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."
MPLX Terminals LLC ("MPLX") owns and operates two petroleum storage and distribution terminals within the Port Everglades Jurisdictional Area. This License Agreement pertains to the underground pipelines from the MPLX terminal located on Eisenhower Boulevard. The terminal has operated for the past sixty years subject to a series of agreements with Port Everglades that provide a right-of-way for the installation, maintenance, and operation of bulk petroleum pipelines. 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 MPLX on all petroleum products 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.
On June 9, 2009 (Item No. 20), the Board approved a ten-year License Agreement between Broward County and Marathon Petroleum Company LLC ("Marathon") providing a right-of-way for the operation and maintenance of the Marathon-owned petroleum pipelines extending from their terminal across County-owned property to the petroleum berths at Port Everglades. On April 12, 2016 (Item No. 5), the Board approved Consent to and Assignment and Transfer of Interest in the License Agreement from Marathon Petroleum Company LP (formerly known as Marathon Petroleum Company LLC) to MPLX Terminals LLC.
Approval of the new, non-exclusive License Agreement would replace the License Agreement expiring on June 8, 2019, 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 License Agreement has been reviewed by the Port Everglades Risk Manager and approved as to form by the Office of the County Attorney. The Agreement is pending final execution by MPLX, and receipt of signature pages will be noted in the Monday Night Memo, prior to the Commission meeting.
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