TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 7, 2020
COMMITTEE ON REAL ESTATE
Brian A. Perkovich, Executive Director
Title
Authority to issue a two (2) year permit to The Peoples Gas Light and Coke Company to conduct sediment and surface water sampling on an approximate 6.25-mile portion of the Main Channel between Lombard Avenue and Ashland Avenue in Cicero, Stickney and Chicago, Illinois. Consideration shall be a document preparation fee of $5,000.00
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Dear Sir:
The Peoples Gas Light and Coke Company (“Peoples”) occupied approximately 31.84 acres of District real estate located north of the Main Channel and west of Pulaski Road in Chicago, Illinois, known as Main Channel Parcels 40.02, 40.04 and 40.07, under two separate 99-year leases that expired on January 31, 2015 (Parcels 40.04 and 40.07), and October 29, 2016 (Parcel 40.02). Peoples used the parcels initially in conjunction with its operation of its adjacent Crawford Station Manufactured Gas Plant (“MGP”) and then subsequently for operation of its natural gas pipeline.
In 2007, Peoples entered a Consent Decree with the United States Environmental Protection Agency (“USEPA”) to assess the former MGP site and its surrounding area, including Parcels 40.04 and 40.07 (the “Consent Decree”). The District has also instituted litigation against Peoples to assure that its former leaseholds are remediated in accordance with the lease terms.
Since 2015, the Board of Commissioners has authorized the issuance of a series of permits to Peoples to allow it to continue to operate on and test the area. USEPA has instructed Peoples to perform sediment and surface water sampling on an approximate 6.25-mile portion of the Main Channel between Lombard Avenue and Ashland Avenue in Cicero, Stickney and Chicago, Illinois. In response, Peoples now requests a two-year permit to conduct this sampling both upstream and downstream of the former MGP site to determine whether there is any migration from the site.
The District’s technical departments have reviewed Peoples’ request and have no objections thereto. A standard document preparation fee of $5,000.00 is recommended. If authorized, the permit will require Peoples to share the sampling results with the District.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize the issuance of a two (2) year permit to The Peoples Gas Light and Coke Company to conduct sediment and surface water sampling on an approximate 6.25-mile portion of the Main Channel between Lombard Avenue and Ashland Avenue in Cicero, Stickney and Chicago, Illinois. Consideration shall be a document preparation fee of $5,000.00.
It is further requested that the Executive Director recommend to the Board of Commissioners that it authorize and direct the Chairman of the Committee of Finance and the Clerk to execute the permit agreement after it is approved by the General Counsel as to form and legality.
Requested, Susan T. Morakalis, General Counsel, STM:EMA: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 May 7, 2020
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