HomeMy WebLinkAboutRES 01-085 RESOLUTION NO. 01-085
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Manager is hereby authorized to execute a pipeline license agreement with
EEX E&P Company, L.P. to cross Brooks Road. The agreement is substantially in the
form attached hereto as Exhibit "A."
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 3rd day of April,
2001.
vv
f �I
Mayor -
GAMRESOLUTIWGENDAI.RES
CITY OF BEAUMONT
APPLICATION FOR
PIPELINE LICENSE AGREEMENT
THE STATE OF TEXAS:
COUNTY OF JEFFERSON:
Business Name: EEX E&P COMPANY. L . P . Business Phone:(21 Q 829-3511
Business Address: ONE OAK PARK , SUITE 700 , 1020 NE LOOP 410
SAN ANTONIO , TEXAs 78209-1218
The City of Beaumont, hereinafter called "City", for and in consideration of the sum
specifiedherein SIX HUNDRED TWENTY TWO AND 60/100 $622 . 60 )
hereby grants to
EEX E&P COMPANY , L . P .
hereinafter called "Licensee", the license
to lay, maintain, operate, replace, or remove a pipeline for the transportation of oil, gas, water,
or their products, on or across the following streets, alleys and easements or other right-of-way
situated in The City of Beaumont, Jefferson County, Texas, to-wit:
Street Name or R.O.W. Description Length (Linear Feet)
BROOKs ROAD 61 . 3
1
EXHIBIT "A"
CQT QF LICENSE:
Licensee shall make payment to the City of Beaumont as follows:
o License Agreement fee - $500.00
o Annual fee of$2.00 per linear foot of pipeline located within the City right-
of-way. Said fee shall be reset on January 31, 2001 and shall be reset
every ten (10) years, thereafter, to a level to be determined by the City
Council or their delegated representative.
o Street Cut and Barricading Permit to work in the City right-of-way:
$10.00 for permit, plus $5.00 per day for each location.
All fees, including the first annual fee for linear foot usage and Street Cut and
Barricading Permit 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 th e
following may result in termination of agreement (see page 8).
GENERAL CONDITIONS:
o Licensee does not intent 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
street rental fee and the regulations controlling the payment of such fee will
be those as lawfully established by the ordinances of the City.
o 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.
o The pipeline shall be constructed in such a manner as approved by the City
and/or the Texas Department of Transportation so as it does not interfere
with the use of the public streets and alleys.
2
o 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.
o 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.
o 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 arc
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.
o 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.
o 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. Approval of this license agreement
excludes permission to do any construction on property which is not owned
by the City of Beaumont.
3
o Any licenses, permits or agreements required by another government 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 government entity, then documentation
regarding such will be provided to the City of Beaumont.
o Licensee shall provide copies of all necessary agreements to be obtained
from other City Departments.
o Licensee shall be responsible for acquiring all agreements necessary for the
lawful use of any private property.
o A map showing the location of the proposed pipeline shall be provided.
G"=2,000' City of Beaumont map or United States Geological Survey
Map)
o 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.
o 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.
o 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 permits is in addition to this
License Agreement fee. (see Cost of License)
o Installation will be done in accordance with all City standards and statutes
of the State of Texas.
4
RE 1IR .D COVE AGE:
o 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:
o Bodily injuries: $ 300,000.00 per person
$1,000,000.00 per incident
o 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.
o Licensee shall have in force with the City a surety bond in the principal
amount of $100,000.00. The band 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 be good and in effect for a period of one
(1) year from the date of completion of construction of the pipeline.
o 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.
o 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 streets, alleys, or easements mentioned herein.
S
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 performance of any contract with the City.
Id
OTHER CONSTRUCTION/MAINTENANCE WITHIN R.O.W.
o City will use it's 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 changes 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 located.
o 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 party who may be responsible for damages to Licensee's
facilities.
IC
o Whenever by reason of the change in the grade of any street occupied by
Licensee's 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
City to relocate, alter, encase, change, adopt or conform the pipeline of
License 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/INSPECTION-
0 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.
o 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-fpur
(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 wil l be reimbursed to the City.
o 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 li cense
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,
termination. 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
m the addresses of the parties as follows:
City of Beaumont Name of Licensee: E E X E&P COMPANY, L. P.
P.O. BOX 3827 ONE OAK PARK, SUITE ZOO
Beaumont, Texas 77704 Address of Licensee: 1020 NE Loop 410
Attn: City Manager City and State of Licensee:SAN A N T o N I o , TEXAS 78209-1218
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 wilf be no reimbursements.
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 CIerk,
this day of , A.D. 24
CITY OF BEAUMONT, TEXAS
By:
Stephen J. Bonczek, City Manager
ATTEST:
Barbara Liming, City Clerk
APPLICANT'S COMPANY NAME:
(Licensee)
EEX E&P COMPANY, L . P.
