CSHCR 22(RES): Urging the governor, the commissioner of natural resources, and the attorney general to seek resolution of TAPS quality bank disputes before January 1, 2015, in a manner that will provide long-term quality bank stability and reduce the cost of quality bank adjustments paid by in-state refiners of Alaska North Slope crude oil.
00 CS FOR HOUSE CONCURRENT RESOLUTION NO. 22(RES) 01 Urging the governor, the commissioner of natural resources, and the attorney general to 02 seek resolution of TAPS quality bank disputes before January 1, 2015, in a manner that 03 will provide long-term quality bank stability and reduce the cost of quality bank 04 adjustments paid by in-state refiners of Alaska North Slope crude oil. 05 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 WHEREAS refineries in the state provide employment and economic opportunities to 07 communities throughout the state; and 08 WHEREAS the state receives direct and indirect financial benefits from the operation 09 of in-state refineries by way of TAPS quality bank charges and royalty-in-kind sales of oil; 10 and 11 WHEREAS the Flint Hills and Petro Star refineries mitigate the effects of low oil 12 flow in the Trans Alaska Pipeline System by increasing the temperature of the crude oil in the 13 pipeline as a result of refinery operations; and 14 WHEREAS Petro Star Inc. is the supplier of jet fuel and marine diesel to military 15 bases in the state; and
01 WHEREAS the Ted Stevens International Airport is the largest cargo hub in North 02 America and offers a market opportunity for the manufacture and sale of jet fuel that is 03 refined in the state; and 04 WHEREAS the sale of jet fuel that is refined in the state adds value to the state's 05 crude oil, and in-state refining provides refined products to meet other energy needs in the 06 state; and 07 WHEREAS refineries in the state face increasing competition from imported jet fuel 08 and other refined products; and 09 WHEREAS the cost of obtaining crude oil for refineries in the state is higher than that 10 for out-of-state refineries because of TAPS quality bank charges, higher energy costs, and 11 crude oil prices that are higher than the price of West Texas Intermediate crude oil; and 12 WHEREAS, in February 2014, Flint Hills Resources Alaska LLC announced plans 13 for closing the company's refinery in North Pole; and 14 WHEREAS the absence of refineries in the state would directly and indirectly 15 negatively affect the labor market in the state, negatively affect the state's general fund, 16 jeopardize the security of Alaska's military bases, and drive up the long-term cost of fuel 17 products for the people of the state; and 18 WHEREAS the TAPS quality bank and the cost of adjustments that must be paid by 19 refineries in the state have, for many years, been subject to prolonged and recurrent litigation 20 before the Federal Energy Regulatory Commission and the Regulatory Commission of 21 Alaska; 22 BE IT RESOLVED that the Alaska State Legislature urges the governor, the 23 commissioner of natural resources, and the attorney general to seek resolution of TAPS 24 quality bank disputes before January 1, 2015, in a manner that will provide long-term quality 25 bank stability and reduce the cost of quality bank adjustments paid by in-state refiners of 26 Alaska North Slope crude oil.