Loading...
HomeMy WebLinkAboutPR 24809 EXECUTING AN ENCROACHMENT AGREEMENT WITH GENESIS FOR HWY 365 FORCE MAIN REPLACEMENT PROJECT City of vA,'h ort rtllur 7� u, INTEROFFICE MEMORANDUM Date: February 18, 2026 To: The Honorable Mayor and City Council Through: Ronald Burton, CPM, City Manager From: Calvin Matthews,P.E.,Water Utilities Director RE: P.R.No. 24809—Executing an Encroachment Agreement with GENESIS for the Hwy 365 Force Main Replacement Project. Introduction: The intent of this agenda item is to request the City Council's approval to authorize the City Manager to execute a Consent to Use the Easement Area (Encroachment Agreement) with Cameron Highway Oil Pipeline Company, LLC and Genesis Pipeline Company, LLC for the purpose of constructing, installing, laying,maintaining, and improving a portion of the sanitary sewer force main along FM 365 near Sassine Avenue and Riley Street. Background: Pursuant to Resolution 25-050, the City entered into a contract with ALLCO, LLC for the Highway 365 Sanitary Sewer Force Main Replacement Project along FM 365, which involves replacing the existing 8-inch force main with a new 16-inch force main to convey flows from the Highway 365 Lift Station to the manhole beyond West Port Arthur Road, spanning approximately 9,300 linear feet to address the critical conditions that caused multiple overflows and TCEQ violations from 2020. Pursuant to Resolution No. 25-310, a utility easement was granted to the City by LaBelle Properties, LTD for a portion of property located along FM 365 at West Port Arthur Road and Riley Street for the sanitary sewer main replacement project. The easement area granted by LaBelle Properties, LTD is an existing pipeline corridor in which other companies have been granted easement rights over the same property, including an area where the City's proposed sewer line will cross a pipeline owned by Cameron Highway Oil Pipeline Company, LLC and operated by Genesis Pipeline Company, LLC, located along Sassine Avenue and Riley Street near West Port Arthur Road in Port Arthur, Texas. "Remember,we are here to serve the Citizens of Port Arthur" City of ort rthu�� Texas In order to proceed with the sewer force main replacement project where it crosses the pipeline facilities of Cameron Highway Oil Pipeline Company, LLC, operated by Genesis Pipeline Company, LLC, the City and its contractor, ALLCO, LLC is required to execute a Consent to Use the Easement Area(Encroachment Agreement). Budget Impact: There is no budgetary impact for this Encroachment Agreement. Recommendation: It is recommended that the City Council approve Proposed Resolution No. 24809, approving the Encroachment Agreement as discussed/outlined above. "Remember,we are here to serve the Citizens of Port Arthur" PR No.24809 02/18/2026 cm RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A CONSENT TO USE THE EASEMENT AREA (ENCROACHMENT AGREEMENT) WITH CAMERON HIGHWAY OIL PIPELINE COMPANY, LLC AND GENESIS PIPELINE COMPANY FOR THE PURPOSE OF CONSTRUCTING, INSTALLING, LAYING, MAINTAINING, AND IMPROVING A PORTION OF THE SANITARY SEWER FORCE MAIN ALONG FM 365 NEAR SASSINE AVENUE AND RILEY STREET WHEREAS,pursuant to Resolution 25-050,the City entered into a contract with ALLCO, LLC for the Highway 365 Sanitary Sewer Force Main Replacement Project along FM 365, which involves replacing the existing 8-inch force main with a new 16-inch force main to convey flows from the Highway 365 Lift Station to the manhole beyond West Port Arthur Road, spanning approximately 9,300 linear feet to address the critical conditions that caused multiple overflows and TCEQ violations from 2020; and WHEREAS,pursuant to Resolution No. 25-310,a utility easement was granted to the City by LaBelle Properties, LTD for a portion of property located along FM 365 at West Port Arthur Road and Riley Street for the sanitary sewer main replacement project; and WHEREAS,the easement area granted by LaBelle Properties, LTD is an existing pipeline corridor in which other companies have been granted easement rights over the same property, including an area where the City's proposed sewer line will cross a pipeline owned by Cameron Highway Oil Pipeline Company, LLC and operated by Genesis Pipeline Company, LLC, located along Sassine Avenue and Riley Street near West Port Arthur Road in Port Arthur, Texas; and WHEREAS, in order to proceed with the sewer force main replacement project where it crosses the pipeline facilities of Cameron Highway Oil Pipeline Company, LLC, operated by Genesis Pipeline Company, LLC,the City and its contractor, ALLCO, LLC is required to execute a Consent to Use the Easement Area (Encroachment Agreement); and WHEREAS, the approval and acceptance of the agreement is hereby deemed an appropriate course of action in order to continue the sewer main replacement project. PR No.24809 02/18/2026 cm NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS: THAT, the facts and recitals in the preamble are true and correct; and, THAT, the City Council hereby authorizes the City Manager to execute the Consent to Use the Easement Area (Encroachment Agreement) with Cameron Highway Oil Pipeline Company, LLC and Genesis Pipeline Company, LLC, in substantially the same form attached hereto as Exhibit"A"; and