HomeMy WebLinkAboutPR 22648: AGREEMENT WITH ASPECT ENERGY, LLC P.R. NO.22648
09/07/2022 gt
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO
A SPECIAL ROAD USE AND INDEMNITY AGREEMENT AND PERMIT
WITH ASPECT ENERGY, LLC.
WHEREAS, pursuant to Resolution No. 21-235, the City of Port Arthur granted
Aspect Energy, LLC a permit to conduct drilling operations within the City of Port Arthur;
and,
WHEREAS, pursuant to Resolution 22-258, the City of Port Arthur extended the
permit to conduct drilling operations within the City of Port Arthur for a period of one year;
and,
WHEREAS, Aspect Energy, LLC has made application for a permit to use Sassine
Avenue, a road that is not a designated truck route, for mobilization and drilling operations;
and,
WHEREAS, Aspect Energy's application has been reviewed by the Public Works
Director in accordance with and in satisfaction of Section 106-8 of the Code of Ordinances
of the City of Port Arthur.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR:
Section 1. The facts and opinions in the preamble are true and correct.
Section 2. That the City Council authorizes the City Manager to execute a Special
Road Use Indemnity Agreement with Aspect Entergy, LLC, insubstantially the same format
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hereto attached hereto as Exhibit"A," setting forth the terms, conditions, and limitations
for the use of Sassine Avenue for mobilization and drilling operations.
Section 3. That a copy of the caption of this Resolution shall be spread upon the
Minutes of the City Council.
READ, ADOPTED,AND APPROVED,this day of , 2022 AD, at
a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following
vote:
AYES: Mayor:
Councilmembers:
NOES:
Thurman Bill Bartie, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROV AS TO F RM:
Valecia Tizeno, City Attorney
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APPROVED FOR ADMINISTRATION:
Ronald Burton, City Manager
(.7 - (//////V2C'' --
-Ftozelle oberts, irctor of Public Works
I /
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EXHIBIT "A"
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Pr
Permit#
SPECIAL ROAD USE INDEMNITY AGREEMENT AND PERMIT
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS :
COUNTY OF JEFFERSON §
The undersigned, hereinafter called Applicant, by and through
its duly authorized agent, enters into and makes this agreement
with the City of Port Arthur, a municipal corporation existing
under the State of Texas, in order to obtain, and as consideration
for the issuance of, a permit to use public roads and bridges in
Port Arthur, Texas, for vehicles or combinations of vehicles that
have gross weight greater than ten thousand (10, 000) pounds, but
not to exceed forty-eight thousand (48, 000) pounds or eighteen
thousand (18, 000) pounds axle weight .
1 .
DEFINITION:
Vehicles means any vehicle, tractor, or combination of
vehicles, with or without loads, having a gross weight greater
than ten thousand (10, 000) pounds, but not to exceed forty-eight
thousand (48 , 000) pounds or eighteen thousand (18 , 000) pounds axle
weight and includes any such vehicles operated by Applicant or its
agents, employees, servants or independent contractors in the
course of Applicant' s business .
Permit#
2 .
Applicant agrees to use its vehicles in strict compliance
with the uses, terms, and conditions specified in the permit issued
by the City (the "Permit) , and only on those sections of the city
roads which are evidenced by and indicated in ink on the attached
city map. Both the Permit and the attached map are expressly made
a part of this agreement and are incorporated herein by reference
for all purposes . It is understood that the provisions of Paragraph
Nos . 3 and 4 apply to Applicant' s vehicles operating on all city
roads or designated roads whether with or without a Permit .
3 .
Pursuant to Section 66-22 of the City of Port Arthur Code of
Ordinances, for any load that cannot reasonably be dismantled or
divided to meet and will otherwise exceed the maximum load limit
of 48, 000 pounds or 18, 000 pounds axle weights on streets other
than designated truck routes, Applicant shall notify the Director
of Public Works and obtain a special load limit agreement .
4 .
It is expressly understood that Applicant and not the City of
Port Arthur shall be responsible for any damage of whatever nature
including property damage and personal injury that may result from
the movement of Applicant' s vehicles over any city road whether
described in the Permit or not. Applicant agrees to INDEMNIFY the
Permit#
City of Port Arthur for any liability so incurred. Applicant hereby
agrees to accept all responsibility and liability for damages of
whatever nature to the road bed, road surface, bridges, culverts,
signs, structures, fences, right of ways, etc. , that may result
from the movement of Applicant' s vehicles over the roads described
in the Permit or any other city road. Applicant shall report any
such damage and where it occurred promptly to the City Engineer or
Public Works Director and shall restore the right of way (s) to
its/their original condition, free of damage, including ruts or
any injury to vegetation. If Applicant shall fail to repair such
damages in the manner as above described within five (5) days
following receipt of written notice to Applicant at the address
shown on this agreement, the City may conduct the necessary repairs
to restore the roadway and invoice the Applicant for the same.
