Kenai council approves funds to hire consultants to evaluate natural‑gas storage under airport lands

The Kenai City Council on March 4 enacted Ordinance 3507‑2026 to appropriate initial funds for consultants to evaluate natural‑gas storage opportunities on Kenai Municipal Airport lands.

City Manager Eubank told the council the city had received two competing lease applications that overlap a parcel and the same subsurface ‘‘pore space’’ intended for natural‑gas storage. He said the surface parcels are in the city’s industrial park and that the underlying pore space was deeded by the FAA for airport operations, which is why airport funds were proposed for the appropriation.

"Pore space is a relatively new concept and topic for the city," Eubank said, explaining staff wanted technical advice before negotiating leases. Council discussed consultant roles: the team described by staff would include a petroleum engineer to review technical feasibility and a leasing specialist with decades of industry negotiation experience to advise on contract structure and commercial terms.

Council members discussed procurement timing and whether the proposed initial contract amount (about $30,000) could grow; Eubank said the $30,000 figure was an initial estimate and longer negotiations or more technical work could require additional funding and future council action. Council enacted Ordinance 3507‑2026 by roll call (seven yes votes).

Staff described next steps as bringing consultant contracts within administrative thresholds where possible and returning to council if additional appropriations are needed or negotiations require council action.

The ordinance record shows the council’s vote and staff said they will provide further detail as consultants are selected and work proceeds.