THAT, a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED this the day of , A.D. 2026 at a meeting of the City of Port Arthur, Texas, by the following vote: Ayes: Mayor: Councilmembers: Noes: CITY OF PORT ATHUR: Charlotte M. Moses, Mayor ATTEST: Sherri Bellard, TRMC City Secretary PR No.24809 02/18/2026 cm APPROVED AS TO FORM: Roxann Pais Cotroneo City Attorney APPROVED FOR ADMINISTRATION: 1010,1 matt* Ronald Burto , 'M City M. ter Suhail Kanwar, P.E. Director of Public Services Calvin M ews, P.E. Water Utilities Director APPROVED AS TO THE AVAILABILITY OF FUNDS: � c& Lynn(Lyn :oswell, MA ICMA-CM Finance Director ' `A/ � L Clifton E. Williams Jr., CPPB Purchasing Manager PR No.24809 02/18/2026 cm Exhibit "A" Cameron Highway Oil Pipeline Company,LLC CHOP PA 24-Inch CONSENT TO USE THE EASEMENT AREA (Encroachment Agreement) STATE OF TEXAS § COUNTY OF JEFFERSON § THIS CONSENT TO USE THE EASEMENT AREA (hereinafter the "Agreement"), made this day of ,2026,by and between City of Port Arthur,having an address at 444 4th Street, Port Arthur, TX 77640 ("Owner") and Allco, LLC having an address at 6720 College Street, Beaumont, TX 77707 ("Owner's Contractor") (hereinafter collectively referred to as "REQUESTING PARTY"), and Cameron Highway Oil Pipeline Company, LLC, having offices at 811 Louisiana Street, Suite 1200,Houston, Texas 77002,(hereinafter sometimes referred to as"GENESIS"). WHEREAS,GENESIS is the holder of that certain Grant of Pipeline Right-of-Way Easement that crosses property located near Sassine Avenue and Riley Street in Port Arthur,Texas(the"Easement")upon which it now maintains and operates a crude oil pipeline within said Easement area and commonly refers to said[pipeline(s)] as its CHOPS PA Pipeline System("Genesis Pipeline");and, WHEREAS, REQUESTING PARTY proposes to construct, install, and maintain certain improvements consisting of one(1)24-inch steel casing with a 16-inch forced main sewer line(hereinafter referred to as "FACILITY"), within, across, upon or over GENESIS' Easement (the "Encroachment") and has requested GENESIS to provide consent for such Encroachment over, under,through or imposing upon Easement and/or GENESIS' pre-existing rights;and, WHEREAS,GENESIS is willing to grant consent to REQUESTING PARTY for the construction, installation,and maintenance of the FACILITY within, across,upon or over GENESIS' Easement, subject to the following terms and conditions: WITNESSETH (1) Subject to the terms and conditions stated herein, consent is hereby given by GENESIS to REQUESTING PARTY, insofar as it has the right to do so, to construct, install, and maintain the FACILITY within GENESIS' Easement. ANY AND ALL IMPROVEMENTS DESCRIBED HEREIN AS"FACILITY"MUST BE COMPLETED WITHIN SIX(6)MONTHS OF THE DATE OF EXECUTION OF THIS AGREEMENT. (2) REQUESTING PARTY accepts this consent with full knowledge of GENESIS' prior rights and existing facilities. Notwithstanding the foregoing,any improvements made over,under, in,along, across, and upon the Easement, shall not interfere with GENESIS' use and enjoyment of the Easement,GENESIS' pre-existing rights or the Genesis Pipeline. (3) REQUIREMENTS FOR REQUESTING PARTY. A. REQUESTING PARTY acknowledges receipt of GENESIS' "General Requirements for Crossing Genesis Pipelines," attached as EXHIBIT A hereto and incorporated by reference herein describing and setting forth the minimum requirements (the "CROSSING REQUIREMENTS") and warrants that any construction, installation and/or maintenance of the FACILITY performed or which may be performed in the future in the area of GENESIS' Easement, will conform to the conditions and requirements listed in the CROSSING REQUIREMENTS. Page 1 Cameron Highway Oil Pipeline Company, LLC CHOP PA 24-Inch B. REQUESTING PARTY shall only cross Easement,and specifically the Genesis Pipeline,such that the total cover from the bottom of the Genesis Pipeline(s)to the top of the FACILITY is at least ten feet(10'). C. REQUESTING PARTY shall provide a peep hole for GENESIS to confirm separation prior to N/A D. REQUESTING PARTY shall notify GENESIS at least seventy-two (72) hours prior to any work in the vicinity of the Easement.At GENESIS' sole option,a representative of GENESIS may be on site during any work by REQUESTING PARTY in the vicinity of the Easement. The presence of such representative shall in no manner relieve REQUESTING PARTY of any responsibilities it may have hereunder or at law. Any notices or contact with GENESIS pursuant to this section shall be as follows: Name: Robert Findley, land management(281-793-6656) Name: Jermain Conyers,operations(409-553-9957). Name: Adam Young,operations(337-965-2808) E. REQUESTING PARTY provided GENESIS project plans with the Encroachment Application submitted to GENESIS.Prior to construction,REQUESTING PARTY shall provide GENESIS revised written project plans and drawing to indicate compliance with the above requirements. REQUESTING PARTY shall perform all work on the project in accordance with the revised project plans as approved by GENESIS. F. Within 60 days of completing the FACILITIES, REQUESTING PARTY shall provide GENESIS with as-built drawings and a survey showing the data, location and depth of any improvements or FACILITIES installed over or in the vicinity of the Easement. (4) LIMITED