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HomeMy WebLinkAboutResolution No. 2012-15c,yo( KENAI, ALASKA Suggested by: Councilor Gabriel Councilor Navarre CITY OF KENAI RESOLUTION NO. 2012 -15 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, URGING THE UNITED STATES CONGRESS TO PASS LEGISLATION TO OPEN THE COASTAL PLAIN OF THE ARCTIC NATIONAL WILDLIFE REFUGE (ANWR) TO OIL AND GAS EXPLORATION, DEVELOPMENT AND PRODUCTION. WHEREAS, in 16 U.S.C. 3142 (sec.1002 of the Alaska National Interest Lands Conservation Act (ANILCA)), the United States Congress reserved the right to permit further oil and gas exploration, development and production within the coastal plain of the Arctic National Wildlife Refuge; and WHEREAS, the oil industry, the State of Alaska, and the United States Department of the Interior consider the coastal plain to have the highest potential for discovery of very large oil and gas accumulations on the continent of North America, estimated to be as much as ten billion four hundred million (10,400,000,000) barrels of recoverable oil; and, WHEREAS, oil and gas exploration and development of the coastal plain of the refuge and adjacent land could result in major discoveries that would reduce our nation's future need for imported oil, help balance the nation's trade deficit and significantly increase the nation's security; and, WHEREAS, the nation's future energy independence would be enhanced with additional natural gas production from the North Slope of Alaska, including what is expected to be significant gas reserves in the Arctic National Wildlife Refuge, and the development of those reserves would enhance the economic viability of the proposed Alaska Natural Gas Pipeline; and, WHEREAS, demand for domestic oil continues to rise while domestic crude production continues to fall, with the result that the United States imports additional oil from foreign sources; and, WHEREAS, development of oil at Prudhoe Bay, Kuparuk, Endicott, Lisburne, Ooguruk, Alpine and Milne Point has resulted in thousands of jobs throughout the United States, and projected job creation as a result of coastal plain oil development will have a positive effect in all fifty (50) states; and WHEREAS, Prudhoe Bay production is declining, and the Trans - Alaska Pipeline System is operating at only one -third (1/3) of its 1988 peak throughput; and, WHEREAS, the Trans - Alaska Pipeline System, a transportation facility that is a national asset and that would cost billions of dollars to replace, would have its useful physical life extended for a substantial period if the additional reserves of recoverable oil from the coastal plain were produced; and, WHEREAS, while new oil field developments on the North Slope of Alaska, such as Alpine, Northstar, Lisburne, Ooguruk and West Sak, may temporarily slow the decline in production, only giant coastal plain fields have the theoretical capability of increasing the production volume of Alaska oil to a significant degree; and, WHEREAS, opening the coastal plain of the Arctic National Wildlife Refuge now allows sufficient time for planning environmental safeguards, development and national security review; and, WHEREAS, the one million five hundred thousand (1,500,000) acre coastal plain of the refuge makes up only eight percent (8 %) of the nineteen million (19,000,000) acre refuge, and the development of the oil and gas reserves in the refuge's coastal plain would affect an area of two thousand (2,000) acres or less, which is less than one - half of one percent (0.5 %) of the area of the coastal plain, or one one - hundreth of one percent (0.01 %) of the refuge; and, WHEREAS, eight million nine hundred thousand (8,900,000) of the nineteen million (19,000,000) acres of the refuge have already been set aside as wilderness; and, WHEREAS, the oil industry has shown at Prudhoe Bay, as well as at other locations along the Arctic coastal plain, that it is capable of conducting oil and gas activity without adversely affecting the environment or wildlife populations; and, WHEREAS, the Central Arctic Caribou herd has increased from five thousand (5,000) animals in 1975 to over sixty-six thousand (66,000) animals in recent years, during oil exploration, development and production at Prudhoe Bay and Kuparuk; and, WHEREAS, the State of Alaska is committed to ensuring the continued health and productivity of the Porcupine Caribou herd and the Central Arctic Caribou herd, and the protection of land, water and other wildlife resources during the exploration and development of the coastal plain of the Arctic National Wildlife Refuge; and WHEREAS, the oil and gas industry has developed directional drilling technology that will allow horizontal drilling in a responsible manner thereby minimizing the development footprint within the Arctic National Wildlife Refuge, and this directional drilling technology may be capable of drilling from outside of the boundaries of the 1002 study area; and, WHEREAS, the oil industry is using innovative technology and environmental practices in the new field developments at Alpine and Northstar, and those techniques are directly applicable to operating on the coastal plain and would enhance environmental protection beyond traditionally high standards; and, WHEREAS, the City of Kenai will benefit both directly and indirectly from oil and gas development on the coastal plain through a potential increase in revenues to the Alaska Permanent Fund, Community Revenue Sharing, and increased State revenues to support capital projects; and, WHEREAS, many City of Kenai residents already employed in the oil and gas industry in the Cook Inlet Basin and on the North Slope will enjoy enhanced and new employment opportunities as will future generations of citizens in our community; and, WHEREAS, the Kenai Peninsula College has ongoing educational programs in oil and gas instrumentation, process engineering and related fields to prepare Alaskans for employment in the oil and gas industries, and who will benefit from development in the coastal plain, and, WHEREAS, the Speaker of the Alaska House of Representatives, Mike Chenault and other Alaska legislators have recently testified before Congressional Committees urging that Congress enact legislation to open the coastal plain of the Arctic National Wildlife Refuge to oil and gas exploration, development, and production; and, WHEREAS, the United States House of Representatives has voted twelve times to open the coastal plain of the Arctic National Wildlife Refuge to oil and gas exploration, development, and production, most recently passing H.R. 3048 by a bipartisan vote of 237 -187. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that: Section 1. That the Kenai City Council supports the State of Alaska in urging the United States Congress to pass legislation to open the coastal plain of the Arctic National Wildlife Refuge to oil and gas exploration, development and production, and that the Kenai City Council is opposed to further wilderness or other restrictive designation in the area of the coastal plain of the Arctic National Wildlife Refuge. Section 2. That the Kenai City Council supports the State of Alaska in urging that energy exploration and production activities be conducted in a manner that protects the environment and the naturally occurring population levels of the Porcupine Caribou herd and the Central Arctic Caribou herd on which the Gwich'in and other local residents depend, that uses directional drilling and other advances in technology to minimize the development footprint in the 1002 study area. Section 3. That the Kenai City Council supports the State of Alaska in opposing any unilateral reduction in royalty revenue from exploration and development of the coastal plain of the Arctic National Wildlife Refuge and any attempt to coerce the State of Alaska into accepting less than the ninety percent (90 %) of the oil, gas and mineral royalties from the federal land in Alaska that was promised to the State of Alaska at statehood. Section 4. That the Kenai City Clerk transmit copies of this resolution to the President of the UnitedStates, to the President of the Senate and the Speaker of the House of Representatives of the United States Congress, to the Governor of the State of Alaska, and to the Senate President and to the Speaker of the House of the Alaska State Legislature. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of March, 2012. SandraWlodigh, Ci \y Clerk PAT PORTER, MAYOR