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Lawsuits Filed Against Biden Administration for Lost Oil Revenues

Two recent lawsuits have been filed against the Biden administration concerning lost oil leases on Alaska's North Slope. A coalition of North Slope local and regional governments, tribal governments, and Native corporations sued the U.S. District Court in Anchorage over environmental protections placed on the National Petroleum Reserve in Alaska (NPR-A). Concurrently, Alaska has filed a lawsuit in the U.S. Court of Federal Claims to recover lost revenues from nine canceled federal oil and gas leases in the Arctic National Wildlife Refuge’s (ANWR) Coastal Plain.


The Voice of the Arctic Iñupiat coalition claims the Department of the Interior’s rule, enacted on April 19, is flawed due to a lack of a complete environmental impact statement and inadequate engagement with North Slope residents. The rule, they argue, improperly turns vast areas of the NPR-A into conservation units. This rule was proposed by the Bureau of Land Management in September and finalized in April, building on the 2013 Obama administration’s Integrated Activity Plan and making its protections more permanent.


The new rule contrasts with a Trump administration plan that would have opened 82% of the reserve to leasing. The lawsuit seeks to overturn the Biden administration's rule to allow for continued oil development, crucial for local revenues and employment.


The state of Alaska's lawsuit seeks to recover lost revenues from canceled ANWR leases initially issued during the Trump administration. Biden’s Department of the Interior canceled these leases in September 2022, potentially costing the state billions in revenue.


The lawsuits highlight Alaska's dependency on oil revenues and the economic impact of the Biden administration's environmental policies. The lawsuits also highlight Alaska’s financial and employment benefits from oil production.


The NPR-A, at 23 million acres, was designated a petroleum reserve in 1923, and contains significant oil reserves, including the Nunashuk Formation and the Willow project, set to begin production by 2029.


Alaska's economy and state budget heavily rely on oil production, accounting for about half of the state’s economy and as much as 90% of its unrestricted General Fund revenues. Nearly all of Alaska’s oil is transported via the 800-mile Trans-Alaska Pipeline System (TAPS) from Prudhoe Bay to Valdez.


For more information, contact Sean Wallentine.





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