Trump Administration Approves Oil and Gas Leasing Program in Alaska’s Wildlife Refuge

The U.S. Interior Department on Aug. 17 issued a decision approving oil and gas leasing activities in the 1.56 million-acre Coastal Plain area in Alaska’s 19.3 million Arctic National Wildlife Refuge. The move follows the 2017 Tax Cuts and Jobs Act, which directed the Secretary of the Interior to establish a competitive program for the leasing, development, and transportation of oil and gas in and from the Coastal Plain. Alaska Governor Michael Dunleavy, a Republican, commended the decision, calling it a milestone in the state’s forty-year journey to develop the nation’s new energy frontier – the 1002 area, which is expected to have 4.3-11.8 billion barrels of technically recoverable oil reserves.

The decision details lease stipulations and operating procedures for future oil and gas activities, providing protections for surface resources and other uses, including subsistence use. Congress left 92 percent of the ANWR area off-limits to energy exploration, in order to balance resource utilization and local wilderness preservation.

The American Petroleum Institute welcomed the decision, calling it a step closer to unlocking Alaska’s energy potential, which will create jobs and provide a new revenue stream for the state. “In 2019, nearly 104,000 Alaska jobs were attributable to oil and natural gas investment and activity, which represents 32 percent of all Alaska jobs and 35 percent of all Alaska wages,” according to the group.

The department said that the Tax Cut law unlocked the energy potential of the Coastal Plain area after 30 years of gridlock. The law called for a competitive energy development program which could keep the oil flowing in the 800 mile Trans-Alaska Pipeline, bringing jobs and economic growth to the state. The state is also expected to play a more important role in enhancing the nation’s energy security.

The 2017 law directs the Bureau of Land Management to conduct at least two area-wide leasing sales of up to 400,000 acres each within seven years in the approved program area. The first lease sale should take place before Dec. 22, 2021 while the second one should before Dec. 22, 2024. The law also requires the Secretary of the Interior to grant easements to authorize up to 2,000 surface acres, or 0.01 percent of the ANWR area to support the deployment of production and ancillary facilities.