Ninth Circuit Questions Executive Power Over Arctic Oil Lease Cancellations
A Ninth Circuit panel questioned the executive branch’s authority to cancel Arctic oil leases in a September 2026 appeal hearing.
Why it matters: The ruling clarifies limits on executive power affecting lease cancellations in Arctic drilling, directly impacting corporate counsel and legal operations managing regulatory risks and compliance in the energy sector.
- A September 15, 2026 hearing by a Ninth Circuit panel examined lease cancellation appeals related to the Arctic National Wildlife Refuge (ANWR).
- Interior Secretary Deb Haaland canceled leases in 2023 which President Trump reinstated through executive action in January 2025.
- Judge Michelle Friedland questioned the practical effects of vacating the lower court’s cancellation decision on federal leasing enforcement.
- The first ANWR Coastal Plain lease sale in January 2021 generated $14.4 million, far below the $1.8 billion Congressional Budget Office projection.
On September 15, 2026, a panel of the Ninth Circuit Court of Appeals heard arguments questioning the executive branch’s authority to cancel oil and gas leases in the Arctic National Wildlife Refuge (ANWR). The appeal challenges the 2023 lease cancellations made by then-Interior Secretary Deb Haaland, actions which align with President Biden’s environmental policies.
The panel included Judge Michelle Friedland, who expressed skepticism regarding whether overturning the district court’s decision to vacate the lease cancellations would effectively halt ongoing federal leasing efforts. Judge Friedland asked, "Why does it matter whether the district court's decision is vacated or not?" signaling potential limits to the executive’s power over fossil fuel leases.
The background involves multiple executive orders and legal actions: after the first ANWR Coastal Plain lease sale in January 2021 raised just $14.4 million in bids—dramatically below the $1.8 billion estimate by the Congressional Budget Office—the Interior Department paused leasing under Order 3401 citing the need for further environmental review under the National Environmental Policy Act (NEPA).
President Biden reinforced lease suspensions through Executive Order 13990, culminating in formal lease cancellations in September 2023. Days later, the Biden administration’s moves faced legal challenges by Alaska Native organizations and environmental groups.
On January 20, 2025, President Trump, on his first day back in office, reversed the cancellations via executive action, reopening ANWR for oil and gas development. The Department of Justice, represented by attorney Thekla Hansen-Young, argued before the Ninth Circuit that this action rescinded Haaland’s 2023 cancellation and restored lease validity.
Opposing counsel representing native groups countered that affirming the cancellations was vital to upholding the Interior Secretary’s authority over invalid leases, emphasizing environmental and regulatory concerns.
This legal tussle highlights ongoing uncertainty for energy companies, corporate counsel, and legal operations teams regarding regulatory enforcement and compliance in Arctic leasing. The case may shape future boundaries of executive power in environmental and energy law.
By the numbers:
- $14.4 million — revenue from the January 2021 ANWR Coastal Plain lease sale
- $1.8 billion — Congressional Budget Office's earlier revenue projection for the lease sale
- September 15, 2026 — date of the Ninth Circuit oral argument on lease cancellation appeals
Yes, but: While the panel questioned the executive branch's lease cancellation authority, no final ruling has been issued; ongoing litigation in Alaska federal courts may also influence outcomes.
What's next: The Ninth Circuit is expected to issue a ruling on the lease cancellation appeals later in 2026, with parallel challenges continuing in Alaska federal district courts.