Conocophillips Alaska, Inc. v. Alaska Oil and Gas Conservation Commission
CourtCourt of Appeals for the Ninth Circuit
Date FiledMay 27, 2026
Docket23-35512
StatusPublished
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Full Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
CONOCOPHILLIPS ALASKA, INC., No. 23-35512
Plaintiff-Appellee, D.C. No.
3:22-cv-00121-
v. SLG
ALASKA OIL AND GAS
CONSERVATION COMMISSION, OPINION
Defendant-Appellant.
Appeal from the United States District Court
for the District of Alaska
Sharon L. Gleason, Chief District Judge, Presiding
Argued and Submitted May 20, 2024
Submission Vacated May 21, 2024
Resubmitted May 27, 2026
Anchorage, Alaska
Filed May 27, 2026
Before: Jay S. Bybee, Michelle T. Friedland, and Eric D.
Miller, Circuit Judges.
Opinion by Judge Miller
2 CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N
SUMMARY *
Oil & Gas Law / Preemption
The panel reversed the district court’s summary
judgment in favor of ConocoPhillips Alaska, Inc., an oil and
gas producer that sought declaratory relief under the federal
Naval Petroleum Reserves Production Act, preventing
Alaska’s Oil and Gas Conservation Commission from
disclosing well data that the company sought to keep
confidential.
An Alaska statute required the Commission to release the
data, which concerned oil and gas wells that ConocoPhillips,
under permits obtained from Alaska, had drilled in the
National Petroleum Reserve-Alaska. The district court
entered judgment for ConocoPhillips, holding that the
Commission could not release the data because federal law
preempted the Alaska statute.
Reversing, the panel held that the federal Production Act
does not expressly preempt the Alaska statute because the
Production Act neither contains nor references any clear
statement of preemption. The panel held that Department of
the Interior regulations also do not expressly preempt the
Alaska statute. The panel further held that the Production
Act does not impliedly preempt the Alaska statute’s
disclosure provisions because the Production Act does not
evince a congressional purpose that would be obstructed by
the Alaska statute.
*
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N 3
COUNSEL
Kevin M. Cuddy (argued), Whitney A. Brown, and Connor
R. Smith, Stoel Rives LLP, Anchorage, Alaska, for Plaintiff-
Appellee.
David A. Wilkinson (argued), Senior Assistant Attorney
General, Office of the Alaska Attorney General, Anchorage,
Alaska, for Defendant-Appellant.
Christopher Anderson and John E. Bies, Attorneys,
Environment & Natural Resources Division; Todd Kim,
Assistant Attorney General; United States Department of
Justice, Washington, D.C.; Michael S. Gieryic and Nicholas
C. Moore, Attorney-Advisors, Office of the Solicitor, United
States Department of the Interior, Washington, D.C.; for
Amicus Curiae United States of America.
4 CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N
OPINION
MILLER, Circuit Judge:
ConocoPhillips Alaska, Inc., an oil and gas producer,
sued to prevent Alaska’s Oil and Gas Conservation
Commission from disclosing well data that the company
sought to keep confidential. The district court entered
judgment for ConocoPhillips, holding that the Commission
could not release the data because federal law preempts the
Alaska statute requiring it to do so. But federal law neither
expressly preempts the statute nor evinces a congressional
purpose that would be obstructed by it. We reverse.
I
The National Petroleum Reserve–Alaska is the largest
single unit of public land in the United States, comprising
nearly 24 million acres of the North Slope of Alaska. See
Northern Alaska Env’t Ctr. v. Kempthorne, 457 F.3d 969,
973 (9th Cir. 2006). The Reserve was originally set aside for
the United States Navy in 1923, but after more than 50 years
it remained “largely unexplored and almost completely
undeveloped.” H.R. Rep. No. 94-156, at 3 (1975); see Exec.
Order No. 3797-A (Feb. 27, 1923). In 1976, Congress
transferred authority over the Reserve to the Department of
the Interior by enacting the Naval Petroleum Reserves
Production Act of 1976, § 103, Pub. L. No. 94-258, 90 Stat.
