There is nothing free market about this. They need to get on public land to drill then they need to have a pipeline extended over public land. It will end up being cronyism. Texas and North Dakota are free market. They drill on private land. They run a pipe over private and public lands and pay rent for it.
Its likely that nobody will even drill up there. They will get title to the drilling, hold it and sell it in the future. This is far from free enterprise.
I am willing to listen if you have legitimate points, but not sure your explanation is complete, especially when you say there is “no free market”. Why should it not be up to the state of Alaska to decide what is good for business in Alaska? Why do we need the Federal govt to regulate, and tie up these resources rather than let the American people and industry develop them, so long as that development is done responsibly? Public land does not mean “hands off”.