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Jul 21, 6:50 PM EDT

Judge halts development on Chukchi Sea leases


ANCHORAGE, Alaska (AP) -- A federal judge says the federal government failed to follow environmental law before it sold billions in petroleum leases in the Chukchi Sea off Alaska's northwest coast.

The lease sale in February 2008 garnered nearly $2.7 billion for the federal government from the sale of 2.76 million acres in Arctic Ocean waters, including $2.1 billion in high bids submitted by Shell Gulf of Mexico Inc.

U.S. District Court Judge Ralph Beistline (BISTE'-line) ruled Wednesday that the Minerals Management Service failed to analyze the environmental effect of natural gas development despite industry interest.

The agency analyzed only the development of the first field of 1 billion barrels of oil.

Beistline enjoined all activity under the lease sale pending further review.

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