CITY OF HOMER
HOMER, ALASKA

Novak

RESOLUTION 09-41(S)(A)

 

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, AUTHORIZING THE CITY ADMINISTRATION TO PURSUE ALL AVENUES OF DISCUSSION TO ENCOURAGE ALL COMMERCIAL PARTIES THAT HAVE A POTENTIAL ROLE IN PRODUCING, TRANSMITTING, DISTRIBUTING OR SELLING NATURAL GAS TO RESIDENTS AND BUSINESSES IN THE CITY OF HOMER AND THE SURROUNDING AREA TO BRING NATURAL GAS TO THE HOMER MARKET.

 

WHEREAS, As a result of additional exploratory drilling near Epperson Knob on the North Fork Road, Armstrong Cook Inlet LLC now has two natural gas wells capable of supplying commercial quantities of natural gas; and

 

WHEREAS, While Enstar Natural Gas Company currently holds the certificate to provide natural gas to the Homer Service Area, any commercial venture with the technical, financial, and management ability could apply to the Regulatory Commission of Alaska for the right to be granted the certificate to provide natural gas to the Homer Service Area; and

 

WHEREAS, On one end, Armstrong’s natural gas supply is not currently committed to any supply contracts, and on the other end the Homer Service Area needs an affordable alternative energy source for residential growth and commercial development; and

 

WHEREAS, The major financial investment required now is in a pipeline to Homer, and a distribution system within Homer’s developed residential and commercial areas; and

 

WHEREAS, With its commitment to providing public services and encouraging economic development, the City of Homer has the political ability to push for the delivery of natural gas to Homer; and

 

WHEREAS, As demonstrated by the Fairbanks Natural Gas Companies’ need for financial support to expand, the ability to expand services could depend in part on government backed funding on the State or even national level; and

 

WHEREAS, Fairbanks Natural Gas Companies’ 467 residential customers consume 60,354,000 cubic feet of gas per year, while 638 commercial customers consume 779,646,608 cubic feet of gas per year which demonstrates the impact the availability of natural gas can have on commercial development or energy production; and

 

WHEREAS, Armstrong is “very comfortable” that the North Fork prospect holds 10 billion cubic feet of natural gas reserves and that it could hold 2 to 6 times that amount, which would provide for the energy needs of the Homer Service Area well into the foreseeable future.

 

NOW, THEREFORE, BE IT RESOLVED that the Homer City Council supports and authorizes the city administration to pursue all avenues of discussion to encourage all commercial parties that have a potential role in producing, transmitting, distributing or selling natural gas to residents and businesses in the City of Homer and the surrounding area to bring natural gas to the Homer market.

 

BE IT FURTHER RESOLVED that the City of Homer will assist with the project feasibility providing such information as may be available in the City database.

 

PASSED AND ADOPTED by the Homer City Council on this 13th day of April 2009.

 

CITY OF HOMER

 

 

_____________________________

JAMES C. HORNADAY, MAYOR

ATTEST:

 

 

______________________________

JO JOHNSON, CMC, CITY CLERK

 

Fiscal Note: N/A