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Home My WebLink AboutC2019-481 - 8/22/2019 - NA Page 1 of 7 AGREEMENT GRANTING A PIPELINE LICENSE TO GRAY OAK PIPELINE, LLC, UNDER ARTICLE VII, CHAPTER 49, CITY OF CORPUS CHRISTI CODE OF ORDINANCES, GRANTING THE RIGHT TO OCCUPY CERTAIN CITY RIGHTS-OF-WAY AND CITY- OWNED PROPERTY FOR PIPELINES THROUGH DECEMBER 31, 2019. WHEREAS, Gray Oak Pipeline, LLC, ("Licensee") has made application to the City of Corpus Christi, Texas ("City") for a pipeline license in order to occupy property subject to certain City rights-of-way for pipeline purposes, under Article VII, Chapter 49, City's Code of Ordinances ("Article VII"); and WHEREAS, the City has determined that Licensee's application meets the requirements of Article VII; NOW, THEREFORE, LICENSEE AND CITY HEREBY AGREE AS FOLLOWS: SECTION 1. Grant of license. City grants to Licensee a license to operate, alter, inspect, repair, replace with like property, remove, construct, maintain, or abandon pipeline within the City rights-of-way as specified and described in Exhibit A, attached to this license and incorporated into it for all purposes. This license is granted under and subject to Article VII, the provisions of which are incorporated in this license and made part of this license for all purposes. The license granted commences on execution of this license by City and Licensee and expires at midnight on December 31, 2019, unless earlier terminated or extended under the provisions of Article VII. SECTION 2. Definitions. Definitions contained in Article VII apply to those terms as they are used in this license. SECTION 3. Application fee. City acknowledges receipt of Licensee's application fee of $3,000.00 for an initial application or for an application for extension, relocation, or enlargement of pipeline. SECTION 4. License fee. Licensee has tendered with its application the first annual license fee as set forth in Section 49-95, City's Code of Ordinances, in the amount of $1,500 and agrees to make additional annual payments in accordance with such Section during the term of this Agreement, as extended. SECTION 5. Indemnification. By its acceptance of this license, Licensee covenants and agrees fully to indemnify and hold harmless the City and the elected officials and officers and employees of the City, individually or collectively, from and against any and all costs, claims, liens, damages, losses, expenses, fees, fines, penalties, proceedings, actions, demands, causes of action, liability, and suits SCANNED Page 2 of 7 of any kind and nature, including but not limited to, personal injury or death and property damage, made upon the City, directly or indirectly arising out of, resulting from or related to Licensee's activities under this license, including any acts or omissions of Licensee, and any respective agent, officer, director, representative, employee, consultant, or sublicensee of Licensee, and their respective officers, agents, employees, directors and representatives while in the exercise or performance of the rights or duties under this license, all without, however, waiving any governmental immunity available to the City under Texas law and without waiving any defense of the parties under Texas law. The provisions of this indemnification are solely for the benefit of the parties to this license and are not intended to create or grant any rights, contractual or otherwise, to any other person or entity. Licensee shall promptly advise the City in writing of any claim or demand against the City or Licensee known to the Licensee related to or arising out of Licensee's activities under this license and shall see to the investigation and defense of the claim or demand at Licensee's cost. The City shall have the right, at its option and at its own expense, to participate in the defense without relieving Licensee of any of its obligations under this paragraph. The City shall cooperate with Licensee in the defense of all claims, proceedings, actions, and suits subject to this indemnification. This indemnification shall not extend to any costs, claims, liens, damages, losses, expenses, fees, fines, penalties, proceedings, actions, demands, causes of action, liability, or suit to the extent they directly or indirectly arise out of, result from or relate to the negligent or wrongful acts or omissions of City or its officers, agents, employees, representatives, consultants, or contractors. This indemnification survives the termination or expiration of this license. SECTION 6. Notices. All notices required or permitted by the terms of this license and Article VII, are deemed sufficient if given by personal delivery, or facsimile, or by prepaid, certified mail and addressed to each party as follows: Notice to City: City Manager City of Corpus Christi P.O. Box 9277 Corpus Christi, Texas 78469-9277 Telephone: 361 880-3220 Facsimile: 361 880-3839 Director of Engineering Services Page 3 of 7 City of Corpus Christi P.O. Box 9277 Corpus Christi, Texas 78469-9277 Telephone: 361 880-3500 Facsimile: 361 880-3501 For overnight delivery: 1201 Leopard Street Corpus Christi, Texas 78401 or to any other addresses as may be designated in writing by City. Notice to Licensee: Phillip 66, Gray Oak Pipeline, LLC Real Estate Service Manager 2331 City West Blvd Houston, Tx 77042 or to any other addresses as may be designated in writing by Licensee. SECTION 7. Applicable law. This license must be construed under and in accordance with the laws of the State of Texas and all obligations of the parties created under this license are performable within the incorporated limits of the City of Corpus Christi, Texas. SECTION 8. Venue. Venue for any cause of action brought under this license shall be the State courts of competent jurisdiction in Nueces County, Texas, unless Texas