HomeMy WebLinkAboutPR 19193: 5 YEAR LICENSE AGREEMENT WITH KINDER MORGAN TEJAS PIPELINE, LLC - „.......
City'of
,, „....
4
,,,,,
� t rthu-
�, rte`
Texas
INTEROFFICE MEMORANDUM
PUBLIC WORKS DEPARTMENT-ADMINISTRATION DIV.
Date: October 19, 2015
To: Brian McDougal, City Manager
From: Rawetts Baaheth, Sr., Acting Director of Public Works
RE: Proposed Resolution No. 19193
RECOMMENDATION
I recommend that the City Council approve P. R. No. 19193 approving a five year contract renewal
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 of$2,912.00 per calendar year.
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. Per Resolution 10-059, The City of Port Arthur renewed the five year
agreement per Texas Parks and Wildlife fees at the rate of $22.50/rod, total being $3,276.00. This
resolution notes the renegotiation price per Texas Parks and Wildlife fees at a rate of $20/rod
measurement per year at 145.6 rods (2,402.4 feet) for a total of$2,912.00. A check for$2,912.00 has been
received from Kinder Morgan Tejas Pipeline, LLC. Kinder Morgan Tejas Pipeline, LLC desires to renew
the agreement for an additional five year term under similar conditions.
BUDGET/FISCAL EFFECT
None
STAFFING/EMPLOYEE EFFECT
None
SUMMARY
I recommend that the City Council approve P. R. No. 19193 approving a five year contract 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 of$2,912.00 per calendar year.
"Remember we are here to serve the Citizens of Port Arthur"
PR 19193
10/16/15 rtb
RESOLUTION NO.
A RESOLUTION APPROVING A FIVE (5) YEAR LICENSE
AGREEMENT BETWEEN KINDER MORGAN TEAS PIPELINE, LLC
AND THE CITY OF PORT ARTHUR TO PERMIT THE OPERATION
AND MAINTENANCE OF A FOUR INCH (4") NATURAL GAS LINE
ON A PUBLIC RIGHT-OF-WAY (OLD CANAL RIGHT-OF-WAY) IN
THE CITY OF PORT ARTHUR, TEXAS, FOR THE SUM OF $2,912.00
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 City Manager 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 $2,912.00 per year; and,
THAT, approval and acceptance of said License Agreement by Kinder Morgan
Tejas Pipeline, LLC. Is evidence 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 the day of , A.D. 2015 at a
meeting of the City of Port Arthur, Texas by the following vote:
Ayes: Mayor:
Council members:
Noes:
Deloris "Bobbie" Prince
Mayor
Attest:
Sherri Bellard
City Secretary
APPROVED AS TO FORM: APPROVED AS TO AVAILABILITY OF
\ �"n FUNDS:
Valecia Tize o Jerry Dale, CPA, FOA
City Attorney Interim Director of Finance
APPROVED FOR ADMINISTRATION:
A _ .Alf/Y ae •
Brian McDougal R. etts T. Baah, h, Sr.
City Manager Interim Director of Public Works
Clifton Williams, CPPB
Acting Purchasing Director
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 ($2,912.00) per year ($20.00
per rod per year) with the first year's premium to it in hand paid by Kinder Morgan
Tejas Pipeline, LLC (herein after called :Licensee") and the successive payments due on
or before grants unto the said Licensee a right, privilege and License for the purpose of
maintaining, operating, replacing 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, solid 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:
I.
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 from 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
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 November 10, 2015.
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 , 2015.
CITY OF PORT ARTHUR
APPROVED AS TO FORM:
Valecia Tizeno
City Attorney
Rawetts T. Baaheth, Sr. Brian McDougal
Interim Director of Public Works City Manager
KINDER MORGAN TEJAS PIPELINE LLC.
Signature
Johnny McGee
Name (typed)
Vice President
Title
Witness:
TEXAS PARKS AND WILDLIFE DEPARTMENT
(TPWD)
DAMAGE AND FEE SCHEDULE
EFFECTIVE DATE JUNE 1, 2014
CONTENTS
Introduction page 2
Changes to the Schedule for 2014 3
Pad Sites and Related Facilities 4
Injection Wells, Water Wells and Water Use 7
Geophysical (Seismic) Operations 8
Pipeline Easements 10
Through and Service Road Easements and Licenses 13
Driveway Easements and Licenses 15
Utility Easements and Permits 17
Other Land Use and Infrastructure Agreements 19
Assignments, Mergers, Acquisitions, Consolidations and Name Changes 20
Damage and Fee Schedule, Page 1
INTRODUCTION
The size and location of TPWD lands, especially State Parks and Wildlife Management
Areas (WMA), regularly places them in the path of proposed geophysical, mineral
recovery, pipeline, utility, and other infrastructure projects. In cases where there is no
reasonable and prudent alternative to the use of TPWD land, per Parks and Wildlife Code
(PWC) §26.001, or where the owner of minerals under TPWD land wishes to explore for
or recover minerals, staff traditionally negotiates with applicants for damages associated
with initial project impacts, and fees for continuing occupancy of the land, including
perennial loss of fish and wildlife services, ecosystem functions, and recreational
opportunities.
Under PWC §11.071, the TPW Commission has the authority to "regulate the use of
department lands for oil, gas and other mineral recovery and associated activities".
Furthermore, under PWC §13.001, the TPW Commission "shall have the exclusive
authority to determine sound biological management practices for all lands under its
control." Based on these authorities, TPWD adopts damage and fee schedules to
compensate for impacts to TPWD Iands by third parties. The establishment of such
schedules will bring consistency to assessment of damages and fees across TPWD lands,
and will simplify the process of negotiating, preparing and issuing easements and other
agreements.
