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HomeMy WebLinkAboutContract 34006 IT Y SECRETARY 0NTi °,�,CT NO CONSENT TO ASSIGNMENT OF CITY SECRETARY CONTRACT NOS. 30085,33346 AND 33445 (PUBLIC RIGHT-OF-WAY USE AGREEMENTS) This CONSENT TO ASSIGNMENT OF CITY SECRETARY CONTRACT NOS. 30085, 33346 AND 33445 ("Consent") is made and entered into by and between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation organized under the laws of the State of Texas; CHIEF OIL AND GAS, LLC ("Assignor" or "Company"), a Texas limited liability company, and CROSSTEX NORTH TEXAS GATHERING, LP ("Assignee"), a Texas limited partnership. The following introductory provisions are true and correct and form the basis of this Consent: A. The City and Assignor previously entered into City Secretary Contract Nos. 30085, 33346 and 33445, each a license to erect, construct, install, maintain and transport Gas through a Pipeline in certain Public Rights-of-Way in the City(the "License Agreements"). The License Agreements are public documents on file in the City Secretary's Office. B. Assignor now wishes to assign to Assignee all of Assignor's right, title and interest granted to Company under the License Agreements; Assignee wishes to accept such assignment; the City is willing to consent to such assignment subject to the terms and conditions set forth in this Consent. NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the City, Assignor, and Assignee agree as follows: 1. The City hereby consents to an assignment by Assignor to Assignee of all right, title and interest granted to Company pursuant to the License Agreements (the "Assignment"), effective as of the last date that the City, Assignor and Assignee have executed this Consent ("Effective Date"). The License Agreements are incorporated herein by reference for all purposes. 2. The City does not adopt, ratify or approve the particular provisions of any written or oral agreement or understanding that may have made or reached by and between Assignor and Assignee as part of or in regard to the Assignment. The City does not grant any right, privilege or use to Assignee that is different from or more extensive than any right, privilege or use granted to Company pursuant to the License Agreements. In the event of any conflict between the License Agreements and the Assignment, the License Agreements shall control. 3. The City consents to the Assignment expressly upon the promise and covenant by Assignee, and Assignee hereby promises and covenants to the City, that as of the Effective Date Assignee will faithfully perform, as an independent contractor, all duties and obligations of Company set forth in the License Agreement. Consent to Assignment of CSC Nos. 30085, 33346 and 33445 by Chief Oil and Gas, LLC to Crosstex North Texas Gathering,LP ; � ; Page I CIV Fy, MEU'��, ����. 4. Assignor understands and agrees that Assignor and Assignee will be jointly and severally liable to the City for (i) any duty or obligation of Company that Assignor was required by the License Agreement to undertake or perform prior to the Effective Date and (ii) for any damages, including, but not limited to, property loss, property damage and/or personal injury off any kind, including death, to the extent caused by Assignor, its officers, agents, servants, employees or subcontractors. 5. Notices required pursuant to the provisions of the License Agreement shall be conclusively determined to have been delivered when hand-delivered or mailed by United States Mail, postage prepaid, return receipt requested, addressed as follows: To Assignee: To Assignor: Crosstex North Texas Gathering, LP. Chief Oil and Gas, LLC Attn: Diana Reed Attn: Joel Ward 2501 Cedar Springs Road— Suite 100 8111 Preston Road— Suite 600 Dallas, Texas 75201 Dallas, Texas 75225 6. All terms in this Consent that are capitalized but not defined shall have the meanings assigned to them in the License Agreement. EXECUTED as of the later date below: CITY OF FORT WORTH: ATTEST: By: at��2( Karen L. Montgomery Marty Hendrix Assistant City Manager City Secretary Date: /�j/6 APPROVED AS TO FORM AND LEGALITY: By: Peter Vaky Assistant City Attorney M&C: C-21623 s--2_:Z- 06 Consent to Assignment of CSC Nos. 30085,33346 and 33445 0FFIC AU END by Chief Oil and Gas,LLC to Crosstex North Texas Gathering, LP �,P.E n Page 2 � USLS ! V '� I! CHIEF OIL AND GAS,LLC, A Texas Limited Liability Company: By: Cli—ffbVig. Thomson Vice President, Operations Date: CROSTEX NORJTESATHERING,LP By: Crosstex E eGP,LLC, Its gener By: James R. a Executive V c President Date: I- r� n Consent to Assignment of CSC NOS.30085,33346 and 33445 ROD by Bart-Meet ext;-mss.to Crostex North Texas Gathering,LP ;N '�� SMARMY Page 3 Ghicf Oil an Gas,Lt-c. V Page 1 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 8/22/2006 DATE: Tuesday, August 22, 2006 LOG NAME: 03CHIEFlA REFERENCE NO.: **C-21623 SUBJECT: Authorize Execution of a Consent to Assignment of Public Right-of-Way Use Agreements by Chief Oil and Gas LLC to Crosstex North Texas Gathering L.P. RECOMMENDATION: It is recommended that the City Council: 1. Authorize consent to the assignment by Chief Oil and Gas LLC of its rights, duties and obligations under City Secretary Contract Nos. 30085, 33346 and 33445 (Public Right-of-Way Use Agreements) to Crosstex North Texas Gathering L.P; and 2. Authorize the City Manager to execute a Consent to Assignment Agreement with Chief Oil and Gas LLC and Crosstex North Texas Gathering L.P. DISCUSSION: The City has entered into several Public Right-of-Way Use Agreements with Chief Oil and Gas LLC (Chief) under which Chief was granted licenses to install, operate and maintain natural gas pipelines in specified portions of public rights-of-way. Chief wishes to sell the pipelines in three of these agreements to Crosstex North Texas Gathering L.P (Crosstex), and requests City consent to assign City Secretary Contract Nos. 30085, 33346 and 33445 to Crosstex. City Secretary Contract No. 30085, executed June 16, 2004, authorizes two crossings approximately 120 linear feet each across Intermodal Parkway approximately 1500 feet west of Highway 156. City Secretary Contract No. 33346, executed March 23, 2006, authorizes one crossing approximately 169 linear feet across Timberland Boulevard approximately 0.3 miles east of IH 35W and a second crossing approximately 120 linear feet across Golden Triangle Boulevard approximately 100 feet west of Old Denton Road. City Secretary Contract No. 33445, executed April 24, 2006, authorizes one crossing approximately 45 linear feet across Litsey Road approximately 2.27 miles west of Byron Nelson Boulevard. The crossings are located in Council District 2. City staff recommends that the City Council approve these assignments on the condition that Crosstex enter into an agreement with the City under which it agrees to be bound by the terms and conditions of the Agreements. FISCAL INFORMATIONXERTIFICATION: The Finance Director certifies that this action will have no material effect on City funds. http://www.cfwnet.org/council_packet/Reports/mc_print.asp 11/21/2006 Page 2 of 2 TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by: Karen Montgomery (6222) Originating Department Head: Bridgette Garrett (8518) Additional Information Contact: Danny Reed (6145) http://www.cfwnet.org/council_packet/Reports/mc_print.asp 11/21/2006