HomeMy WebLinkAbout4.j. Enron Memorandum of AgreementCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL_blEETINGDATE: October 6, 1992
AGENDA ITEM: Enron
"Memorandum of Agreement"
AGENDA SECTION:
Northern
Natural Gas
Consent
PREPARED BY:
Ron Wasmund
AGENDA ITEM# 4 J
Public Works Director/Building
official
ATTACHMENTS: Memo,
Memorandum of Agreement
APPROVED BY:
City
Attorney Letter
Public Works a d Planning Staff have been working with Enron ,since
April to permit and construct a 12 inch high pressure gas line from
Emery and 160th Street to Koch Refining. This line will serve Koch's
clean fuel project.
The questions that arose and were addressed included:
1. Whether a Franchise Agreement was needed.
2. Peoples Natural Gas formal protest.
3. The 19tate Environmental Quality Boards (EQB) authority.
4. The xacct intent for the use of the line.
Meetings wereeld with representatives of Northern Natural Gas, Koch
` Refining, Minnesota EQB, Minnesota Attorney General, City Attorney,
Peoples Natura Gas,.Bud Osmundson the City, Engineer and myself to
resolve the issues.
With all issues resolved, the Planning Commission has held a site plan
review and approved it. The Utility Commission has heard
presentations by Enron and Peoples Gas and reviewed the "Memorandum of
Agreement" They are forwarding the agreement to Council with
recommendation for execution by the Mayor or City Administrator.
-RECOMMENDED ACTI
MOTION TO ACCEPT THE "MEMORANDUM OF AGREEMENT"
FROM ENRON AND HAVE;THE
NECESSARY AUTHORIZED SIGNATURES AFFIXED.
COMMISSION ACTIO
2
FROM:
DATE:
MEMO
MAYOR McM NOMY
COUNCIL MEMBERS: KLASSEN
STAATS
WILLCOX
WIPPERMANN
PUBLIC WOR S DIRECTOR WASMUND
OCTOBER 2, 1 992
RE: ENRON "MEMORANDUM OF AGREEMENT"
Enron is a subsidiary of Northern Natural Gas, supplying natural gas all across North America.
In April of this year a representative contacted the City for a permit to install a twelve (12) inch
high pressure gas line to Koch Refining. The route of the line from Emery Avenue and 160th
Street to Koch Refining passes through two (2) franchised company's distribution areas. Those
companies, Minnegasco and Peoples Natural Gas opposed the new pipeline and registered their
concerns with the City to block the request of Enron and have the permit denied.
The actions of Minnegascc and Peoples did raise the question of need for a franchise with
Enron. Enron's position w s that they were an interstate transporter of gas, transporting gas
only for Koch Refining therefore no franchise was needed. This question was presented to the
City Attorney for his review. The fact is that Enron can provide farm taps if requested and they
can also tap off this line tc supply other gas companies with natural gas. These types of
services can not be required to have a franchise.
At approximately the same
time of the franchise question we were contacted by the Minnesota
Environmental Quality Board
(EQB) and told not to issue the permit for construction until we
received formal notification
of their approval. Enron was informed by us of the EQB's position
which they refuted. It was
Enron's position that since they were an interstate distributor the
Federal Energy Requirements
Commission (FERC) rules superseded the Minnesota EQB therefore
the EQB had no authority to
regulate the permit.
Several meetings and telephone
conversations were held to clear up questions and define
authority. It was finally d
termined that infact Peoples would like the opportunity to purchase
gas from Enron for distribL
tion in Rosemount so their objection was not as strong anymore.
The question of authority
between FERC and EQB has been long standing and is up to the State
of Minnesota and the Federal
Government to resolve. Upon the advise of City Attorney, we will
recognize the F.E.R.C. rul
s and certification for permit issuance.
With the issues resolved the Utility Commission reviewed the "Memorandum of Agreement" at
their August 17th meeting and had some suggested changes. Those changes were made and
approved at the September 14th meeting with a recommendation that the agreement be
executed by the Mayor or City Administrator.
