The case stemmed from NMFS's 2022 designation of roughly 160 million acres of critical habitat off Alaska's north coast for the Pacific bearded seal and Arctic ringed seal, both listed as threatened species in 2012. Alaska challenged the designations as overly broad and argued the agency failed to explain why the entire designated areas were essential to the seals' survival and why smaller areas wouldn't suffice.

Circuit Judge M. Margaret McKeown rejected Alaska's interpretation, writing that the Endangered Species Act only requires NMFS to identify "physical or biological features" that are "essential to the conservation of the species" within occupied areas. "The adjective 'essential' modifies 'physical or biological features' that the 'specific areas' contain; it does not modify the 'specific areas' themselves," McKeown wrote, noting that Alaska's reading would stretch the statutory language too far.

The district court had sided with Alaska in September 2024, vacating the habitat designations and finding that NMFS failed to adequately explain why nearly all of the seals' occupied habitat was indispensable to their conservation. The court also faulted the agency for not considering foreign nation conservation efforts and for declining to exclude coastal buffer zones requested by Alaska and the North Slope Borough.

The decision reinstates the critical habitat designations and could influence future ESA habitat disputes. The ruling clarifies that agencies need not prove entire designated areas are essential, only that they contain essential features, and that foreign conservation efforts aren't required considerations for habitat designations despite being mandatory for species listing decisions.