303 (codified at 42 U.S.C. § 6503). In a later amendment to
the Production Act, Congress opened the Reserve to private
oil and gas exploration. Pub. L. No. 96-514, 94 Stat. 2957,
2964–65 (1980) (codified as amended at 42 U.S.C. § 6506a).
Although it is federal property, the Reserve is subject to
Alaska’s jurisdiction because it is within the State’s
CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N 5
territorial bounds. See Kleppe v. New Mexico, 426 U.S. 529,
543 (1976). The Alaska Oil and Gas Conservation
Commission oversees oil and gas operations within Alaska,
including within the Reserve. Alaska Stat. §§ 31.05.027,
31.05.030; see Alaskan Crude Corp. v. State, Dep’t of Nat.
Res., Div. of Oil & Gas, 261 P.3d 412, 414 n.3 (Alaska
2011). Under Alaska law, companies seeking to drill in the
Reserve must obtain a permit from the Commission. Alaska
Stat. § 31.05.090. When companies finish drilling an oil or
gas well, they are required to file data and reports describing
the well. Id. § 31.05.035(a), (b). The Commission must keep
those reports confidential for 24 months after they are
filed—or for longer if the Alaska Department of Natural
Resources finds that they contain “significant information
relating to the valuation of unleased land in the same
vicinity.” Id. § 31.05.035(c). After the period of
confidentiality ends, the Commission discloses the reports to
the public. See Alaska Admin. Code tit. 20, § 25.537(a), (d).
ConocoPhillips leased Reserve land from the United
States, obtained permits from Alaska to drill on that land,
and finished drilling several wells. To comply with the terms
of its leases and the Production Act, ConocoPhillips
submitted well data to the Department of the Interior. To
comply with Alaska law, ConocoPhillips submitted a subset
of that data to the Commission.
According to ConocoPhillips, disclosure of the well data
would reveal trade secrets, resulting in a substantial loss of
economic value to the company. ConocoPhillips asked the
Alaska Department of Natural Resources to continue to keep
the data confidential after the expiration of the 24-month
period, but the Department denied the request.
6 CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N
ConocoPhillips then brought this action for injunctive
and declaratory relief against the Commission, arguing that
the Production Act preempts Alaska’s confidentiality laws
and that the Commission therefore cannot disclose the
company’s well data without the company’s consent. The
Commission moved to dismiss, and ConocoPhillips moved
for partial summary judgment on its claims for declaratory
relief. The district court denied the motion to dismiss,
granted partial summary judgment, and, with the consent of
the parties, entered final judgment for ConocoPhillips.
The district court held that the Production Act does not
expressly preempt Alaska law but that federal law
nevertheless impliedly preempts Alaska’s disclosure
provisions. Focusing on a report prepared by the Department
of the Interior at Congress’s request, the court determined
that “Congress recognized the need to keep exploration
information confidential in a private leasing program” in
order to “promote the expeditious private exploration of” the
Reserve. The court concluded that disclosing well data after
two years would obstruct that purpose by discouraging
private exploration, and that the Production Act therefore
preempts Alaska law.
We review the district court’s preemption determination
de novo. In re Volkswagen “Clean Diesel” Mktg., Sales
Pracs., & Prods. Liab. Litig., 959 F.3d 1201, 1211 (9th Cir.
2020).
II
The Supremacy Clause provides that federal law “shall
be the supreme Law of the Land . . . , any Thing in the
Constitution or Laws of any State to the Contrary
notwithstanding.” U.S. Const. art. VI, cl. 2. Accordingly,
“[i]f federal law ‘imposes restrictions or confers rights on
CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N 7
private actors’ and ‘a state law confers rights or imposes
restrictions that conflict with the federal law,’ ‘the federal
law takes precedence and the state law is preempted.’”
Kansas v. Garcia, 589 U.S. 191, 202 (2020) (quoting
Murphy v. National Collegiate Athletic Ass’n, 584 U.S. 453,
477 (2018)).
