Legislature(2009 - 2010)CAPITOL 120
04/14/2010 09:00 AM House RULES
| Audio | Topic |
|---|---|
| Start | |
| HR16 | |
| HR17 | |
| SB301 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| * | HR 16 | ||
| * | HR 17 | ||
| SB 301 | |||
HR 17-EXPORT LICENSE EXT. FOR KENAI LNG PLANT
9:17:53 AM
CHAIR DAHLSTROM announced that the next order of business would
be HOUSE RESOLUTION NO. 17, Urging the United States Department
of Energy to expeditiously approve a two-year extension of the
export license for the Kenai liquid natural gas plant.
CHAIR DAHLSTROM then announced that before the committee is CSHR
17, Version 26-LS1670\R, Wayne, 4/13/10.
9:17:58 AM
TOM WRIGHT, Staff, Representative Mike Chenault, Alaska State
Legislature, speaking on behalf of the sponsor of HR 17,
Representative Chenault, explained that HR 17 supports the
extension of the export license of the Kenai liquefied natural
gas (LNG) facility. The facility has been operating for over 40
years. Currently, the Kenai LNG facility is the only
significant industrial user of natural gas in Southcentral
Alaska. The facility received a two-year extension to its
export license in March 2009 and thus will expire in 2011. The
facility, he related, is owned by the Kenai LNG Corporation with
ConocoPhillips owning 70 percent and Marathon owning 30 percent.
Both parties have agreed to seek an extension of the export
license. The application would extend the export authorization
through March 2013. He noted that the extension request will be
for existing volumes of natural gas and no increase in volume
for export will be requested for the 99 trillion British thermal
units (Btus) that was authorized by the U.S. Department of
Energy in 2009. Mr. Wright highlighted that the Kenai LNG
facility contributes heavily, $130 million per year, to state
and local economies and supports 60 direct jobs and 50 indirect
jobs, which account for $17 million annually in personal income.
Furthermore, production of gas for feedstock to the facility and
the sale of LNG generate approximately $60 million in royalties
and taxes for the state and the Kenai Peninsula Borough. In
conclusion, Mr. Wright pointed out that this resolution is of
importance to the sponsor's district as well as the state.
9:20:01 AM
REPRESENTATIVE GARDNER noted her strong support of the proposed
extension as it serves an important function for the Railbelt
energy. She then recalled that the Kenai LNG facility has an
agreement that it would reduce its gas consumption in a
circumstance in which the Anchorage area utilities are in a
crisis situation.
MR. WRIGHT deferred to the representative from ConocoPhillips.
9:20:46 AM
PORTIA BABCOCK, Director, State Government Affairs,
ConocoPhillips, confirmed that the Kenai LNG facility does
divert gas from the Kenai LNG facility to the local markets
during emergencies and when there are critical deliverability
events, as they arise. She said that the aforementioned will
continue to be the case. In further response to Representative
Gardner, Ms. Babcock clarified that there isn't a formal
agreement to that effect; rather it's just an understanding.
9:21:33 AM
REPRESENTATIVE OLSON moved to report CSHR 17, Version 26-
LS1670\R, Wayne, 4/13/10, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, CSHR 17(RLS) was reported from the House Rules
Standing Committee.
9:21:46 AM
The committee took an at-ease from 9:21 a.m. to 9:24 a.m.
| Document Name | Date/Time | Subjects |
|---|