HomeMy WebLinkAboutResolution No. 2006-19Suggested by: Councilor Swarner
CITY OF KENAI
RESOLUTION NO. 2006-19
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, SUPPORTING
THE INCLUSION OF THE TWO COOK INLET LEASE SALES IN THE FEDERAL
MINERALS MANAGEMENT SERVICE'S OUTER CONTINENTAL SHELF OIL AND GAS
LEASING PROGRAM OF 2007-2012.
WHEREAS, the federal Minerals Management Service (MMS) is seeking comments on
its next five-year plan for access to oil and gas resources on the Outer Continental
Shelf (OCS); and,
WHEREAS, two of the nine lease sales proposed by MMS in Aiaska are located in Cook
Inlet; and,
WHEREAS, that Draft Proposed Plan (DPP) will determine where federal OCS oil and
gas lease sales will occur over the five-year period of 2007-2012; and,
WHEREAS, if an area is not made available for leasing in the plan, leasing will not be
considered again for that area until beyond 2012; and,
WHEREAS, given long lead times for oil and gas development, which can exceed ten
years, MMS must proceed expeditiously with key lease sales in the 2007-2012 OCS
plan or production from new areas could be pushed back to 2020 and beyond; and,
WHEREAS, demand for energy is continuing to rise; however, mature oil and gas
basins in the United States are in steep decline. Furthermore, the United States is
heavily dependent on foreign imports and Gulf of Mexico production, and recent
hurricanes have demonstrated the need to geographically diversify domestic supplies;
and,
WHEREAS, a Draft Environmental Impact Statement for Cook Inlet Lease Sales 191
and 199 showed significant oil and gas reserves located in the OCS of Cook Inlet; and,
WHEREAS, OCS oil and gas development has an outstanding safety and
environmental record spanning decades. Such development has coe~sted with other
industries, including fishing, in the North Sea, the Gulf of Me~co and Cook Inlet; and,
WHEREAS, technological advances and a strong regulatory framework in which
Alaska oil and gas development occurs will mitigate environmental risks; and,
WHEREAS, OCS oil and gas production in Cook Inlet would provide many economic
benefits to the Kenai Peninsula Borough and State of Alaska, including hundreds of
new jobs, additional tas and royalty inwme to the state and estimated additional
property tas revenues to the Kenai Peninsula Borough of $2.7 million per year over a
Resolution No. 2006-19
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15 year period resulting from new pipelines and shore-based facilities built to deliver
oil or gas from the OCS; and,
WHEREAS, there is a strong need for additional natural gas development in Cook Inlet
to support both local consumer and industrial demand for natural gas; and,
WHEREAS, the City of Kenai recognizes it is essential to find new reserves of natural
gas in the Cook Inlet Basin in order to assure continued economic prosperity.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that the City of Kenai supports the inclusion of the two Cook Inlet lease sales
in the Federal Minerals Management Service's Outer Continental Shelf Oil and Gas
Leasing Program of 2007-2012.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this Sth day of April