Existing TPWD Policy
As of the effective date of this document (June 1, 2014), staff operates under guidance
provided by the TPWD Easement Review Procedure and the Staff Guidelines for Mineral
Recovery Operations on Department Lands. While these documents address staff roles
and responsibilities for the process of reviewing impacts, negotiating terms and
conditions, and issuing easements and related agreements, they do not include specific
damage and fee schedules.
Easement Review by the TPWD Commission
Damage and Fee Schedule, Page 2
In general, easements, agreements that have the same effect as easements, recordable
instruments, permits which grant long-term or indefinite land use or occupancy rights,
and/or agreements which may result in significant resource, aesthetic or recreational
impacts, and/or significant alteration of or suspension of site operations, will require
review and approval by the TPW Commission. Exceptions to this policy necessitated by
health and safety, emergency, legislation, or the minor "housekeeping" nature of the
agreement, may be authorized by the Executive Director or the Deputy Executive
Director for Operations. Unless directed otherwise by the Executive Director or the
Deputy Executive Director for Operations, agreements requiring TPW Commission
review and approval will be presented to the Commission by project management staff in
the Land Conservation Program.
Leases of Mineral Rights on State-Owned Lands
The following schedules do not include the leasing of mineral rights on TPWD lands. In
cases where TPWD owns mineral rights associated with its lands, the leasing of those
rights for exploration and recovery is handled by the Board for Lease of Texas Parks and
Wildlife Department Lands, as created and governed by Texas Natural Resources Code
chapter 34. Applicants may nominate TPWD-owned minerals for leasing, and leasing is
subject to a competitive bid process managed by the Board for Lease. At TPWD's
request, the Board for Lease (supported by staff of the Texas General Land Office) works
closely with TPWD to establish minimum bids for mineral leases, including delay rentals,
and any special terms and conditions associated with mineral exploration and recovery.
In most cases these terms and conditions include a prohibition against drilling from the
TPWD-owned surface. Directional drilling from off-site is required except in cases where
the TPWD staff recommend and Commission agrees that a location(s) exists on the
TPWD site from which drilling can take place without significant adverse impact to
biological, operational,recreational or aesthetic values.
CHANGES TO THE SCHEDULE FOR 2014
Until recently, many easements for infrastructure such as pipelines or utilities on TPWD
lands have been issued in the form of"Miscellaneous Easements" by the Texas General
Land Office (GLO) on behalf of TPWD. As of September 1, 2011, TPWD has the sole
authority and responsibility for the issuance and the renewal of such easements, including
renewals of those easements previously issued or renewed by the GLO. TPWD may ask
GLO for assistance in the issuance of an easement where the expertise of the GLO or the
support of the GLO in ensuring enforceability of terms and conditions of an easement is
deemed advantageous to TPWD due the size of the project, significance of the impacts,
or nature of the application.
To maintain better tracking of funds collected as Damage Payments and Easement
Payments, agreements may distinguish between the two. In some cases, Damage
Payments will be assessed in SUAs while Damage Payments in addition to Easement
Payments may be assessed in the easement, to reflect long-term impacts or potential
Damage and Fee Schedule, Page 3
impacts associated with third party uses of TPWD lands. This arrangement may vary on a
case-by-case basis.
Damage Payments, in particular, will vary considerably depending upon the short- and
long-term nature of the activity. For example, pipelines that are directionally drilled will
typically result in less impact than those that are installed by trenching. Pipeline ROWs
that are mowed seasonally will have more impact than those that are not, and the impact
of mowing will vary markedly in different habitats. As in the past, all fees reflected in
this Schedule are intended to serve as minimums, and may be adjusted upward depending
on the sensitivity of the site and the nature of the anticipated impacts.
The growing population of Texas has resulted in increasing fragmentation of private
property adjacent to state parks, park road scenic corridors, and WMAs, resulting in
increasing numbers of requests for driveway licenses and easements on TPWD land. For
2014, the Damage and Fee Schedule adds a section on private driveways crossing TPWD
land.
PAD SITES AND RELATED FACILITIES
• An SUA, Right of Entry and Construction Permit or related written authorization
is required prior to any start of survey or construction associated with drilling for
water, oil and gas exploration and/or oil and gas recovery.
• On-site drilling is permitted only for minerals owned by private entities, or when
so authorized by the mineral lease. Oil and gas leases issued by the Board for
Lease for minerals owned by TPWD will not authorize on-site drilling unless so
recommended by the TPW Commission.
• SUAs are issued for tenns not to exceed ten years, but may be renewed at the
rates in use by TPWD at the time of renewal, if terms of the SUA and any
associated agreements have not been violated, and if the site remains safe for
operation and protective of the environment as determined by TPWD. TPWD
may require upgrades to facilities at the time of renewal to assure safety and
protection of the environment and/or site staff and visitors.
• Where authorized, drillers will work closely with TPWD staff to locate drill sites
in such a way as to minimize impacts to fish and wildlife resources, TPWD
facilities, recreational opportunities, and site aesthetics.
• Drill pads and other permanent facilities such as separator and tank pads, will
occupy the smallest footprint necessary for safe operation of the equipment. Best
management practices as determined by TPWD will be employed to minimize
impacts to fish and wildlife resources.
• Equipment staging areas and other temporary work spaces will be the smallest
necessary for safe operation of the equipment. Best management practices as
determined by TPWD will be employed to minimize impacts to fish and wildlife
resources, site operations and public recreational use.
