To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, Director of Castle Rock Water
Matt Benak, Water Resources Program Manager
Kurtis Cotton, Water Resources Manager
Title
Resolution Approving a Pipeline Right-of-Way Grant with Cureton Midstream LLC [Box Elder Property, Weld County]
Body
________________________________________________________________________________
Executive Summary
Staff recommends approval of a resolution approving the Pipeline Right-of-Way Grant (Attachment A), granting an easement to construct a gas pipeline on Town-owned property in Weld County known as the Box Elder Property. The location of the proposed easement is shown on the attached map (Attachment B).
History of Past Town Council, Boards & Commissions, or Other Discussions
On August 23, 2017, the Castle Rock Water Commission unanimously recommended support of the right-of-way grant with Cureton Midstream, LLC.
Discussion
Cureton Midstream, LLC has requested an easement to construct a natural gas pipeline in Weld County on property owned by the Town of Castle Rock. The property is planned to be utilized in the future as a part of the transition to renewable water. Approximately 1,400 feet of the pipeline is proposed to be located on Town-owned property.
The key terms of the Pipeline Right-of-Way Grant are as follows:
• 20 foot wide permanent easement
• Location clearly marked with carsonite marker posts
• Disturbed area returned to original condition as soon as possible by Cureton
• Minimum depth of 48-inches so as to not interfere with farming activities
• Relocated by Cureton at their expense if necessitated by development of Town facilities
• 48-hour notice to Town required by Cureton prior to accessing the property
• Cureton to remediate any hazardous material or other environmental contaminants introduced as a result of operation of the pipeline at no cost to Town
• Cureton to pay all damages to property and crops to Town or tenant as applicable
• Pipeline and easement to be properly abandoned by Cureton if inactive for over one year
• Pipeline to be maintained by Cureton
• Town indemnified from all liabilities and obligations
• Commercial general liability insurance not less than $1,000,000 per occurrence required to be maintained by Cureton
Regarding safety, Cureton indicated that the pipeline will be designed and constructed to 49 CFR 192 “Transportation of Natural and Other Gas by Pipeline: Minimum Federal Safety Standards” and ASME B31.8 “Gas Transmission and Distribution Piping Systems”. Cureton also stated that the pipeline will be operated in conformance with industry standards. Language reflecting these two requirements has been included in the proposed agreement. Cureton has also indicated that the pipeline will have the following safety features:
• 24/7 Pipeline Control Monitoring
• Supervisory Control and Data Acquisition (SCADA)
• Leak Detection - Computational Pipeline Monitoring (CPM)
• Pipeline Patrol
• One Call
• Public Education
• Emergency Response Plan
Budget Impact
The compensation offered for this easement is $21,163.50, which staff has determined to be fair and reasonable compensation by comparing the proposed compensation to an easement cost estimate for the WISE Pipeline in Douglas County that was completed by Harvey Smith, WSLS on behalf of Castle Rock Water. The WISE Pipeline easement cost estimate recommended offering $0.175 per square foot for the permanent easement and $0.035 per square foot for the temporary construction easement, which would be equivalent to approximately $5,422.24 that Castle Rock Water would offer for a comparable easement. It is assumed that the land value in Weld County where this easement is being granted is less than the land value in Douglas County that the referenced cost estimate is related to, further indicating that the compensation proposed by Cureton is fair and reasonable. This revenue will be deposited into account 211-4300-392.10-00 (Proceeds-Sale of Assets), and will help offset the costs of our long term renewable water projects.
Staff Recommendation
Staff recommends approval of the Pipeline Right-of-Way Grant as presented.
Proposed Motion
”I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Pipeline Right-of-Way Grant
Attachment B: Location Map