Two theories of preemption matter for this case.
“Express” preemption means that Congress can “preempt
state law by enacting a clear statement to that effect.” In re
Volkswagen, 959 F.3d at 1211; see Pacific Gas & Elec. Co.
v. State Energy Res. Conservation & Dev. Comm’n, 461 U.S.
190, 203 (1983). But even if no federal statute expressly
preempts state law, “obstacle” preemption means that state
law is unenforceable when it “stands as an obstacle to the
accomplishment and execution of the full purposes and
objectives of Congress.” In re Volkswagen, 959 F.3d at 1212
(quoting Oneok, Inc. v. Learjet, Inc., 575 U.S. 373, 377
(2015)).
A
ConocoPhillips argues that the Production Act expressly
preempts Alaska law. That argument gets off to a difficult
start because the Production Act does not have a preemption
clause. ConocoPhillips acknowledges that problem but says
that the Production Act incorporates the preemption clause
from a different statute. Specifically, the Production Act
provides that private parties “may conduct geological and
geophysical explorations in” the Reserve with permission of
the Secretary of the Interior, and that “[a]ny information
acquired in such explorations shall be subject to the
conditions of 43 U.S.C. 1352(a)(1)(A).” 42 U.S.C.
§ 6506a(m).
8 CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N
The cross-referenced provision, section 1352(a)(1)(A),
is part of the Outer Continental Shelf Lands Act (OCSLA),
43 U.S.C. § 1331 et seq., which governs submerged lands
off the coast of the United States and beyond the jurisdiction
of any State. See 43 U.S.C. § 1331(a). Unlike on the
Reserve, “all law on the [Outer Continental Shelf] is federal
law, administered by federal officials.” Parker Drilling
Mgmt. Servs., Ltd. v. Newton, 587 U.S. 601, 604 (2019).
Here ConocoPhillips’s argument encounters a second
difficulty, which is that the cross-referenced provision of
OCSLA also does not say anything about preemption.
Instead, it states:
Any lessee or permittee conducting any
exploration for, or development or
production of, oil or gas pursuant to this
subchapter shall provide the Secretary [of the
Interior] access to all data and information
(including processed, analyzed, and
interpreted information) obtained from such
activity and shall provide copies of such data
and information as the Secretary may request.
Such data and information shall be provided
in accordance with regulations which the
Secretary shall prescribe.
43 U.S.C. § 1352(a)(1)(A). Section 1352(a)(1)(A) thus does
no more than impose data-submission requirements on
lessees—namely, that they must provide the federal
government with “access to all data and information . . .
obtained from” oil and gas exploration and with any “copies
of such data and information” that the government requests.
Id.
CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N 9
Undaunted, ConocoPhillips argues that because the
Production Act states that information acquired while
exploring the Reserve is “subject to the conditions of 43
U.S.C. 1352(a)(1)(A),” and not merely “subject to 43 U.S.C.
1352(a)(1)(A),” the Production Act actually incorporates
additional sections of OCSLA relating to oil and gas
exploration information. Those impliedly incorporated
provisions, ConocoPhillips says, include section 1352(g),
which states that “[a]ny provision of State or local law which
provides for public access to any privileged information
received or obtained by any person pursuant to this
subchapter is expressly preempted by the provisions of this
section, to the extent that it applies to such information.”
We think the Production Act means what it says: It
incorporates the conditions on oil and gas exploration
contained in section 1352(a)(1)(A)—the data-submission
requirements—and no more. “Congress’s choice to include
a cross-reference to one but not the other of the [statute’s]
neighboring [provisions] strongly suggests it acted
‘intentionally and purposefully in the disparate’ decisions.”
Azar v. Allina Health Servs., 587 U.S. 566, 577 (2019)
(quoting Russello v. United States, 464 U.S. 16, 23 (1983)).
The Production Act does not incorporate section 1352(g).
