HomeMy WebLinkAboutRes1983-020
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05/16/83
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 83-20
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, SUPPORTING APPROVAL OF STATE ROYALTY OIL CONTRACTS TO
CHEVRON USA AND TESORO ALASKA
WHEREAS, contracts for the supply of the State's royalty oil for
Chevron USA and Tesoro Alaska are currently pending the approval of the
State Legislature; and
WHEREAS, the supplies of crude oil from Cook Inlet and Peninsula
fields have been dwindling annually since 1970 necessitating the companies
to look to the State for assured supplies; and
WHEREAS, it has been the expressed interest of the State to pledge
its royalty oil for in-State processing and to trigger new industrial
investment and employment; and
WHEREAS, the contracts call for an eleven-year supply of 18,000 bar-
rels per day to the Chevron refinery; and 26,000 barrels per day to the
Tesoro refinery for in-State processing of products for Alaska markets;
and
WHEREAS, the supply of the royalty oil will add measurably to the
economic well-being of the State of Alaska and the Kenai Peninsula, as-
suring the continuing operation for the Chevron refinery and the further
expansion of the Tesoro refinery; and
WHEREAS, the Chevron and Tesoro refineries are annual contributors
to the economy with a combined payroll of $4 Million from the 105 year-
round jobs, operations impacting another 100 jobs and $2.5 Million in wages
in the service and supply sector, $1.5 Million in local purchases, and
sizeable tax contributions from a combined $125 Million in assessed
valuations; and
WHEREAS, such contributions to the economy would be increased by
an $80-90 Million expansion of the Tesoro refinery, a 250-member construc-
tion work force, and the addition of 20-30 new year-round jobs for the
expanded operations of the plant; and
WHEREAS, it has been determined by the State Commissioner of Natural
Resources and the State's Royalty Oil and Gas Advisory Board that the ap-
proval of contracts to provide long-term supplies of the State's North
Slope crude to the two companies is in the best interest of the State of
Alaska and a-wise and expedient use of the State's oil resources;
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 83-20
Page 2
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, that:
Section 1. The City Council recommends that the State Legislature ap-
prove contracts for the supply of the State's royalty oil from the North
Slope to the in-State refining facilities of Chevron USA and Tesoro Alaska.
Section 2. The City Council supports the concept of approval and rati-
fication of those contracts as provided in HB-320, HB-370, HB-371, SB-268, and
SB-269.
Section 3. The City Clerk is directed to distribute copies of this
resolution to Governor William J. Sheffield, Senate President Jalmar Kerttula,
House Speaker Joe L. Hayes, the Chairmen of the Senate and House Resource
Committees, Senators Don Gilman and Paul Fischer, and Representative Bette
Cato.
Section 4. This resolution shall take effect immediately upon its
adoption.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SE1~ARD, ALASKA,
this 23rd day 0 f May , 1983.
THE CITY OF SEWARD, ALASKA
jA~J
Jopp F. Gillespie
V%fe-Hayor
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AYES:
NOES:
ABSENT:
ABSTAIN:
Burgess, Gillespie,
None
Cripps, Wilson
None
Meehan, O'Brien, Swartz
ATTEST:
APPROVED AS TO FORM:
HUGHES, THORSNESS, GANTZ, POWELL & BRUNDIN
Attorneys for the City of Seward, AK
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Fred B. Arvidson
City Attorney