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HJR 19: Supporting the lifting of the ban on the export of Alaska North Slope crude oil, requesting the President of the United States to present to the United States Congress a recommendation that it is both in the national interest to lift the ban on the export of Alaska North Slope crude oil and discriminatory to the state to maintain the ban, and endorsing passage of H.R. 70 and S. 70, companion federal legislation to remove restraints on the export of that oil.

00HOUSE JOINT RESOLUTION NO. 19 01 Supporting the lifting of the ban on the export of Alaska North Slope crude oil, 02 requesting the President of the United States to present to the United States 03 Congress a recommendation that it is both in the national interest to lift the ban 04 on the export of Alaska North Slope crude oil and discriminatory to the state 05 to maintain the ban, and endorsing passage of H.R. 70 and S. 70, companion 06 federal legislation to remove restraints on the export of that oil. 07 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 WHEREAS the President of the United States has, by executive order, continued the 09 ban on the export of Alaska North Slope crude oil contained in 50 U.S.C.S. Appx. 2406(d) 10 (sec. 7(d), Export Administration Act of 1979) that prohibits, with tightly restrictive 11 exceptions, the export of domestically produced crude oil transported by pipeline over the 12 right-of-way granted by 43 U.S.C. 1652 (sec. 203 of the Trans-Alaska Pipeline Authorization 13 Act); and 14 WHEREAS the ban on the export of Alaska North Slope crude oil effectively limits

01 its sale to the domestic American market; and 02 WHEREAS Alaska North Slope crude oil required to be transported and delivered for 03 sale in the domestic market incurs approximately $2 - $4 per barrel in higher transportation 04 charges than if the oil could be exported to Pacific Rim countries; and 05 WHEREAS the higher transportation cost associated with shipping Alaska North Slope 06 crude oil to the Gulf Coast states reduces the wellhead price of the oil; and 07 WHEREAS, over a seven-year period of time, Alaska would gain $700,000,000 to 08 $1,600,000,000 in state taxes and royalties if the ban is lifted; and 09 WHEREAS lower wellhead prices make uneconomic the threshold for exploring for 10 and producing all North Slope oil and, as a result, production from certain existing and newly 11 discovered oil fields is currently uneconomic; and 12 WHEREAS the transportation cost savings from lifting the Alaska North Slope crude 13 oil export ban will be reinvested in domestic exploration, and development of marginal and 14 newly discovered oil reserves will increase production and enhance the nation's energy and 15 economic security; and 16 WHEREAS, according to the June 1994 U. S. Department of Energy report on 17 exporting Alaskan North Slope crude oil, reserve additions in Alaska alone could be as large 18 as 200,000,000 to 400,000,000 barrels, a size that roughly equals the known reserves in major 19 North Slope fields, such as Point McIntyre; and 20 WHEREAS the export ban singles out Alaska, effectively penalizing the state and 21 reducing revenue needed for vital state programs; and 22 WHEREAS, according to the U. S. Department of Energy June 1994 report, exporting 23 Alaska North Slope crude oil to Pacific Rim nations will decrease the substantial trade deficit 24 with nations that have expressed a strong interest in purchasing Alaska produced oil; and 25 WHEREAS the proposal to lift the Alaska North Slope crude oil ban has enjoyed 26 strong support in the Legislature of the State of Alaska, the Legislature of the State of 27 California, and the United States Congress; and 28 WHEREAS lifting the oil export ban would result in a net increase in United States 29 employment from 11,000 to 16,000 jobs nationwide; and 30 WHEREAS, by the end of the decade, exporting Alaska North Slope crude oil could 31 generate from 10,000 to 25,000 jobs;

01 BE IT RESOLVED that the Alaska State Legislature supports lifting the ban on 02 export of Alaska North Slope crude oil; and be it 03 FURTHER RESOLVED that the President is respectfully requested to present to the 04 United States Congress a recommendation that it is both in the national interest to lift the ban 05 on the export of Alaska North Slope crude oil and discriminatory to the state to maintain the 06 ban; and be it 07 FURTHER RESOLVED that the Alaska State Legislature endorses H.R. 70 and S. 08 70, pending companion federal legislation removing the restraints on the export of Alaska 09 North Slope crude oil. 10 COPIES of this resolution shall be sent to the Honorable Bill Clinton, President of the 11 United States; the Honorable Al Gore, Jr., Vice-President of the United States and President 12 of the U.S. Senate; the Honorable Newt Gingrich, Speaker of the U.S. House of 13 Representatives; the Honorable Bob Dole, Majority Leader of the United States Senate; to the 14 Honorable Ted Stevens and the Honorable Frank Murkowski, U.S. Senators, and the 15 Honorable Don Young, U.S. Representative, members of the Alaska delegation in Congress; 16 and to all other members of the United States Senate and the United States House of 17 Representatives serving in the 104th United States Congress.