1996-07 Urging the Governor and Legislature to Adopt House Joint Resolution Number 54 to Develop and Market Alaska North Slope (ANS) Gas.KODIAK ISLAND BOROUGH
RESOLUTION NO. 96 -07
Introduced by: Mayor Selby
Requested by: Rep. Kubina
Drafted by: Mayor Selby
Introduced: 03/07/96
Adopted: 03/07/96
A RESOLUTION URGING THE GOVERNOR AND LEGISLATURE TO ADOPT
HOUSE JOINT RESOLUTION NUMBER 54 TO DEVELOP AND MARKET
ALASKA NORTH SLOPE (ANS) GAS
WHEREAS, Alaska has 26,000,000,000,000 cubic feet of proven natural gas
reserves in the Prudhoe Bay and associated North Slope oil and gas fields and perhaps
two to three times that amount of potential natural gas reserves; and
WHEREAS, by the end of this century, there will be a significant and increasing gap
between supply and demand for natural gas in developing countries in the Pacific Rim;
and
WHEREAS, market and economic studies indicate favorable conditions for the sale
of North Slope gas to these Pacific Rim markets; and
WHEREAS, a determination has been made that at least one possible pipeline route
is feasible, and action on permits for that route has been completed; and
WHEREAS, the sale of Alaska gas to Pacific Rim markets will improve the nation's
trade imbalance by approximately $4,000,000,000 a year without adversely affecting
other industries or labor; and
WHEREAS, the design, sourcing, and construction of a gas transmission line
connecting the North Slope and an all- weather port like Valdez will infuse an
estimated $6,500,000,000 into economies throughout the United States; and
WHEREAS, the construction of such a pipeline would provide 10,000 temporary
construction jobs and over 600 permanent private sector jobs in Alaska; and
WHEREAS, the State of Alaska will earn some $400,000,000 a year from projected
gas sales, which would help fill the state's fiscal gap; and
WHEREAS, state fiscal stability is especially critical to municipal governments in
Alaska to allow continued quality education, public safety and other basic services
to be delivered; and
Kodiak Island Borough, Alaska Resolution No. 96 -07
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WHEREAS, a gas pipeline across Alaska will make available environmentally friendly
energy along the pipeline route and encourage development that will increase local
employment and local tax revenue; and
WHEREAS, the Alaska Municipal League's 1996 policy statement includes the
following language: "The League, therefore, strongly encourages all potential
participants in the project, including the State of Alaska, to immediately convene to
develop a unified proposal to present to the Asian Liquified Natural Gas (LNG) buyers
so that all Alaskans will directly benefit from this unique opportunity "; and
WHEREAS, natural gas stored and transported as a cryogenic liquid rather than as
pressurized gas presents no significant risk to the public; and
WHEREAS, time is of the essence in securing a market for Alaska North Slope (ANS)
gas because a market window is expected to develop in the Asian Pacific within the
next few years; and if gas sale contracts are not signed during this period, it appears
that Alaska will not have another opportunity for large volume gas sales for at least
another decade; and
WHEREAS, Taiwanese and South Korean buyers have issued letters of intent to
purchase ANS LNG; and
WHEREAS, Japanese buyers must also commit to buying ANS LNG to make an
Alaskan project feasible, but these buyers require precommitments on price, volume,
and other conditions of sale from North Slope gas producers;
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
Section 1: The Governor and the Alaska Legislature are urged to adopt House Joint
Resolution Number 54 and take other actions necessary to support the
development of the Alaska North Slope Gas Resources.
Section 2: The Kodiak Island Borough Assembly respectfully requests the North
Slope natural gas lessees to intensify their efforts to establish
satisfactory contractual relationships for transportation and sale of ANS
gas to Pacific Rim purchases as soon as possible.
Section 3: The Kodiak Island Borough Assembly respectfully requests the President
of the United States to demonstrate national support for an ANS gas
transmission project to Asian LNG buyers.
Section 4: The Governor is respectfully requested to:
(a) assure the Asian LNG buyers that the state will provide
continuity and stability in regards to North Slope
natural gas supply, tax structure, and regulatory policy;
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ATTEST:
(b) continue support of the Joint Pipeline Office, which
administers an innovative, efficient, and cost - effective
permitting system; and
(c) meet with all parties to determine how the state
can help facilitate the ANS gas transmission pipeline.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
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Donna F. Smith, CMC, Borough Clerk
THIS SEVENTH DAY OF MARCH, 1996
KODIAK ISLAND BOROUGH
Gary Stevens, Presiding Officer
Kodiak Island Borough, Alaska Resolution No. 96 -07
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