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Kenai approves $60,000 contract with Alaska Marine Power to evaluate natural gas storage on airport lands
Summary
Council amended and enacted an ordinance increasing consulting funds by $30,000—bringing a contract with Alaska Marine Power to $60,000—to support analysis of competing gas storage applications on city airport lands; administration said the consultants provide expertise and help negotiate leases.
The Kenai City Council approved an amendment on May 6 that increases a consulting contract with Alaska Marine Power, LLC to a total of $60,000 to evaluate potential natural gas storage opportunities on city airport lands.
City Manager Eubank explained the administration had initially appropriated $30,000 and is now requesting an additional $30,000 because the original amount is being exhausted. He said the consultant team includes experienced oil-and-gas executives and a landman with lease negotiation experience. "This ordinance will provide an additional $30,000 for consulting services, bringing the total to $60,000," Eubank said.
Council members asked whether the new amount would be sufficient; staff said the answer depends on how prolonged the application review and negotiations prove to be. The administration said some Alaska-based consultants were excluded from consideration because of potential conflicts, and praised the selected team’s experience.
The council enacted Ordinance 35-17-20-26 as amended, and staff said future council approvals would be required if additional contract authority is needed.
