HomeMy WebLinkAbout(P 2) Diligence_Port_Arthur_Lease_Presentation (2)Diligence Offshore Services LLC
•Update on Lease Negotiations with the City of
Port Arthur
•Presented by Harry Crawford, Managing
Member
•Requested by Councilmember Willie Bae
Lewis
Background & Status
•Over the past 60 days, Diligence has made
multiple key concessions to break the
deadlock:
•-Environmental liability resolution
•-Easement clarification
•-Sublease revenue sharing proposal
Environmental Liability
•• Diligence proposes to cap the site with new
soil
•• Phase 2 assessment made optional, not
mandatory
•• Liability retained by City unless Diligence
chooses Phase 2 and remediates
•• This is market-standard and protects both
parties
Easement Terms
•• Neighboring landowner clarified no award
received from City
•• Diligence revised easement language
accordingly
•• City’s proposed termination right is off-
market and would make project non-
financeable
Sublease Revenue Sharing
•• Deleted City’s demand to share 20% of
sublease profits
•• Sublease rent reflects massive construction
investment—not just land value
•• Current provision is non-commercial and
burdensome
Good Faith Engagement
•• Diligence legal counsel has repeatedly
sought collaborative review sessions
•• Attorney Chris Wilson: "We think we are
close on all fronts"
•• City's unilateral changes contradict prior
negotiations
What We Need to Finalize
•1. Good-faith review call with City staff and
BBK
•2. Resolution on environmental, easement,
and sublease terms
•3. End to one-sided lease revisions
Conclusion
•• $2.5B+ capital investment
•• 1,000+ jobs for Port Arthur
•• A national tech and clean energy hub
•Diligence remains committed to partnership,
transparency, and shared success.