The US Department of the Interior announced a new rule that puts a significant limit on future oil and gas activities in Alaska’s National Petroleum Reserve, a sprawling expanse that spans 23 million acres. The newly introduced rule makes considerable amendments to existing federal regulations the Bureau of Land Management utilizes to protect the reserve from environmental damage, and in doing so, endows the bureau with more authoritative powers to reel in oil and gas exploitation.
In light of these rules, the bureau will not issue any new oil and gas leases on 10.6 million acres of the reserves. Existing leases on a staggering 13.6 million acres will be subjected to a more critical assessment process for new oil and gas projects before receiving approval. Illustratively, the agency may delay or outright deny new projects if they could potentially inflict significantly adverse effects on the reserve’s environment.
Public commentary on the proposed rule—which was extensive—primarily sought to exempt existing leases from these changes. However, the bureau responded by stating that while the terms of an existing lease and approved development project or permit would be unaffected by the rule, a valid lease does not grant the leaseholder the unrestricted right to drill, nor does it provide the right to produce all economically retrievable oil and gas on the lease. Therefore, future development remains subject to additional terms and conditions.
US Secretary of the Interior Deb Haaland commented on the rule, appreciating the fact that these decisions would aid biological, cultural, historic, and subsistence resources. Reactions from environmental groups, like Jeremy Lieb from Earthjustice who applauded the move, were positive as well.
However, the new rule hasn’t gone without critique. US Senator Dan Sullivan (R-AK) commented that this rule could increase the United States’ dependence on foreign sources of oil and gas, from nations such as Iran, China, and Russia. Similarly, US Representative Sattler Peltola (D-AK) opposed the ban on new leases in 10.6 million acres.
This rule change is a significant deviation from last year, when President Biden approved an $8 billion oil development project in the same region, a move that didn’t go well with environmental groups. The full coverage of this new rule can be found at Jurist News.