By: Yereth Rosen, Alaska Beacon
The state of Alaska has the right to make public data from exploration wells drilled by ConocoPhillips in the National Petroleum Reserve in Alaska, an appeals court has ruled.
The 9th Circuit Court of Appeals ruling, issued Wednesday, overturns a 2023 decision by U.S. District Court Judge Sharon Gleason that allowed well data to remain under wraps.
At issue is a collection of wells drilled in the reserve, which is federal territory. ConocoPhillips argued that data confidentiality is explicitly guaranteed in federal law and that federal law supersedes state law, but the appeals justices disagreed.
On the National Petroleum Reserve, “Alaska has its own authority to gather — and disclose — data collected from oil and gas exploration, authority that it exercised even before Congress opened the Reserve to private exploration,” the appeals court ruling said.
The Indiana-sized National Petroleum Reserve is of keen interest to energy companies. It is underlain by a formation called the Nanushuk, the source of oil for ConocoPhillips’ huge Willow project, which is under development, the Santos-operated Pikka project, which recently started production, and other prospects. A lease sale held in the reserve in March, the first since 2019, drew a record $163 million in high bids.
Under state law, data from exploratory oil and gas wells is to be disclosed publicly after those wells are completed. State law provides for a 24-month period of confidentiality, after which the AOGCC is to make the data publicly available, unless the Department of Natural Resources commissioner grants an exemption to keep the information confidential for a longer period.
After ConocoPhillips’ request for a DNR exemption was denied, the company in 2022 sued the Alaska Oil and Gas Conservation Commission to keep the data confidential.
ConocoPhillips argued that the federal Naval Petroleum Reserves Production Act expressly prevents the AOGCC and Gas Conservation Commission from disclosing data from the wells, which were drilled on federal leases.
Gleason’s March 8, 2023, ruling came to a slightly different conclusion that nonetheless backed ConocoPhillips. She found that the federal law implicitly protects data confidentiality, despite state law.
The appeals court judges agreed that the federal law has no explicit restriction on state release of well data, but they drew a different conclusion from that finding than Gleason did.
For the state, the appeals court ruling is a victory that is good for future development, Acting Attorney General Cori Mills said in a statement.
“Alaska relies heavily on our resources and resource development. We are also stewards of those resources for the citizens of Alaska. Alaska’s law both allows resource development now, and encourages further development and exploration in the future. We’re pleased that the Ninth Circuit recognized that federal law has not overridden Alaska’s balanced approach,” Mills said.
ConocoPhillips is still considering its next steps, a company spokesperson said. “ConocoPhillips Alaska, Inc. has received the court’s decision and is evaluating it. ConocoPhillips Alaska, Inc. has not decided on whether to appeal the decision,” company spokesperson Megan Olson said by email.
The well data that is the subject of the case remains confidential, according to court documents. Confidentiality has been maintained all the time that the court case has been active.
