In a high-stakes legal battle, the state of Alaska has filed a lawsuit against the Biden administration, challenging its recent decision to impose additional restrictions on oil and gas drilling leases in the Arctic National Wildlife Refuge (ANWR). The federal lawsuit, filed on January 8, 2025, targets the U.S. Interior Department’s December 2024 decision to add stringent limitations on the development of the coastal plain, a section of the refuge considered rich in energy resources.

At the heart of the lawsuit, Alaska argues that these new restrictions, which limit surface use and occupancy, make it “impossible or impracticable” to develop the 400,000 acres of land that the Interior Department plans to offer for auction in January. The restrictions, Alaska claims, would severely hamper oil exploration and drilling in the Arctic, frustrating the state’s efforts to capitalize on what it sees as a critical energy resource.

“Interior’s continued and irrational opposition under the Biden administration to responsible energy development in the Arctic continues America on a path of energy dependence instead of utilizing the vast resources we have available,” said Governor Mike Dunleavy, a staunch advocate for drilling in the region. The Republican governor emphasized that the restrictions jeopardize Alaska’s economic future, particularly after the state lost significant revenue due to the cancellation of leases granted under the Trump administration.

The Interior Department’s decision, which combines new restrictions with the cancellation of leases issued in the final days of the Trump administration, is being seen as a direct challenge to the 2017 Congressional mandate that allowed oil and gas development in the coastal plain. Under former President Donald Trump, Alaska secured drilling rights through a provision in the 2017 tax reform bill. However, the Biden administration has consistently opposed drilling in the region, citing environmental concerns and the need to protect species like polar bears and caribou, which inhabit the refuge.

Alaska’s lawsuit argues that the government’s decision undermines both the 2017 Congressional directive and the economic interests of the state. The lawsuit claims that the loss of drilling opportunities will result in significantly reduced revenues, with Alaska projected to receive only a fraction of the $1.1 billion in lease-related revenues that the Congressional Budget Office had originally estimated for the state from energy development in ANWR.

This legal action is not Alaska’s first response to the Biden administration’s policies regarding ANWR. In October 2023, the Alaska Industrial Development and Export Authority filed a separate lawsuit over the cancellation of seven leases it had secured. Another suit, filed in July 2024, sought to recover revenue lost due to these cancellations. Together, these lawsuits represent the state’s ongoing efforts to fight back against federal policies it views as harmful to its economic future.

The battle over ANWR has been a long-standing one, with drilling supporters in Alaska clashing with environmentalists who argue that the refuge’s fragile ecosystem must be preserved. For decades, the refuge was off-limits to drilling, but Alaska’s political leaders have relentlessly pushed for access to its resources, framing energy development as a key economic and strategic priority. As the legal fight over ANWR continues, the outcome of this latest lawsuit could have significant implications for both Alaska’s energy industry and the Biden administration’s environmental policies.