LIABILITY. GENESIS shall not be liable for any destruction of or damages to the FACILITY arising out of or in connection with the construction, installation, replacement, changing the size of, repair, maintenance, operation or removal of any facilities, pipeline or pipelines presently or hereafter located within the Easement. REQUESTING PARTY covenants and agrees to protect,indemnify and save GENESIS,its contractors and subcontractors,and its and their respective owners, partners, shareholders, officers, directors, employees, agents, representatives and servants (collectively,the "INDEMNIFIED PARTIES") harmless from and against any and all claims, demands, lawsuits, arbitrations, proceedings, judgments, awards, damages, losses, costs and expenses(including attorneys' fees and disbursements)for destruction of or damages to the FACILITY howsoever caused, INCLUDING, WITHOUT LIMITATION, THAT CAUSED BY THE SOLE, CONCURRENT OR COMPARATIVE NEGLIGENCE OF ANY ONE OR MORE OF THE INDEMNIFIED PARTIES,but not their gross negligence. (5) In GENESIS' sole opinion, should the FACILITY allowed herein interfere with the construction, installation,replacement,maintenance or operation of any existing or future facilities or pipeline(s) located on the Easement, REQUESTING PARTY shall cause the FACILITY to be relocated or removed,at REQUESTING PARTY's expense, so as to eliminate any such interference. (6) INSURANCE. Notwithstanding any provision herein, the Requesting Party is a political subdivision of the State of Texas and maintains liability protection through the Texas Municipal League Intergovernmental Risk Pool,a self-insurance risk pool for Texas political subdivisions, in lieu of maintaining traditional commercial insurance policies. Accordingly, the Requesting Party does not purchase commercial liability insurance and is unable to name GENESIS or any other property owner as an "additional insured", as coverage through the Texas Municipal League Intergovernmental Risk Pool is limited to Texas political subdivisions and does not extend additional insured status to private entities. The Requesting Party's participation in the Texas Municipal League Intergovernmental Risk Pool satisfies any insurance requirements set forth herein. Coverage for eligible claims, if any, is available in accordance with the Pool's governing documents and applicable Texas law. Page 2 Cameron Highway Oil Pipeline Company, LLC CHOP PA 24-Inch (7) INDEMNIFICATION. IN CONSIDERATION OF THE CONSENT AND RIGHTS GRANTED HEREIN, REQUESTING PARTY HEREBY AGREES TO INDEMNIFY, DEFEND AND HOLD GENESIS AND EACH OF THE INDEMNIFIED PARTIES HARMLESS OF AND FROM ANY AND ALL CLAIMS, DAMAGES, LOSSES, DEMANDS, SUITS, JUDGMENTS AND DEFENSE COSTS AND EXPENSES, INCLUDING REASONABLE ATTORNEYS' FEES (COLLECTIVELY, "DAMAGES"), ATTRIBUTABLE TO DAMAGE OR INJURY TO PROPERTY (INCLUDING LOSS OF USE THEREOF), OR BODILY INJURY, SICKNESS, DISEASE OR DEATH TO PERSONS, IN ANY WAY ARISING OUT OF OR RELATED TO: (I) THE CONSTRUCTION OR INSTALLATION OF THE PROPOSED IMPROVEMENTS OR FACILITY BY REQUESTING PARTY, ITS EMPLOYEES, SUBCONTRACTORS, ANYONE DIRECTLY OR INDIRECTLY EMPLOYED BY THEM, OR ANYONE FOR WHOSE ACTS ANY OF THEM MAY BE LIABLE(THE"REOUESTOR PARTIES");OR (II) THE PRESENCE OF REOUESTOR PARTIES ON THE EASEMENT OR ANY PREMISES ON OR IN WHICH THE GENESIS PIPELINES ARE LOCATED OR ANY PREMISES OTHERWISE OWNED, OPERATED OR CONTROLLED BY GENESIS OR THE INDEMNIFIED PARTIES; PROVIDED, HOWEVER, OTHER THAN AS PROVIDED IN SECTION 4, REQUESTOR SHALL NOT BE REQUIRED TO INDEMNIFY INDEMNIFIED PARTIES FOR DAMAGES TO THE EXTENT SUCH DAMAGES RESULT FROM THE SOLE NEGLIGENCE OR WILFUL MISCONDUCT OF ANY INDEMNIFIED PARTY.IN ANY AND ALL CLAIMS AGAINST INDEMNIFIED PARTIES BY ANY EMPLOYEE OF REQUESTING PARTY, REQUESTING PARTY'S INDEMNIFICATION OBLIGATION UNDER THIS PARAGRAPH SHALL NOT BE LIMITED BY ANY LIMITATION ON THE AMOUNT OR TYPE OF DAMAGES, COMPENSATION OR BENEFITS PAYABLE BY OR FOR REQUESTING PARTY UNDER WORKERS COMPENSATION ACTS, DISABILITY ACTS OR OTHER EMPLOYEE BENEFIT ACTS,TO THE EXTENT PERMITTED BY LAW. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT,IN THE EVENT OF A DEFAULT BY GENESIS HEREUNDER,OR FOR ANY OTHER REASON,GENESIS SHALL NOT BE LIABLE TO REQUESTING PARTY FOR ANY INDIRECT, PUNITIVE, SPECIAL, CONSEQUENTIAL, OR INCIDENTAL DAMAGES WHATSOEVER,INCLUDING LOSS OF GOODWILL OR LOSS OF PROFITS. (8) If two or more individuals, corporations, partnerships or other business associations (or any combination of two or more thereof)shall sign this Agreement as Requesting Party,the liability of each such individual, corporation, partnership or other business association to perform all obligations hereunder shall be deemed to be joint and several, and all notices, payments and agreements given or made by,with or to any one of such individuals,corporations,partnerships or other business associations shall be deemed to have been given or made by,with or to all of them. In like manner,if Requesting Party shall be a partnership or other business association,the members of which are, by virtue of statute or federal law, subject to personal liability, then the liability of each such member shall be joint and several. (9) Any notice required or permitted to be given under this Agreement shall be in