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CSHCR 2(RES) am: Requesting the governor to provide energy security for all Alaskans first 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 where appropriate 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 the energy needs of Alaskans and a bullet pipeline project.

00 CS FOR HOUSE CONCURRENT RESOLUTION NO. 2(RES) am 01 Requesting the governor to provide energy security for all Alaskans first 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 where appropriate with 04 one or more persons capable of producing natural gas from the Gubik area, and other 05 areas on the North Slope if necessary, in sufficient quantities to support the energy 06 needs of Alaskans and a bullet pipeline project. 07 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 WHEREAS natural gas production in the Cook Inlet region of the state has suffered 09 significant decline, resulting in the closure of the Agrium U.S., Inc., facility in Kenai and the 10 risk of inadequate supplies of natural gas from the Gubik area and elsewhere to consumers 11 that rely on production from the Cook Inlet region; and 12 WHEREAS there are significant quantities of natural gas in the Gubik area and 13 elsewhere on the North Slope that could be produced if means for delivering the product to 14 market were available; and

01 WHEREAS the major gas pipeline project licensed by the state under AS 43.90 02 (Alaska Gasline Inducement Act) or a similar alternative project that offers five natural gas 03 delivery points in the state is not expected to transport natural gas from the North Slope until 04 after 2016; and 05 WHEREAS the people of the state need energy security and access to natural gas now 06 and cannot wait for the completion of the major gas pipeline project from the North Slope; 07 and 08 WHEREAS the demand for natural gas in the state is expected to increase steadily; 09 and 10 WHEREAS the construction of a smaller gas pipeline, sometimes referred to as a 11 "bullet line," may be capable of delivering the state's natural gas to in-state markets before the 12 major gas pipeline project from the North Slope becomes operational; and 13 WHEREAS a commitment to transport 180,000,000,000 cubic feet of natural gas a 14 year to provide approximately 60,000,000,000 cubic feet of natural gas a year for Railbelt 15 residential customers, 60,000,000,000 cubic feet of natural gas a year for industrial use, 16 including fertilizer production by Agrium U.S., Inc., and 60,000,000,000 cubic feet of natural 17 gas a year for export will contribute to the economic viability of the bullet pipeline from the 18 North Slope to the Cook Inlet region of the state; 19 BE IT RESOLVED that the Alaska State Legislature requests the governor to 20 provide energy security for all Alaskans first by taking all action necessary, appropriate and 21 consistent with the state's obligations under the current Alaska Gasline Inducement Act 22 license, and after thoughtful consideration, to promote the development of a bullet pipeline for 23 delivering natural gas from the Gubik area and other areas on the North Slope to the Cook 24 Inlet region of the state by identifying one or more persons capable of producing natural gas 25 from the Gubik area in sufficient quantities to support a bullet pipeline project or, if the Gubik 26 area does not have sufficient quantities of natural gas to support a bullet pipeline, from other 27 areas on the North Slope, and negotiating for a commitment of natural gas production on 28 commercially reasonable terms to support the energy needs of Alaskans and the economic 29 viability of the bullet pipeline.