HomeMy WebLinkAboutRES 09-310 RESOLUTION NO. 09-310
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to grant a Pipeline License
Agreement to Cimarex Energy Co. to install an eight inch (8") natural gas pipeline across
Keith Road right-of-way for the purpose of transporting oil, gas, water or related refined
products.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of
October, 2009.
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10 yor Becky Ames -
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CITY OF 3BEAUMONT
APPUCATION FOR
PIPELINE LICE VSE AGREEMENT
THE STATE OF TEXAS §
COUNT`OF JEFFERSON §
Business Name: CIMAREX EI'ERGY CO. Business Phone: QI8158S-1100
Business Address' 15 EAST P'STR ErET TULSA,OK 74103
The City of BeatiImont hereinafter called"City" for and In consideration of the sum specified.
herein Sixty seven and 501166 dollars($67:50) hereby grants
to CIAIARRX ENERGY CO. hereinafter called."Licensee",the license to lay,maintain, operate,
replace, or remove a pipetine for the transportation of oil, gas,water,or their products, on or across
the following property situated in the City of Beaumont,Jefferson.County. 1 exas, and being more
particularly described in Exhibit"A''attached hereto and made a part hereof for all purposes,
Street Name or R.O.W.Desqj ptibn Leneth(Linear Feed
ROW& Utilities crossing Keh .Rd 30 ft ROW across Keith Rd x 52.251ft a
=Trrtai$67.50 for the installation of � .
are.811'natural gas'pipeline.
COST OF LICENSE:
Licensee shall make payment to the City of Beaumont as follows:
License Agreement fee - $500.00
Annual fee of $2.25 per linear foot of pipeline located within City
property. Said fee shall be reset on January 31, 2011 and shall be reset
every ten (10) years, thereafter, to a level to be determined by the City
Council or their delegated representative.
All fees, including the first annual fee for linear foot usage shall be made to
the Engineering Division and payable to the City of Beaumont prior to
construction.
This license is granted by the City of Beaumont subject to conditions. Failure to comply
with the following may result in termination of agreement(see page 8).
GENERAL CONDITIONS:
° Licensee does not intend to sell product for resale from the covered
pipeline to customers located within the City; however, Licensee
recognizes that should it sell product for resale from this covered pipeline
to customers within the City, it will be required to report such distribution
and when lawfully required to do so, pay a street rental fee based on
revenues. The annual fee and the regulations controlling the payment of
such fee will be those as lawfully established by the ordinances of the
City,
° All pipelines crossing public rights-of-way shall be bored from right-of-way
line to right-of-way line. Within these limits, the pipeline shall be
protected by casing or other method approved by the City and/or the Texas
Department of Transportation.
° The pipeline shall be constructed in such a manner as approved by the City
so as it does not interfere with the use of the City property.
2
The pipeline shall be installed a minimum of five (5) feet below the lowest
existing or proposed ditch grades, waterlines, sanitary sewer lines or storm
drainage lines, unless otherwise authorized by the City and/or Texas
Department of Transportation. Such grades and lines shall be indicated on
map submittal, as well as depth of proposed pipeline (see page 4).
The construction and operation of the pipeline shall not interfere with the
natural drainage in that area nor with the drainage system of the City, nor
with sanitary sewer lines, waterlines, or other utilities.
Damage to existing ditch grade during construction or maintenance of the
pipeline shall be corrected and the ditch grade shall be restored to the
condition and grade at which it existed prior to construction or
maintenance. Bore pits shall be backfilled according to City standards.
° Excavations necessary for the construction, repair, or maintenance of the
pipeline shall be performed in such a manner that will cause minimal
inconvenience to the public. Licensee shall promptly restore the area to as
good a condition as before working thereon and to the reasonable
satisfaction of the City's Engineering Division and/or the Texas
Department of Transportation.
° Operations along roadways shall be performed in such a manner that.all
excavated materials will be kept off the pavements at all times, as well
as all operating equipment and materials. All property where operations are
performed will be restored to original condition or better. No
equipment or installation procedures will be used which will damage any
road surface or structures. The cost of any repairs to road surface,
roadbed, structures or other right-of-way features as a result of this
installation will be borne by the owner of this line.
° Barricades, warning signs and lights, and flagpersons shall be provided
by the contractor or owner when necessary. Only under extreme
circumstances, as deemed necessary by the City Engineer, will open
cutting of a street or roadway be allowed. All barricading must be by
permit and approved by the City (Public Works Department) in advance.
