Agenda Item: 18
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: August 23, 2022
SUBJECT: ASSIGNMENT, ASSUMPTION, AND CONSENT OF EASEMENT AGREEMENT TO SHADOW WOLF ENERGY, LLC.
DEPARTMENT: Recreation and Community Services
PRESENTER: Janine Prado
RECOMMENDED ACTION
City Council:
1. Approve the Assignment, Assumption and Consent of Easement Agreement to Shadow Wolf Energy, LLC. from Berry Petroleum Company, LLC.
2. Authorize the City Manager, or designee, to execute all documents subject to City Attorney approval.
BACKGROUND
Berry Petroleum, LLC (Berry Petroleum) was granted a 2-acre easement through an agreement with then property owner, Stacy D. Castro, as Successor Trustee of the Ida L. Pryor Trust, in 1988 on Assessor Parcel Number (APN) 2833-023-900, which is located at the Placerita Canyon Open Space. The City of Santa Clarita (City) acquired APN 2833-023-900 in 2012, inheriting the previously existing easement agreement held by Berry Petroleum.
The terms of the existing easement agreement directly assigned ownership to Berry Petroleum and does not include transfer language should ownership of their business change. Berry Petroleum is in the process of selling their business to Shadow Wolf Energy, LLC (Shadow Wolf). As part of their acquisition, Berry Petroleum is required to help transfer the easement to Shadow Wolf. If the transfer of ownership does not go through, the existing easement agreement will cease to exist.
The easement allowed the installation, maintenance, and construction of pipelines for material transport. The importance of the easement assignment would maintain responsibility and maintenance on the installed pipeline to the assignee.
The existing easement agreement includes an annual payment of $22,694.59 to the City until it expires in 2028.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
The City will continue to receive an annual payment of $22,694.59 to General Fund Revenue account 100-462101.
ATTACHMENTS
Exhibit "A" - Berry Petroleum Easement Location Map
Easement Legal Description