The action reverses one of former President Trump's signature efforts to expand fossil fuel development in the United States
By Nichola Groom
June 1 (Reuters) - U.S. President Joe Biden's administration on Tuesday said it would suspend oil and gas leases that had been handed out in an Alaska wildlife refuge during the final days of the Trump administration pending an environmental review.
The action reverses one of former President Donald Trump's signature efforts to expand fossil fuel development in the United States, and delivers a setback to the Alaskan state government which had hoped opening the enormous refuge would help revive its declining oil industry.
Trump's Interior Department sold the leases in the Arctic National Wildlife Refuge in January over the objections of environmentalists and indigenous groups.
"President Biden believes America's national treasures are cultural and economic cornerstones of our country and he is grateful for the prompt action by the Department of the Interior to suspend all leasing pending a review of decisions made in the last administration's final days that could have changed the character of this special place forever," White House National Climate Advisor Gina McCarthy said in a statement.
Biden's Interior Department said it had notified the leaseholders, which included an Alaska state agency.
The review, which will examine "legal deficiencies" in the previous administration's environmental analysis of leasing in ANWR, will determine whether the leases would stand, be voided, or be subject to mitigation measures, the statement said.
During his campaign, Biden had pledged to protect the 19.6 million-acre habitat for polar bears, caribou and migratory birds. He also promised to end all new oil and gas leasing on U.S. federal lands, source of a quarter of the nation's petroleum.
Alaska-based green and indigenous groups, which had sued to stop the lease sale, cheered the move.
"We look forward to working with the administration on stronger action to correct this unlawful leasing program and preserve one of our nation's most majestic public lands," groups including Alaska Wilderness League and the Gwich'in Steering Committee said in a joint statement.
The first sale of tracts in the refuge, held two weeks before Trump left office in January, received limited interest from the oil and gas industry and generated high bids of just $14.4 million.
An Alaska state agency won nine tracts at the sale, while small independent companies won two.
The leaseholders, the Alaska Industrial Development and Export Authority, Knik Arm Services LLC and Regenerate Alaska Inc, were not immediately available for comment.
Leases were ultimately issued for nine tracts covering 430,000 acres (1,740 square kilometers), Interior said. (Reporting by Doina Chiacu; Editing by Tim Ahmann, Alistair Bell and Marguerita Choy)
