Loading...
HomeMy WebLinkAboutRes1983-020 . . . . 05/16/83 ~~ e e 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; . . . . e e 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 9. F\d .. .<-k 1 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 ~ /7/~ Fred B. Arvidson City Attorney