TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 5, 2025
COMMITTEE ON REAL ESTATE
Mr. John P. Murray, Acting Executive Director
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Ratify the action of the Acting Executive Director of May 21, 2025, issuing a 90-day permit to Petroleum Fuel and Terminal Company to stage and launch boats on 22.38± acres of District real estate located in Lockport, Illinois, known as Main Channel Parcel 15.05. Consideration shall be a permit fee of $15,000.00
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Dear Sir:
On May 19, 2025, Petroleum Fuel and Terminal Company (“PF&T”), a subsidiary of Apex Oil Company, Inc. (“Apex”), made an emergency request for a 90-day permit to use District land located in Lockport, Illinois, known as Main Channel (“MC”) Parcel 15.05, to stage and carry out an emergency response, including to park and store pickup trucks, trailers and boats, and for use of the boat launch, to help remediate a spill of asphalt into the Chicago Sanitary and Ship Canal. The District leases MC Parcel 15.05 to ACBL Transportation Services, LLC (“ACBL”) under an agreement that commenced January 1, 2016, and expires December 31, 2055, for barging activities. ACBL has consented to PF&T’s use.
The Acting Executive Director issued the permit on May 21, 2025. Prior to issuing the permit, the Board of Commissioners had been polled and it was amenable to its issuance.
To provide background, PF&T leases approximately 23.95 acres of District real estate in Forest View, Illinois, known as Main Channel Parcel 37.04. PF&T has leased this site from the District since January 1, 1993, to operate and maintain an oil terminal and storage facility. PF&T’s current lease commenced January 1, 2018, and expires December 31, 2037. The current annual rent under the lease is $743,713.51.
On or about February 2, 2025, a pipe failure at PF&T’s Forest View facility on MC Parcel 37.04 caused liquid asphalt to spill into the Chicago Sanitary & Ship Canal (“CSSC”). The USEPA and the IEPA were notified of this incident and were onsite when the initial cleanup efforts commenced. On May 12, 2025, a tar-like substance was discovered in the CSSC. Assessments by USEPA traced the source of the product to the PF&T Forest View facility. The warmer temperatures contributed to the movement of this asphalt material that was thought to be remediated. PF&T is undertaking cleanup actions in coordination with the USEPA and IEPA. These actions include the deployment of containment booms and removing asphalt material from impacted areas.
A permit fee of $15,000.00 was assessed in this instance because of the emergency nature of the request.
Accordingly, it is requested that the Board of Commissioners grant authority to ratify the action of the Acting Executive Director of May 21, 2025, issuing a 90-day permit to Petroleum Fuel and Terminal Company to stage and launch boats on 22.38± acres of District real estate located in Lockport, Illinois, known as Main Channel Parcel 15.05. Consideration shall be a permit fee of $15,000.00.
Requested, Susan T. Morakalis, General Counsel, STM:BJD:JAW:vp
Recommended, John P. Murray, Acting Executive Director
Disposition of this agenda item will be documented in the official Regular board Meeting Minutes of the Board of Commissioners for June 5, 2025
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