Court Finds BLM Violated Environmental Law Yet $17B Willow Oil Project Continues in Arctic

June 17, 2025
2 mins read
Representative Image: Oil Drilling Photo Source: Rawpixel
Representative Image: Oil Drilling Photo Source: Rawpixel

A federal appeals court has ruled against parts of the Willow oil drilling project in Alaska but stopped short of halting construction completely. The June 13, 2025 decision by the Ninth U.S. Circuit Court of Appeals found that the Bureau of Land Management (BLM) violated environmental law when approving the massive Arctic oil project.

The Willow Project, developed by ConocoPhillips in Alaska’s National Petroleum Reserve, aims to extract up to 180,000 barrels of oil daily at peak production. First approved during the Trump administration, the project was reviewed and given final approval by the Biden administration in March 2023, though with a reduced footprint of three drill sites instead of the original five proposed.

Federal officials approved the project citing energy security needs and economic benefits. The development is projected to create 2,500 construction jobs and 300 permanent positions while generating between $8 billion and $17 billion in revenue for government coffers over its 30-year lifespan.

Alaska’s political leaders and many Alaska Native groups on the North Slope have strongly backed the project as vital for the state’s economy, which heavily depends on oil revenue. The Voice of the Arctic Iñupiat, representing North Slope communities, supports Willow for providing “critical economic benefits and long-term stability.”

Environmental organizations have fought the project through multiple lawsuits, arguing it contradicts climate goals and threatens sensitive Arctic ecosystems. This recent ruling marks their second legal victory challenging Willow’s approval.

The court found BLM acted “arbitrarily and capriciously” by failing to explain why it approved a scaled-down version after previously stating that “full field development” was necessary. Despite this violation of the National Environmental Policy Act, the court did not vacate the approval.

“The disruptive consequences of vacating Willow’s approval would be severe,” wrote Judge Ryan Nelson in the majority opinion. The ruling sends the issue back to BLM for further review while allowing construction to continue.


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Environmental groups call Willow a “carbon bomb” that would release 239-287 million metric tons of carbon dioxide over its lifetime – equivalent to adding 2 million cars to roads annually. They also warn about impacts to wildlife, including caribou herds, polar bears, and migratory birds.

“The science clearly shows that we need to keep oil in the ground to prevent climate catastrophe,” said Kristen Monsell from the Center for Biological Diversity. “This carbon bomb needs to be defused.”

The project also faces criticism for potential impacts on nearby communities like Nuiqsut, where residents have reported increased respiratory illnesses with expanding oil operations.

Erik Grafe of Earthjustice stated: “BLM now needs to take seriously its obligation to reconsider its approval of Willow and consider less harmful alternatives.”

ConocoPhillips remains optimistic despite the setback. Company spokesperson Rebecca Boys confirmed the project is “on track for first oil in 2029” following a productive winter construction season.

Judge Gabriel Sanchez disagreed with the majority opinion, arguing in his dissent that the agency’s errors were “more fundamental” and warranted stopping the project entirely.

The ruling highlights the ongoing tension between fossil fuel development and climate concerns as the Arctic region warms four times faster than the global average.

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