Loading...
HomeMy WebLinkAboutPR 15712: KINDER MORGAN TEJAS PIPELINE AGREEMENTMEMORANDUM CITY OF PORT ARTHUR, TEXAS ENGINEERING DEPARTMENT TO: Steve Fitzgibbons, City Manager FROM: John A. Comeaux, P.E., Assistant City Manager/Operations SUBJECT: P. R. 15712 Renewal of License Agreement with Kinder Morgan Tejas Pipeline LLC. DATE: January 26, 2010 RECOMMENDATION: I recommend the City Council adopt Proposed Resolution No. 15712 which would authorize the Mayor to execute the renewal of a License Agreement between the City of Port Arthur and Kinder Morgan Tejas Pipeline LLC for the operating and maintaining of a 4" natural gas line located in a portion of the canal right-of--way in Port Acres. BACKGROUND: The original agreement was issued by Resolution No. 84-58, dated February 28, 1984. This agreement was for a period of five years for the sum of $1,431.55 per year; due each year of the duration of that agreement at which time the dollar amount to be renegotiated in accordance with the State of Texas Parks and Wildlife fee at that time. The Texas Parks and Wildlife fees are currently $22.50/rod., total being $3,276.00 for this yeaz. A check for $3,276.00 has been received from Kinder.Morgan Tejas Pipeline LLC. BUDGETARY/FISCAL EFFECT: Acceptance of this recommendation will have no budgetary/fiscal effect at this time. EMPLOYEElSTAFF EFFECT: None SUMMARY: I recommend the City Council adopt Proposed Resolution No. 15712 which would authorize the Mayor to execute the renewal of a License Agreement between the City of Port Arthur and Kinder Morgan Tejas Pipeline LLC for the operating and maintaining of a 4" natural gas line located in a portion of the canal right-of--way in Port Acres. John A. Comeaux, P.E. Assistant City Manager/Operations P.R.. No. 15712 Date: January 26, 2010 RESOLUTION NO. A RESOLUTION APPROVING A FIVE (5) YEAR LICENSE AGREEMENT BETWEEN KINDER MORGAN TEJAS PIPELINE LLC AND THE CITY OF PORT ARTHUR TO PERMIT THE OPERATION AND MAINTENANCE OF A 4-INCH NATURAL GAS LINE ON A PUBLIC RIGHT-OF-WAY (OLD CANAL RIGHT-OF-WAY) IN-THE CITY OF PORT ARTHUR, TEXAS, FOR THE SUM OE $3,276.00 PER YEAR. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR; THAT a License Agreement between Kinder Morgan Tejas Pipeline LLC and the City of Port Arthur to permit. said Company to continue to operate and maintain an existing 4-inch natural gas line in and upon a public right-of--way known as the Old Canal Right-of-way, copy thereof attached and made a part hereof as Exhibit "A", is hereby approved; and, THAT the Mayor be and is hereby authorized to execute said License Agreement on behalf of the City of Port Arthur; and, THAT the term of the license agreement is five (5) years; and, THAT the yearly payment to the City will be $3,276.00 per year; and, THAT approval and acceptance of said License Agreement by Kinder Morgan Tejas Pipeline LLC, is evidenced by the signature of its Attorney In Fact, on said Agreement; and, THAT a copy of the caption of this Resolution be spread upon the Minutes of the City Council. Read, adopted, and approved this day of A..D., 2010, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES; Mayor Councilmembers NOES: Mayor ATTEST: City Secretary APPROVED AS TO FORM: Acting rty A rney APPROVED FOR ADMINISTRATION: Steve Fitzgibbons, City Manager John A. Comeaux P. E. Assistant City Manager/Operations ~~ ~~ Ross Blackketter, P. E. Director of Public Works. EXHIBIT "A» LICENSE AGREEMENT. STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS: COUNTY OF JEFFERSON THAT the City of Port Arthur, a municipal corporation organized and existing under the laws of the State of Texas (hereinafter called "Licensor"), for and in consideration of the sum of Three Thousand Two Hundred Seventy Six Dollars ($3,276.00) per year ($22.50 per rod per year) with the first year's premium to it in hand paid by Kinder Morgan Tejas Pipeline, LLC (herein aftercalled "Licensee") and the successive payments due on or before March 1st of each successive year for a duration of five (5) years hereby grants unto the said Licensee a right, privilege and License for the purpose of maintaining, operating, replacing and repairing an existing 4" natural gas pipeline and all appurtenances thereto, including but not limited to air patrol markers, valves and corrosion control equipment, for the transportation of liquids, gases, solids or mixtures of any or all thereof, in, under. and across the following described public right-of-way situated in Jefferson county, Texas to wit: The said 4-inch natural gas line is located five (S) feet from the Westerly line of the canal right-of-way (after entering from the Northwest corner of Lot 12, Block 8) extending from the. southeasterly line of Lot 1, Block 8, northerly to the northeasterly line of Lot 10, Block 10 of the Port Acres Subdivision as recorded in Volume 4, Pages 42-47, Map Records of Jefferson County, Texas. Said alignment to be as further depicted in Exhibit °A"attached hereto and made a-part of hereof, for all purposes. Said License is granted subject to the following provisions: 1. Excavations made on Licensor's property shall be promptly refilled by Licensee, the earth well tamped, the ground left in the same condition as before the laying. of said pipeline and the locations of the pipeline will be marked with the marker properly maintained and plainly visible. II. It is expressly understood and agreed that Licensee shall have the right to ingress to and egress from the above-described tract of land at all times for the aforesaid purposes of this license. III. In consideration of the privileges herein described, Licensee agrees to indemnify and hold harmless Licensor form any and. all claims, suits for damages to property or injuries or death to persons arising from the construction, maintenance, use or removal of said pipeline. The Licensee must abide by all safety precautions