The Planning Commission has reviewed and approved the site plan for the metering station on
the refinery site.
With your execution of the agreement Enron may proceed with their construction.
999 Westview Drive
Hastings, MN
55033-2495
(612) 437-3148
FAX (612) 437-2732
.Samuel H. Hertogs
-Donald J. Fluegel
*---Michael R. Sieben
*---Michael S. Polk
.Harvey N. Jones
--Richard chard A. LaVerdiere
Steven D. Hawn
Thomas R. Longfellow
Bernie M. Dusich
-J. Michael Miles
Leo F. Schumacher
Shay.n M. Moynihan
Mark J. Fellman
Michael R. Strom'
John P. Sieben
Scott J. Hertogs
Eric A. Short
Craig M. Roen
Sara M. Hulse
Of Counsel:
James M. Goetteman
+Also admitted in Wiscons n
+*Also admitted in Ic::a
Certified as civil tr al
specialists by the National
Board of Trial Advocacy
and the Minnesota State
Bar Association
ST. PAUL OFFICE:
Galtier Plaza
Suite 550, Box 45
175 Fifth Street East
St. Paul, MN 55101-2901
(612) 222-4146
FAX (612) 223-8279
Hertogs Fluegel
Sieben Polk
Jones & LaVerdiere
PROFESSIONAL ASSOCIATION
August 14, 1992
City of Rosemount
Utilities Commission
2875 145th St. W.
Rosemount, MN 55068
Re: Enron Application
At the., request of City Engineer Bud Osmundson, I have reviewed both the
findings of the Federal Energy Regulatory Commission and the proposed
Memorandum of Agreement between Northern Natural Gas Company and
the City of Rosemount.
Based on this review, I wish to advise you that:
1. The Federal Energy Regulatory Commission Order legally paves the way
for Enron to proceed with the pipe installation from a federal
environmental and regulatory point of view.
2. The proposed Memorandum of Agreement is the result of negotiations
between Enron officials and me. I am satisfied with the present form
of the Agreement.
3. On several occasions I made contact with the member of the Attorney
Generals office representing the State Environmental Quality Board to
ask them whether they had or wished to exercise any jurisdiction over
Enrons proposed installation. While their attorney expressed some
interest in this prospect, the EQB has taken no action.
Based upon the foregoing, I would recommend that, if the Commission is
satisfied with the propriety of Enrons request, their proposal may be
approved and the Memorandum of Agreement be executed.
Sincerely,
Mike Miles
City Attorney
City of Rosemount
WHEREAS, Noe
under the laws
transportation of
referred to as "Z
of 12 inch higt
meter station, i
corporate limits
referred to as "C:
WHEREAS, sa
depicted on the
made a part he
any public lands
NOW,
1. Facility
maintained as n
usual and custo�
ways of City.
or replacing Fac
ways, in on, u
condition as they
MEMORANDUM OF AGREEMENT
hern Natural Gas Company, a corporation organized
of the state of Delaware and engaged in the
natural gas in interstate commerce, hereinafter
rthern", plans to construct approximately 4.5 miles
pressure natural gas pipeline and a regulator and
reinafter referred to as "Facility", within the
of the City of Rosemount, Minnesota, hereinafter
y"; and,
d Facility will be constructed in the location
xhibit "A" attached hereto and, by this.reference is
eof. Said Facility does not cross under or through
r City road right-of-ways.
, Northern and City agree as follows:
shall be so located, constructed, installed, and
t ,-to endanger or unnecessarily interfere with the
ary trade, traffic, travel upon, and use of public
In installing, repairing, and maintaining, removing,
lity, Northern shall, in all cases, place the public
der, or across which the same are located in as good
were prior to said operation.
2. Northern shall not construct any new or modified
installations wi hin or upon any lands within the City of Rosemount
without receiving the prior written consent of an authorized
representative of City for each such new installation.
