Federal regulators are standing behind their decision to sell oil and gas leases in the Chukchi Sea, after a court-ordered review of how development would affect the Arctic.

The lease sale held in 2008 was supposed to yield about 1 billion barrels of oil. Based on sale data and current economic conditions, the Bureau of Ocean Energy Management says the potential is much higher -- just over 4 billion barrels. But the agency doesn't recommend that the sale be reversed.

That was the outcome that environmentalists and tribal entities have been arguing for in court. In January, a federal judge ruled that the government did a poor job evaluating the development potential and impact of the lease sale.

When the court requested a new analysis, conservation groups cheered. But they were quick to condemn the results. In a statement this morning, Oceana lawyer Michael LeVine said it ”makes today feel more like Groundhog Day than Halloween.”

Senator Lisa Murkowski praised the new study -- but she warned that regulators are ”getting down to the wire” if they want to pave the way for oil companies to drill in the Arctic next year.

Shell is hoping to explore some of its Chukchi Sea leases from the disputed sale. But they would need federal approval within the next few months.

The environmental review for the Chukchi lease sale will also need to go through a public comment period before it can be finalized.