law requires a matter to be submitted to a particular regulatory body or court outside Nueces County. SECTION 9. Condemnation. In the event City-owned property or City rights-of-way are taken, in whole or in part, by a governmental authority other than City, all rights created by this license may, at the option of City, as to the condemned real property, cease on the date title to the land so taken or transferred vests in the condemning authority. Licensee will not have right to any proceeds of the condemnation. Licensee has the right to seek a separate condemnation award. Nothing in this license may be construed to limit City's condemnation authority. SECTION 10. Attorneys Fees. In the event either party brings any action under this license alleging that the other party to this license has defaulted on or breached obligations created by this license, the party who prevails is entitled to recover its reasonable attorneys' fees from the losing party. SECTION 11. Waiver. Failure of either party to require the performance of any term in this license or the waiver by either party of any breach of this license does not prevent Page 4 of 7 subsequent enforcement of the particular term and is not deemed a waiver of any subsequent breach. SECTION 12. Claims reserved. City does not, by the granting of this license, waive any claims it may have against Licensee for payments related to past occupancy of City rights-of-way or City-owned property by Licensee's pipe, and nothing contained in this license operates as a bar to City's actions, undertaken at City's sole discretion, to seek to recover payment of such claims. SECTION 13. Compliance with other ordinances. Nothing in this license relieves Licensee from full compliance with Article VII, Chapter 35, City's Code of Ordinances. Nothing in this license may be construed to grant Licensee permission, as required by Section 55-3, City's Code of Ordinances, to serve natural gas consumers within the City, as opposed to sales and deliveries for resale or generation of electric energy. SECTION 14. Relationship of parties. This license may not be construed to create between City and Licensee the relationship of partnership, joint venture, principal and agent, or any relationship other than that of City and Licensee as established by the provisions of this license and Article VII, nor may it be construed to be for the benefit of any third party other than City and Licensee. SECTION 15. General Conditions of Construction. a. Licensee is advised that the top of the 30-inch pipeline to be constructed must have a minimum 10-foot clearance from the top of their proposed pipeline to the bottom of all existing City water lines, and a minimum centerline to centerline horizontal distance of 10-feet from all other existing City utilities. b. The pipeline to be constructed must meet the required conditions below, as per approval of the City Water Department: Line pipe spec'd at .312WT Grade X-52 rated to 2160psi Standard bore for project is .375WT Grade X-52 rated to 2600psi In the alternative, can use .500Wt Grade X-52 rated to 3000psi c. The pipeline to be constructed must have Cathodic Protection when crossing any existing City water lines. If improvements are needed to any of the existing City water lines, due to the possible stray current of the 30-inch pipeline making our City water lines the sacrificial anode, or if Cathodic Protection is needed on the City water lines, Licensee must provide that service to the existing City water lines. In witness whereof, this license agreement has been duly authorized, executed, and delivered by the parties as of the respective dates appearing below. Page 5 of 7 CITY OF CORPUS CHRISTI, TEXAS �a a / qn -i;cLDated .f. By. Thr)7:7) Nina Nixon-Men ez, FAI Director, Development Services Gray Oak Pipeline, LLC �T............ By.. �3,• ... ... .............. Bill A. Hallett Title. Attorney In Fact Approved as to form: 4g,' 71— (el B i)1/IA Y• Assistant City Attorney For City Attorney Page 6 of 7 EXHIBIT A (Description of Licensee's pipelines) The Gray Oak Pipeline, LLC project will consist of one uncased cathodically protected steel, crude oil pipeline being 20 inches in diameter. It will originate at the Phillips66 Taft Terminal and will travel approximately 9.3 miles, crossing Nueces Bay and terminating into the Valero Distribution Terminal just to the south of Up River Road. As the pipeline exits Nueces Bay into the City Limits of Corpus Christi, we have partnered with an existing Pin Oak agreement at two Union Pacific Railroad Crossings and the crossing of Navigation Blvd. An existing easement agreement within a Port of Corpus Christi Authority parcel will bring the pipeline to the Up River Road Crossing. Gray Oak will be boring to the south under Up River Road at approximately 5 feet below the lowest point of the bar ditch and a minimum of 10 feet beneath any utility. The bore will be conducted property line to property line. Gravel will be installed on both sides of the road to insure move arounds will not cause city right-of-way's damage. There are main block valves strategically placed throughout the pipeline. The pipeline has a MAOP of 1480 PSI, however pressure will be much less. Page 7 of 7 NUECES COUNTY, TEXAS E.V EAL SURVEY,A 1 iiiiiiiitr"' r :•••.mc••t. } i!ri e slotB 1111 I } f i r; 1 \ ; 1 til,M!1 , �• 1 ' i IPCUMC tor r t I OWNS ell 711413./71. sorer sr '. 1 a t!sn�!•1M•N • J1.+•M/e l*: it 1� ,� . I ,. .arr-t1•.r We ICAO••w *WPM •...I• MI _. -- 4.-., d d 10 t»•-at sa•a Mb,. 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File Information: Record and Return To: Document Number: 2019034363 DEVELOPMENT SERVICES CITY OF CC Receipt Number: 20190822000108 2406 LEOPARD STREET Recorded Date/Time: August 22, 2019 12:09 PM User: Lourdes V CORPUS CHRISTI TX 78408 Station: CLERK07