Alaska Moves Toward Oil and Gas Exploration Near Yukon River

The Alaska Department of Natural Resources (DNR) has tentatively approved oil and gas exploration on state land near the Yukon River, as outlined in a public notice published on March 4. This decision aligns with the constitutional directive to promote the development of the state's resources and reflects the legislature's interest in advancing oil and gas initiatives. The Yukon Flats, characterized by wetlands and lowlands at the confluence of the Yukon and Porcupine rivers, is the focus of this exploration effort. The DNR's preliminary approval is contingent upon a public comment period, which concludes on April 6, 2026.

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This exploration initiative coincides with the ongoing operations of Hilcorp, an oil and gas firm, in collaboration with Doyon Ltd., the regional Alaska Native Corporation for Interior Alaska. Hilcorp has previously drilled for oil on land leased from Doyon near Birch Creek, south of Fort Yukon. The current permit application by Hilcorp is on hold pending the completion of the regulatory process initiated by the DNR's recent notice. The area under consideration is predominantly within the Yukon Flats National Wildlife Refuge, known for its vital waterfowl nesting and breeding habitats. The state land in question primarily consists of subsurface waters, riverbeds, and lake beds, as determined by federal law and a 2019 U.S. Supreme Court ruling.

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Should the state confirm the appropriateness of oil and gas exploration in the Yukon Flats, a separate evaluation will be necessary to determine whether Hilcorp can proceed with exploration activities. This process is similar to one conducted in the Susitna River valley the previous year. It is important to note that state approval does not equate to immediate drilling rights; any development plan would be subject to extensive regulations from multiple state and federal agencies. A significant concern arises when subsurface rights are divided between the state and Native corporations, complicating ownership of any underground oil reserves.

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Sarah Obed, a spokeswoman for Doyon, expressed that the company appreciates the collaboration with local residents and plans to update shareholders soon. She emphasized that Hilcorp and Doyon will prioritize local employment opportunities as they move forward with their plans.

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While the DNR's decision has been framed as a step toward resource development, environmental advocates may raise concerns about the potential impact on the Yukon Flats National Wildlife Refuge and its ecosystems. The balance between resource extraction and environmental preservation remains a contentious issue among stakeholders.

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There is currently no detailed information available regarding Hilcorp's specific plans for the summer 2026 season. Last year, the company intended to drill two exploration wells but ultimately completed only one. The status of significant equipment, including a drill rig, left at the Birch Creek site remains unclear.

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“As always, Hilcorp and Doyon will prioritize shareholder employment when opportunities arise and will continue to work closely with partners and our communities through this upcoming season and beyond,” — Sarah Obed, Spokeswoman for Doyon

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