Recommendation:
It is recommended that City Council issue an Ordinance consenting to the assignment of Ordinance No. 2012-0920, Ordinance No. 2012-0921, Ordinance No. 2013-0505, and Ordinance No. 2021-0084, and the permits granted thereby, to construct, operate, maintain, improve, repair and replace certain pipelines in certain portions of specified public street rights-of-way to ONEOK NGL Distribution System, L.L.C.; approving and authorizing a consent to assignment by and between the City of Houston, Texas, and ONEOK NGL Distribution System, L.L.C..
Background:
By Ordinance No. 2012-0920, passed and adopted by City Council on October 24, 2012, the City granted Williams Olefins Feedstock Pipelines, L.L.C. a permit to operate, maintain, improve, repair and replace one existing pipeline for underground transportation of materials in specified portions of public street rights-ofway of the City, in accordance with Article IX of Chapter 40 of the Code of Ordinances, City of Houston, Texas (the "Code").
By Ordinance No. 2012-0921, passed and adopted by City Council on October 24, 2012, the City granted Williams Field Services – Gulf Coast Company, L.P. a permit to operate, maintain, improve, repair and replace three existing pipelines for underground transportation of materials in specified portions of public street rights-ofway of the City, in accordance with Article IX of Chapter 40 of the Code.
By Ordinance No. 2013-0505, passed and adopted by City Council on May 29, 2013, the City granted Williams Purity Pipelines, LLC a permit to operate, maintain, improve, repair and replace two existing pipelines for underground transportation of materials in specified portions of public street rights-ofway of the City, in accordance with Article IX of Chapter 40 of the Code. Subsequent to the issuance of this permit, additional pipelines were added to the Permit by one separate addendum Document Control No. 2014-001 issued by the Office of the City Engineer, Houston Public Works (“HPW”).
By Ordinance No. 2021-0084, passed and adopted by City Council on February 3, 2021, the City granted Easton Energy Pipelines LLC a permit to construct, operate, maintain, improve, repair and replace one new pipeline for underground transportation of materials in specified portions of public street rights-ofway of the City, in accordance with Article IX of Chapter 40 of the Code.
On June 18, 2024, ONEOK NGL Distribution System, L.L.C., a Texas limited liability company (“ONEOK”) acquired the pipelines covered by the four permit ordinances described above and the permits granted thereby (collectively, the “Permits”) by virtue of mesne assignments, name changes and/or other transactions.
Section 13 of the Permits provides that the Permits 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 Permits. Pursuant to Section 13 of the Permits, ONEOK has filed with Director of HPW a consent to assignment in which ONEOK accepts the terms of the Permits and agrees to comply with all of the provisions of the Permits.
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Randall V. Macchi, JD
Director, Houston Public Works