ConocoPhillips asks us to define “the conditions of” as
“the circumstances attendant to,” and it argues that the
circumstances attendant to “data and information
obtained . . . from oil or gas exploration” and transmitted
under section 1352(a)(1)(A) include the other information
requirements of OCSLA. It notes that the same result can be
reached by defining “conditions” as “stipulations” and
treating the other provisions in section 1352 as stipulations
on information acquired during oil and gas exploration on
the Reserve. But the meaning of “conditions” in the
10 CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N
Production Act is far more straightforward. A condition, in
this context, is “a premise upon which the fulfillment of an
agreement depends.” Merriam-Webster’s Collegiate
Dictionary 259 (11th ed. 2014). OCSLA premises oil and
gas leases upon lessees’ adherence to data-submission
requirements; if lessees do not meet those requirements, they
have failed to fulfill their agreements with the United States.
“[T]he conditions of” section 1352(a)(1)(A), therefore, are
simply the data-submission requirements contained within
that section. 42 U.S.C. § 6506a(m).
ConocoPhillips asserts that our interpretation renders the
phrase “the conditions of” superfluous. That is incorrect.
Section 1352(a)(1)(A) itself applies only to information
acquired while exploring the Outer Continental Shelf, so a
provision of the Production Act stating that data collected
from the Reserve “shall be subject to 43 U.S.C.
1352(a)(1)(A)” could be interpreted to apply to no data at all.
That is because information acquired while exploring the
Reserve is not information acquired while exploring the
Outer Continental Shelf. By including the words “the
conditions of,” Congress made clear that it was
incorporating section 1352(a)(1)(A)’s data-submission
requirements into the statute that governs oil and gas
exploration on the Reserve.
Congress’s decision not to apply other provisions of
OCSLA to the Reserve is hardly surprising. Unlike the Outer
Continental Shelf, which is an area of exclusive federal
jurisdiction, 43 U.S.C. § 1331(a); see Parker Drilling Mgmt.
Servs., 587 U.S. at 604, the Reserve is subject to Alaska’s
concurrent jurisdiction. Because States lack inherent power
to gather data from private oil and gas exploration on the
Outer Continental Shelf, Congress included provisions in
OCSLA that make data submitted to the federal government
CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N 11
available to States, so that States have access to exploration
data that might affect them. See 43 U.S.C. § 1352(b), (d).
Although Congress provided for the sharing of that data with
States, it also restricted the authority of States to disclose it.
See, e.g., 43 U.S.C. § 1352(g).
On the Reserve, by contrast, Alaska has its own authority
to gather—and disclose—data collected from oil and gas
exploration, authority that it exercised even before Congress
opened the Reserve to private exploration. See 1970 Alaska
Sess. Laws ch. 209, § 2. The confidentiality restrictions in
the other subsections of section 1352 pertain only to data
transmitted under section 1352(a)(1)(A). See 43 U.S.C.
§ 1352(c) (directing the Secretary of the Interior to
“prescribe regulations to . . . assure that . . . the
confidentiality of privileged or proprietary information
received by the Secretary under this section”); id. § 1352(g)
(preempting state laws that provide for the disclosure of
“privileged information received or obtained by any person
pursuant to this subchapter”). Even incorporating additional
sections of OCSLA would not affect Alaska’s ability to
gather data itself and therefore would not impair the State’s
ability to disclose that data on its own terms. Instead, the
logical choice was to incorporate only section
1352(a)(1)(A)—thereby ensuring that the federal
government has access to oil and gas information acquired
during exploration on the Reserve—and no other provisions
of OCSLA. That is precisely what the Production Act does.
Because the Production Act neither contains nor
references any “clear statement” of preemption, In re
Volkswagen, 959 F.3d at 1211, it does not expressly preempt
Alaska law.
12 CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N
B
Even if the Production Act does not expressly preempt
Alaska law, ConocoPhillips says that Department of the
Interior regulations do. ConocoPhillips points specifically to
30 C.F.R. § 552.6(b), under which “no data or information
determined by the director [of the Bureau of Ocean Energy
Management] to be exempt from public disclosure” under
the Freedom of Information Act (FOIA), 5 U.S.C. § 552,
“shall be provided . . . to the public” without the lessee’s
consent. FOIA exempts from public disclosure “geological
and geophysical information and data . . . concerning wells.”
