Broward County Commission Regular Meeting

MOTION TO RETROACTIVELY APPROVE ten-year License Agreement between Broward County and ExxonMobil Oil Corporation, for Bulk Petroleum Product Pipelines at Port Everglades, effective retroactive to April 8, 2018; and authorize the Mayor and Clerk to execute same.

(Per the Tuesday Morning Memorandum, at the request of the Office of the County Attorney, any approval of Item 6 would be conditioned upon (1) receipt by Risk Management Division of proof of insurance meeting County requirements and (2) receipt by the County Attorney or confirmation that the person signing for ExxonMobil has authority to bind the entity.)

ACTION:  (T-10:47 AM)  Approved.

VOTE:  8-0.  Commissioner Sharief was not present.

Board approval is required to grant ten-year Bulk Petroleum Product Pipeline License Agreements.

Provide a new ten-year license agreement for bulk petroleum pipelines at Port Everglades.

None.

THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.

This action supports the Board's Value of "Ensuring economic opportunities for Broward's diverse population and businesses" and Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic,  environmental, and community needs."

ExxonMobil Oil Corporation (ExxonMobil) owns and operates a petroleum products storage and distribution terminal on private property within the Port Everglades Jurisdictional Area. This terminal, which distributes transportation fuels to the South Florida market, has operated over the past 70 years subject to a series of agreements with the Port Everglades Authority followed by Broward County that provided a right of way for the installation, maintenance and operation of bulk petroleum pipelines on Port property. The current agreement was approved by the Broward County Board of County Commissioners on April 8, 2008 (Item No. 21). The Port generates revenues from dockage and other fees applicable to tank ships and oceangoing barges using Port berths as well as from wharfage fees paid by ExxonMobil on all product moving through the pipelines as outlined in the Port Everglades Tariff. Similar arrangements are in place with the other petroleum terminal operators located within the Port.

Approval of the new, non-exclusive License Agreement would replace the agreement that expired on April 7, 2018, and would extend the relationship for another ten years, consistent with license agreements with other petroleum terminal operators to provide rights of way for pipelines between the berths and the petroleum distribution terminals. The new agreement has a retroactive effective date due to delays in the internal review of the new agreement by ExxonMobil.

The License Agreement has been reviewed by the Risk Management Division and approved as to form by the Office of the County Attorney. The agreement is still being finalized by ExxonMobil.  Signature pages will be forthcoming and will be noted in the Monday Night Memo.

Glenn A. Wiltshire, Deputy Port Director, Port Everglades Department, (954) 468-3504
Neil Kutchera, Assistant Port Director, Petroleum, Port Everglades Department, (954) 468-3520