Damage and Fee Schedule, Page 4
• Consideration for temporary work spaces, staging areas, temporary access roads
and other shorter-term impacts will be assessed in addition to damage and
easement payments, and may require separate SUAs or other agreements at the
sole discretion of TPWD.
• Access roads, gathering lines, storage tanks, separators, drainage provisions, and
other impacts required for the construction or operation of pads may be covered
under a single SUA or may require separate SUAs at the sole discretion of
TPWD.
• Easements may be issued for permanent pad locations, at the sole discretion of
TPWD. Easements may require TPW Commission approval, in accordance with
TPWD policy.
• Compensatory mitigation for impacts to natural and/or cultural resources may be
required by federal and/or state agencies, including TPWD, in addition to required
damage and easement payments.
• TPWD may require work plans, spill contingency plans, emergency plans,
surveys, as-built drawings and other documentation at its sole discretion.
• TPWD may require site-specific resource documentation, e.g.,Environmental
Assessment(EA), cultural resource survey and/or wetland delineation.
• Rates shown in the Pad and Related Facilities Rate Schedule below are
MINIMUM rates and may be adjusted upward where impacts to restored or high
value habitats,mitigation lands, state/federal listed resources, site operations or
recreation are anticipated.
• Pads in rare or sensitive habitats(wetlands, riparian zones, native high quality
grasslands, old growth forest, etc.), are not permitted except in extenuating
circumstances; and in such cases, minimum fees will be double, or more, than
those shown in the chart below.
• Sites in or near sensitive habitats, or that might result in collateral or indirect
impacts to wildlife such as migratory, overwintering or breeding wildlife, or
where light, noise,human activity or odors may adversely impact wildlife on
adjacent lands, may be assessed additional damage payment(s) as compensation
for those impacts.
• TPWD may require screening, paint schemes, or impose height restrictions on
permanent structures such as platforms, tanks, and valve assemblies to minimize
aesthetic impacts.
• SUA(s) for small pads for weather stations, tide gauges, communications and
other instruments installed and maintained by a government agency or non-profit
entity may be granted at no cost at the sole discretion of TPWD.
• TPWD may establish a maximum allowable pad area per well.
New Pad and Related Facilities MINIMUM Damage and Fee Schedule
Pad Size Initial Damage Payment Annual Damage Payment
Communications or
utility pad; less than $2,500 $500 per year
Damage and Fee Schedule, Page 5
200 sq.ft.
Less than 50' in each $2/square foot; minimum fee
dimension $2,500 $1,000 per year
Less than 1/2 acre $5,000 $1,500 per year
More than V2 acre $10,000 per acre $3,000 per year
($1,000 per 1/10th acre over 1 ($300 per 1/10th acre over 1
acre) acre)
Temporary pads Same as above Same as above
Re-entry of abandoned $0.15/square foot; minimum
well pad; de minimus fee $2,500 Same as above
enlargement ONLY
Price per well bore in
effect until capped and N/A $3,000/year
abandoned-
CONVENTIONAL
Price per well bore in
effect until capped and N/A $5,000/year
abandoned -
UNCONVENTIONAL
Pad Renewal,Abandonment and Reactivation
• Pad Renewal
- Pad renewals may be made per conditions referenced in the SUA, and will
typically occur at the rates in use by TPWD at the time of renewal.
- In the absence of provision for renewal in the SUA, TPWD may renew or
deny renewal at its sole discretion.
- TPWD may require reasonable upgrades to facilities at time of renewal,
for public health and safety, protection of the environment, site operations,
aesthetics, or other purposes, at its sole discretion.
- TPWD may negotiate renewal rates downward from the current schedule
ONLY in cases where renewal at the current rate would increase term fees
by more than 500%, at the sole discretion of TPWD.
TPWD may consider negotiation of fees downward, per the above
provision, only in cases where the SUA is current and has not been
allowed to lapse (i.e. expired by more than 6 months), except in
extenuating circumstances.
• Pad Abandonment
- Any pad which has not been in production and which has not been
monitored and maintained for a continuous period of 6 months will be
considered abandoned,unless TPWD has been notified in writing of the
intent of the holder of the SUA to resume production and to maintain the
facilities in good working order in the interim, unless provided otherwise
in the SUA.
- TPWD may renew the SUA of an abandoned facility at its sole discretion.
Damage and Fee Schedule, Page 6
- TPWD may require cleanup and/or removal of hardware and facilities
from an abandoned site at its sole discretion, unless otherwise provided in
the SUA.
- In case of abandonment, TPWD may claim ownership of any and all
improvements to site, including hardware and facilities, at its sole
discretion, and may sell or otherwise dispose of such improvements at its
sole discretion.
• Pad Reactivation
- TPWD is under no obligation to lease or grant access to facilities which
have been abandoned or on which all SUAs or other Agreements have
expired, and reserves the right to issue an SUA for the reactivation of pad
sites and/or facilities at its sole discretion.
INJECTION WELLS, WATER WELLS AND WATER USE
• New injection wells are not permitted, except in extraordinary circumstances,
from the surface of, or into the subsurface or geologic formations below TPWD
lands.
• TPWD's mission includes the protection of fish and wildlife resources of Texas.
Therefore it is a policy of TPWD not to grant leases or easements for the
commercial extraction of ground or surface water under the control of TPWD.
• Surface water and groundwater under TPWD control may not be used unless
allowed in writing by TPWD at TPWD's sole discretion.
• In some cases,the owners or lessees of mineral interests may have the right to
extract ground water for mineral exploration and recovery operations. In these
cases the following rules and rates schedules shall apply:
- Water extracted from beneath TPWD lands may not be used for operations
off-site.