writing,and shall be deemed to have been given when delivered by hand delivery,or when deposited in the United States Post Office, by registered or certified mail, postage prepaid, return receipt requested, if mailed. Page 3 Cameron Highway Oil Pipeline Company, LLC CHOP PA 24-Inch Notices shall be addressed as follows: If to GENESIS: Cameron Highway Oil Pipeline Company,LLC 811 Louisiana Street,Suite 1200 Houston,TX 77002 Attention: Legal If to REQUESTING PARTY: City of Port Arthur 444 4th Street Port Arthur,TX 77640 Attention:Ron Burton,CPM,City Manager Any party may designate a different address by giving the other party ten(10)days written notice in the manner provided above. (10) This Agreement is made in Texas and shall be construed, interpreted, and governed by Texas law. The parties shall consent to the jurisdiction and venue of the Courts of Harris County, Texas, for any action under this Agreement. (11) The prevailing party in any judicial proceeding arising from this Agreement shall recover its reasonable and necessary attorneys' fees pursuant to Texas Local Government Code Section 271.159. (12) This Agreement and all Exhibits and Amendments hereto shall constitute the complete understanding of GENESIS and REQUESTING PARTY.This Agreement constitutes the sole and only agreement of the parties to it and supersedes any prior understandings or written or oral agreements between the parties respecting the subject matter of this Agreement. (13) This Agreement shall not serve to diminish or affect the rights granted to GENESIS by the hereinabove-referenced original Easement. It is the intent of the parties that the construction, installation or maintenance of the FACILITIES shall not in any way interfere with or burden GENESIS' pre-existing rights. (14) In the event that REQUESTING PARTY(or its contractors)fails to comply with any of the terms and conditions set forth in this Agreement, including any Exhibits, GENESIS shall have the right to require REQUESTING PARTY to immediately correct any deficiencies or non-conforming work,as well as any other remedies available at law or equity. (15) Nothing in this Agreement is intended to (or shall be construed to) create a partnership, joint venture, agency, and fiduciary or similar relationship between the Parties, or to provide (or constitute the agreement to provide for)the lease, sale, conveyance,transfer, or assignment of all or any portion of GENESIS' Easement,Genesis Pipeline, or the FACILITIES. (16) This Agreement may be assigned in whole or in part and the provisions hereof shall extend to and be binding upon the heirs, legal representatives, successors and assigns of the Parties hereto, provided that REQUESTING PARTY shall obtain the prior written consent of GENESIS to any assignment of all or any portion of this Agreement.This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their heirs, assigns, agents, administrators, successors or Page 4 Cameron Highway Oil Pipeline Company, LLC CHOP PA 24-Inch grantees, with the same force and effect as if specifically mentioned in each instance where REQUESTING PARTY or GENESIS is named. (17) Any waiver, alteration, or modification of any of the provisions of this Agreement or cancellation or replacement of this Agreement shall not be valid unless in writing and signed by the party against which such waiver, alteration or modification is sought to be enforced. No waiver by either party of any breach of any of the covenants or conditions herein contained shall be construed as a waiver of any succeeding breach of the same or of any other covenant or condition. (18) The headings used herein are for convenience only and shall not impact the interpretation of this Agreement. [Signature Page to Follow] Page 5 Cameron Highway Oil Pipeline Company,LLC CHOP PA 24-Inch EXECUTED this day of 2026. REQUESTING PARTY: CITY OF PORT ARTHUR By: Ron Burton,CPM City Manager STATE OF TEXAS § COUNTY OF JEFFERSON § This instrument was acknowledged before me on the day of 2026, by Ron Burton, City Manager,on behalf of said company. My Commission Expires: Notary Public in and for the State of Texas ALLCO,LLC By: Name: Title: STATE OF TEXAS § COUNTY OF JEFFERSON § This instrument was acknowledged before me on the day of 2026, by on behalf of said company. My Commission Expires: Notary Public in and for the State of Texas Signature Page Page 6 Cameron Highway Oil Pipeline Company,LLC CHOP PA 24-Inch GENESIS PIPELINE TEXAS,L.P., By: GENESIS ENERGY,LLC,Its General Partner By: Ellie Sullivan Associate General Counsel STATE OF TEXAS § COUNTY OF HARRIS § This instrument was acknowledged before me on the day of 2026, by Ellie Sullivan, Associate General Counsel of GENESIS ENERGY, LLC, the sole General Partner of Cameron Highway Oil Pipeline Company,LLC,on behalf of said partnership. My Commission Expires: Notary Public in and for the State of Texas Signature Page Page 7 G. genesisenergy Genesis Pipeline Texas,L.P. Genesis Pipeline USA,L.P. RIGHT-OF-WAY RESTRICTIONS & REQUIREMENTS Genesis Pipeline Texas, L.P., Genesis Pipeline USA, L.P., and their affiliates ("GENESIS") operate their pipelines in accordance with the applicable regulations of the U.S. Department of Transportation and other state and local agencies. In accordance with regulatory