TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 18, 2018
COMMITTEE ON REAL ESTATE
Mr. John P. Murray, Acting Executive Director
Title
Authority to grant to Chicap Pipe Line Company an interim 6-month and 2-day, 27,000+ sq. ft. non-exclusive easement to continue to construct, install, operate, maintain, repair, replace and remove a subterranean 14-inch crude-oil pipeline and to install a cathodic protection unit on and beneath Cal-Sag Channel Parcel 12.05 in Crestwood, Illinois. Consideration shall be $5,000.00
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Dear Sir:
On April 2, 1964, the Board of Commissioners granted a 25-year, 272,825 sq. ft. non-exclusive easement to Chicap Pipe Line Company (“Chicap”) to construct, install, operate, maintain, repair, replace and remove a 14-inch crude-oil pipeline on and beneath Cal-Sag Channel Parcels 12.02, 12.06, 12.09, 13.03 and 13.04 and suspended above the Cal-Sag Channel near Hamlin Avenue in Crestwood, Robbins and Alsip, Illinois (“District Easement”). The District Easement, as extended, expires May 27, 2019. Chicap currently pays an annual easement fee of $22,159.23. Since 1968, Chicap has also operated its pipeline beneath Cal-Sag Channel Parcel 12.05 in Crestwood pursuant to a 50-year easement from the Department of the Army when the Army had rights to a section of the parcel (“Army Easement”) for the Cal-Sag Navigation Project. The Army Easement expires November 25, 2018. In June 2000, this land was deeded back to the District when it was no longer needed by the Army, subject to the Army Easement.
Chicap has requested an interim 6-month and 2-day, 27,000+ sq. ft. non-exclusive easement to continue to operate its pipeline on Parcel 12.05 upon expiration of the Army Easement, and to install a cathodic protection unit servicing the pipeline. An interim easement will allow Chicap to request a single easement from the District upon expiration of the District Easement that encompasses all of the subject District parcels, including Parcel 12.05.
The District’s technical departments have reviewed Chicap’s easement request and have no objections thereto. An easement fee of $5,000.00 is recommended, as the pro-rata share of the current annual easement fee under the District Easement is less than the District's minimum easement fee of $5,000.00.
It is requested that the Acting Executive Director recommend to the Board of Commissioners that it grant to Chicap Pipe Line Company an interim 6-month and 2-day, 27,000+ sq. ft. non-exclusive easement to continue to construct, install, operate, maintain, repair, replace and remove a subterranean 14-inch crude-oil pipeline and to install a cathodic protection unit on and beneath Cal-Sag Channel Parcel 12.05 in Crestwood, Illinois. Consideration shall be $5,000.00.
It is also requested that the Acting Executive Director recommend to the Board of Commissioners that the Chairman of the Committee on Finance and the Clerk be authorized and directed to execute the easement agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:CMM:vp
Recommended, John P. Murray, Acting Executive Director
Respectfully Submitted, David J. Walsh, Chairman Committee on Real Estate Development
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for October 18, 2018
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