US to auction drilling rights for Alaska reserve on March 9

Feb 5 (Reuters) - The Trump administration on Thursday said it would hold a sale of oil and gas drilling rights across 5.5 million acres of Alaska's National Petroleum Reserve on March 9.

WHY IT'S IMPORTANT

The sale is the first of at least five mandated by President Donald Trump's One Big Beautiful Bill Act, which he signed into law last year. The U.S. has not offered tracts in the Alaska reserve, which is known as the NPR-A, since 2019.

KEY QUOTE

"The National Petroleum Reserve in Alaska plays a vital role in advancing America's energy independence, and Congress has repeatedly made clear their intent for timely leasing and responsible development in the region," Bill Groffy, acting director of the Interior Department's Bureau of Land Management, said in a statement.

THE REPLY

"Selling off our most sensitive public lands will only pad industry pockets at the expense of American communities and ecosystems," Jenny Rowland-Shea, director of public lands at the Center for American Progress, a liberal think tank, said in a statement.

CONTEXT

This sale is part of the administration's push to expand domestic oil and gas production and reverse Biden-era restrictions on drilling on millions of acres in the reserve. While supporters argue it bolsters energy independence, environmentalists warn of risks to one of America's largest natural ecosystems.

BY THE NUMBERS

The BLM will offer more than 600 tracts on about 5.5 million acres. Currently about 1.6 million acres of the 23-million-acre reserve are leased to oil and gas companies.

WHAT'S NEXT

The BLM will accept sealed bids until March 5, and the auction will be livestreamed on March 9.