- Only the minimum number of wells necessary to serve drilling operations
otherwise permitted on TPWD's surface may be drilled
- Water wells become the property of TPWD upon expiration or
abandonment of the mineral lease, or termination of the SUA
- All well logs will be made available to TPWD at time of drilling
- All water wells must be metered and reported monthly to designated
TPWD staff, unless other arrangements are made in writing
- If during use of a water well(s)drilled to provide water for drilling,
hydraulic fracturing,or ancillary oil field operations, or within one year of
the use of such well, the quality or quantity of water from an existing
well(s) on the site used for TPWD operations is compromised, the
company will provide all water necessary to meet the needs of that facility
provided by that well,by improving the existing well if feasible, drilling
and equipping a new well if needed, or if necessary, connecting the TPWD
Damage and Fee Schedule, Page 7
facility to a public water supply or hauling an equivalent amount of water
to the facility at the company's sole expense until a dependable water
supply is restored
- TPWD reserves the right to refuse or to terminate water withdrawal
operations that pose a clear threat to fish and wildlife resources by limiting
spring flows, depleting ground water sources, or otherwise diverting water
from supporting needs of fish and wildlife
- Return water must be captured in closed containers and hauled off site for
disposal. Return water ditches and pits are permitted only by prior written
authorization from TPWD, which may be granted at TPWD's sole
discretion
- TPWD may adjust locations of frac ponds by up to 1000' to minimize
impacts to fish and wildlife
- Frac ponds will be fenced to prevent incidental wildlife mortality, or will
be designed in such a way as to prevent the entrapment of wildlife, at the
sole discretion of TPWD
• All "frac"ponds will be fully restored to pre-project stratigraphy, topography and
vegetation on a schedule and to success criteria to be determined by TPWD.
• For assignment of water wells or water associated with an assignable Agreement,
see Assignment Section below.
'yew Water Wells, Frac Ponds, and Water Use M1N1 W/M n mago and Fee
� 'JV 1�1 V1r1 Lana �,,V VV
Schedule
Action Initial Damage Payment Annual Damage Payment
Drilling of water $10,000 N/C
well 8"or less
Drilling of water $20,000 N/C
well over 8"
Frac Ponds, $0.35/square foot $0.10/sq. ft./year
including levees,
dams, work areas
Price of Water $1/barrel
(42 gallons) N/A
GEOPHYSICAL (SEISMIC) OPERATIONS
• An SUA is required prior to initiation of any geophysical operations on TPWD
lands.
• The applicant for a SUA for geophysical operation on TPWD must provide
documentation of ownership or possession of a controlling lease interest in the
mineral rights under the land and authorization from the mineral owner or lessee.
Damage and Fee Schedule, Page 8
• If TPWD owns the mineral rights under the subject tract and they are not
currently leased, the applicant may nominate them through the Board for Lease.
• SUAs for geophysical operations are short-term agreements and are typically
issued for a period of not more than one year.
• Applicant will provide TPWD with precise maps, based on U.S. Geological
Survey(USGS) 1:24,000 topographic map(s)or 1:24,000 Digital Ortho Quad
map(s) and a work plan showing placement of lines and sensors, energy sources
or shot holes(if any), depth and size of shot charges (if any), equipment to be
used for site access and placement of lines, charges and geophones,
demobilization schedule, and any other information requested by TPWD. Digital
files and e-mail transmittals are preferred.
• Applicant will work with TPWD staff on methodology and location of lines,
geophones and other hardware. Pedestrian placement of lines and geophones may
be required in sensitive habitats such as wetlands, and energy sources may be
prohibited in sensitive habitats. Clearing of vegetation for the placement of
equipment may be denied, and will be permitted only where no feasible and
prudent alternative exists.
• For geophysical assessment of TPWD-owned minerals, staff may require that a
copy of all results be provided to TPWD.
• For geophysical operations that include ground disturbance, cultural resource and
endangered resources study and mitigation may be required. Compensatory
mitigation may be required for disturbance in sensitive habitats where no feasible
and prudent alternative is available.
• Additional charges may be assessed for damage, injury or mortality to fish and
wildlife.
• Biological and/or cultural resource monitoring may be required prior to or during
on-site operations.
• Permittee must schedule geophysical operations so as to not interfere with
seasonal biological activities such as bird nesting, or seasonal recreational
activities such as public hunting or park special events.
• Rates shown in geophysical damage fee schedule are MINIMUM rates and may
be adjusted upward where impacts to restored or high value habitat, state or
federal listed resources, site operations or recreation are anticipated.
• Issuance of a geophysical SUA in no way guarantees issuance of subsequent
SUA(s) for mineral exploration or recovery.
• There is a minimum geophysical operations damage fee of$1000 per Agreement.
• For assignment of a geophysical operations Agreement, see Assignment Section
below.
Geophysical MINIMUM Damage Schedule
Type of Statewide Minimum Damage Fees in Comments
Geophysical Damage Fees mature or restored
Operation forest, brush, prairie
Damage and Fee Schedule, Page 9
Geophones only; air $15/acre $20/acre Lines and phones
drop or pedestrian must be removed
access only within 30 days
Geophones only; $20/acre $30/acre High-flotation
vehicular placement vehicle(s) may be
minimal damage required
On-site non- $30/acre $40/acre Same as above
intrusive energy
source w/geophones
On-site shot holes $40/acre $50/acre TPWD may limit
and charges depth& charge and
w/geophones require plugging
As above in $40/acre plus Same as above
sensitive habitat i.e. $30/shot hole
marshes
PIPELINE EASEMENTS
(note that pipelines associated with oil and gas operations may be authorized by
agreements other than easements)
• An easement or comparable written authorization is required for all pipeline
installations and replacements on or under TPWD lands for which the primary
beneficiary is not TPWD.
