Why It Matters
Alaska’s Department of Natural Resources has taken a significant step toward expanding oil and gas exploration on state-controlled subsurface lands near the Yukon River, a decision that could unlock resource development in one of the state’s least-explored energy regions. The tentative approval affects the Yukon Flats, a vast wetland area in Interior Alaska, and reflects state commitment to developing oil and gas resources while navigating environmental and regulatory considerations. The outcome will influence how Alaska balances resource extraction with conservation priorities in areas adjacent to the Yukon Flats National Wildlife Refuge.
What Happened
On March 4, the Alaska Department of Natural Resources published a public notice indicating its preliminary determination to allow oil and gas exploration on state land in the Yukon Flats vicinity. The determination, signed by Derek Nottingham, director of the Division of Oil and Gas, states that development “comports with constitutional direction to encourage the development of the state’s resources, and with the legislature’s direction that it is in the state’s interest to develop the state’s oil and gas resources.”
The decision comes as oil and gas company Hilcorp continues operations in the region. Last summer, Hilcorp drilled for oil on land leased from Doyon Ltd., the regional Alaska Native corporation serving Interior Alaska, near the village of Birch Creek south of Fort Yukon. Doyon’s subsidiary, Doyon Drilling, performed much of the work. Following that drilling activity, Hilcorp submitted an application to conduct oil and gas exploration on nearby state-controlled lands.
The state lands in question are classified as “subsurface waters”—riverbeds and lake beds controlled by Alaska under federal law and a 2019 U.S. Supreme Court decision. Most of the surrounding territory falls within the Yukon Flats National Wildlife Refuge, which is designated for its waterfowl nesting and breeding grounds. Hilcorp’s permit application remains on hold pending completion of the state’s regulatory review process.
The preliminary approval is subject to public comment, with submissions due by April 6. Comments can be emailed to the Division of Oil and Gas for consideration before any final determination.
By The Numbers
- March 4: Date the Alaska Department of Natural Resources published its public notice of preliminary determination
- April 6: Deadline for public comment submission on the state’s position
- 2019: Year of the U.S. Supreme Court decision establishing state control over subsurface waters in the region
- Last summer: Timeline of Hilcorp’s initial drilling operations on Doyon-leased land near Birch Creek
- Zero: Number of active oil and gas production operations currently in the “Middle Earth” region, the vast swath of Alaska between the North Slope and Cook Inlet where the Yukon Flats are located
Zoom Out
The Yukon Flats are located in what Alaska state officials have designated as “Middle Earth,” a broad, sparsely developed energy region of Alaska between the North Slope and Cook Inlet. This vast territory has no active oil and gas production and has not been thoroughly surveyed for hydrocarbons. The state’s determination acknowledges that “the land within the Yukon Flats determination area has unknown oil and gas potential” and notes limited access to existing oil and gas infrastructure across much of the region.
Alaska’s move toward expanded exploration reflects broader state energy policy prioritizing resource development. The preliminary determination specifically references both the state constitution and legislative direction supporting oil and gas development. The Yukon Flats decision follows similar regulatory discussions across Alaska regarding energy exploration in previously undeveloped or minimally developed areas.
The intersection of oil and gas development with wildlife protection remains a contentious issue nationally. The Yukon Flats National Wildlife Refuge’s designation as critical waterfowl habitat puts conservation interests in direct tension with development proposals, a dynamic seen in other states managing energy policy on or near federally protected lands.
What’s Next
The Alaska Department of Natural Resources will accept public comments through April 6 before issuing a final determination. Following the close of the comment period, the agency will review submissions and decide whether to formally approve or modify its preliminary position regarding oil and gas exploration in the Yukon Flats area.
Once the state completes its regulatory review, Hilcorp’s pending permit application for exploration on state subsurface lands will be reconsidered. If approved, the company would advance toward actual exploration operations, potentially beginning additional drilling or seismic surveys to assess oil and gas resources. Any approval would likely include specific permitting conditions and monitoring requirements.
Environmental organizations and conservation groups may submit formal objections during the comment period, potentially triggering additional administrative processes or legal challenges. The final outcome will establish precedent for future development proposals in Alaska’s least-explored energy regions.