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The large Mackenzie River empties into the Sea as do other smaller rivers. It is an important habitat for whales, and sea birds and is still relatively untouched by commercial traffic.

There is an ongoing dispute between Canada and the United States over wherein the international border runs through the sea. Canada argues it extends in a straight line from the Yukon-Alaska border to the North Pole. The United States contends that the border extends due north from the meeting point of the two countries. Currently most international law experts favour Canada's claim and recently the Canadian government has initiated an expensive mapping project of the sea floor which if completed will further enhance the Canadian claim. At stake are billions of dollars in natural gas reserves and other resources.

The sea contains large supplies of oil and gas below the sea floor. These were first explored in the 1960s with the Amauligak Project of 1986 being the first functioning oil platform.