• Expired easements will be renegotiated at the sole discretion of and upon terms
established by TPWD.
• New SUAs and damages may be assessed by TPWD for product spills, deviations
from lease terms, pipeline replacements and repairs requiring surface impacts.
Damage assessment must consider direct, indirect, and cumulative habitat
damages.
• Easements issued for pipelines on TPWD lands may be issued for a MAXIMUM
term of ten (10) years, with provisions made for renewal per the rate schedule in
use by TPWD at the time of renewal.
• A pipeline easement will be issued only in cases where it can be demonstrated
that no reasonable and prudent alternative exists to crossing TPWD land (Parks
and Wildlife Code §26(a)(l)).
• Pipeline easement applicants will work with designated TPWD staff to determine
pipeline routes through TPWD lands that minimize net impacts to natural and
cultural resources, aesthetics, site operations and public recreation.
• Compensatory mitigation for impacts to natural resources, cultural resources
and/or loss of recreational opportunity may be required by federal and/or state
agencies, including TPWD, in addition to required damages and rates.
Damage and Fee Schedule, Page 10
• Consideration for temporary work spaces, staging areas, temporary access roads
and other shorter-term impacts will be assessed in addition to damages and rates.
• TPWD may require work plans, spill contingency plans, emergency plans,
surveys, as-built drawings and other special conditions at its sole discretion.
• TPWD may require site-specific resource assessment(s), including, but not
limited to, an Environmental Assessment(EA), Environmental Impact Statement
(EIS), cultural resource survey, and/or wetland delineation, and may require a
resource monitor during construction, repair or maintenance to assure compliance.
• TPWD reserves the right to use the surface for site operations, public recreation,
and habitat management that is not incompatible with exercise of the easement,
including, but not limited to, hunting and fishing, trails, and prescribed burning.
• The use of herbicides and other biocides is strictly prohibited without written
authorization from TPWD. TPWD may require a management plan for rights-of-
way.
• TPWD must be notified in writing at least 30 days prior to any change in pipeline
ownership, management or operating responsibility. See Assignment Section
below.
• Rates shown in the New Pipeline Easement Rate Schedule below are MINIMUM
rates and may be adjusted upward where impacts to rare, sensitive, or state/federal
listed resources are involved.
New Pipeline Easement MINIMUM Damage and Fee Schedule
Inside Pipe Diameter Initial Damage Payment Annual Damage Payment
varies by ROW width and
less than 4" habitat type* $10/rod/year
minimum fee $500
varies by ROW width and
4" up to <10" habitat type* $20/rod/year
minimum fee$500
total temporary and permanent
impacts in excess of 40 acres
to be assessed by Habitat
Equivalency Assessment
10" or greater (HEA) procedure at discretion $2.50/inch/rod/yr
of TPWD
minimum fee $1,000
temporary lines laid varies by habitat type,
across installation methodology and $1.50/inch/rod/yr maximum
surface only (not to nature of impacts* 8" line
exceed 72 months) minimum fee $500
Damage and Fee Schedule, Page 11
Directional drill under
TPWD facility; no None except for drill pits and Same as above**
surface access or work areas
impact
* width of maintained ROW, sensitivity of affected habitats, and impacts to site
operation and public use will be factors in determining damage schedules
** for directional drills, rate may be negotiated as appropriate to discourage
conventional pipeline installation(trenching)operations
Pipeline Easement Renewal
• All pipeline easement renewals will be issued with terms not to exceed 10 years.
• Pipeline renewals are not subject to initial damage assessment unless new surface
disturbance occurs.
• At a minimum,pipeline easement rate schedules in effect at the time of renewal
will apply to all pipeline easement renewals.
• TPWD reserves the right to increase pipeline easement rate schedule or to apply
any rate which is currently adopted by TPWD for new easements,whichever is
higher.
• There is a minimum pipeline renewal fee of$250/year.
Pipeline Agreements other than Easements
• Expired pipeline agreements in forms other than easements (i.e. SUAs, Right of
Entry and Construction Permits, leases, etc.)will be re-issued at the sole
discretion of TPWD. If re-issued,they will be re-issued as easements.
• Pipeline agreements converted to easements will be subject to all terms listed
above, except that initial damages will not apply unless surface disturbance
occurs.
Pipeline Maintenance
• All maintenance involving surface disturbance on TPWD lands not authorized by
the current easement will require issuance of a SUA. Access for personnel and
machinery, even across existing roads, may require an access or construction
agreement.
• A SUA, including damage assessment, may be required after-the-fact for ground
disturbance necessitated by emergency maintenance.
• Damages, damage fees, surface use fees and compensatory mitigation may be
assessed for temporary work spaces, staging areas, roads and infrastructure, use of
existing site infrastructure and facilities, and impacts to site operations and public
use.
• Compensation to TPWD for unanticipated site impacts such as long-term erosion
resulting from pipeline installation,product spills or explosions will be evaluated
Damage and Fee Schedule, Page 12
and assessed outside the easement process, by means and methods to be
determined by TPWD at the time of incident.
• The use of herbicides to control vegetation in utility corridors on TPWD lands is
strictly prohibited unless authorized by TPWD in writing.
Pipeline Abandonment
• TPWD may require the timely removal of an abandoned pipeline at its sole
discretion,or may require purging to regulatory/industry standards, sealing and
abandonment in place.
• TPWD may require restoration of the site of the removed pipeline to pre-pipeline
conditions at its sole discretion.
