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State appeals court decision on Kuparuk access permit; construction has continued while litigation proceeds

2165707 · January 22, 2025
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Summary

Deputy Commissioner John Crother told the House Finance Committee that a superior court vacated a state permit for Kuparuk access; the state has appealed to the Alaska Supreme Court, the appeal is pending and the court denied an emergency stay. On‑the‑ground construction for Pikka has continued, the department said.

Cochair Joseph presiding — Department of Natural Resources officials told the House Finance Committee that litigation over access to a Kuparuk Road route used for Pikka development remains active but has not halted field construction.

Deputy Commissioner John Crother said the department issued a permit that was later vacated by a superior court ruling; the state has filed an appeal to the Alaska Supreme Court. The state sought an emergency stay of the lower court order; the Supreme Court did not grant the stay, but the court left the state with leave to seek a stay again if actual on‑the‑ground access problems emerge.

“...we had a superior court decision that directed our permit to be vacated, but the State has appealed that to the Supreme Court,” Crother told the committee. He added that construction activities on the Pikka project “have proceeded” and that on‑the‑ground operations have not shown incidents or disruption despite the legal dispute.

Crother said the permit vacatur resulted in litigation that remains live: the state has appealed and briefing in the Supreme Court is pending. The department described the issue as a mix of legal and commercial disputes among operators rather than an immediate operational breakdown affecting field construction.

Committee members asked for timing details and the department said it would provide the technically accurate dates and further documentation to the committee. Crother noted the litigation has proceeded through recent months and that the department will continue to protect state interests while monitoring operations on the slope.

Ending: the department reiterated it will continue to defend the state’s interests in the appeal and to provide updated legal and operational information to the committee as the Supreme Court process proceeds.