HomeMy WebLinkAboutResolution No. 2007-11SUBSTITUTE
Suggested by: Mayor Porter
CITY OF KENAI
RESOLUTION NO. 2007-11
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, SUPPORTING
THE CONTINUED OPERATION OF NATURAL GAS INDUSTRIAL FACILITIES ON THE
KENAI PENINSULA.
WHEREAS, the Kenai Peninsula has three major industrial facilities that are
dependent upon natural. gas -the Kenai Liquefied Natural Gas (LNG) facility; Agrium;
and Tesoro Alaska; and,
WHEREAS, Marathon Oil Company and ConocoPhillips Company have filed with U.S.
Department of Energy for atwo-year extension of the export license for the Kenai LNG
facility; and,
WHEREAS, Kenai LNG facility, Agrium and Tesoro Alaska provide jobs for the Kenai
Peninsula and substantial tax and royalty revenues to the State of Alaska and to
borough governments; and,
WHEREAS, the continued operation of these three natural gas industrial facilities is
vital to the economy of the City of Kenai and the Kenai Peninsula Borough; and,
WHEREAS, the continued operation of all industrial plants in the Kenai Peninsula
helps preserve vital markets for Cook Inlet natural gas producers, helps assure the
continued economic viability of new gas development, and provides an operational
source of gas deliverability for residential and commercial consumers; and,
WHEREAS, preserving the industrial gas markets in the Cook Inlet spreads the cost of
gas delivery facilities over a larger economic base, thereby reducing the per unit gas
cost to all consumers; and,
WHEREAS, it is fitting and proper to preserve all of the industrial demands for natural
gas in Cook Inlet for the aforementioned reasons.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, strongly supports the continued operation of Kenai Liquefied Natural Gas
facility, Agrium; and Tesoro Alaska.
BE IT FURTHER RESOLVED THAT THE COUNCIL OF THE CITY OF KENAI, ALASKA
also endorses the two year extension application for an LNG export license extension
submitted to the U.S. Department of Energy by Marathon and ConocoPhillips providing
that Department of Energy review confirms that the gas being exported is in excess to
that needed to meet local commercial, industrial and residential needs.
Resolution No. 2007-11 (SUBSTITUTE)
Page Two
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of March,
2007.
PAT PORTER, MAYOR
A EST:
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Je fer C. ockwood, Deputy City Clerk