requirements and internal GENESIS guidelines, GENESIS has developed certain restrictions and requirements to protect public safety, property, and the environment. In order to protect the integrity of GENESIS pipelines and to ensure the safety of the public and the environment, these restrictions and requirements will apply to all work in and around pipeline rights-of-way, easements, permits, and/or servitudes owned or operated by GENESIS ("Right-of-Way"). Deviations from these restrictions will require GENESIS's express written consent. Third parties ("INSTALLERs"), prior to commencing work on or near a GENESIS Right-of- Way, must submit an application and fee and provide detailed plans (plan and profile) for proposed Construction, to allow GENESIS to determine to what extent the Right-of-Way will be impacted by the proposed Construction or development activity. "Construction" may include, but is not limited to, installation or modification of pipelines, utility lines or other underground facilities, roads, streets, ditches or drainage canals, sewers or septic systems, driveways, parking areas, fences, buildings, barns, garages, homes, patios, decks, slabs, swimming pools, or any other constructions. All development or construction projects planned in the vicinity of a GENESIS Right-of Way are subject to formal review and approval by GENESIS prior to performance of the work. A. GENERAL REQUIREMENTS 1. In accordance with law, INSTALLERs must contact the appropriate ONE CALL system(s) prior to work and comply with all applicable laws and regulations. 2. Encroachments are not permitted, including, but not limited to, signs, monuments, buildings, parking lots, structures, patios, decks, slabs, trees, shrubs, manholes, swimming pools, wells, leach beds, irrigation systems, septic systems, cesspools, impoundments or large debris (such as cars, boats, trailers, tanks, scrap metal or boulders) within the pipeline Right-of-Way. The intention of this restriction is to maintain an unobstructed Right-of-Way. 3. Any change in the surface grade or elevation over or along the pipeline(s) and Right-of-Way must be approved in advance in writing. 4. Plans contemplating blasting activities (e.g., seismic surveys, explosive genesisencrgy Genesis Pipeline Texas,L.P. Genesis Pipeline USA,L.P. blasting)within 500 feet of the GENESIS pipelines shall be submitted to GENESIS for approval at least ten (10) working days prior to commencement of blasting activities. These plans must include hole depth, diameter, spacing, burden, delay times and sequence, explosive type, maximum charge weight per delay, and blast zone location relative to the pipelines. No blasting activities will be permitted until GENESIS provides prior written approval of the plans. If GENESIS determines the integrity of the pipelines will be jeopardized, then blasting will not be permitted. 5. No work may commence in or around Genesis' Right-of-Way, including within twenty-five (25) feet of the Right-of-Way until INSTALLER has first obtained GENESIS's written approval of INSTALLER's plan and profile regarding the proposed crossing. Such plans shall include, but not be limited to, any boring or excavation, any proposed addition of fill on the GENESIS Right-of-Way, and the horizontal placement of, or routing alongside of, GENESIS pipelines by any apparatus, drains, sewers or any other construction. 6. No work may commence until a GENESIS representative has authorized the work to begin and there is a written agreement in place between INSTALLER and GENESIS. 7. INSTALLER shall abide by all State & Federal Laws, Rules and Regulations and shall operate equipment that is in good working condition and in a manner that is conducive to a safe working environment while working in or around GENESIS's facilities. A GENESIS representative has the authority to suspend all excavation/construction activities in and around GENESIS facilities if the equipment operator in GENESIS's determination appears to be unqualified or equipment maintenance is not in accordance with applicable regulations. 8. Notice of desired work start date must be given to GENESIS a minimum of 72 hours in advance and there should be a valid one call. At least seventy-two (72) hours prior to commencing any excavation or other construction activity in the vicinity of the pipelines the INSTALLER must telephone the LOCAL ONE CALL SERVICE provider. 9. All Construction activity shall conform to all applicable federal, state, county, and/or local regulations. 10. A third-party Excavation Safety Checklist must be signed each day prior to beginning work on GENESIS's Right-of-Way. 11. The INSTALLER shall assume full liability for any damages to GENESIS pipelines and facilities due to construction, excavation, or other activities. 12. Reimbursement If it is determined that a project impacts GENESIS's G genesisenel'` Genesis Pipeline Texas,L.P. Genesis Pipeline USA,L.P. facilities, a non-refundable advance fee may be required to conduct preliminary engineering design work. Any work performed by GENESIS to remedy such impacts will be entirely at the INSTALLER's expense and will also require execution of GENESIS's standard Reimbursement Agreement. Any necessary inspection, protection, lowering, adjustment, casing, re-coating, and/or relocation of the pipelines will not be scheduled until: (A) all prerequisite data is compiled; (B) the appropriate agreements are executed; and (C) sufficient funds are received. It is GENESIS's customary practice to inspect and recondition the pipeline(s) at proposed driveway, roadway or railroad crossings, the costs for which will be borne by the developer or owner. 