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Yes, "locals" are exempt from the 5 mile rule on the pipeline north of the Yukon.

From the Federal Subsistence Regs:

● The Dalton Highway Corridor Management Area,
which consists of those portions of Units 20, 24, 25, and 26 extending five miles from each side of the Dalton Highway from the Yukon River to Prudhoe Bay, is closed to the use of motorized vehicles, except aircraft and boats, and to licensed highway vehicles, snowmobiles, and firearms except as provided below. The use of snowmobiles is authorized only for the subsistence taking of wildlife by residents living within the Dalton Highway Corridor Management Area. The use of licensed highway vehicles is limited only to designated roads within the Dalton Highway Corridor Management Area. The use of firearms within the Dalton Highway Corridor for subsistence taking of wildlife is authorized only for the residents of Alatna, Allakaket, Anaktuvuk Pass, Bettles, Evansville,
Stevens Village, and residents living within the Dalton
Highway Corridor Management Area.

Jeff