HomeMy WebLinkAboutResolution No. 2004-55Suggested by: City council
CITY OF KENAI
RESOLUTION NO. 2004-55
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, SUPPORTING
THE MUNICIPAL ADVISORY GROUP RESOLUTION NO. 2004-03, ADVISING THE
STATE OF ALASKA TO REINFORCE THE REQUIREMENTS OF THE STRANDED GAS
DEVELOPMENT ACT TO MAKE NATURAL GAS AVAILABLE TO MEET IN-STATE
DEMAND.
WHEREAS, the Stranded Gas Development Act (SGDA) requires applicants to describe
methods and terms under which the applicant is prepared to make gas available to
meet the reasonably foreseeable demand in Alaska within the economic proximity of
the project; and,
WHEREAS, the SGDA states, an element of determining if a project is qualified is
whether it is capable, subject to applicable commercial regulation and technical and
economic considerations, of making gas available to meet reasonably foreseeable
demand in this state; and,
WHEREAS, the Alaska Constitution requires natural resources to be developed for the
benefit of all Alaskans; and,
WHEREAS, communities in Alaska desire affordable and clean energy from the gas
pipeline; and,
WHEREAS, affordable, clean energy is a component of economic development and
quality of life throughout the state; and,
WHEREAS, a gas pipeline likely will transport large quantities of natural gas liquids
under high pressure, and any takeoff on the pipeline for local access to gas likely will
be expensive and may require facilities to remove the natural gas liquids (NGL), making
the location of extraction of NGL important to Alaska communities; and,
WHEREAS, the tariff established for gas transported to takeoff points within Alaska
should be calculated for the actual transportation costs to those points; and,
WHEREAS, AS 38.35.120(a) and AS 42.05.711-42.06.370 may act to prohibit access to
North Slope natural gas by many or all communities in Alaska; and,
WHEREAS, South Central Alaska has had access to an abundant supply of low-cost
natural gas from the Cook Inlet Basin, which is forecasted to meet existing demand
until approximately 2012; and,
WHEREAS, Interior Alaska would benefit from having access to natural gas either for
industrial uses or distribution or for generating lower cost electricity; and,
Resolution No. 2004-55
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WHEREAS, Southeast Alaska communities are isolated and largely rural and rely on
importing oil from Lower 48 suppliers for most energy needs; and, an alternative
source of clean, efficient and cost-effective energy offers a high likelihood of beneficial
effect on economic development and quality of life for residents of the Southeast region.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, supports the Municipal Advisory Group, Resolution No. 2004-03 advising the
State of Alaska to reinforce the requirements of the Stranded Gas Development Act to
make natural gas available to meet in-state demand.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15~.h.. day of
September, 2004.
ATTEST:
Carol L. Freas, City Clerk
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