KENAI PENINSULA BOROUGH

RESOLUTION 2000-019

A RESOLUTION SUPPORTING THE ALASKA NORTH SLOPE NATURAL GAS PIPELINE WITH A TERMINUS AT NIKISKI ON COOK INLET

WHEREAS, The Alaska North Slope LNG Project has identified Nikiski on Cook Inlet located within the boundaries of the Kenai Peninsula Borough and a site at Valdez as possible locations for the terminus of the proposed Alaska Natural Gas Pipeline; and

WHEREAS, The Cook Inlet Pipeline Terminus Group was formed with funds allocated by the Kenai Peninsula Borough Assembly; and

WHEREAS, The Cook Inlet Pipeline Terminus Group has researched and held public meetings in Anchorage, the Mat-Su Valley, up the Railbelt, on the Kenai Peninsula and throughout the South Central Region of Alaska; and

WHEREAS, The public has overwhelmingly supported the Cook Inlet route; and

WHEREAS, The LNG Industry at Nikiski has flourished in the Cook Inlet area, with 31 years of safe, successful and profitable transport, production and marketing of LNG; and

WHEREAS, Kenai Peninsula Borough residents have enjoyed a long history of cooperation and benefit from our Nikiski LNG industry neighbors; and

WHEREAS, Cook Inlet has the infrastructure, trained workforce, and space available to support expansion of the LNG Industry and other new industries reliant upon natural gas supplies; and

WHEREAS, Cook Inlet is perfectly suited for LNG tanker safety, as Cook Inlet is twelve to fourteen miles wide, has no glacial ice, has no need for escort tugs, has a natural geology that protects Nikiski from tsumani and has a 31 year history of safe and on time shipping of LNG; and

WHEREAS, Nikiski on Cook Inlet has no tanker taxes, and enjoys an industry favorable climate; and

WHEREAS, Alaska's in-state need for natural gas is increasing along the route to Nikiski with 70% of all Alaskans living and conducting business on Cook Inlet; and

WHEREAS, A Cook Inlet route could supply compressed natural gas to bush and rural Alaska via existing transportation; and

WHEREAS, Cook Inlet supplies of natural gas are declining with severe declines anticipated later in this decade; and

WHEREAS, Only the Cook Inlet route will provide natural gas to in-state residential and business consumers without construction of a costly spur line, which would drastically, increase Alaskan natural gas consumer costs.

NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH:

SECTION 1. That the Kenai Peninsula Borough supports the efforts of the Alaska North Slope LNG Project to transport North Slope natural gas to tidewater. The Kenai Peninsula Borough encourages the continued review of the benefits the Alaska North Slope LNG Project specifically and the LNG industry in general will see from a terminus located at Nikiski on Cook Inlet.

SECTION 2. That a copy of this resolution be sent to Governor Knowles, United States Senator Murkowski, United States Senator Stevens, United States Representative Young, Department of Revenue Commissioner Condon, Alaska State Legislature House and Senate Resources and Oil and Gas Committee Chairs, Federal Bureau of Land Management Authorized Officer Jerry Brossia, State Pipeline Coordinator William G. Britt Jr., and all Anchorage, Mat-Su, Railbelt and Kenai Peninsula Borough legislators.

SECTION 3. This resolution becomes effective immediately upon its adoption.

ADOPTED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH THIS 21ST DAY OF MARCH, 2000.