13. If GENESIS deems it necessary to lower, encase, reinforce collars on, or otherwise adjust the pipelines because of the INSTALLER'S construction activity, the INSTALLER shall reimburse GENESIS for the cost of such lowering, encasement, reinforce collars, or other adjustment. B. TEMPORARY CONSTRUCTIONS/USES 14. GENESIS's Right-of-Way may not be used as temporary workspace (which includes its use for the staging, storage, or laydown of equipment, materials, or spoil) without prior written approval from GENESIS. 15. No trucks or heavy equipment are to cross the GENESIS pipeline Right-of- Way without approval from GENESIS. If GENESIS determines that the integrity of the GENESIS pipelines may be jeopardized if they are crossed with heavy equipment, a temporary road crossing to protect the pipelines and the equipment will be required. The design of all temporary road crossings requires GENESIS' prior written approval. All temporary road crossings will be built to the GENESIS approved specifications. Depending upon the soil conditions, depth and character of the pipelines, and the projected stresses induced upon the pipelines from the vehicles which are to cross, GENESIS may require fill material of its choice to be placed over the pipelines, ramping, matting, and/or air bridging at INSTALLER's expense. Use of air bridging is generally preferred and may expedite approval of the temporary crossing. All temporary road crossings will be approved for no more than 30 days at a time with the crossing to be inspected by GENESIS field operations personnel and approved for each additional 30-day period. 4 16. Should conditions change after construction of the temporary road crossing (e.g., heavier equipment than previously planned for or inclement weather conditions), then the INSTALLER shall not cross the GENESIS pipelines with equipment until the integrity of the GENESIS pipelines can be protected from the change in condition. 17. In the case of collared pipelines, the collars are to be reinforced prior to the genesisener`v Genesis Pipeline Texas,L.P. Genesis Pipeline USA,L.P. start of any construction activities. 18. Genesis Field Operations personnel will inspect the temporary crossing every thirty (30) days, and the crossing will be subject to approval for each additional thirty (30) day renewal. C. EXCAVATIONS/BORE CROSSINGS/HYDRO-VAC 19. No excavations or fill activities shall be made on land adjacent to the pipelines which will in any way alter Right-of-Way drainage patterns, impair or withdraw the lateral support, or which will cause any subsidence or damage to the pipelines. In all cases, the situation will be evaluated to ensure that adequate provisions are made for corrosion control. 20. No holes are to be bored or excavated within the boundaries of the Right- of-Way without GENESIS's prior approval. If the INSTALLER elects and GENESIS allows INSTALLER to install its pipelines/utilities within GENESIS's Right-of-Way by any method of boring, then the INSTALLER shall physically verify the separation between GENESIS's facilities and the INSTALLER'S pipeline/utilities. Where physical verification is not practical, minimum clearance will be four (4) feet horizontally and ten (10) feet vertically. 21. Wire guided bores with ten (10) feet or greater clearance will not require peepholes. All other bores will require installation of peepholes on the incoming sides of GENESIS's pipeline, at the point of intersection as to view the drill stem clearance prior to crossing. 22. No excavating or other construction activity shall be conducted within twenty-five (25) feet of the pipeline(s) in the absence of a GENESIS representative. The INSTALLER will assume full liability for any damage to GENESIS due to construction/excavation activities. GENESIS is not aware of any spills that have occurred at the location for which the INSTALLER is requesting approval or in the vicinity thereof, but accordingly, if in the event during INSTALLER'S construction any contaminated soil of any nature needs to be removed and disposed of it shall be removed and disposed of at the sole risk and expense of the INSTALLER. 23. If GENESIS deems it necessary, the INSTALLER shall use a bucket with no teeth or a bar shall be installed across the teeth of the bucket during excavation in the vicinity of the pipelines. GENESIS's designated representative shall have the authority to reject the use of equipment to excavate if, in their opinion, the equipment is unsuitable to perform the excavation in a safe and prudent manner. 24. Mechanical excavation will cease once the earth has been removed to within twenty-four (24) inches of GENESIS's pipeline. genesisenergy Genesis Pipeline Texas,L.P. Genesis Pipeline USA,L.P. 25. Driving of sheet piling or any other vibration inducing activities in the vicinity of a GENESIS Right-of-Way must be reviewed in advance and approved by GENESIS. 