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CONCURRENT RESOLUTION SUPPORTING EXPORTS OF

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UTAH NATURAL GAS TO INTERNATIONAL MARKETS

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2019 GENERAL SESSION

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STATE OF UTAH

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Chief Sponsor: Ronald Winterton

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House Sponsor: Scott H. Chew

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8     LONG TITLE
9     General Description:
10          This concurrent resolution supports the export of liquefied natural gas (LNG) as an
11     opportunity to realize economic development in rural communities and tribal nations
12     and to promote Utah's natural gas production as a key contributing resource for
13     economic growth, national security, and as a cost-effective, reliable, and safe energy
14     source.
15     Highlighted Provisions:
16          This resolution:
17          ▸     recognizes the potential for natural gas production increasing in the United States;
18          ▸     recognizes the role that Utah can play in growing the economy and protecting our
19     national security through energy supplies;
20          ▸     recognizes that natural gas is produced in an environmentally safe way and is an
21     efficient use of energy;
22          ▸     recognizes the strategic role of rural communities and the Ute and Navajo Tribal
23     Nations in the development and production of energy resources in Utah;
24          ▸     recognizes the benefits additional natural gas production in Utah will create;
25          ▸     recognizes various LNG export terminals, such as the Jordan Cove LNG export
26     terminal;
27          ▸     supports the export of LNG and petroleum products as a way to provide economic
28     development opportunities to rural Utah; and
29          ▸     supports LNG export terminals to export Utah natural gas to international markets.

30     Special Clauses:
31          None
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33     Be it resolved by the Legislature of the state of Utah, the Governor concurring therein:
34          WHEREAS, the State of Utah supports an "all of the above" energy policy and the
35     responsible development and marketing of its abundant energy and mineral resources,
36     including natural gas, petroleum, and coal;
37          WHEREAS, the potential for natural gas production in the United States has increased
38     substantially due to technological advancements in oil and natural gas extraction methods;
39          WHEREAS, abundant associated gas from oil production and increasing natural gas
40     production in Utah and throughout the United States continue to keep natural gas prices low
41     and oversupply and low pricing are creating an increased demand for United States natural gas
42     in Asia and other international markets for export as LNG;
43          WHEREAS, due to the demand for LNG globally, Utah has an opportunity to maintain
44     its position as a net exporter of energy and a leader in energy production and innovation in the
45     region;
46          WHEREAS, Utah can play a key role in growing the American economy and in
47     securing our national security through energy exports, infrastructure development, stakeholder
48     engagement and outreach;
49          WHEREAS, natural gas is produced in an environmentally safe and friendly way and is
50     an efficient use of energy, and ample supplies of natural gas are available from domestic
51     resources, such as in Utah;
52          WHEREAS, Utah's rural communities have long produced the energy necessary to
53     drive Utah's fast and diverse growing urban economy, Utah can now provide the energy
54     necessary for developing nations in Asia and India to the largest emerging middle class for its
55     residential, commercial, manufacturing, and medical advancements;
56          WHEREAS, many of these energy-producing rural communities in Utah have not
57     always enjoyed the same shared prosperity that has come with Utah's tremendous economic

58     growth in recent decades due to "stranded resource assets" or a lack of access to United States
59     and international markets due to the lack of railway, highway, and pipeline infrastructure
60     directly connected to west coast and gulf coast markets;
61          WHEREAS, additional natural gas production in Utah will create high paying jobs,
62     attract capital investment, provide federal, state, and local revenues derived from federal
63     mineral royalties and state severance taxes collected on natural gas production and royalties for
64     Utah School Trust Lands Administration, whose major beneficiaries include Utah's school
65     children;
66          WHEREAS, Utah has an interest in collaborating with the Ute and Navajo Tribal
67     Nations on initiatives, such as the Western States and Tribal Nations Rural Natural Gas
68     Initiative, that advance the shared interests of the state of Utah and the Ute and Navajo Tribal
69     Nations in the responsible development and marketing of their respective natural resources;
70     and
71          WHEREAS, a west coast LNG export terminal, such as Oregon's proposed Jordan Cove
72     LNG export terminal would directly connect Utah's resources to new energy markets through
73     the Ruby Pipeline, LNG terminals in Mexico could directly connect Utah natural gas to new
74     markets through the Kern River Pipeline, and LNG terminals in the gulf coast of Texas and
75     Louisiana will continue to alleviate negative pricing pressure for natural gas in the Rocky
76     Mountains and reduce oversupply into this region:
77          NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah, the
78     Governor concurring therein, supports LNG exports as a way to increase oil production and
79     natural gas production in Utah, so that Utah's rural communities can take an active part in, and
80     receive the benefits of Utah's global economic development.
81          BE IT FURTHER RESOLVED that the Legislature and the Governor support LNG
82     export terminals to export Utah natural gas to international markets.