To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, Director of Castle Rock Water
Matt Benak, Water Resources Program Manager
Title
Resolution Approving a Pipeline Right-of-Way Grant with Discovery DJ Services, LLC [Box Elder Property, Weld County]
Body
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Executive Summary
Staff recommends approval of a resolution approving the Pipeline Right-of-Way Grant (Attachment A), granting an easement to construct two gas pipelines on Town-owned property in Weld County known as the Box Elder Property. These pipelines will co-occupy an easement that was previously granted to Cureton Midstream, LLC for their natural gas pipeline. The location of the proposed easement is shown on the attached map (Attachment B).
History of Past Town Council, Boards & Commissions, or Other Discussions
Staff presented this to the Castle Rock Water Commission on April 25, 2018. Castle Rock Water Commission unanimously recommended that Council approve the agreement.
Discussion
Discovery DJ Services, LLC (Discovery) has requested an easement agreement to construct two natural gas pipelines across the property owned by the Town of Castle Rock known as the “Box Elder Property”. The draft agreement is included as Exhibit 1 to Attachment A and the proposed alignment is shown in Attachment B. The proposed easement agreement is the same as what was recently granted to Cureton Midstream for their natural gas pipeline that crossed the same 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;
• Discovery must give notice to Cureton about their construction plan;
• Disturbed area returned to original condition as soon as possible by Discovery;
• Minimum depth of 48-inches so as to not interfere with farming activities;
• Relocated by Discovery at their expense if necessitated by development of Town facilities;
• 48-hour notice to Town required by Discovery prior to accessing the property;
• Discovery to remediate any hazardous material or other environmental contaminants introduced as a result of operation of the pipeline at no cost to Town;
• Discovery to pay all damages to property and crops to Town or tenant as applicable;
• Pipeline and easement to be properly abandoned by Discovery if inactive for over one year;
• Pipeline to be maintained by Discovery
• Town indemnified from all liabilities and obligations;
• Commercial general liability insurance not less than $1,000,000 per occurrence required to be maintained by Discovery.
Regarding safety, Discovery has indicated that the pipelines 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”. Discovery also stated that the pipeline will be operated in conformance with industry standards. Language reflecting these two requirements is part of the attached agreement.
Budget Impact
The proposed compensation for this easement is $30 per foot, given the placement of two pipelines, for a total of $42,300. These proceeds 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.
To date, we have received $40,579 from granting two other gas pipeline easements on the property.
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: Agreement
Attachment B: Location Map