5 U.S.C. § 552(b)(9).
The regulation no more preempts state law than does the
statute it implements. For a federal regulation to preempt
state law, “it must fall ‘within the scope of the [federal
agency’s] delegated authority,’” and “the agency must have
‘meant to pre-empt’ state law.” Cohen v. Apple Inc., 46 F.4th
1012, 1028 (9th Cir. 2022) (first quoting Barrientos v. 1801-
1825 Morton LLC, 583 F.3d 1197, 1208 (9th Cir. 2009)
(alteration in original); and then quoting MetroPCS Cal.,
LLC v. Picker, 970 F.3d 1106, 1117 (9th Cir. 2020)).
Section 552.6(b) does not satisfy that standard.
Section 552.6(b) does not apply to data gathered on the
Reserve. OCSLA, not the Production Act, is the source of
the Department of the Interior’s authority to promulgate
section 552.6(b). See Reorganization of Title 30: Bureaus of
Safety and Environmental Enforcement and Ocean Energy
Management, 76 Fed. Reg. 64,432, 64,671–72 (Oct. 18,
2011). The regulation is part of a set of “procedures and
requirements for the submission of oil and gas data and
information resulting from exploration, development, and
CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N 13
production operations on the Outer Continental Shelf . . . .”
30 C.F.R. § 552.1 (emphasis added).
Nonetheless, reprising its primary express-preemption
argument, ConocoPhillips asserts that because the
Production Act applies “the conditions of 43
U.S.C. 1352(a)(1)(A)” to data that lessees collect while
exploring the Reserve, and because section 1352(a)(1)(A)
subjects data that lessees collect while exploring the Outer
Continental Shelf to “regulations which the Secretary [of the
Interior] shall prescribe,” the Production Act makes the
confidentiality regulations for the Outer Continental Shelf
applicable to the Reserve. As the United States points out in
its amicus brief, however, the regulation was adopted not
under section 1352(a)(1)(A) but instead under section
1352(c), which authorizes the Secretary to promulgate rules
to guarantee “the confidentiality of privileged or proprietary
information received” under section 1352(a). And as we
have explained, “the conditions of” section 1352(a)(1)(A)
include only the data-submission requirements of that
provision. The “conditions” do not extend to other
subsections of the same statute and certainly do not include
agency rules promulgated under other subsections.
In any event, section 552.6(b) governs only the
Department of the Interior’s handling of information
submitted to it. Nothing in that provision purports to regulate
the State’s handling of information that it received
independently.
ConocoPhillips argues that section 552.6(b) must apply
to Reserve data because otherwise Reserve “explorers’ data
would be entitled to no confidentiality protection at all,” a
result ConocoPhillips views as intolerable. But “no amount
of policy-talk” can displace the plain text of the statute or of
14 CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N
the regulation. Niz-Chavez v. Garland, 593 U.S. 155, 171
(2021). In any event, at least as far as the federal government
is concerned, ConocoPhillips is incorrect that there is no
confidentiality protection for explorers’ data.
ConocoPhillips’s leases, for example, require the United
States to keep well data it receives from the company “closed
to inspection by the public in accordance with the Freedom
of Information Act” through the duration of the lease. See 5
U.S.C. § 552(b)(9). In other words, the United States has
contractually agreed not to disclose any well data covered by
a FOIA exemption. But a federal commitment not to disclose
data obtained under its contracts does not preempt a State’s
decision to disclose data obtained under its own laws.
C
ConocoPhillips next argues that Alaska law is impliedly
preempted because it poses an impermissible obstacle to
accomplishing the purposes of the Production Act. “The
Supreme Court has found obstacle preemption in only a
small number of cases” of two specific types: those where
“the federal legislation at issue involved a ‘uniquely federal
area[] of regulation’” and state law “directly interfered with
the operation of the federal program,” and those where “a
federal enactment clearly struck a particular balance of
interests that would be disturbed or impeded by state
regulation.” In re Volkswagen, 959 F.3d at 1212 (alteration
in original) (quoting Chamber of Com. of U.S. v. Whiting,
563 U.S. 582, 604 (2011)). “The mere fact that there is
tension between federal and state law is not enough to
establish” obstacle preemption. MetroPCS, 970 F.3d at 1118
(internal quotation marks and brackets omitted).
