THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Broward County Board of County Commissioners' (Board) Value of "Ensuring economic opportunities for Broward's diverse population and businesses" and the Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."
Motiva Enterprises LLC (Motiva) owns and operates three petroleum products storage and distribution terminals on private property within the Port Everglades Jurisdictional Area, commonly referred to as Motiva East, Motiva West, and Motiva South. The Motiva West terminal, which provide transportation fuels to the South Florida market, has operated underground pipelines on Port property over the past 50 years by way of a series of agreements with Broward County that provide a right-of-way for the installation, maintenance, and operation of bulk petroleum pipelines from the terminal to the petroleum berth area. The Port generates revenues from dockage and other fees applicable to oceangoing vessels using Port berths, as well as from wharfage fees paid by Motiva on all petroleum products moving through the pipelines as outlined in the Port Everglades Tariff. An additional annual license fee is charged for the use of right-of-way on Port property where wharfage charges are not applicable, including a strip of land under SE 28th Street used to interconnect non-adjacent Motiva tankage.
On March 10, 2009 (Item No. 15), the Board approved a ten-year License Agreement between Broward County and BP Products North America Inc. (BP) providing a right-of-way for the operation and maintenance of the BP-owned petroleum pipelines extending from the BP Port Everglades terminal across County-owned property to the petroleum berths at Port Everglades. On January 12, 2016 (Item No. 4), the Board approved a Consent to Assignment and Transfer of Interest in the License Agreement from BP to Kinder Morgan Operating L.P. "D" and the Contemporaneous Assignment and Transfer by Kinder Morgan Operating L.P. "D" to KM Phoenix Holdings LLC. On January 10, 2017 (Item No. 5), the Board approved a Consent to Assignment and Transfer of Interest in the License Agreement from KM Phoenix Holdings LLC to Motiva Enterprises LLC for the Motiva West terminal. The Motiva East and Motiva South terminals are covered by a separate ten-year License Agreement approved by the Board on May 4, 2010 (Item No. 6).
Retroactive approval of the new, non-exclusive License Agreement for Motiva West would replace the agreement that expired on March 9, 2019, and would provide a new license for another ten years to expire on March 8, 2029, consistent with license agreements with other petroleum terminal operators to provide right-of-way for pipelines between the berths and the petroleum distribution terminals. Retroactive approval is required due to delays in the Motiva legal review of the new license agreement.
The License Agreement has been reviewed by the Port Everglades Risk Manager and approved as to form by the Office of the County Attorney.
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