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