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SEWARD PORT AND COMMERCE ADVISORY BOARD
RESOLUTION 2000-005
A RESOLUTION OF THE PORT AND COMMERCE ADVISORY BOARD URGING
THE SEWARD CITY COUNCIL STRONGLY SUPPORTS THE AL-CAN HIGHWAY
GAS PIPELINE ROUTE TO MOVE NATURAL GAS TO MARKETS IN THE LOWER
48 STATES.
Whereas, The natural gas fields in Alaska's North Slope hold a minimum
of 35 trillion cubic feet of natural gas, representing 20 percent of the known U.S. gas
reserves. The potential exists to find much more gas as producers and explorers
begin to search for gas reserves on the North Slope; and
Whereas, the price of natural gas in the Lower 48 States has been
steadily increasing. The increase in gas prices has changed the economics of
building a natural gas pipeline, and has triggered the proposals to build a gas
pipeline originating in Alaska to be routed through Canada. One proposal would
route a gas pipeline along the North Slope of Alaska and down through Canada via
the Mackenzie River Delta. A second proposal would involve a gas pipeline routed
south through Fairbanks, crossing through Canada via the Alaska Canada Highway.
A third proposal would route a gas pipeline to South-central Alaska at which point
the gas could be liquefied and carried to market by Liquified Natural Gas vessels or
converted to gas by-products through Gas to Liquids technology for market use.
Whereas, the option which generates the maximum value to the State of
Alaska as a whole with minimal environmental impact is the natural gas pipeline
route through Fairbanks and down the Alaska-Canada Highway to the Lower 48
States. This route was envisioned and supported by the 1977 U.S. Canadian
agreement and is far ahead of any alternative in permitting clearing and engineering.
The construction cost for this option is estimated to be $6 billion to $10 billion, with
a substantial portion of the project being carried out within Alaska's boundaries.
Such a project would provide huge gains in employment for Alaskans for years to
come and would trigger hundreds of millions of dollars in support sector jobs for
existing Alaskan businesses;
Whereas, there appears to be sufficient gas reserves in Alaska to support a
gas pipeline spur route from Fairbanks to Southcentral Alaska to provide Alaska
consumers and industry with a steady, economic supply of gas and to allow for
whatever forms of export products are marketable. In addition to lowering the cost
of fuel for Alaska, access to natural gas reserves provides Alaskan companies with a
raw material that is used in a multitude of commercial applications. Access to such
natural gas may generate value-added manufacturing for Alaska and encourage the
creation of new industries within the State. This will serve to diversify and strengthen
the overall Alaska economy.
NOW, THEREFORE BE IT RESOLVED BY THE PORT AND COMMERCE
ADVISORY BOARD:
That the Seward City Council strongly supports the AI-Can Highway gas
pipeline route to move Alaska's North Slope natural gas to markets in the Lower 489
states. Furthermore the council request that the Alaska congressional Delegation,
the Governor of the State of Alaska, the Alaska State Legislature, and the U.S.
Congress support the construction of a separate spur from Fairbanks to Southcentral
Alaska to provide Alaskan's with an access to their own natural gas resources.
ADOPTED BY THE PORT AND COMMERCE ADVISORY BOARD THIS 6th DAY OF
DECEMBER 2000.
~
Ron Wille
Chairman