 3401 on June 1, 2021 suspending all DOI activities related to the Arctic Refuge leasing program.

The secretary's preliminary review of the program found "multiple legal deficiencies in the underlying record supporting the leases, including, but not limited to: (1) insufficient analysis under the National Environmental Policy Act, including failure to adequately analyze a reasonable range of alternatives in the environmental impact statement (EIS); and (2) failure in the August 17, 2020, Record of Decision to properly interpret Section 20001 of Public Law 115-97 (Tax Act)", read the text of the order.

Following the secretary's order, two of the nine leases were canceled with refunds to the awardees on their request, the DOI said in Wednesday's announcement.

The remaining seven leases covering 365,000 acres have now also been voided, the DOI said Wednesday as it issued a draft supplemental EIS.

The awardees were the Alaska Industrial Development and Export Authority for seven tracts, Knik Arm Services LLC for one tract and Regenerate Alaska Inc. for one tract, as announced by the DOI's Land Management Bureau January 19, 2021.

In Wednesday's press statement the DOI reaffirmed its earlier findings. The statement said "the 2021 lease sale was seriously flawed and based on a number of fundamental legal deficiencies, including: insufficient analysis under the National Environmental Policy Act, including failure to adequately analyze a reasonable range of alternatives and properly quantify downstream greenhouse gas emissions; and failure to properly interpret the Tax Act".

Restrictions on Alaska Petroleum Reserve

The DOI also said in the announcement it is moving forward with proposed new regulations limiting oil and gas leasing in the National Petroleum Reserve in Alaska (NPRA), which "would ensure maximum protection for the more than 13 million acres of Special Areas in the reserve, while supporting subsistence activities for Alaska Native communities".

"With climate change warming the Arctic more than twice as fast as the rest of the planet, we must do everything within our control to meet the highest standards of care to protect this fragile ecosystem", Haaland said in a statement.

"The steps we are taking today further that commitment, based on the best available science and in recognition of the Indigenous Knowledge of the original stewards of this area, to safeguard our public lands for future generations", the interior secretary added.

First announced March 12, the proposal "adds to President Biden’s actions to protect millions of acres of lands and waters in the Arctic, including withdrawing approximately 2.8 million acres of the Beaufort Sea, ensuring the entire United States Arctic Ocean is off limits to new oil and gas leasing", Wednesday's announcement said.

The new regulations would limit oil and gas and industrial developments around Colville River, Kasegaluk Lagoon, the Peard Bay Special Areas, Teshekpuk Lake and the Utukok Uplands. These areas are "known for their globally significant intact habitat for wildlife, including grizzly and polar bears, caribou and hundreds of thousands of migratory birds", the DOI noted in the announcement.

"The rule would establish an outright prohibition on any new leasing in 10.6 million acres, more than 40 percent of the NPR-A", it added.

The DOI said it would open a 60-day public comment period for the proposal, the timeline of which has yet to be announced. "During that time, the BLM will host in-person meetings in communities on the North Slope, as well as virtual public meetings to discuss the proposed rule", the department said.

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