R ented by:
,JAMES A. SKINNER
RIGHT OF' WAY AGENT
Title
ATTEST:
By:
Secretary
DRN�PIT?ELINE Revised 2-03-2000
9
IMR-23-01 17:17 713 430 6590 P 02 R-429 icb-511
MAR 23101 16 : 41 FR AON RISK 713 430 6590 TO 97132433342 P - 02/02
erfificate of 3ingurance
AONAon Risk Services
TO: City of Beaumont @-
P.O. Box 3827
Beaumont.Texas 77704
Assured: EEX E&P Company LP
2500 City West Blvd..Suite 1400
Houston,Texas 77042
This is to c wify that the pdkc*s of Insurdnoe listed below have been issued to the Invow narlted&wW Jbr em policy period indicated.not-Msw%bng any
regrwernent,tam.or con ubw of any corKrdct or rifler document wi>h respect to which this oerVacads may be issued or may peRase. The insurance aftfafed by
the poroes descllbed herein is uo$d fo eft the terms.exclusions and condrbom of sudn pohoes. Umds showYr mey have been educed by paid dairns.
Type of Policy Policy Policy `
Insurance No. Period Limits/Values
+Commercial General BOG2239390-04 01101/2001- $1,000,000 CSL any one Accident or Occurrence
Liability 2002 $1,000,000 Aggregate
$1,000,000 Products and Completed Operations
$1,000,000 Personal&Advertising Injury
$ 100,000 Fire Damage Legal Liability
$ 10.000 Medical Expenses
Insurance Cornpany(ies) 100% Steadfast insurance Company per Zurich American Insurance Group
City of Beaumont is named as an+Additional Insured,but only to the extent required by written contract and subject to
policy terms and conditions.
A*Waiver of Subrogation is granted in favor of City of Beaumont but only to the extant required by written contract and
subject to policy terms and conditions.
The&jOwnbing insurers'*bbgawns ruder contYaus of insurance to which trey subw2w are several and not 0W and am amlted soi*to dw exfbnt of Vw
;ndWduaf suoscdrptlons. The st org insurers we not responsible for ft u0scripw af any oos:dsot trg m suer wfro W any reason does nor sab*ad or
part of its obGpatows.
Tr4 cat fimte is issued as a matte►of information orgy and mrders no rots tjpm the ced6mte t*kW. This certificate does not amend,extend of aner the
OwerAge artoraW by the poliry(ies)shown 11MM, ShoWd arty of the above desa+oed pokma be canoeied before the expiration date ttureof,this agency.on
WWI of fie issuing oompany(eq will ando vor to mail 30 days written noose to the above named eerofiicate holder,but failure to mail such notice Shan
impose no 0bbg3W or`Wady of any hind upon**cOn wy(ies)or this agency.
Aon Risk Services of Tex Inc.
Date: March 23, 2001 By:
Aon Risk Services o/Trxat. lnc.
3000 Scring Drive,Suite 900• Houston.Teas 77057-3790•tel'(%l3)430-6000•fix:(7 t 3)430-6590
F NCLIEN75WON�EEXft oe s%CertificatesUWl-2op2,4.dgooc-2
** TOTAL PAGE . 002 **
BOND COVERING PIPELINES,UTILITIES AND/OR OTHER FACTILITIES
IN,UNDER,ACROSS OR ALONG RIGHTS-OF-WAY
BELONGING TO THE CITY OF BEAUMONT,TEXAS
STATE OF TEXAS §
COUNTY OF JEFFERSON §
Bond No. SD4734
KNOW ALL MEN BY THESE PRESENTS:
THAT, We, EEX E&P Company, L.P., 2500 CityWest Blvd., Suite 1400, Houston, Texas 77042, as
Principal, and ST. PAUL FIRE AND MARINE INSURANCE COMPANY, 8144 Walnut Hill Lane, Suite
1199, Dallas, Texas 752314345, as Surety, are held and firmly bound unto the CITY OF BEAUMONT,
TEXAS, in the penal sum of ONE HUNDRED THOUSAND AND N01100—($100,000.00***), lawful
currency of the United States of America, for the payment of which, well and truly to be made, we do
hereby bind ourselves, our heirs, executors, administrators and successors,jointly and severally and firmly
by the presents.
THE CONDITION OF THIS BOND IS SUCH THAT, WHEREAS, the above bounden Principal plans to
lay,construct, install, maintain and/or repair its pipeline,pipelines, utilities,and/or other facilities in, under,
across or alonitone or more ditches,levees or rights-of-way belonging to or under the control of the City of
Beaumont, Texas, and under the jurisdiction of the Public Works and Engineering Division of the City of
Beaumont, Texas, pursuant to the Policy Regarding Issuance of Permits for Pipelines, Utilities and Other
Facilities to be installed on _ seFe a tract belonging to the City
of Beaumont, Texas, and the conditions set forth in the permit granted by the Public Works and
Engineering Division of the City of Beaumont, Texas, hereby referred to and made a part hereof for all
purposes as through fully set out herein;
AND, WHEREAS, the Principal has prepared, or caused to be prepared, the attached application to lay,
construct, install,maintain and/or repair its pipeline,pipelines,utilities and/or other facilities across ditches,
levees, and/or rights-of-way in accordance with the accompanying plans, specifications and other
documents;
NOW, THEREFORE, if the above bounden Principal shall faithfully perform the construction, installation,
maintenance and/or repairs described in the above mentioned application and accompanying plans,
specifications and other documents, pursuant to and in accordance with the minimum requirements and
conditions of the above mentioned Public Works and Engineering Division of the City of Beaumont,Texas
policies and conditions regulating same,and do and perform each and every,all and singular,the
Pagel of 2
matters and things in said policy and conditions of the Public Works and Engineering Division of the City
of Beaumont, Texas policies and conditions regulating same, and do and perform each and every, all and
singular,the matters and things in said policy and conditions of the Public Works and Engineering Division
as set forth and specified to be by said Principal done and performed, at the time and in the manner therein
specified, and shall pay over and make good and reimburse the City of Beaumont, Texas, all losses and
damages which said City of Beaumont,Texas may sustain by reason of any failure or default on the part of
said Principal,then this obligation shall be null and void;otherwise to remain in full force and effect.
