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HomeMy WebLinkAboutResolution - 2010-R0223 - Pipeline Relocation W/Centurion Pipeline, L.P. - 05/13/2010Resolution No. 2010-RO223 May 13, 2010 Item No. 5.22 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock, a Reservation of Right to Seek Compensation and Agreement to Relocate Pipeline to Avoid Delay, by and between the City of Lubbock and Centurion Pipeline, L.P. of Midland, Texas, and related documents. Said Agreement is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council on May 13, 2010 TOM MARTIN, MAYOR ATTEST: i 'Q Rebe a Garza, City Secretary VED AS TO CONTENT: Loomis, Assistant City Manager APPROVED S TO FORM: Chad Weaver, Assistant City Attorney vwxcdocs:'RES.Reservation of Right -Centurion L.P. April 29, 2010 Resolution No. 2010—RO223 IN THE STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LUBBOCK RESERVATION OF RIGHT TO SEEK COMPENSATION AND AGREEMENT TO RELOCATE PIPELINE TO AVOID DELAY In order not to delay the completion of the City of Lubbock's proposed extension of Runway 08/26 of the Lubbock Airport, and to protect the rights of the parties in their respective claims and without prejudice thereto, the City of Lubbock (the "City") and Centurion Pipeline, L.P. ("Centurion") agree to the following: Centurion will relocate its Post to Monroe 8" petroleum pipeline (the "Pipeline") to the location described in Exhibit A of the new written Pipeline Right -of -Way Agreement (the "New Easement") executed by Centurion and the City. Centurion will complete the relocation by September 1, 2010, unless hindered in so doing by (i) acts of God, fire, explosion, flood, hurricanes; (ii) strikes, lockouts or other disturbances or riots; (iii) war, declared or undeclared; (iv) compliance with any Federal, State, Municipal or Military law, regulation, order or rule, foreign or domestic, including priority, rationing, allocation, or preemption orders or regulations; (v) shortage or breakdown or other failure to facilities used for manufacture or transportation, shortage of labor, power, fuel, or raw materials; or (vi) any other cause or causes of any kind or character outside Centurion's control, whether similar or dissimilar from the enumerated causes. In such cases, the parties shall negotiate a revised deadline. 2. Centurion is not voluntarily relocating the Pipeline. By this reservation, the parties intend to preserve their rights concerning the obligation to pay for relocating the Pipeline as they presently exist, before the relocation of the Pipeline. 3. Centurion's agreement to relocate the Pipeline is made without prejudice to any contention that Centurion desires to make, including but not limited to the contentions that Centurion is entitled to compensation from the City for the reasonable costs of relocation based upon the existence of a prior easement (the "Prior Easement"), and that the City is taking for public use Centurion's Prior Easement. It is acknowledged by Centurion that the City disputes the existence of a valid Prior Easement. 4. Centurion reserves the right to seek compensation for the taking of Centurion's Prior Easement and the Pipeline relocation from the City or other persons or entities. Centurion's agreement to relocate the Pipeline is not an admission of responsibility or liability for the relocation of the Pipeline and may not be so construed. 5. The City agrees that by relocating the Pipeline, Centurion is not waiving and Centurion is not estopped from asserting and/or prosecuting in litigation a claim that the Prior Easement is valid, and that the City is taking for public use Centurion's Prior Easement. The City agrees that it will not in any action filed by Centurion to seek compensation for the Prior Easement and/or the Pipeline relocation assert the defenses of waiver, estoppel, or failure to exhaust administrative remedies. No provision herein shall prohibit the City from asserting a defense based upon any applicable statute of limitations. 6. The Benefit to Centurion, if any, of relocating the Pipeline is limited to the correction of conditions which would not have existed but for the extension of Runway 08/26 of the Lubbock Airport. 7. The City does not concede that the Prior Easement is valid. The City does concede and agree that if the Prior Easement is valid against the City, the City is taking for public use Centurion's Prior Easement, and Centurion is entitled to adequate compensation for such taking and the relocation of the Pipeline. The City does not agree to the amount of any such adequate compensation. The City agrees to participate in and be bound by a legal determination of those issues. 1/3 8. Centurion and the City acknowledge that this reservation creates no duty, obligation, or debt by the City, independent of any existing duty, obligation, or debt which may exist by reason of the Prior Easement or Pipeline relocation, and does not bind any future City Council except with respect to the express reservations herein. 9. Before executing this agreement, Centurion and the City became fully informed of the terms, contents, conditions. and effect of this agreement. 10. Centurion and the City had the benefit of the advice of their lawyers in executing this agreement. 11. Centurion and the City have relied solely upon their own judgment and the advice of their lawyers in executing this agreement. 12. This agreement shall become effective upon execution and the delivery of an executed agreement. 13. This agreement was drafted mutually and is the product of negotiation and compromise in which each side was represented by counsel. Centurion and the City agree that there should be no presumption against the drafter. 14. The representative of the City signing this document has full authority from the City Council of the City of Lubbock to execute this document and bind the City hereto, as evidenced by the Resolution attached as Exhibit A hereto. EXECUTED as of and to be effective on May 13 , 2010. GRANTOR CITY OF LUBBOCK By: TOM MARTIN, MAYOR ATTEST: ebec a Garza, City Secretary APPROVED AS TO CONTENT: Dave Booher, Right -of -Way Agent APP V'YD AS TO ORM: Chad Weaver, Assistant City Attorney GRANTEE CENTURION PIPELINE L.P. By: CENTURION PIPELINE GP, INC., General Partner By: William C. Boyer President 2/3 ACKNOWLEDGMENTS THE STATE OF TEXAS COUNTY OF LUBBOCK BEFORE ME, the undersigned authority, a Notary Public in and for said County, Texas, on this day personally appeared TOM MARTIN, Mayor of the City of Lubbock, known to me to be the person whose name is subscribed to the foregoing instrument and who acknowledged to me that he executed the same in the capacity therein stated and for the purpose and consideration therein expressed. ELISA SANCHEZ �s Notary Public, $lata of Texas Notary Public in and for the State exas �. My Canm�s&m Expires 11.07.2011 THE STATE OF TEXAS COUNTY OF HARRIS BEFORE ME, the undersigned authority, a Notary Public in and for said County, Texas, on this [1 day of May, 2010, personally appeared WILLIAM C. BOYER, President of Centurion Pipeline GP, Inc., General Partner of Centurion Pipeline L.P., known to me to be the person whose name is subscribed to the foregoing instrument and who acknowledged to me that he executed the same in the capacity therein stated and for the purpose and consideration therein expressed. ry bl iii aid for the State of Texas 3/3 Resolution No. 2010-RO223 May 13, 2010 "Exhibit A" Item No. 5.22 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock, a Reservation of Right to Seek Compensation and Agreement to Relocate Pipeline to Avoid Delay, by and between the City of Lubbock and Centurion Pipeline, L.P. of Midland, Texas, and related documents. Said Agreement is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council on May 13, 2010 <71 � TOM MARTIN, MAYOR ATTEST: Rebe a Garza, City Secretary AS TO CONTENT: Loomis, Assistant City Manager APPROVED S TO FORM: Chad Weaver, Assistant City Attorney vw:ccdocs/RES. Reservation of Right -Centurion L.P. April 29, 2010