• A recordable instrument terminating the easement will be provided to TPWD by
the easement holder of record at the time of abandonment.
THROUGH AND SERVICE ROAD EASEMENTS AND LICENSES
THROUGH ROADS
• In general, TPWD will grant through access to adjacent landowners or lease
holders only in cases where TPWD acquisition of land has severed the surface
owner from historic or traditional access to a public road, and where no feasible
and prudent alternative is apparent.
• Where a license or easement for such access is granted, the terms will be the
minimum necessary to provide serviceable access to the existing tract. TPWD
may dictate the route of the road and the width of the license or easement. In
general, a road license, SUA, or easement will be 15' in width.
• TPWD will grant exceptions to this policy only where there is no feasible and
prudent alternative AND where consideration for the access will clearly result in a
demonstrable net benefit to the values and purposes for which the impacted site
was acquired and managed. An exchange of land and/or a conservation easement
on land contiguous with the TPWD site may be considered in this regard. In
general, access granted at the discretion of TPWD will be granted in the form of a
license.
• New roads, or widening or improving existing roads, may require survey and
mitigation for impacts to cultural resources, including archeological resources.
• Compensatory mitigation for impacts to natural and/or cultural resources may be
required by federal and/or state agencies, including TPWD, in addition to required
damages and rates.
• Road maintenance, unless addressed in the road agreement, will require
coordination with appropriate TPWD staff on a per-action basis.
• TPWD must approve road drainage and stream crossings. Structures such as
culverts and bridges may be assessed at a higher damage and fee rate.
Damage and Fee Schedule, Page 13
• TPWD may lower or waive fees at the sole discretion of TPWD, where road will
serve TPWD staff and/or provide public access to TPWD lands.
SERVICE ROADS (note that authorization for construction or use of roads for oil
and gas operations may be provided by agreements other than easements)
• In general, roads to service mineral recovery operations, utility corridors and
other infrastructure on TPWD lands will require individual SUA's or related
documents.
• Where feasible, existing roads may be used. Initial damage fees may be reduced
or eliminated for use of existing service roads. In cases where use of existing
roads is deemed undesirable by TPWD, TPWD may require construction of a new
road(s) in a location(s) and to standards specified by TPWD.
• SUAs and other agreements for service roads will be issued for terms not to
exceed ten (10) years, and may be renewed for periods not to exceed ten (10)
years. With approval of the Executive Director, a Deputy Executive Director or
TPW Commission as appropriate, an agreement may be issued with provisions for
automatic renewal, but in all cases TPWD will reserve the right to implement new
fees every ten years, consistent with TPWD fees in effect at the time of renewal.
• New roads, or widening or improving existing roads, may require survey and
mitigation for impacts to cultural resources, including archeological resources.
• Compensatory mitigation for impacts to natural and/or cultural resources may be
required by federal and/or state agencies, including TPWD, in addition to required
damages and rates.
• Applicant will work with TPWD staff to determine road location, construction
methods and surfaces to minimize short and long-term impacts to natural,
cultural,recreational and aesthetic resources. In general, a road license, SUA, or
easement will be 15' in width.
• Compensation to TPWD for construction and use of roads will consist of both
initial damage assessment and annual use fees. Fees are for the purpose of
offsetting impacts caused by road construction and use, including potential
wildlife mortality, lights, noise, dust, and aesthetic impacts.
• Road maintenance, unless addressed in the road agreement, will require
coordination with appropriate TPWD staff on a per-action basis.
• TPWD must approve road drainage and stream crossings. Structures such as
culverts and bridges may be assessed at a higher damage and fee rate.
• TPWD may lower or waive fees at the sole discretion of TPWD, where road will
serve TPWD staff and/or provide public access to TPWD lands.
• TPWD may assess fees Iower than those shown below in cases where a road
provides service for mineral exploration or extraction(including oil and gas),
where TPWD is not the owner of the mineral estate, and where there is no prudent
and reasonable alternative access.
• Damage fees may be paid in the form of goods and services, negotiated with the
appropriate TPWD Program Director, and are due and payable at the time of the
issuance of the SUA or road agreement.
Damage and Fee Schedule, Page 14
• Existing TPWD-owned roads across TPWD lands to be used as service roads will
be assessed fees per the Through and Service Road Damage and Fee Schedule
below, regardless of whether the facilities they serve are on or off site.
• For assignment of a road use agreement, see Assignment Section below.
Through and Service Road MINIMUM Damage and Fee Schedule
Type of Habitat Minimum New Road Annual Damage Payment
Damage Payment
Stable substrate with low
biological or recreational
impact; i.e. minimal slope $30/rod $6/rod/year
w/no vegetation control $1000 minimum $300 minimum
Roads requiring regular
maintenance, or $40/rod $10/rod/year
vegetation control, e.g. $1500 minimum $400 minimum
forests, prairies,drainage
crossings
Roads in high quality
habitat or public use areas
of state parks; e.g. mature $50/rod $15/rod/year
vegetation, riparian zones $2000 minimum $500 minimum
No damage fee $4/rod/year
Pre-existing road $500 re-use fee $200 minimum*
* Fees may be more or less than amount shown depending on sensitivity and potential
impacts from road use
DRIVEWAY EASEMENTS AND LICENSES
• In general, TPWD may grant through access to adjacent landowners only in cases
where TPWD acquisition of land has severed the landowner from historical or
traditional access to a public road, and where no feasible and prudent alternative
is apparent. TPWD is not authorized to grant driveway licenses or easements
except in accordance with Chapter 26 of the Texas Parks and Wildlife Code and
other applicable law, regulation and policy.