as mandated by state, local and federal government as well as industry standards. The licensee must also maintain liability insurance in the amount of $3,000,000.00 to protect against spills, environmental damage, explosions and releases. Rights herein granted are personal- and not assignable without Licensor's prior written consent; the provisions herein shall be binding upon successors and assigns of both parties. IV. Upon termination hereof, as determined by Paragraph VIII. below, Licensee shall promptly remove said pipeline from the property of Licensor at Licensee's cost unless the City, at its discretion chooses to permit the line to remain in place. V This Agreement is effective on March 1, 2010 VI. This License is subject to all existing easements of record. VII. At the end of this 5 year term for the License Agreement, the fee for renewal shall be renegotiated with the amount to be adjusted using the State of Texas Parks and Wildlife fees in the effect at that time as a guide. VIII. This agreement may be terminated by either parry giving ninety (90) days written notice and' license-payments will be prorated accordingly. IN WITNESS WHEREOF, parties hereto have caused this agreement to be executed in duplicate the day of , 2010. CITY OF PORT ARTHUR APPROVED AS TO FORM: City Attorney Ross Black etter, P. E. City Engineer KINDE RGAN TEJAS PIPELINE LLC . Signatureo ~/AV`~ Johnnv McGee ~'`C Name (typed) Attorney 'in Fact Title. Witness: 1 ~~ M• ®~ Mayor ~:-~ C~, ~°~ a~~ a. ~ John A. Comeaux, P.E. Assistant City Manager/Operation f ~ goin STREET 6~~d STREE l _ l /3 O' / v `P /`7 O /O ' 62nd 57R EET ~ __,_ / W ~_3 J 2 / W > a. e1 W 1 O A 7 l-~ ~ ~ ~~4 4 61yi STREE, _____. __-.. . ~-~ L - ~~ GO~h ST. I ~ _. Ol4 - T l v l `_ '- 59m STREET -- T I--- K O J LIC~NSL AQtLCt-QNI It12NL1JA1- LICENSE AGREEMENT STATE OF TEXAS KNOIM ALL MEN BY THESE PRESENTS: COUNTY OF JEFFERSON THAT the City of Port Arthur, a municipal corporation organized and existing under the laws of the State of Texas (hereinafter called "Licensor"), for and in consideration of the sum of Three Thousand Two Hundred Seventy Six Dollars ($3,276.00) per year ($22.50 per rod per year) with the first year's premium to it in hand paid by Kinder Morgan Tejas Pipeline, LLC (hereirr aftercalled "Licensee") and the successive payments due on or before. March lst of each successive year for a duration of five (5) years hereby grants unto the said Licensee a right, privilege and License for the purpose of maintaining, operating, replacing and repairing an existing 4" natural gas pipeline and all appurtenances thereto, including but not limited to air patrol markers, valves and corrosion control equipment, for the transportation of liquids, gases, solids or mixtures of any or all thereof, in, under and. across the following described public right-of-way situated in Jefferson county, Texas to wit: The said 4-inch natural gas line is located five (5) feet from the Westerly line of the canal right-of-way (after entering from the Northwest corner of Lot 12, Block 8) extending from the southeasterly line of Lot 1, Block 8, northerly to the northeasterly line of Lot 10, Block 10 of the Port Acres Subdivision as recorded in Volume 4, Pages 42-47, Map Records of Jefferson County, Texas. Said alignment to be as further depicted in Exhibit "A" attached hereto and made a part of hereof, for all purposes. Said License is granted subject to the following provisions: 1. Excavations made on Licensor's property shall be promptly refilled by Licensee; the earth well tamped, the ground left in the. same condition as before the laying of said. pipeline and the locations of the pipeline will be marked with the marker properly maintained and plainly visible. II. It is expressly understood and agreed that Licensee shall have the right to ingress to and egress from the above-described tract of land at all times for the aforesaid purposes of this license. III. In consideration of the privileges herein described, Licensee agrees to indemnify and hold harmless Licensor form any and all claims, suits for damages to property or injuries or death to persons arising from the construction, maintenance, use or removal of said pipeline. The Licensee must abide by all safety precautions as mandated by state, local and federal government as well as industry standards. The licensee must also maintain liability insurance ih the amount of $3,000,000.00 to protect against spills, environmental damage, explosions and releases Rights herein granted are personal and not assignable without Licensor's prior written consent; the provisions herein shall be binding upon successors and assigns of both parties. IV. Upon termination hereof,. as determined by Paragraph VIII below, Licensee. shall promptly remove said. pipeline from the property of Licensor at Licensee's-cost unless the City, at its discretion chooses to permit the line to remain in place. V This Agreement is effective on March 1, 2010 VI. This License is subject to all existing easements of record. VII. At the end of this 5 year term for the License Agreement, the fee for renewal shall be renegotiated with the amount to be adjusted using the. State of Texas Parks and Wildlife fees in the effect at that time as a guide. VIII. This agreement may be terminated by either party giving ninety (90) days written notice and license payments will be prorated: accordingly. IN WITNESS WHEREOF, parties hereto have caused this agreement to be executed in duplicate the day of , 2010. CITY OF PORT ARTHUR APPROVED AS TO FORM: City Attorney Ross Black <etter, P. E. City Engineer KINDE RGAN TEJAS PIPELINE LLC . o Signature. Johnnv McGee ~~'~~ Name (typed) Attorney in Fact Title Witness: Mayor ~ ~ ~~~ .P ~ John A. Comeaux, P.E. Assistant City Manager/Operation ® Gash STREET W Z W 1 a W O a 0 GO~A SL ® F~ ..A.. -- r. ~- '"-- tC O CFIJSE AQiLII"Q2~fT [tl~`1L1JA1.