Any construction which takes place in, on under, above, or across
property not owned by the City shall require additional permission by the
owner(s) of the property involved. Written proof of said permission is to be
provided to the City as part of the application process. Approval of this
license agreement excludes permission to do any construction on property
which is not owned by the City of Beaumont.
3
° Any licenses, permits or agreements required by another governmental
entity (County, State or Federal) shall be obtained and a copy of such
document shall be provided to the City.
If agreement is not required by said governmental entity, then
documentation regarding such will be provided to the City of Beaumont.
° Licensee shall provide copies of all necessary agreements to be obtained
from other City Departments.
° Licensee shall be responsible for acquiring all agreements necessary for the
lawful use of any private property.
A map showing the location of the proposed pipeline shall be provided.
(1"=2,000' City of Beaumont map or United States Geological Survey
Map)
° The pipeline shall be maintained and operated in such a manner as not to
leak and/or cause damage to any City streets, alley, easements or other
property. Once the pipeline is in operation, any damage that occurs to the
pipeline which results in exposure or release of product must be reported
immediately to the City Fire Department and Public Work's
Department. Licensee shall fully cooperate with the Fire Department and
provide, or assist with providing, any and all necessary notifications,
evacuations or other necessary actions. Leaks or other defects are to be
repaired immediately by Licensee at it's own cost.
° The Licensee shall be responsible for the cleanup and remediation of
contaminated areas due to exposure or release of product and any and all
costs associated with said cleanup and remediation.
° The Licensee shall be responsible for any and all costs associated with the
relocation of the pipeline. As provided, the necessity for relocation of the
pipeline shall be solely within the discretion of City and/or the Texas
Department of Transportation.
° Permits which allow lines to be maintained or constructed in City right-
of-way shall be obtained by Licensee or it's contractor prior to beginning
maintenance or construction. The fee for such pen-nits is in addition to this
License Agreement fee. (See Cost of License)
° Installation will be done in accordance with all City standards and
statutes of the State of Texas.
4
REQUIRED COVERAGE:
° Licensee shall furnish the City with a Certificate of Standard Liability
Insurance, including bodily injuries and property damage, naming the City
of Beaumont as an Additional Insured. Such policy shall provide for the
following minimum coverage:
Bodily injuries: $ 300,000.00 per person
$1,000,000.00 per incident
° Property Damage: $1,000,000.00
Such insurance shall be maintained in force and effect during the
construction or required maintenance of the pipeline and during the life
of the pipeline.
Such certificate shall contain a provision that at least fifteen (15) days
written notice must be given to the City prior to cancellation, alteration, or
modification of such insurance.
° Licensee shall have in force with the City a surety bond in the principal
amount of$1,000,000.00. The bond shall be payable to the City of
Beaumont for the use and benefit of any person entitled thereto and
conditioned that the principal and surety will pay all damages to any person
caused by, or arising from, or growing out of any violation of the terms of
this agreement. The bond shall provide that it may not be cancelled, altered,
or otherwise modified without giving fifteen (15) days prior written notice
to the City. The bond shall be good and in effect for a period of one (1)
year from the date of completion of construction of the pipeline.
° Licensee shall indemnify, save and hold harmless the City of Beaumont
from any and all claims for injuries and damages to persons or property
occasioned by or arising out of the construction, maintenance, operation,
repair or removal of the pipeline. This indemnity expressly extends to
claims alleging negligence by the City of Beaumont, it's agents, officers or
employees, arising from actions taken or occurrences under this license
agreement.
° If the pipeline or any part thereof installed by Licensee shall be in any
respect damaged or injured by City or any of its agents or employees in
connection with the performance of any work or repairs that may be done
upon the property mentioned herein:
Licensee shall not be entitled to prosecute or maintain a claim against the City of
Beaumont for any such damage or injuries so sustained by it; however, said
conditions shall not prevent Licensee from recovering against any contractor
who shall damage Licensee's property in the course of such contractor's
5
performance of any contract with the City.
OTHER CONSTRUCTION/MAINTENANCE WITHIN R.O.W.:
City will use its best efforts to notify Licensee of any proposed
construction and/or maintenance, to be done by City forces or by
contract for the City, within the R.O.W. involved with this license.
Notification, to Licensee, of other construction and/or maintenance
permitted by the City and within the R.O.W. involved with this license
will be the responsibility of the company obtaining said permit.
Licensee shall mark the location of its lines within forty-eight (48) hours
after receipt of such notification of proposed construction.
