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HomeMy WebLinkAboutMINUTES - 03122013 - C.80RECOMMENDATION(S): ADOPT Resolution No. 2013/127 approving the Assumption of Contra Costa County Pipeline Franchises and County Consent to Transfer for Venoco, Inc. to transfer pipeline franchises to Vintage Production California LLC. FISCAL IMPACT: No fiscal impact. BACKGROUND: On October 5, 1993, the County granted a pipeline franchise to Chevron USA, Inc. (Chevron) to operate a dry natural gas pipeline and a steel condensate gas pipeline within the County for a term of 20 years per County Resolution 93/588 (the "93/588 Franchise"). On December 14, 1993, the County granted a pipeline franchise to Tosco Refining Company (Tosco) to operate natural gas pipelines within the County for a term of 20 years per County Resolution 93/737 (the “93/737 Franchise”). On June 24, 1997, the County granted a pipeline franchise to Union Oil Company of California (Unocal) to operate a 6" products pipeline and an 12" natural gas pipeline within the County for a term of 20 years per County APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 03/12/2013 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Carrie Ricci, (925) 313-2235 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: March 12, 2013 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C.80 To:Board of Supervisors From:Julia R. Bueren, Public Works Date:March 12, 2013 Contra Costa County Subject:Assumption and Consent Agreement to transfer pipeline franchises to Vintage Production California LLC BACKGROUND: (CONT'D) Resolution No. 97/330 (the “97/330 Franchise”). Subsequent to the grant of 97/330 Franchise, Unocal sold the pipelines subject to the 97/330 Franchise to Tosco, and on October 28, 1997, the County consented to the transfer of 97/330 Franchise to Tosco pursuant to County Resolution 97/576. Through a series of acquisitions and mergers, Tosco was merged into ConocoPhillips which acquired the rights in, to and under the 93/737 Franchise and the 97/330 Franchise. On September 1, 1998, Chevron sold pipelines subject to the 93/588 Franchise to Venoco, Inc., and on February 2, 1999, the County consented to the transfer of the 93/588 Franchise to Venoco, Inc. pursuant to County Resolution 99/54. Effective December 13, 2005, ConocoPhillips Company transferred certain of its assets to Venoco, Inc. including its rights in the 12" natural gas pipeline subject to the 97/330 Franchise and in the 8" natural gas pipeline running along Port Chicago Highway subject to the 93/737 Franchise, pursuant to an Assignment and Assumption Agreement, dated as of December 13, 2005. Venoco, Inc. has filed written applications with County, dated December 20, 2012, wherein it has requested the consent of County to the transfer and assignment of the 93/588 Franchise and interests in both the 93/737 Franchise and 97/330 Franchise to Vintage Production California LLC. Approval of Resolution No. 2013/XXX will transfer the 93/588 Franchise and the interest in the 93/737 Franchise as it relates to the 8" natural gas pipeline running along Port Chicago Highway, and the 97/330 Franchise as it relates to the 12" natural gas pipeline subject thereto, to Vintage Production California LLC, and authorize the Director of Public Works or her designee to execute the Assumption and Consent Agreement whereby Vintage Production California LLC agrees to abide by the terms of the County franchise ordinance and post the required bond. CONSEQUENCE OF NEGATIVE ACTION: Vintage Production California LLC will not acquire the pipeline franchises. CHILDREN'S IMPACT STATEMENT: Not applicable. ATTACHMENTS Resolution No. 2013/127 Assumption & Consent