CITY OF HOMER

HOMER, ALASKA

Mayor. Ladd.

RESOLUTION 03-147(S)


A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA REGARDING LOWER PENINSULA SHALLOW NATURAL GAS LEASES AND COAL BED METHANE DEVELOPMENT.

WHEREAS, Leases for Coal Bed Methane (CBM) development in the City of Homer and surrounding areas have been approved by the State of Alaska, Division of Oil and Gas, and;

WHEREAS, Notification of said leases was never forwarded by the State of Alaska to the City of Homer has not occurred since year 2000 and therefore this community was not given adequate notice current information in which to comment to the State concerning these leases and;

WHEREAS, At a Homer Public Information Meeting, November 10, 2003, the Department of Natural Resources, Department of Revenue, Department of Environmental Conservation, and the Alaska Oil and Gas Conservation Commission heard a preponderance of public testimony questioning the State of Alaska's decision to lease Lower Peninsula coal bed methane sub surface land without having provided notification to and timely opportunity for citizen input, and;

WHEREAS, The closed decision-making process utilized by the State of Alaska to lease Lower Peninsula coal bed methane land is contrary to widely held beliefs of Homer area residents and the City of Homer, and;

WHEREAS, CBM development could severely and adversely impact quality of life as well as private and public property including:

• •the City of Homer water supply that serves approximately 1100 homes and businesses in the City via water mains and approximately 450 homes and businesses inside and outside the City via water trucks;
• •groundwater vitally important for:

private water wells,

health of the general ecology and the local area economics that are heavily dependent on a healthy ecology (commercial, sport, charter, guided and subsistence fishing, visitor and tourism industries;

home and land values;

roads and public safety;

NOW, THEREFORE, BE IT RESOLVED, that the City of Council of Homer, Alaska declares that CBM development may not be consistent with the goals of the residential, commercial, recreational, and tourism growth of this community and that the potential adverse impacts of CBM development may far outweigh the potential benefits; and

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Resolution 03-147(S)

City of Homer

BE IT FURTHER RESOLVED, that the Homer City Council declares that projects such as natural gas leases and coal bed methane development are very sensitive to local planning and quality of life, and waiving shallow natural gas and CBM developer compliance from local ordinances and regulations based upon HB 69 is contrary to principles of representative government, and;

BE IT FURTHER RESOLVED, that the Homer City Council requests that the Legislature and the Governor agree to legislation providing the Commissioner of the Department of Natural Resources the authority to buy back the leases, Director of the Division of Oil and Gas revoke the existing CBM leases or repurchase leases within the Homer Bridge Creek Watershed including other environmentally sensitive areas within the City, and deny all future applications for CBM development in, or near the City of Homer and surrounding area, and;

BE IT FURTHER RESOLVED, that the Homer City Council asks that the Kenai Borough and the State of Alaska place a moratorium on any further leasing or permitting of shallow gas leases and CBM activity in the area until the short and long term adverse effects of CBM and shallow gas development shall be studied and properly regulated in Alaska State and Kenai Borough statutes, and;

BE IT FURTHER RESOLVED, that the Homer City Council requests legislators to repeal HB69 so that local governments may properly regulate CBM development within their jurisdictions.

PASSED AND ADOPTED by the City Council of Homer, Alaska this 24th day of November, 2003.

CITY OF HOMER

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ATTEST: JACK CUSHING, MAYOR

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MARY L. CALHOUN, CMC, CITY CLERK

Fiscal Note: NA