26. All backfill on GENESIS's Right-of-Way shall be approved by GENESIS's on-site inspector. 27. If GENESIS's line is exposed during the excavation, the excavation will be made safe for entry and left open until GENESIS installs test leads or performs any other visual inspection that may be required. 28. In GENESIS's discretion, GENESIS may require Hydro-Excavation (Hydro- Vac) to reduce the risk of damage to a pipeline. 29. Grounding of the vacuum truck and wand is required and should be tested; downwind venting of the vacuum truck is required. 30. The water wand tip is to be an oscillation type (circular pattern) to prevent a concentrated water stream; stream nozzles are not allowed. The vacuum wand tip must have a neoprene or equivalent tip to prevent damage to the pipeline coating and surrounding structures. 31. If the excavation site is suspected to contain hydrocarbon-impacted soil, a plan must be developed for testing and disposal of soil/water slurry (e.g., lined roll- off bin.) at INSTALLER's expense, and in advance of the project. D. DRIVEWAYS/ROADS/STREETS 32. GENESIS may deem it necessary to reinforce its pipe joints located under and in close proximity to any road, street, driveway, drainage canal or ditches, etc. 33. Paved streets, roads, driveways, or parking areas crossing over or on GENESIS Right-of-Way shall be surfaced using asphalt or breakaway concrete with expansion joints fifteen (15) feet on both sides of the pipeline, filled with asphalt or concrete. 34. Any road, street, or driveway shall be constructed with a minimum cover, as measured from the top of the pipelines to the top of the surface of the road, street, or driveway as shown below: LOCATION MINIMUM COVER G genesisenergy Genesis Pipeline Texas,L.P. Genesis Pipeline USA,L.P. (1) Under road or street Forty-eight (48) inches measured from top of shallowest pipeline to top of crown in pavement but no less than twenty-four (24) inches below bottom of sub-grade and will require stamped, engineered load analysis (at INSTALLER's expense) for final approval. (2) Under driveway on residential lot Thirty-six (36) inches below crown but no less than twenty-four (24) inches below bottom of sub-grade (3) Under all other surfaces within forty-eight (48) inches and may require stamped, engineered load analysis (at INSTALLER's expense) for final approval. E. PIPELINE/ELECTRICAL POWER/TELECOMMUNICATIONS/OTHER UTILITIES 35. All pipelines, utility lines and other underground facilities (except electrical power cables and telecommunications cables) constructed such that they cross GENESIS pipelines must be installed under the GENESIS pipelines with a vertical separation of twenty-four (24) inches of clearance between the outside of the GENESIS pipe and the extremity of any other underground structure and must be installed in a manner acceptable to GENESIS's on-site representative. If INSTALLER elects to use any method of boring or directional drilling, see Section 6. 36. Installations ABOVE the GENESIS pipeline will be considered on a case- by-case basis where there is adequate depth to ensure required separation. PVC/HDPE irrigation, communication lines (e.g. cable, telephone, fiber optic), waterlines four (4) inches in diameter or less, may cross above GENESIS's pipeline(s) so long as excavation is performed by hand or another method of soft digging across the entire width of Right-of-Way, in the presence of an onsite GENESIS technician, and plans are reviewed and approved by GENESIS. 37. All electrical power cables and telecommunications cables shall be installed with a minimum vertical separation of twenty-four (24) inches between structures and in a manner acceptable to GENESIS's on-site representative. In addition, the electrical power cables must be enclosed in conduit (high impact PVC) and should be identified with red paint, red sleeve, or red tape to properly identify it as underground electrical power. The conduit and identifying material must extend a minimum of twenty-five (25) feet on either side of the centerline of the pipelines. Communications cables must be enclosed in conduit (steel or PVC) and marked with the burial warning tape a minimum of six (6) inches on each side and above the conduit. The conduit and warning tape must extend a minimum of twenty-five (25) feet either side of the centerline of the pipelines. 38. Any overhead power lines must maintain a minimum height of twenty-five gefeSiSCfei'`. Genesis Pipeline Texas, L.P. Genesis Pipeline USA,L.P. (25) feet above grade for a distance of twenty-five (25) feet each side of the pipeline for 22kV and less; thirty (30) feet for over 22kV. Any overhead communications lines must maintain a minimum height of fifteen (15) feet of clearance above grade. Exceptions to these requirements will be reviewed on a case-by-case basis. 39. Power or communication structures, guys, or poles will not be allowed in the Right-of-Way or within eight (8) feet horizontally of a GENESIS pipeline. No overhead power or communications lines will be allowed that interfere with the operations and maintenance of the Genesis pipeline or Right-of-Way. Any overhead power or communications lines may be required to relocate if Genesis deems necessary for the location or placement of Genesis' above ground facilities. 