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CITY OF SEWARD, ALASKA
RESOLUTION 2001-002
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, SUPPORTING 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 US. 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 Liquefied Natural Gas vessels or converted to gas by-products through Gas to
Liquids technology for market use; and
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; and
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 ovetall, Alaska
economy; and
CITY OF SEWARD, ALASKA
RESOLUTION 2001-002
WHEREAS, on December 6, 2000, the Seward Port and Commerce Advisory Board
approved a resolution urging the Seward City Council to support the AI-Can Highway Gas Pipeline
Route to move natural gas to markets in the Lower 48 states;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section L The City Council supports the AI-Can Highway gas pipeline route to move
Alaska's North Slope natural gas to markets in the Lower 48 states, and 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.
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council ofthe City of Seward, Alaska, this 8 day
ofJanuary,2001.
THE CITY OF SEWARD, ALASKA
L<.., I t...::.....L;.
Edgar Blatchford, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Blatchford, Brossow, Calhoon, Clark, King, Shafer
None
Orr
None
ATTEST:
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P,trio' ReillY~
City Clerk
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