• All new and after-the-fact driveway easements and licenses will be subject to and
comply with the provisions of Chapter 26 of the Parks and Wildlife Code.
• Where a license or easement for such access is granted, the terms will be the
minimum necessary to provide one point of access to the historical tract. TPWD
may dictate the route of the road and the width of the easement. In general, a
driveway easement will be 15' in width.
• The TPW Commission may authorize staff to issue easements in cases where an
easement exists by reason of TPWD's acquisition of intervening land, such as
Damage and Fee Schedule, Page 15
historic "outlots" along Park Road (PR) 13 at Goose Island State Park. In all other
cases, easements will be issued only upon authorization by the TPW Commission
on a case-by-case basis.
• TPWD staff may issue a revocable term access license in cases where chain of
title and land use history suggest that an easement or right of access may legally
exist, such as inholdings at Big Bend Ranch State Park with access from historical
"ranch"roads.
• New driveways, or widening or improving existing driveways, may require
survey and mitigation for impacts to cultural resources, including archeological
resources.
• Compensatory mitigation for impacts to natural and/or cultural resources may be
required by federal and/or state agencies, including TPWD, in addition to
damages and fees required under the TPWD Damage and Fee Schedule.
• In general,TPWD will not grant a license or easement for a road or driveway to
service a tract that was subdivided after TPWD acquisition of the intervening land
or corridor. In such cases, the subdividing landowner is responsible for providing
access utilizing the original easement.
• In general, TPWD will not agree to widen or reroute a road or driveway easement
across TPWD land to facilitate subdivision, development, improvement or public
dedication of the road.
• TPWD will grant exceptions to its policies pertaining to driveways or service
roads only where there is no feasible and prudent alternative AND where
consideration for the license or easement will clearly result in a demonstrable net
benefit to the values and purposes for which the impacted TPWD property was
acquired and developed. An exchange of land and/or a conservation easement on
land contiguous with the TPWD site may be considered in this regard. TPWD
must approve in writing all driveway drainage and stream crossings. Structures
such as culverts and bridges may be assessed at a higher damage and fee rate.
• PR 1 (Bastrop to Buescher), PR 4 (Inks Lake to Longhorn Cavern), PR 11
(Palmetto), PR 13 (Goose Island) and PR 1836 (San Jacinto Battleground) are
designated Scenic Corridors. All the guidelines for driveway licenses and
easements across state park lands apply to driveways on Scenic Corridors, with
special attention paid to aesthetic issues that might affect the scenic values of the
park visitor experience. Segments of Scenic Corridors may be designated as "A"
segments, having the highest integrity and being most critical to the park visitor
experience, or"B" segments, deemed somewhat less critical to the visitor
experience. PR 4 and PR 13 may have segments designated as B segments.
• The fees in the table below are minimum fees and may be adjusted upward to
account for aesthetic, operational, natural resource or cultural resource impacts, at
the sole discretion of TPWD.
Driveway Easements and Licenses MINIMUM Damage and Fee Schedule
Damage and Fee Schedule, Page 16
Type of Driveway Authorization Term Initial Fee Recurring Fee
Required by law
Easement Executive Perpetual N/A N/A
Director
License Div. Director Case by case N/A N/A
Not required by law
Residential easement; Division Perpetual $250 none
existing drive Director
Residential license; Division Perpetual $250 none
existing drive Director revocable
New residential Commission Perpetual Case by case Case by case
easement
New residential license Div. Director Max 10-year $2,000 $200/year
Commercial license
(revocable) Commission Max 10-year $10,000 $1,000/month
UTILITY EASEMENTS AND PERMITS
• For the purpose of this section, utilities include water, wastewater, electricity,
telephone, fiber optic and residential natural gas distribution.
• Utility projects for the sole benefit of TPWD (i.e. service only to TPWD site(s))
may be coordinated by the appropriate TPWD Project Manager, but will still
require full coordination with the Land Conservation Program, and with the
appropriate natural and cultural resource programs. Damage and fee schedules do
not apply.
• Projects for the primary or sole purpose of serving non-TPWD customers, or
where TPWD is an incidental customer in the implementation of the utility
project,will be subject to these damage and rate schedules, and may be
recommended by staff for review and approval by the TPW Commission.
• "Hybrid"projects that benefit both TPWD and other utility customers are subject
to full review per the TPWD Easement Review Procedure. Such projects will be
negotiated to the best advantage of TPWD, with the value of service to non-
TPWD customers taken into account in the negotiations. Such projects may also
require review and approval by the TPW Commission.
• Easements and other agreements for the installation and maintenance of utility
infrastructure may be issued for terms not to exceed ten(10) years, and may be
renewed for periods not to exceed ten(10) years. With approval of the Executive
Director, Deputy Executive Director for Operations or TPW Commission as
appropriate, a utility easement or agreement may be issued with provisions for
automatic renewal, but in all cases TPWD will reserve the right to implement new
fees every ten years.
Damage and Fee Schedule, Page 17
• Like other infrastructure, utility corridors will be routed and engineered to
minimize impacts to natural and cultural resources and site operations. The use of
existing corridors will be encouraged. TPWD will retain the authority to require
routing and placement of utility infrastructure in such a way as to avoid sensitive
habitats such as wetlands, and known significant cultural resources such as State
Archeological Landmarks (SAL).
• TPWD may require utilities to be buried.
• The use of herbicides to control vegetation in utility corridors on TPWD lands is
strictly prohibited unless authorized by TPWD in writing.
• Compensatory mitigation for impacts to natural and/or cultural resources may be
required by federal and/or state agencies, including TPWD, in addition to required
damages and rates.