To evaluate an obstacle preemption argument, “we begin
with the text and structure of” the relevant federal statute,
CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N 15
considered “in light of the presumption that the historic
police powers of the States are not superseded unless that
was the clear and manifest purpose of Congress.” In re
Volkswagen, 959 F.3d at 1219 (internal quotation marks
omitted). The parties debate whether this case implicates
Alaska’s historic police powers and, thus, the presumption
against preemption. The Commission points to Alaska’s
longstanding regulation of oil and gas exploration within its
borders. ConocoPhillips responds that the relevant power—
that of controlling oil and gas exploration data—has no
historical grounding, and that the presumption against
preemption does not apply because regulation of oil and gas
drilling on federal land is “an area where there has been a
history of significant federal presence.” United States v.
Locke, 529 U.S. 89, 108 (2000). But see Tohono O’odham
Nation v. City of Glendale, 804 F.3d 1292, 1298 n.1 (9th Cir.
2015) (“[W]e [have] distinguished Locke by limiting its
holding to cases of field preemption . . . .”). We need not
resolve that debate because even without the benefit of the
presumption against preemption, we see no conflict between
Alaska law and the purposes of the Production Act.
The Production Act—which sets out how the federal
government can grant private parties oil and gas leases for
the Reserve—is silent on data confidentiality. See 42 U.S.C.
§ 6506a. Instead, it addresses other aspects of exploration
and leasing: It requires Interior’s leasing program to be
“expeditious” and “competitive,” id. § 6506a(a); it
establishes the timing and methods of lease sales, id.
§ 6506a(d), (f); it specifies allowable lease terms and
renewal conditions, id. § 6506a(i); it grants Alaska half of
the money received from the leases, id. § 6506a(l); and it
authorizes the Department of the Interior to promulgate
regulations for the protection of the Reserve’s surface
16 CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N
environment, id. § 6506a(b). As we have explained, it also
incorporates OCSLA’s requirement that lessees provide the
Department of the Interior with the data that they collect
from exploration of the Reserve. Id. § 6506a(m). But nothing
in the statute points to a congressional purpose to maintain
the confidentiality of Reserve exploration data for any
particular period of time.
ConocoPhillips asks us to infer such a purpose from
Congress’s broader goal of encouraging rapid private
exploration and production in the Reserve. But data
confidentiality can do as much to impede as to promote
private exploration of oil and gas resources. On the one hand,
confidentiality can encourage companies to conduct
exploration by increasing their potential profit from the data
they gather. On the other hand, as the Supreme Court has
recognized in the patent context, disclosing valuable
knowledge can “stimulate ideas and the eventual
development of further significant advances” by those who
did not gather that knowledge. Kewanee Oil Co. v. Bicron
Corp., 416 U.S. 470, 481 (1974). Deciding how long well
data should remain confidential requires striking a balance
between those two effects: Longer periods provide greater
incentives to explore, but shorter periods allow companies to
build on already-gathered information faster. That Congress
sought to encourage the development of the Reserve’s oil
and gas resources therefore says little about the period of
confidentiality that best effectuates that purpose.
