00                       SENATE JOINT RESOLUTION NO. 4                                                                     
01 Urging the attorney general, the producers of natural gas in the Cook Inlet region, and                                 
02 the Regulatory Commission of Alaska to work to secure long-term and affordable                                          
03 supplies of natural gas for the people and businesses of the state.                                                     
04 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
05       WHEREAS approximately 340,000 people in the state rely on natural gas from Cook                                 
06 Inlet to heat their homes; and                                                                                          
07       WHEREAS approximately 473,000 people in the state rely on natural gas from Cook                                 
08 Inlet to generate electricity for their homes and businesses; and                                                       
09       WHEREAS these people live in communities from Fairbanks to the Kenai Peninsula,                               
10 including Anchorage and the Matanuska-Susitna Borough; and                                                              
11       WHEREAS ConocoPhillips and Marathon Oil Corporation have jointly filed for a                                    
12 two-year extension of the Kenai Liquefied Natural Gas facility's export license with the                                
13 United States Department of Energy; and                                                                                 
14       WHEREAS the Kenai Liquefied Natural Gas Plant currently exports about 1,300,000                                 
15 metric tons of liquefied natural gas annually to buyers in Tokyo, representing approximately                            
01 36 percent of the natural gas produced in the Cook Inlet region; and                                                    
02       WHEREAS the Kenai Liquefied Natural Gas Plant plays an important role in the                                    
03 local and state economy, employs approximately 58 residents, and generates revenue for the                              
04 state and the Kenai Peninsula Borough; and                                                                              
05       WHEREAS the supply of natural gas in Cook Inlet relative to the demand has                                      
06 declined significantly in recent years, and production is forecasted to decline precipitously                           
07 over the next decade; and                                                                                               
08       WHEREAS the decline in supply relative to demand has resulted in skyrocketing                                 
09 prices for local consumers, increasing home heating costs by 97 percent in the last five years                          
10 and causing hardship for many low-income and middle-income families; and                                                
11       WHEREAS, although the renewal of the export license for the export of liquefied                             
12 natural gas offers many benefits to the state, the state's first priority must be to ensure the                         
13 availability of affordable natural gas to meet the needs of the people of the state;                                    
14       BE IT RESOLVED that the Alaska State Legislature respectfully requests the                                      
15 attorney general to evaluate whether the extension of the Kenai Liquefied Natural Gas Plant's                           
16 export license is in the best interest of local consumers and the state and whether termination                         
17 of the license would result in lower prices for businesses and residents of the state; and be it                        
18       FURTHER RESOLVED that the Alaska State Legislature urges natural gas                                            
19 producers in the Cook Inlet region to work with local utilities to ensure an adequate and                               
20 affordable long-term supply of natural gas for Alaskans; and be it                                                      
21       FURTHER RESOLVED that the Alaska State Legislature urges the Regulatory                                         
22 Commission of Alaska to expedite review of any utility contract that will provide long-term                             
23 and affordable supplies of natural gas for the people of the state.                                                     
24       COPIES of this resolution shall be sent to the Honorable Samuel W. Bodman, United                               
25 States Secretary of Energy; the Honorable Talis J. Colberg, Alaska Attorney General; the                                
26 Honorable Tom Irwin, Commissioner, Department of Natural Resources; the Honorable Emil                                  
27 Notti, Commissioner of the Department of Commerce, Community, and Economic                                              
28 Development; the Honorable Kate Giard, Chair of the Regulatory Commission of Alaska; Jim                                
29 Bowles, President, ConocoPhillips Alaska, Inc.; John Barnes, Alaska Asset Team Manager,                                 
30 Marathon Oil Company; John Zager, General Manager, Chevron.