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HCR 2: Requesting the governor to provide energy security for all Alaskans by pursuing development of a natural gas bullet pipeline from the North Slope to the Cook Inlet region; and requesting the governor to identify and negotiate with one or more persons capable of producing natural gas from the Gubik area, and other areas on the North Slope if necessary, in sufficient quantities to support a bullet pipeline project.

00 HOUSE CONCURRENT RESOLUTION NO. 2 01 Requesting the governor to provide energy security for all Alaskans by pursuing 02 development of a natural gas bullet pipeline from the North Slope to the Cook Inlet 03 region; and requesting the governor to identify and negotiate with one or more persons 04 capable of producing natural gas from the Gubik area, and other areas on the North 05 Slope if necessary, in sufficient quantities to support a bullet pipeline project. 06 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 WHEREAS natural gas production in the Cook Inlet region of the state has suffered 08 significant decline, resulting in the closure of the Agrium U.S., Inc., facility in Kenai and the 09 risk of inadequate supplies of natural gas in the Gubik area and elsewhere to consumers that 10 rely on production from the Cook Inlet region; and 11 WHEREAS there are significant quantities of natural gas in the Gubik area and 12 elsewhere on the North Slope that could be produced if means for delivering the product to 13 market were available; and 14 WHEREAS the major gas pipeline project licensed by the state under AS 43.90 15 (Alaska Gasline Inducement Act) or a similar alternative project that offers five natural gas

01 delivery points in the state is not expected to transport natural gas from the North Slope until 02 after 2016; and 03 WHEREAS the people of the state need energy security and access to natural gas now 04 and cannot wait for the completion of the major gas pipeline project from the North Slope; 05 and 06 WHEREAS the demand for natural gas in the state is expected to increase steadily; 07 and 08 WHEREAS the construction of a smaller gas pipeline, sometimes referred to as a 09 "bullet line," may be capable of delivering the state's natural gas to in-state markets before the 10 major gas pipeline project from the North Slope becomes operational; and 11 WHEREAS a commitment to transport 180,000,000,000 cubic feet of natural gas a 12 year to provide approximately 60,000,000,000 cubic feet of natural gas a year for railbelt 13 residential customers, 60,000,000,000 cubic feet of natural gas a year for industrial use, 14 including fertilizer production by Agrium U.S., Inc., and 60,000,000,000 cubic feet of natural 15 gas a year for export will contribute to the economic viability of the bullet pipeline from the 16 North Slope to the Cook Inlet region of the state; 17 BE IT RESOLVED that the Alaska State Legislature requests the governor to 18 provide energy security for all Alaskans by taking all action necessary to promote the 19 development of a bullet pipeline for delivering natural gas from the Gubik area and other 20 areas on the North Slope to the Cook Inlet region of the state by identifying one or more 21 persons capable of producing natural gas from the Gubik area in sufficient quantities to 22 support a bullet pipeline project or, if the Gubik area does not have sufficient quantities of 23 natural gas to support a bullet pipeline, from other areas on the North Slope, and negotiating 24 for a commitment of natural gas production on commercially reasonable terms to support the 25 economic viability of the bullet pipeline.