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28th Legislature(2013-2014)

Bill Text 28th Legislature


00 Enrolled HCR 22                                                                                                         
01 Urging the governor, the commissioner of natural resources, and the attorney general to seek                            
02 resolution of TAPS quality bank disputes before January 1, 2015, in a manner that will                                  
03 provide long-term quality bank stability and reduce the cost of quality bank adjustments paid                           
04 by in-state refiners of Alaska North Slope crude oil.                                                                   
05                                         _______________                                                                 
06 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                             
07      WHEREAS refineries in the state provide employment and economic opportunities to                                 
08 communities throughout the state; and                                                                                   
09      WHEREAS the state receives direct and indirect financial benefits from the operation                             
10 of in-state refineries by way of TAPS quality bank charges and royalty-in-kind sales of oil;                            
11 and                                                                                                                     
12      WHEREAS the Flint Hills and Petro Star refineries mitigate the effects of low oil                                
13 flow in the Trans Alaska Pipeline System by increasing the temperature of the crude oil in the                          
14 pipeline as a result of refinery operations; and                                                                        
15      WHEREAS Petro Star Inc. is the supplier of jet fuel and marine diesel to military                                
16 bases in the state; and                                                                                                 
01      WHEREAS the Ted Stevens International Airport is the largest cargo hub in North                                  
02 America and offers a market opportunity for the manufacture and sale of jet fuel that is                                
03 refined in the state; and                                                                                               
04      WHEREAS the sale of jet fuel that is refined in the state adds value to the state's                              
05 crude oil, and in-state refining provides refined products to meet other energy needs in the                            
06 state; and                                                                                                              
07      WHEREAS refineries in the state face increasing competition from imported jet fuel                               
08 and other refined products; and                                                                                         
09      WHEREAS the cost of obtaining crude oil for refineries in the state is higher than that                          
10 for out-of-state refineries because of TAPS quality bank charges, higher energy costs, and                              
11 crude oil prices that are higher than the price of West Texas Intermediate crude oil; and                               
12      WHEREAS, in February 2014, Flint Hills Resources Alaska, LLC, announced plans                                    
13 for closing the company's refinery in North Pole; and                                                                   
14      WHEREAS the absence of refineries in the state would directly and indirectly                                     
15 negatively affect the labor market in the state, negatively affect the state's general fund,                            
16 jeopardize the security of Alaska's military bases, and drive up the long-term cost of fuel                             
17 products for the people of the state; and                                                                               
18      WHEREAS the TAPS quality bank and the cost of adjustments that must be paid by                                   
19 refineries in the state have, for many years, been subject to prolonged and recurrent litigation                        
20 before the Federal Energy Regulatory Commission and the Regulatory Commission of                                        
21 Alaska;                                                                                                                 
22      BE IT RESOLVED that the Alaska State Legislature urges the governor, the                                         
23 commissioner of natural resources, and the attorney general to seek resolution of TAPS                                  
24 quality bank disputes before January 1, 2015, in a manner that will provide long-term quality                           
25 bank stability and reduce the cost of quality bank adjustments paid by in-state refiners of                             
26 Alaska North Slope crude oil.                                                                                           
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