PACIFIC PIPELINE SYSTEM LLC
December 6, 2021 Line 2000 Vernon franchise
Daniel S. Wall, PE Via e-mail and USPS
Director of Public Works
City of Vernon
4305 S. Santa Fe Ave.
Vernon, CA 90058
Re: Franchise payments and renewal of Ordinance 1046
Dear Mr. Wall:
I have received your e-mail dated November 30, 2021 in which you state that Pacific Pipeline System (PPS) has made franchise payments that are too low and has not made a payment since 2019.
This is incorrect.
As required by Section 6 of the Ordinance, the amount of each annual payment is made in accordance with the fee structure established by California Public Utilities Code 6231.5. The Code has a stated rate per foot based on the internal diameter of the pipeline. The base rate is then adjusted yearly in accordance with the Consumer Price Index.
The figure of $203.00 for the pipeline quoted in Ordinance 1046 was an estimate based on the proposed footage of the pipeline, which had not yet been constructed when the Ordinance was adopted in 1997. When the pipeline was installed in 1999, there was substantially less footage within Vernon public streets than anticipated.
This was explained by Debra Moudy, PPS's then-Right of Way Manager, in her letter (copy enclosed) to Vernon's Finance Department dated July 5, 2000.
There was also a phone call on April 14, 2013 between Paula Bawden, PPS's Right of Way Specialist, and Vincent Rodriguez of Vernon in which Ms. Bawden explained the Public Utilities Code payment formula to Mr. Rodriguez.
So, as you can see, PPS has been making annual payments that are in line with the Public Utilities Code and the Ordinance. The fee for the pipeline is determined by the Code and then, per the Ordinance, an equal amount is paid by PPS for the utility cabinet.
5900 CHERRY AVENUE, LONG BEACH, CALIFORNIA 90805-4408
I can also report that payments for 2020 and 2021 were made.
For the 2020 payment, check number 7448411 (issued by our affiliated company Plains Marketing, L.P.) dated May 21, 2020 in the amount of $180.65 was cashed by the City of Vernon on August 26, 2020.
The 2021 payment of $183.20 was made with check number 7479714 issued on May 20, 2021. However, this check has not been cashed and it has now gone stale. A replacement check will be issued in the coming days and I will send it to your attention for processing.
Because Pacific Pipeline System is in compliance with the terms of Ordinance 1046, we renew our request that the Ordinance be extended for a term of 25 years.
If you have any questions, please do not hesitate to contact me.
Very truly yours,
Same sacole
Manager, Western Region
Land Dept.
(562) 728-2020
Enclosure
July 5, 2000
Finance Department
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Subject: Pacific Pipeline System LLC ("Pacific") Ordinance 1046 City Account 511
Dear Sir/Madame:
When the Pacific 20" crude oil pipeline was designed Pacific applied for a franchise to construct a portion of the pipeline within Alameda Street.
Pacific also contemplated construction of an underground valve and a control cabinet in the median.
Pacific did not construct the pipeline in the median area due to crowded substructure facilities. There was not enough room to accommodate the valve. Moving the valve into Alameda Street, in the city of Los Angeles reduced the for pipeline right-of-way under the Vernon Franchise.
Pacific did construct 96 feet of pipeline in Vernon's streets and did install the control cabinet in the median. Based on the CPUC Code Section 6231.5 the annual payment for the pipeline footage would be $56.63. An equivalent amount for the maintenance and operation for the control cabinet adds $56.63.
On June 9,2000 Pacific's check number 4694 was mailed to the city for this payment.
Please call me at 562-728-2822 to discuss this matter.
Sincerely.
Debra J. Moudy
Manager, Rights-of-Way and Claims
DOC SENT TO HOUSTON 2000
12/6/21, 2:40 PM Check Image Print View
WELLS
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Date/Time Printed: 12/06/2021, 12:40 PM PST
Check 7448411 - 180.65 USD
No. 7448411
[ CHECK DATE CHECK NUNDER ?
11-MAY-30 14511
PAY One Hundred Eighty And 65/100 Dollars
Void Niter 140 Days
CANON, CA MOS Al Sum
Sara S-Sparki
P00044421 00462038240 98000913230
Item Details
Account Number 9600091323 Item Sequence Number 008189863623 Account Name PLAINSMARKE Bank ID 241253823
Check 7448411
Amount 180.65 USD Debit
Status Check Paid
Posting Date 08/26/2020
As of Date 08/26/2020
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