Issue an ordinance approving and authorizing the transfer of an existing permit from Fairway Energy Partners, LLC to Converge Midstream LLC.
By Ordinance No. 2016-0013, passed and adopted by City Council on January 6, 2016 (the “Permit”), the City granted Fairway Energy Partners, LLC (“Fairway”) a permit to construct, operate, maintain, repair and replace two new pipelines for underground transportation of materials in specified portions of public street rights-of-way of the City, in accordance with Article IX of Chapter 40 of the Code of Ordinances, City of Houston, Texas (the "Code"). Subsequent to the issuance of the Permit, additional pipelines were added to the Permit by five separate addenda issued by the Office of the City Engineer, Houston Public Works (“HPW”).
In April 2019, Converge Midstream LLC (“Converge”) purchased substantially all of the assets of Fairway, including the Permit and all pipelines subject to the Permit and the addenda thereto.
Section 13 of the Permit Transfer of Authority, provides that the Permit may not be assigned, in whole or in part, except in accordance with the provisions of Section 40-234(r) of the Code, which requires prior consent of the City Council to the assignment of the Permit. Pursuant to Section 13 of the Permit, Converge Midstream LLC has filed with the Director of HPW a consent to assignment in which Converge Midstream LLC accepts the terms of the Permit and agrees to comply with all of the provisions of the Permit.
Recommendation:
It is recommended that City Council issue an ordinance approving and authorizing the assignment of the Permit from Fairway Energy Partners, LLC to Converge Midstream LLC.
Carol Ellinger Haddock, P.E.
Director
Houston Public Works