40. GENESIS's pipelines are cathodically protected and could be adversely affected by foreign crossings. Crossings require the use of a nonconductive conduit. 41. All pipelines constructed across GENESIS Right-of-Ways must cross the pipeline Right-of-Way at an angle as close to 90 degrees as possible but not less than 45 degrees. 42. Permanent aboveground markers identifying the crossing pipeline or utility shall be installed and maintained at the limits of GENESIS's Right-of-Way and/or at the crossing. 43. If it is impractical to install and maintain aboveground markers due to the crossing location, plastic marker tape shall be installed below cultivation level and over GENESIS's pipeline, extending the width of the Right-of-Way. F. DITCHES/CANALS 44. Any proposed ditches, drainage canals, etc., shall be constructed with a minimum cover, as measured from the lowest point in ditch, canal, etc., to the top of the pipe, as shown below or as required per local ordinance or governmental code: LOCATION MINIMUM COVER (1) Under lowest surface of road ditches: a) Unlined residential ditches: Thirty-six (36) inches b) Concrete/asphalt lined: Twelve (12) inches (2) Drainage canals and ditches: Sixty (60) inches G genesisenergy Genesis Pipeline Texas, L.P. Genesis Pipeline USA,L.P. 45. If it is determined that a project impacts GENESIS's facilities, a non- refundable advance fee may be required to conduct preliminary engineering design work. Any work performed by GENESIS to remedy such impacts will be entirely at the INSTALLER's expense and will also require execution of GENESIS's standard Reimbursement Agreement. Any necessary inspection, protection, lowering, adjustment, casing, re-coating, and/or relocation of the pipelines will not be scheduled until: (A) all prerequisite data is compiled; (B) the appropriate agreements are executed; and (C) sufficient funds are received. It is GENESIS's customary practice to inspect and recondition the pipeline(s) at proposed driveway, roadway or railroad crossings, the costs for which will be borne by the developer or owner. G. FENCE POST 46. Fences may be allowed to cross GENESIS's Right-of-Way but will not be permitted along and within GENESIS's Right-of-Way. Fence posts may not be placed within four (4) feet horizontally of the pipeline(s). Fences may not be installed in a manner that would obstruct GENESIS's line of sight or access to GENESIS's facilities. If requested by GENESIS, installation of gates across the Right-of-Way will be required, at INSTALLER's expense. GENESIS will have the right to install locks at all gates/gaps crossing the Right-of-Way. Flag poles may not be placed within GENESIS's Right-of-Way or within eight (8) feet horizontally of a GENESIS pipeline. H. OFFSHORE/OPEN WATER CROSSINGS 47. GENESIS should be notified, in advance, of any planned crossings of GENESIS pipelines located offshore or in open water. Upon notification of a proposed offshore or open water crossing, a GENESIS representative will inform INSTALLER of any crossing requirements. SUBMISSIONS/NOTIFICATIONS 48. All written correspondence is to be sent to: Robert Findley 811 Louisiana Street, Suite 1200 Houston, TX 77002 Email: robert.findley(csgenlp.com 49. GENESIS appreciates the opportunity to work with INSTALLERS in the early stages of development activity to minimize any conflict which may arise and genesiscncrgy Genesis Pipeline Texas,L.P. Genesis Pipeline USA,L.P. to protect the integrity of our pipelines. 50. Requests should include: • A brief description of the project or work to be performed • Appropriate vicinity map page(s), GPS coordinates and KMZ (if available) • Plan and Profile drawings for proposed construction (including GENESIS pipeline(s) clearly labeled and identified, pipeline diameter(s) and depth(s), crossing angle, cut mark/fill elevation, etc.) • Estimated timing of the project or special timing requirements (including start date and duration) • A contact name, company name, mailing address, email address and telephone number of the Contractor, Contractor's sub-contractors, and facility owner as applicable. • List and description of construction equipment that will cross GENESIS pipeline(s), including applicable surface pressures (Ib./psi, max. gross weight, etc.) 51. Electronic files are preferred and should be sent to the email provided in Section 48. Please do not send hard copies unless discussed with and approved by Robert Findley first. 52. Once received, your request will be logged, reviewed, and responded to as soon as possible (minimum sixty (60) days), provided the INSTALLER has provided all required documents. Requests to perform large scale development/construction/excavation may require substantially more time. Inclusion of the above information will help to expedite your request. 53. All GENESIS approved crossings/encroachments will be valid for no more than six (6) months. Any crossings/encroachments that are not completed within six (6) months of full execution of an encroachment agreement will require a new application, application fee, operational review, and a new encroachment agreement to be executed along with updated proof of insurance. The grant of any extension and/or expansion of any crossings/encroachments are in GENESIS's sole discretion.