Report to Mayor and City Council
Tuesday, October 18, 2016
Discussion
SUBJECT:
Title
CONSIDERATION OF THE PIPELINE FRANCHISE ASSIGNMENT TO TESORO REFINING AND MARKETING COMPANY
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I. SUMMARY
On August 8, 2012, BP West Coast Products LLC (BP) and certain of its affiliates including Atlantic Richfield Company (ARCO), ARCO Terminal Services Corporation, and ARCO Midcon LLC, entered into a Purchase and Sale Agreement whereby BP agreed to sell certain assets to Tesoro Refining and Marketing Company LLC (Tesoro) or Tesoro's affiliates. On May 27, 2014, Tesoro submitted an application to the City requesting that the City approve the assignment of three of BP's pipeline franchise agreements. Staff seeks City Council direction on the steps that should be taken regarding the requested assignments to Tesoro.
II. RECOMMENDATION
Recommendation
CONSIDER and PROVIDE direction.
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III. ALTERNATIVES
1. DIRECT staff to move forward with the assignment, as submitted.
2. IMPOSE additional terms and conditions upon the franchise and upon the grantee or assignee, which the City Council may deem to be in the public interest.
3. TAKE another action the City Council deems appropriate.
1.
IV. BACKGROUND
Tesoro has requested that the City Council consent to the ownership transfer for three BP franchises.
* The 25 year agreement (Ordinance No. 92-962) that was granted to ARCO Terminal Services Corporation in February of 1992.
* The 25 year agreement (Ordinance No. 99-1177) that was granted to ARCO in December of 1999.
* The 25 year agreement (Ordinance No. 00-1204) that was granted to ARCO Midcon LLC in September of 2000.
Assignment Requirements Under the Carson Municipal Code
Section 6818 of the Carson Municipal Code requires that the City Council consent to the sale, transfer, assignment or lease of oil pipelines. The code also requires that an owner wishing to sell, transfer, assign or lease a pipeline file an application with the City sixty-days prior to the ...
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