Licensee shall maintain a local, or toll free, telephone number to be
called for notification of construction or maintenance and for location of
lines. Such number, or charges to such number, will be provided to the City
(Department of Public Works) and kept current at all times. This number
shall be provided to entities permitted to construct, maintain or excavate
within this City R.O.W. and which are required to provide notification of
such work. When information has been relayed to Licensee, through the
phone number provided, such contact shall constitute notification for
Licensee to provide location of its lines. Failure, by Licensee, to respond
within the required time frame shall alleviate the responsibility of the
person(s) requiring the lines to be relocated.
° City reserves the right to lay, and to permit to be laid, sewer, gas, water
and other pipes and cables, and to do or permit to be done any underground
work that may be deemed to be necessary or proper by City in, across,
along, or under any of the streets, alleys and easements, and to change any
curb or sidewalk or the grade of any said streets. In doing or
permitting any such work, the City of Beaumont shall not be liable to
Licensee for any damage occasioned; it being understood that nothing
herein shall be construed as foreclosing Licensee's rights to recover
damages against any contractor or third parry who may be responsible for
damages to Licensee's facilities.
° Whenever by reason of the change in the grade of any street occupied by
Licensees' pipeline or construction of a new street or highway along or
over said street, or by reason of the location or manner of constructing
drainage structures, water pipes, gas pipes, sewers, or other underground
construction for any purpose whatever, it shall be deemed necessary by
6
City to relocate, alter, encase, change, adopt or conform the pipeline of
Licensee thereto, such change shall be made promptly by Licensee at its
cost and without claim for reimbursement or damages against City. If
the change is demanded by the City for the benefit of any other person
or private corporation, except the City or the Texas Department of
Transportation, Licensee shall be reimbursed fully by the person or
corporation desiring or occasioning such change for any expense arising
out of such change; provided, however, should the change be requested by
the Texas Department of Transportation or be required due to
construction of a state or federal highway, Licensee will, upon notice
from the City, make such change immediately and at its own cost; it being
understood that City will not participate in any part of the cost of any
change involving relocation, altering, encasing, boring, or changing in any
manner of the pipeline where same is in a City street , alley, easement
or other right-of-way.
NOTIFICATION/INS PECTION
° Any and all work to be performed on City right-of-way (R.O.W.) shall be
observed and inspected by a City representative. Any work to be
performed within the City limits will be subject to periodic inspection to
ensure compliance with construction standards.
° Licensee shall provide the City (Public Works Department - Engineering
Division) twenty-four (24) hours prior to the installation of the lines
permitted by this license. Licensee shall also notify the City twenty-
four(24) hours prior to any street or R.O.W. crossing. A representative
will be scheduled to be present. The expense of such inspection
services may be billed to the Licensee and such amounts will be
reimbursed to the City.
° Licensee shall notify the Engineering Division at least forty-eight (48)
hours prior to completion of work and removal of equipment from the
job site to permit the City to make an inspection.
7
SPECIAL CONDITIONS:
Nonassignable
This license is personal to the Licensee. It is nonassignable and any attempt to assign this
license will terminate the license privileges granted to Licensee hereunder.
Termination
This agreement is subject to termination by the City if any condition specified herein
is not met. This agreement may also be terminated by the Licensee. Either party
attempting to terminate this agreement shall give written notice to the other
specifying the date of, and the reason for, temunation. Such notice shall be given
not less than thirty (30) days prior to the termination date therein specified. Any
written notice may be effected either by personal delivery or by registered or certified
mail, postage prepaid with return receipt requested. Mail notices shall be addressed to
the addresses of the parties as follows:
City of Beaumont Name of Licensee: CIMAREX ENERGY CO.
P.O. Box 3827
Beaumont, Texas 77704 Address of Licensee: 15 EAST 5TH STREET
Attn: City Manager City and State of Licensee: TULSA, OK 74103
Upon cancellation, the pipeline shall be removed and property restored to a condition
acceptable to the City Engineer. In the event of cancellation, any and all monies
collected for fees associated with this agreement will remain the property of the
City. There will be no reimbursements.
8
Commencement of work on the pipeline by Licensee after the date of this fully executed
license shall be construed as evidence of Licensee's acceptance and approval of the
conditions above set forth.
IN WITNESS WHEREOF, the City of Beaumont, Texas, has caused these
presents to be signed by its City Manager and the seal of the City to be herewith affixed by
the City Clerk, this 2 1 —day of Oc Se,- , A.D. 20_q_j_.
CITY OF BEAUMONT, TEXAS(
By v
Kyle Hayes, City Manager
MINN
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City Clerk
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APPLICANT'S COMPANY NAME;,I��+
(Licensee)
CIMAREX ENERGY CO.
Repr to /,,,
Title
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SYSTEM,LAMBERT PROJECTION,CENTRAL
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ALL RIGHTS RESERVED.®2009. P