TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 11, 2019
COMMITTEE ON REAL ESTATE
Brian A. Perkovich, Executive Director
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Authority to grant a 25-year, 3,588± sq. ft., non-exclusive easement to Natural Gas Pipeline Company of America LLC to construct, reconstruct, operate, maintain, repair and remove a subterranean cathodic bond system on a portion of Main Channel Parcel 34.10 (LASMA) in Summit, Illinois. Consideration shall be an initial annual easement fee of $5,000.00
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Dear Sir:
Since 1963, Natural Gas Pipeline Company of America LLC (“NGPL”) and its predecessors in interest have operated a gas metering station known as Clearing Meter Station 139 (“Station 139”) on an approximate 100’ x 130’ portion of Main Channel Parcel 34.10 in Summit, Illinois under a perpetual easement. NGPL uses Station 139 to meter natural gas and monitor a cathodic protection system (“CPS”) that prevents corrosion to Station 139 and to two nearby natural gas pipelines belonging to NGPL and Nicor Gas Pipeline Company (“Nicor”) respectively. Both pipelines traverse the western end of Parcel 34.10. The District also operates a CPS on Parcel 34.10 beneath the Main Gate Control Building of its LASMA site, which prevents corrosion to underground gates and a steel tunnel liner servicing the McCook Reservoir.
In 2018, the District temporarily suspended operation of its CPS after receiving reports that the two CPS systems interfere with one another. In response, on November 15, 2018, the Board of Commissioners authorized the District to issue a permit to NGPL to install an overhead electrical cable to create a temporary cathodic bond system to connect the CPSs. The temporary overhead cathodic bond system has reduced the electrical interference and both CPSs may now run simultaneously. NGPL’s permit for the temporary overhead cathodic bond system expires August 14, 2019.
To establish a long-term cathodic bond system, NGPL now requests a 25-year, 3,588± sq. ft., non-exclusive easement to construct, reconstruct, operate, maintain, repair and remove a subterranean cathodic bond system. NGPL will remove the temporary overhead cathodic system after it constructs the new subterranean system.
The District’s technical departments have reviewed NGPL’s request and have no objections thereto. An initial annual easement fee of $5,000.00 is recommended, as 10% of the fair market value of the easement premises would yield a fee less than the District’s minimum easement fee of $5,000.00.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the grant of a 25-year, 3,588± sq. ft., non-exclusive easement to Natural Gas Pipeline Company of America LLC to construct, reconstruct, operate, maintain, repair and remove a subterranean cathodic bond system on a portion of Main Channel Parcel 34.10 (LASMA) in Summit, Illinois. Consideration shall be an initial annual easement fee of $5,000.00.
It is also requested that the Executive Director recommend to the Board of Commissioners that it authorize and direct the Chairman of the Committee on Finance and the Clerk to execute said easement agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:JJZ:JAW:vp
Recommended, Brian A. Perkovich, Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for July 11, 2019
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