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.