HCR 3: Requesting the governor to provide energy security for all Alaskans by taking and encouraging all action that would support a natural gas bullet pipeline from the North Slope to the Cook Inlet region, including initiating any necessary negotiations to reopen the Agrium plant in Kenai.
00 HOUSE CONCURRENT RESOLUTION NO. 3 01 Requesting the governor to provide energy security for all Alaskans by taking and 02 encouraging all action that would support a natural gas bullet pipeline from the North 03 Slope to the Cook Inlet region, including initiating any necessary negotiations to reopen 04 the Agrium plant in Kenai. 05 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 WHEREAS natural gas production in the Cook Inlet region of the state has suffered 07 significant decline, resulting in the closure of the Agrium U.S., Inc., facility in Kenai and the 08 risk of inadequate supplies of natural gas to consumers that rely on production from the Cook 09 Inlet region; and 10 WHEREAS there are significant quantities of natural gas on the North Slope that 11 could be produced if means for delivering the product to market were available; and 12 WHEREAS the major gas pipeline project licensed by the state under AS 43.90 13 (Alaska Gasline Inducement Act) or a similar alternative project that offers five natural gas 14 delivery points in the state is not expected to transport natural gas from the North Slope until 15 after 2016; and
01 WHEREAS the people of the state need energy security and access to natural gas now 02 and cannot wait for the completion of the major gas pipeline project from the North Slope; 03 and 04 WHEREAS the demand for natural gas in the state is expected to increase steadily; 05 and 06 WHEREAS the construction of a smaller gas pipeline, sometimes referred to as a 07 "bullet line," may be capable of delivering the state's natural gas to in-state markets before the 08 major gas pipeline project from the North Slope becomes operational; and 09 WHEREAS farms cover more than 25,000 acres in five boroughs with more than 300 10 farmers residing in the Matanuska-Susitna Borough and more than 130 farmers residing in the 11 Fairbanks area; and 12 WHEREAS the value of farms in the state is approximately $22,700,000; and 13 WHEREAS Alaska farms need fertilizer for crops, particularly in the form of urea for 14 hay and grain crops; and 15 WHEREAS Agrium U.S., Inc., owns the only urea fertilizer plant in the state, and 16 that plant was closed in 2007 because of lack of natural gas as feedstock for the plant; and 17 WHEREAS the closure of the urea fertilizer plant resulted in the loss of more than 18 150 jobs; and 19 WHEREAS the closure of the urea fertilizer plant and loss of an instate source of 20 fertilizer resulted in a 400 percent increase in the cost of fertilizer to farmers in the state 21 because of the costs of shipping fertilizer into the state; and 22 WHEREAS the loss of farms or the reduction in farming represents a threat to food 23 security in the state; and 24 WHEREAS a natural gas bullet pipeline that delivers natural gas from the North 25 Slope to the Cook Inlet region could provide necessary feedstock for the renewed operation of 26 the urea fertilizer plant owned by Agrium U.S., Inc.; and 27 WHEREAS known quantities of natural gas are available to be transported in a 28 natural gas bullet pipeline to the urea fertilizer plant, enabling the reopening of the plant 29 owned by Agrium U.S., Inc.; 30 BE IT RESOLVED that the Alaska State Legislature requests the governor to 31 provide energy security for all Alaskans by taking and encouraging all action necessary to
01 promote and support a natural gas bullet pipeline for delivering natural gas from the North 02 Slope to the Cook Inlet region of the state, including initiating any necessary negotiations to 03 reopen the Agrium U.S., Inc., facility in Kenai as a potential user of natural gas delivered 04 from the North Slope and a manufacturer of fertilizer and ammonia for use in the state and for 05 export.