Read below for the full language of AR No. 2009-195: "…Whereas, declining BRU field production…may be insufficient to meet its full gas requirement on some heavy peak use days…."     *     See our earlier comments on Cook Inlet Gas Supply: 7-13-097-29-077-30-09 ("Know when to hold ’em, know when to fold ’em….")98-2-096-4-09 and 6-2-09, and 5-23-09 and 5-19-09, and 2-23-09, and 1-30-09 and 12-16-08.        *     CITIZENS AGAINST CO2 SEQUESTRATION by Lawrence Solomon.  The authorities in Canada promise to take this risk seriously and double-promise to design state-of-the-art carbon dioxide storage plants that won’t fail fed by pipelines that won’t blow out.  “Alberta announces three winning projects for carbon-capture funding,” reported the Calgary Herald. “[They] will each receive a portion of $2-billion in carbon capture and storage funding, if final negotiations between the province and companies are successful.” 

 

 

 

Submitted by: Chair of the Assembly at the

Request of the Mayor
Prepared by: Municipal Light & Power
For reading: August 11, 2009
ANCHORAGE, ALASKA
AR No. 2009- 195
1
2 A RESOLUTION AUTHORIZING MUNICIPAL LIGHT & POWER TO
3 NEGOTIATE AND ACQUIRE, BY PURCHASE, EXCHANGE OR OTHER
4 TRANSFER AGREEMENTS, NATURAL GAS TO MEET ITS SHORT-TERM
5 REQUIREMENTS NOTWITHSTANDING TITLE 7.
6 _______________________________________________________________________
7
8
9 WHEREAS, Municipal Light & Power (ML&P) meets its natural gas requirements
10 for electric power generation from its reserves in the Beluga River Unit (BRU)
11 gas field; and
12
13 WHEREAS, gas curtailments, interruptions (e.g. planned or un-planned field
14 maintenance, gas transportation system interruptions) or emergencies (such as a
15 gas compressor trip or loss of production from wells) may occur at the BRU; and
16
17 WHEREAS, it is imperative to the health, safety and welfare of the Municipality
18 for ML&P to have other gas supply arrangements in place to meet its generation
19 needs, particularly during periods of peak seasonal demand when Cook Inlet gas
20 availability and deliverability is severely strained; and
21
22 WHEREAS, declining BRU field production, coupled with existing contractual
23 gas supply requirements, indicate that ML&P’s share of production from the field
24 may be insufficient to meets its full gas requirement on some heavy peak use
25 days; and
26
27 WHEREAS, the terms and conditions precedent to acquiring short-term gas
28 supplies to accommodate short notice gas supply requirements are dictated by
29 Cook Inlet market and supply conditions; and
30
31 WHEREAS, ML&P has been unsuccessful in securing an alternate supply of
32 natural gas through the normal competitive procedures under Title 7; and
33
34 WHEREAS, it is in the best interests of the Municipality and the public for ML&P
35 to maintain continuous access to an uninterrupted flow of natural gas for its
36 electric generating turbines at the most favorable terms: now, therefore,
37
38
AR – ML&P short-term gas acquisitions Page 2 of 2
THE ANCHORAGE 1 ASSEMBLY RESOLVES:
2
3 Section 1. Notwithstanding the competitive requirements of Title 7, ML&P is
4 authorized to negotiate and acquire, by purchase, exchange or other transfer
5 agreements, natural gas from producers on terms and conditions that the
6 Municipality deems to be most favorable to it and ML&P customers.
7
8 Section 2. Any agreement entered into pursuant to Section 1 resulting in
9 cumulative payments to any single producer exceeding $500,000 in any fiscal
10 year shall be reported to the Assembly within 30 days in an informational
11 memorandum; PROVIDED proprietary information which a producer reasonably
12 requires to be kept confidential shall be omitted from such reporting.
13
14 Section 3. The term of any such agreement shall not extend beyond three (3)
15 years from passage and approval of this resolution.
16
17 Section 4. This resolution shall be effective immediately upon passage and
18 approval by the Assembly.
19
20 PASSED AND APPROVED by the Anchorage Assembly this ____ day of
21 August, 2009.
22
23
24
25 __________________________
26 Chair of the Assembly
27
28
29 ATTEST:
30
31
32 ____________________________
33 Municipal Clerk