The first lease sale in the National Petroleum Reserve in Alaska since 2019 generated $163 million in high bids, but some bids were for protected land
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A controversial oil and gas federal lease sale in the National Petroleum Reserve in Alaska generated a new bidding record, according to results released on Wednesday. It was the first auction held in that Arctic Alaska territory since 2019.The lease sale produced $163 million in high bids, beating the $104 million mark set during the first competitive oil and gas lease sale in the Indiana-sized reserve, which was held in 1999 during the Clinton administration.
Eleven companies submitted bids for more than 1.3 million acres of the nearly 5.5 million acres offered in the auction.
Kevin Pendergast, Alaska state director for the U.S. Bureau of Land Management, called the results “historic.”
“This is the strongest sale we have ever had in the National Petroleum Reserve in Alaska by nearly every measure. It makes clear that for the NPR-A, despite all the successes to date, the best days are still ahead,” Pendergast said at the conclusion of the bid opening, which lasted about two hours.
In statements issued after the bid reading, federal and state officials hailed the results. [...]
The lease sale was one of five mandated in the reserve over the next 10 years by the sweeping budget and tax bill called the “One Big Beautiful Bill Act.” That mandate calls for lease sales to be conducted under a Trump administration management plan that opened 82% of the reserve to oil development. Previously, the Obama administration held annual lease sales in the petroleum reserve, but that administration’s management plan protected about half of the land through the designation of “special areas” considered important to wildlife and to Native cultural practices.
Federal officials auctioned tracts of protected land
Much of the bidding in Wednesday’s sale was for territory that was previously off-limits to oil development under protections that date as far back as the Reagan administration. [ed. guess who helped write and fight for those protections.]
The inclusion of long-protected land in the sale, predominantly the area around ecologically sensitive Teshekpuk Lake, made the lease sale contentious. It is the subject of two lawsuits filed by Native and environmental groups.
Bids were accepted even for tracts within an area encircling Teshekpuk Lake, the North Slope’s largest lake, despite a federal court order issued Monday that reinstated development prohibitions there.
by Yareth Rosen, Alaska Beacon | Read more:
Image: YouTube
[ed. Nice video, you should watch it. $163 million is not nothing, but it's not a lot. Prudhoe Bay - before there was any infrastructure or pipeline - garnered $900 million, and it was a much smaller area. When I was overseeing oil and gas leasing in the arctic in the 80s there was very little interest in NPR-A - except for Teshekpuk Lake, one of the most ecologically important areas on the North Slope (along with ANWR). We used to joke that if you wanted to find oil just look for the most environmentally sensitive area you could find in a lease sale and bid there. Not a joke anymore.]