• Compensation for temporary work spaces, staging areas, temporary access roads
and other ephemeral impacts will be assessed in addition to damages and rates.
• Rates shown in the Utility Easement and Permit schedule below are MINIMUM
rates and may be adjusted upward, at the sole discretion of TPWD, where impacts
to rare, sensitive, or state/federal listed resources are involved.
• For assignment of a Utility Easement, see Assignment Section below.
Utility MINIMUM Damage and Fee Schedule
Nature of Utility Project in Existing Damage Assessment Annual Damage
Project Easement or ROW New Easement Payment
10' wide
domestic buried No charge(N/C) $5/rod N/C
electric $100 minimum
10' wide
domestic
(distribution N/C $10/rod N/C
only) $100 Minimum
overhead
electric
Elect.
transmission $25/rod $35/rod $10/rod/year
single wooden $250 minimum $500 minimum
poles
Electric towers
<150kv; <60' Not applicable $40/rod plus $15/rod plus
wide (N/A) $10,000/acre* $2,000/acre/yr*
Electric towers
>150kv; >60' N/A $50/rod plus $25/rod plus
wide $10,000/acre* $4,000/ac/yr*
Water 1" or less; $10/rod
domestic N/C $250 minimum N/C
Damage and Fee Schedule, Page 18
Water 1"or less: $5/rod $10/rod
commercial $250 minimum $250 minimum $4/rod/year
$10/rod $15/rod
Water>1"—3" $500 minimum* $500 minimum* $5/rod/year
$15/rod $20/rod
Water>3"—6" $750 minimum* $750 minimum* $6/rod/year
$20/rod $25/rod
Water>6" $1000 minimum* $1,000 minimum* $1.50/inch/rod/yr
$25/rod $35/rod
Water>12" $1500 minimum* $1,500 minimum* $2.00/inch/rod/yr
$10/rod $15/rod
Wastewater 4" ' $500 minimum* $500 minimum* $6.00/rod/year
or less
$25/rod $35/rod
Wastewater>4" $1000 minimum* $1,000 minimum* Same as water
Phone; single
customer or N/C $5/rod N/C
existing poles $100 minimum
Phone; multiple $5/rod $10/year
customer $250 minimum $250 minimum $6/rod/year
Natural gas; $5/rod
single customer N/C $100 minimum N/C
Natural gas;
transmission See pipeline rates See pipeline rates See pipeline rates
line
Television
cable, fiber optic $5/rod
cable, etc.; N/C $100 minimum N/C
single customer
Television Whatever the market Whatever the market
cable, fiber optic Market will bear will bear
cable, etc.; considerations $50 - $500/rod typ $10 and up
multiple cust. $50 - $500/rod typ $40/rod/yr/typ
* These rates may be negotiated upward considerably where installation of utilities will
facilitate development of undeveloped land in ways that may have direct, indirect and/or
cumulative impacts to TPWD facilities; e.g. housing development adjacent to State Park.
OTHER LAND USE AND INFRASTRUCTURE AGREEMENTS
COMMUNICATIONS INFRASTRUCTURE
• See pad schedules for pad sites.
• Prices may be adjusted upwards where height/visibility result in greater aesthetic
impact.
Damage and Fee Schedule, Page 19
• Fees may be adjusted upward in accordance with industry standards and other
market considerations.
• See utilities schedules for cables and high lines.
DRAINAGE EASEMENTS
• Except in the most extenuating of circumstances, TPWD will deny applications to
channelize natural watercourses.
• TPWD may grant drainage easements in order to restore or maintain historic
drainage patterns, hydrology or inflows.
• TPWD may impose water quality standards for waters entering TPWD lands via
drainage easements, and may terminate easements for non-compliance.
OTHER EASEMENTS AND RELATED LAND USE AGREEMENTS
• Requests for easements,rights-of-way, SUAs, and other uses of the land not
specifically referenced above may be considered on a case by case basis.
• The granting of easements or other agreements that result in the divestiture of
land rights may require review and approval by the TPW Commission in one or
two meetings, and may require publication and/or public meeting.
• The granting of easements or other agreements that may result in significant
impacts to natural or cultural resources, or in temporary or permanent alterations
to site operations and public use, may require TPW Commission review and
approval.
• Damages and fees will be assessed in accordance with this damage and fee
schedule.
• TPWD reserves the right to deny any application for access to TPWD lands
deemed not in the best interest of TPWD and/or not consistent with the,mission of
TPWD.
ASSIGNMENTS, MERGERS, ACQUISITIONS, CONSOLIDATIONS
AND NAME CHANGES
• Assignment as used in this section shall include assignments, mergers,
acquisitions, consolidations, name changes, or other changes in ownership or
management structure that result in a change in the responsible individual or
corporate party for the Agreement.
• Assignments may be allowed only with the prior written consent of TPWD
• All agreements must contain a provision requiring written notification and
approval prior to assignment.
Damage and Fee Schedule, Page 20
"K
+ ______I 1 . ® • 64th ST%tE£T - _'
7.0
rC
P
- f.
63.0 ST REE
_ O'
/.1
/`q
/ 62nd STREET
. t'j ' .////S.-2. .tv •
aJ et t. e
W
a
a
1.-11 1
•
-e)1 i -I I 61st ST Fla.? _____ -
• L-3 I
I
I
L. !,/
.\\\N. . .
. GOth ST . . .. _ ._. ( 1
DLrt - 7 I
L2
i .
_ 1 -
L • . .
S`3 th STREET LICENSE 'w aux t• RDIDIAL