STATE CAPITOL fl?
PO Box lift?5?3; f" 550 West Seventh Avenue, Suite [700
luneau, AK 99811-0001 
907-465-3500 - - 50

Governor Michael J. Dunleavy
STATE OF ALASKA

October 31, 2019

The Honorable Rick Perry
Secretary of Energy

US. Department of Energy
1000 Independence Avenue SW
Washington DC 20585

Dear Secretary Perry,

I was recently briefed on a proposal for a Strategic Petroleum Reserve (SPR) site on Adak Island,
Alaska, the furthest-west community in the United States. The proponents would establish a
developer-owned, ?nanced, and operated crude oil and fuel storage site that could go into operation
as early as 2022, and could provide contracted space to the Department of Energy (DOE) to ful?ll its
SPR obligations. I encourage you to consider the potential value of options like this to provide a
Western SPR site and diversify the current, Gulf of Mexico-focused SPR locations. This would
further the mission as domestic consumption and production evolve in the context of
increasing global uncertainty in the oil markets.

Given the geopolitical instability emanating from the events unfolding in Venezuela and the Middle
East, the continued use of energy supplies as foreign policy weapons by Russia, and trade tensions
between the United States and China, the energy security of both our West Coast and our strategic
partners in the Paci?c Rim is increasingly uncertain at a time when our production, and thus ability
to mitigate these impacts, is escalating.

While working to meet the Congressionally-provided direction on overall SPR capacity, a western
SPR Site would provide geographic diversity and redundancy during the modernization and repairs to
existing SPR sites. A West Coast site would increase the ability of DOE to respond to domestic
needs and shortages in the Paci?c region without transit times from the Gulf of Mexico. The
proposed Adak project would cut maritime delivery times to the West Coast and to our strategic
Asian partners from weeks to days.

I understand the Of?ce of Strategic Petroleum Reserves (SPRO) is currently engaged in a
Con?guration Study to determine the future of existing SPR locations - an excellent opportunity to
consider the possible use of new, western SPR locations. I am aware that proponents of the Adak
project have been discussing their proposal directly with the SPRO, and hope DOE will continue to
engage with, and review their proposals as they consider further investments in their project.

Sincerely,



Michael J. Dunleavy
Governor