3. Northern
underground Faci
One -Call as requi
4. After u'
public way or
including paving
existed, and sh
years thereafter
permits. If N
work, remove al
public way or
give Northern fi
commence upon No
City may make
shall pay to C
performed by Ci
This remedy sha
City.
shall provide field locations for all its
ity within 48 hours of notification to Gopher State
ed by State law.
idertaking any work requiring the opening of any
>ublic ground, Northern shall restore the same,
and its foundation, to as good condition as formerly
ill maintain the same in good condition for two (2)
The work shall be completed as promptly as weather
)rthern shall not promptly perform and complete the
L dirt, rubbish, equipment, and material and put the
;aid public ground in the said condition, City shall
re (5) days written notice, which five (5) days shall
7thern's receipt of such notice. After the fifth day
:he restoration at the expense of Northern. Northern
Lty the reasonable cost of such work done for or
:y including its administrative expense and overhead.
L1 be in addition to any other remedy available to
5. Whenever City shall grade, regrade, or change the line of
any public way, or construct or reconstruct any City utility system
therein and shall, in the proper exercise of its police power, and
with due regard to seasonable working conditions, when necessary
order Northern to relocate permanently its Facility located in said
public way, Northern shall relocate its Facility at its own expense.
City shall give Northern reasonable notice of plans to grade,
regrade, or change the line of any public way or to construct or
reconstruct any City utility system therein. However, after Northern
has so relocated, if a subsequent relocation or relocations, shall be
ordered within ten (10) years from and after first relocation, City
shall reimburse Northern for such non -betterment relocation expense
which Northern may incur on a time and material basis; provided, if
subsequent relocations are required because of the extension of City
utilities to previously unserved areas, Northern may be required to
relocate at its own expense at any time.
6. Nothing
contained herein shall relieve any person,
persons,
or corporations
from liability
arising out of the failure to
exercise
reasonable care to avoid
injuring Northern's Facility while
performing any
work connected
with grading, regrading, or
changing
the line of any public way,
or with the construction of
any City
utility system.
7. Northern shall indemnify, keep, and hold City free and
harmless from any and all liability on account of injury to persons
or damage to property occasioned by the construction, maintenance,
repair, or operation of Northern's Facility located in, on, over,
under, or across the public ways and public grounds of City, unless
such injury or damage grows out of the negligence of City, its
employees, or agents, or results from the performance in a proper
manner o� acts reasonably deemed hazardous by Northern, but such
performance is nevertheless ordered or directed by City after notice
of Northern's determination. In the event a suit shall be brought
against City under circumstances where the above agreement to
indemnify applies, Northern at its sole cost and expense shall defend
City in such suit if written notice thereof is promptly given to
Northern within a period wherein Northern is not prejudiced by lack
of such notice. If such notice is not reasonably given as
hereinbefore provided, Northern shall have no duty to indemnify nor
defend. If Northern is required to indemnify and defend, it will
thereafter have complete control of such litigation, but Northern may
not settle such litigation without the consent of City, which consent
shall not be unreasonably withheld. This section is not, as to third
parties, a waiver of any defense or immunity otherwise available to
City; and Northern, in defending any action on behalf of City shall
be entitled to assert in any action every defense or immunity that
City could assert in its own behalf.
8. City shall give Northern at least two weeks' prior written
notice of a proposed vacation of a public way. Except where required
solely for a City improvement project, the vacation of any public
way, after the installation of said Facility, shall not operate to
deprive Northern of its rights to operate and maintain said Facility,
until the reasonble cost of relocating the same and the loss and
expense resulting �rom such relocation are first paid to Northern.
9. Northern shall provide annually, the opportunity of training
for employees of City, basic response and awareness techniques as to
the safe operation and maintenance of Northern. The purpose of this
training is to assist the City Public Works Department and the City
Fire Department in response to incidence requiring their assistance
relating to Northe n's_Facility in the City.
10. Northern
providing access
purposes.
This Agr
1992.
NORTHERN N
Title: Agent & Att
G
1
AGREE/ROSEMOUNT
shall provide a 24 hour emergency telephone number
to Northern by City for emergency response
is effective this day of�,r
CITY OF ROSEMOUNT, MINNESOTA
By:
ey,in-Fact Title:
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