CSHJR 13(L&C): Urging the United States Department of Energy to consider the needs of the people of the state for natural gas and the status of natural gas reserves in Cook Inlet when considering a possible extension of the Kenai Liquefied Natural Gas Plant's export license; and urging the producers of natural gas in the Cook Inlet region and the Regulatory Commission of Alaska to work to secure long-term and affordable supplies of natural gas for the people and businesses of the state.
00 CS FOR HOUSE JOINT RESOLUTION NO. 13(L&C) 01 Urging the United States Department of Energy to consider the needs of the people of 02 the state for natural gas and the status of natural gas reserves in Cook Inlet when 03 considering a possible extension of the Kenai Liquefied Natural Gas Plant's export 04 license; and urging the producers of natural gas in the Cook Inlet region and the 05 Regulatory Commission of Alaska to work to secure long-term and affordable supplies 06 of natural gas for the people and businesses of the state. 07 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 WHEREAS approximately 340,000 people in the state, more than half of the state's 09 population, rely on natural gas from Cook Inlet to heat their homes; and 10 WHEREAS approximately 473,000 people in the state, nearly 71 percent of the state's 11 population, rely on natural gas from Cook Inlet to generate electricity for their homes and 12 businesses; and 13 WHEREAS these people live in communities from Fairbanks to the Kenai Peninsula, 14 including Anchorage and the Matanuska-Susitna Borough; and
01 WHEREAS natural gas produced from Cook Inlet is the sole source of natural gas 02 used by the two largest regulated utilities in the state to provide space heating and electrical 03 generation for the majority of the people in the state; and 04 WHEREAS the utilities that use natural gas produced from Cook Inlet currently are 05 not able to acquire natural gas from another state, Canada, or a foreign source of liquefied 06 natural gas; and 07 WHEREAS ConocoPhillips and Marathon Oil Corporation have jointly filed for a 08 two-year extension of the Kenai Liquefied Natural Gas Plant's export license with the United 09 States Department of Energy; and 10 WHEREAS the Kenai Liquefied Natural Gas Plant currently exports about 1,300,000 11 metric tons of liquefied natural gas annually to buyers in Tokyo, representing approximately 12 36 percent of the natural gas produced in the Cook Inlet region; and 13 WHEREAS the Kenai Liquefied Natural Gas Plant plays an important role in the 14 local and state economy, employs approximately 58 residents, and generates revenue for the 15 state and the Kenai Peninsula Borough; and 16 WHEREAS the supply of natural gas in Cook Inlet relative to the demand has 17 declined significantly in recent years, and production is forecasted to decline precipitously 18 over the next decade; and 19 WHEREAS the decline in supply relative to demand has resulted in skyrocketing 20 prices for local consumers, increasing home heating costs by 97 percent in the last five years 21 and causing hardship for many low-income and middle-income families; and 22 WHEREAS, although the renewal of the license to export liquefied natural gas offers 23 many benefits to the state, the state must have as a priority the availability of affordable 24 natural gas to meet the needs of its people; 25 BE IT RESOLVED that the Alaska State Legislature respectfully requests the United 26 States Department of Energy, when reviewing the request for the extension of the Kenai 27 Liquefied Natural Gas Plant's export license, to consider whether the needs of the people of 28 the state for natural gas for home heating and electrical generation during the period of the 29 possible extension will be fully satisfied through binding contracts between regulated utilities 30 and those persons who produce natural gas in Cook Inlet; and be it 31 FURTHER RESOLVED that the Alaska State Legislature respectfully requests the
01 United States Department of Energy to consider the status of the natural gas reserves in Cook 02 Inlet, the speed at which the reserves are being depleted, and the level of exploration to 03 discover new reserves in Cook Inlet; and be it 04 FURTHER RESOLVED that the Alaska State Legislature urges natural gas 05 producers in the Cook Inlet region to work expeditiously with local utilities to ensure an 06 adequate and affordable long-term supply of natural gas for Alaskans; and be it 07 FURTHER RESOLVED that the Alaska State Legislature urges the Regulatory 08 Commission of Alaska to expedite review of any utility contract that will provide long-term 09 and affordable supplies of natural gas for the people of the state. 10 COPIES of this resolution shall be sent to the Honorable Samuel W. Bodman, United 11 States Secretary of Energy; the Honorable Talis J. Colberg, Alaska Attorney General; the 12 Honorable Tom Irwin, Commissioner, Department of Natural Resources; the Honorable Emil 13 Notti, Commissioner of the Department of Commerce, Community, and Economic 14 Development; the Honorable Kate Giard, Chair of the Regulatory Commission of Alaska; Jim 15 Bowles, President, ConocoPhillips Alaska, Inc.; John Barnes, Alaska Asset Team Manager, 16 Marathon Oil Company; John Zager, General Manager, Chevron.