Interior Department curbs future Arctic offshore drilling

ANCHORAGE, Alaska (AP) — The Interior Department announced Friday it is canceling future lease sales and will not extend current leases in Arctic waters off Alaska's northern coast, a decision that significantly reduces the chances for future Arctic offshore drilling.

Interior Secretary Sally Jewell said the federal government is canceling federal petroleum lease sales in U.S. Arctic waters that were scheduled for 2016 and 2017.

"In light of Shell's announcement, the amount of acreage already under lease and current market conditions, it does not make sense to prepare for lease sales in the Arctic in the next year and a half," she said.

Jewell said the Chukchi Sea off Alaska's northwest coast and the Beaufort Sea off the state's north coast will not be included in the agency's next five-year lease sale plan.

In denying the extension, the Bureau of Safety and Environmental Enforcement's regional supervisor for field operations, Kevin Pendergast, said Shell had not met the criteria to extend its leases, including providing the agency with a work schedule on them.

Independent Gov. Bill Walker met with Jewell in Washington, D.C., earlier this month about extending Shell's leases and opening up a small part of the Arctic National Wildlife Refuge to drilling.

Sen. Dan Sullivan, R-Alaska, said the Obama administration is correct in wanting to help Alaska Natives and all Alaskans battle the state's high rates of suicide, domestic violence and addiction.