Chapter 10.7 Special Provision for Oil Pipeline Franchises

10.7.10 Purpose of this Chapter

The purpose of this Chapter is to indicate special regulations governing oil pipeline franchises.

10.7.20 Rights Granted

A franchisee that is granted an oil pipeline franchise has the right, during the term of that franchise, to transport oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances through the pipelines maintained under the franchise.

10.7.30 Materials Used

All pipelines used for the transportation of oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, or other flammable liquids, must be of standard material and in conformity with American Petroleum Institute pipeline specifications.

10.7.40 Approvals

No permit for a pipeline to be constructed or installed in accordance with the franchise may be issued unless the franchisee has complied with all applicable provisions of this Article relating to pipelines for the transportation of hazardous liquid substances or highly volatile liquid substances. This requirement does not apply to emergency situations, such as those involving the mitigation of pipeline ruptures, spills, or leaks.

10.7.50 Required Reports

During the term of the franchise, and within thirty (30) days after the expiration of each franchise payment period, the franchisee must file with the Community Development Director two (2) copies of a report, verified under penalty of perjury by a duly authorized representative of the franchisee, showing for the immediately preceding franchise payment period (i) the length of all lines in streets; (ii) the internal diameter of those lines; (iii) the rate per foot per year; and (iv) the total amount due the City. In addition, the franchisee must file a report in triplicate, showing the number of each permit obtained for the installation of new mains during the immediately preceding franchise payment period, together with the length and size of those mains. The franchisee must show on this report any change in pipeline footage since the last franchise payment period, segregating that footage as to new mains laid, old mains removed, old mains abandoned in place, and the footage of mains in any territory annexed or incorporated since the last franchise payment period.

10.7.60 Payments Due

Except for pipelines lawfully constructed and maintained other than by the authority granted by a City franchise, the franchisee’s payments accrue from the date of installation, whether before or after the effective date of the agreement granting the franchise.

10.7.70 Non-applicability

Sections 10.7.50 and 10.7.60 of this Chapter do not apply to public utility pipelines that transmit oil or products of oil.