“Faced with such a generalized congressional
objective . . . , we cannot infer that Congress made a
‘deliberate choice’ to preclude state regulations that overlap
with federal law.” In re Volkswagen, 959 F.3d at 1221
(quoting Arizona v. United States, 567 U.S. 387, 405
(2012)); see Virginia Uranium, Inc. v. Warren, 587 U.S. 761,
CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N 17
778 (2019) (opinion of Gorsuch, J.) (cautioning against
“elevat[ing] abstract and unenacted legislative desires above
state law”). And as we have explained, Congress was aware
of Alaska’s role in regulating oil and gas exploration in
general and drilling data in particular. The State shares
Congress’s goal of promoting the development of the
Reserve—it is entitled to half of the federal government’s
revenue from the Reserve, see 42 U.S.C. § 6506a(l)—and
Congress did not displace its judgment about how best to do
so. See MetroPCS, 970 F.3d at 1118 (“‘[T]he case for federal
pre-emption’ is ‘less persuasive’ when ‘coordinate state and
federal efforts exist within a complementary administrative
framework[] and in the pursuit of common purposes.’”
(alterations in original) (quoting New York State Dep’t of
Soc. Servs. v. Dublino, 413 U.S. 405, 421 (1973))).
ConocoPhillips points to a report the Department of the
Interior prepared at the direction of Congress before
Congress amended the Production Act to open the Reserve
to private exploration. See U.S. Dep’t of Interior, Final
Report of the 105(b) Economic and Policy Analysis (1979)
(“105(b) Report”). The report describes options and offers
recommendations for exploration and leasing of the Reserve.
Id. at 4, 8–10. Of particular relevance, it addresses the
problem of “information externalities.” Id. at 38. “[W]hen a
firm explores a tract and the results become known in the
industry,” it says, “the exploring firm is not automatically
compensated for the value of benefits accruing to
competitors from knowledge concerning the explorer’s
discoveries.” Id. For that reason, “the uncompensated
information spillover may result in less exploration.” Id. As
ConocoPhillips emphasizes, the Department of the Interior
suggested that data submitted to the government to fulfill a
18 CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N
lease condition should remain confidential for up to one year
after the end of that lease. Id. at 57.
That recommendation—one of many made in a lengthy
report that laid out a range of options for Congress—tells us
little about whether or for how long Congress wanted to keep
well data confidential. In the Production Act, Congress
followed some of the Department of the Interior’s
recommendations but ignored others. Compare 105(b)
Report 55, and 42 U.S.C. § 6506a(h) (Interior’s
recommendation to allow large lease tract sizes—which
Congress followed), with 105(b) Report 56–57 (Interior’s
recommendation to require a minimum amount of
exploration or production from lessees—which Congress
did not follow). Because “‘[t]he Supremacy Clause gives
priority to “the Laws of the United States,”’ not the priorities
and preferences of federal officers or the ‘unenacted
approvals, beliefs, and desires’ of Congress,” we do not infer
a preemptive purpose from those recommendations. In re
Volkswagen, 959 F.3d at 1212 (citation omitted) (first
quoting Garcia, 589 U.S. at 212; and then quoting Puerto
Rico Dep’t of Consumer Affs. v. Isla Petroleum Corp., 485
U.S. 495, 501 (1988)).
ConocoPhillips also argues that Alaska’s disclosure
provisions conflict with the purposes of the Production Act
because they interfere with federal government contracting
by requiring oil and gas companies exploring the Reserve—
who are parties to federal lease contracts—to submit data
that the Commission may disclose before the federal
government does. But even if this risk would deter some
companies from entering into federal leases or agreeing to
the same lease terms, the Constitution does not forbid all
state statutes that have the effect of reducing the pool of
possible parties to a federal contract. To be sure, state
CONOCOPHILLIPS AK, INC. V. AK OIL & GAS CONS. COMM’N 19
regulation of federal employees or contractors violates the
Supremacy Clause when it leads to “control by the state over
federal government operations.” Nwauzor v. GEO Grp., Inc.,
127 F.4th 750, 762 (9th Cir. 2025). And principles of
obstacle preemption mean that burdens on federal
contracting may violate the Supremacy Clause where federal
law evinces an intent to give the federal government full
discretion in a specific field. See Geo Grp., Inc. v. Newsom,
50 F.4th 745, 761–63 (9th Cir. 2022) (en banc). Alaska’s
confidentiality and disclosure laws give the State no control
over federal operations, and, as we have explained, the
Production Act reveals no purpose that is obstructed by those
laws.
REVERSED.