THE SENATE

S.C.R. NO.

211

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 
   


SENATE CONCURRENT

RESOLUTION

 

requesting the department of business, economic development, and tourism to initiate the formal procedure to acquire the property owned by shell oil at the kahului hobron lane site to MAINTAIN A STATE FUEL RESERVE, THEREBY ENSURING a stable fuel supply in the EVENT OF OIL SUPPLY DISRUPTIONS.

 

WHEREAS, Hawaii is the most oil-dependent State in the nation, and oil comprises ninety-two percent of the State's energy supply; and

WHEREAS, this heavy dependence on oil, lack of indigenous energy resources, and total reliance on ocean deliveries of oil make the State exceptionally vulnerable to a cutoff of oil supplies in the event of world crisis, unstable oil market, rapid oil price increases or fuel transportation disruption; and

WHEREAS, an oil disruption is a possibility because a growing proportion of the world's oil needs is supplied from an area of chronic political volatility, namely, the Middle East, and a large net shortfall in supply from a political upheaval in that region would result in a disproportionately large increase in the price of oil; and

WHEREAS, Hawaii's geographic isolation, extreme energy dependence, and lack of indigenous energy sources, combined with the current unstable oil markets due to conflicts in the Middle East as well as potentially significantly higher oil prices, could send the State into an economic recession; and

WHEREAS, the State is 7,000 miles from the Strategic Petroleum Reserves of the United States via the Panama Canal, and a declining number of United States-flag tankers are capable of transiting the Panama Canal; and

WHEREAS, few alternatives are available to gain access to oil supplies, and there is a lack of an identifiable petroleum supply source if a period of drawdown occurs; and

WHEREAS, gasoline that is produced in-state is supplied by only two refineries, one owned and operated by Tesoro, built in 1972, and the other by Chevron, built in 1960, of which the loss of production from one can cause a severe adverse effect on Hawaii's economy; and

WHEREAS, the State would benefit from possessing land that contained fuel and appropriate facilities in case of a crisis; and

WHEREAS, Shell Oil has been trying to sell property in Kahului that already contains fuel storage tanks, a petroleum truck filling station, and a warehouse; and

WHEREAS, for the State to ensure emergency oil reserves for its citizens, it must acquire this property; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2005, the House of Representatives concurring, that the Department of Business, Economic Development, and Tourism is requested to initiate the formal procedure to exercise the State's power of eminent domain to purchase land located at Shell Oil's Kahului site at TMK number 2-3-7-11-8 for the purposes of securing and maintaining a state fuel reserve to ensure a stable fuel supply in the event of an oil crisis; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Business, Economic Development and Tourism and the Governor.

 

 

 

OFFERED BY:

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Report Title:

Eminent Domain; Fuel Reserve