Applicant shall reimburse the City for the actual cost of repairing
any damages and restoring the roadway within 30 days of Applicant' s
receipt of the invoice. The failure of the Applicant to either
repair and restore the roadway or pay the cost of repairs as above
described within thirty (30) days after receipt of the invoice at
Applicant' s address as shown on this application, shall be grounds
for the City to immediately suspend Applicant' s Permit and
immediately file suit for such damages .
Permit#
5 .
The Applicant agrees to submit a video of the roadway surface,
curbs, culverts, ditches of the road or street which the Applicant
seeks a Permit and to provide the City Engineer or Public Works
Director a copy of the video prior to the issuance of a Permit.
Applicant further agrees to maintain a written log of all trucks,
trailers or other vehicles that travel on the route for which the
Permit is granted. Except during rig mobilization, rig
demobilization, emergency, or well integrity operations,
Applicant will limit heavy truck (i . e. , over 10, 000 pounds gross
weight) to the hours of 7 am to 7 pm.
6.
Applicant shall ensure that its operations will not interfere
with the free and safe flow of traffic. Applicant shall furnish
adequate signs, barricades, flares, flagmen, etc. as necessary, to
protect the traveling public. Additionally, Applicant must show
traffic control adequate to accommodate a passenger vehicle to
pass opposite the Applicant' s vehicle . If traffic control cannot
be shown to accommodate a commercial truck and a passenger vehicle,
then the Applicant must widen the road temporarily during the
permitted activity and then return to prior condition of roadway
at its own expense.
Permit#
7 .
Operations under this Agreement and Permit shall be suspended
when the director of public works determines that the ground
conditions are such that operations would cause extensive rutting
in the rights-of-way. In addition, operations will be suspended
when ground conditions would cause the tracking of mud, gravel,
rock, or debris onto the roadway surface of any right-of-way or
other city improvements . Notwithstanding the foregoing, neither
the director of public works nor the City of Port Arthur may
suspend operations under this Agreement or the Permit if during
drilling operations a well safety issue is encountered requiring
remedial action. In the event there is such a well safety issue,
Applicant agrees to immediately notify a City of Port Arthur Fire
Marshal so that appropriate catastrophe planning can be
accomplished. In the event that mud, gravel, rock or debris is
inadvertently tracked onto roadways in a way that creates a safety
hazard or potential for damage to vehicles or other property, the
operator shall promptly clean the roadway of all mud, gravel, rock
or debris.
8 .
Once a Permit has been suspended or if Applicant is operating
vehicles on city roads without a Permit, Applicant agrees that
damages are not an adequate remedy at law for the enforcement of
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City' s rights and that the City of Port Arthur may maintain an
action to seek injunctive relief to prohibit Applicant' s vehicles
from using any city road without a Permit. It is further agreed
that the City of Port Arthur shall be held harmless for any actual,
incidental, consequential, or any other damages Applicant might
suffer as a result of any action by the City involving any such
injunctive relief. Any legal action by the City shall not be
considered an election of claims or remedies and the City is free
to seek all remedies available at law or by equity to enforce the
terms of this agreement or any other legal right available.
9.
Applicant agrees to post a surety in the amount of $105, 800 . 00
to the City of Port Arthur to ensure performance of this agreement .
All bonds shall be submitted to the City of Port Arthur City
Attorney for approval and no Permit shall be issued if a bond is
required until said bond has been approved.
10 .
Nothing herein shall effect, or be construed as, a waiver by
the City of any right, privilege, or immunity of Port Arthur, a
municipal corporation existing under the State of Texas .
Witness our hands, this day of , 2022 .
Permit#
Aspect Energy, LLC
APPLICANT NAME Ronald Burton, City Manager
City of Port Arthur
APPLICANT SIGNATURE Signature
1601 Wewatta Street, Suite 600
Denver, Colorado 80202
APPLICANT' S ADDRESS Address
(303) 573-7011
APPLICANT' S PHONE Telephone