This Bond is payable at the offices of the Public Works and Engineering Division of the City of Beaumont,
Texas.
The term of this Bond is for a period of two (2) years commencing on the date hereof, and may be
continued from year to year by continuation certificate executed by the Principal and the Surety.
Signed,sealed and dated this 23rd day of March,2001.
EEX E&P COMPANY,L.P.
By: EEX EXPLORATION&PRODUCTION COMPANY
LLC.its General Partner
c
By:
Richard L. Edmondson
Senior Vice President
ST.PAUL FIRE AND MARINE INSURANCE COMPA .
By:
Margaret B oltz,Attorney-in-Fact
Page 2 of 2
This Power of Attorney is granted under and by the authority of the following resolutions adopted by the Boards of Directors of Seaboard Surety Compr11y,St,Paul
Fire and Marine Insurance Company. St. Patti Guardian Insurance Company,St. Paul Mercury Insurance Company. United States Fidelity and Guaranty Company,
Fidelity and Guaranty Insurance Company.and Fidelity and Guaranty Insurance Underwriters.Inc.on September 2, 1999,which resolutions are now in full force and
effect,reading as follows:
RESOLVED,that in connection with the fidelity and surety insurance business of the Company.all bonds,undertakings,contracts and other instruments relating
to said business may be signed,executed,and acknowledged by persons or entities appointed as Atiorney(s)-in-Fact pursuant to a Power of Attorney issued in
accordance with these resolutions. Said Power(s)of Attorney for and on behalf of the Company may and shall be executed in the name and on behalf of the
Company,either by the Chairman,or the President,or any Vice President,or an Assistant Vice President,jointly with the Secretary or an Assistant Secretary,
under their respective designations. The signature of such officers may be engraved,printed or lithographed. The signature of each of the foregoing officers and
the seal of the Company may be affixed by facsimile to any Power of Attorney or to any certificate relating thereto appointing Attorney(s)-in-Fact for purposes
only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof,and subject to any limitations set forth therein,any
such Power of Attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company,and any such power so
executed and certified by such facsimile signature and facsimile seal shall be valid and binding upon the Company with respect to any bond or undertaking to
which it is validly attached;and
RESOLVED FURTHER,that Attorneys)-in-Fact shall have the power and authority,and, in any case, subject to the terns and limitations of the Power of
Attonyev issued them,to execute and deliver on behalf of the Company and to attach the seal of the Company to any and all bonds and undertakings,and other
writings obligatory in the nature thereof,and any such instrument executed by such Attorney(s)-in-Fact shall be as binding upon the Company as if signed by an
Executive Officer and sealed and attested to by the Secretary of the Company.
I,Thomas E.Huibregtse,Assistant Secretary of Seaboard Surety Company.St.Paul Fire and Marine Insurance Company,St.Paul Guardian Insurance Company,
St. Paul Mercury Insurance Company,United States Fidelity and Guaranty Company,Fidelity and Guaranty Insurance Company-and Fidelity and Guaranty Insurance
Underwriters,Inc.do hereby certify that the above and foregoing is a true and correct copy of the Power of Attorney executed by said Companies,which is in full force
and effect and has not been revoked.
IN TESTIMONY WHEREOF,I hereunto set my hand this 23rrdir day of March 0
Thomas E.Huibregtse.Assistant Secretary
To verify the authenticity of this Power of Attorney,call 1-800-421-3880 and ask for the Power of Attorney clerk. Please refer to the Power of Attorney number,
the above-named individuals and the details of the bond to which the power is attached
IMPORTANT NOTICE
To obtain information or make a complaint:
You may contact the Texas Department of Insurance to obtain
information on companies, coverages, rights or complaints at:
1-800-252-3439
You may write the Texas Department of Insurance:
P.O. Box 149104
Austin, Texas 78714-9104
Fax #(512) 475-1771
PREMIUM OR CLAIM DISPUTES
Should you have a dispute concerning your premium or about a
claim you should contact the agent or company first If the dispute
is not resolved, you may contact the Texas Department of Insurance.
ATTACH THIS NOTICE TO YOUR POLICY:
This notice is for information only and does not become a part or
condition of the attached document