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HomeMy WebLinkAbout20133263.tiffRESOLUTION RE: APPROVE CONSENT TO ASSIGNMENT OF TEMPORARY CONSTRUCTION EASEMENT FOR RECONSTRUCTION OF A PIPELINE FROM ROCKY MOUNTAIN PIPELINE SYSTEM, LLC, TO MAGELLAN PIPELINE GP, LLC, AUTHORIZE CHAIR TO SIGN, AND ACCEPT REPLACEMENT COLLATERAL WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, on October 10, 2013, the Board approved an Agreement for the Provision of a Temporary Construction Easement for Reconstruction of a Pipeline between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and Rocky Mountain Pipeline System, LLC, with terms and conditions being as stated in said agreement, and accepted Surety Bond RLB0015322 from RLI Insurance Company, 8 Greenway Plaza, Suite 400, Houston, Texas 77046, in the amount of $1,500,000.00, to remain in effect for a period of two (2) years after inspection of the project following construction, and WHEREAS, the Board has been presented with a Consent to Assignment of said Temporary Construction Easement from Rocky Mountain Pipeline System, LLC, to Magellan Pipeline GP, LLC, and replacement Performance Bond No. 106012848 from Travelers Casualty and Surety Company of America, One Tower Square Hartford, Connecticut 06183, in the amount of $1,500,000.00, to remain in effect until November 15, 2015, and WHEREAS, after review, the Board deems it advisable to approve said Consent to Assignment and accept replacement Performance Bond as stated above, copies of which are attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Consent to Assignment of the Temporary Construction Easement for the Reconstruction of a Pipeline among the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, Rocky Mountain Pipeline System, LLC, and Magellan Pipeline GP, LLC, be, and hereby is, approved. ? BE IT FURTHER RESOLVED that Performance Bond No. 106012848 from Travelers fW Casualty and Surety Company of America, One Tower Square Hartford, Connecticut 06183, in gZ the amount of $1,500,000.00, be and hereby is, accepted. 013, m3 BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to sign said Consent to Assignment. o v LLaA — O rnam ti m- 7 d^ate 2° BE IT FURTHER RESOLVED by the Board that the Clerk to the Board be, and hereby g is, directed to return said collateral to the appropriate issuing party. NOL co N U D ell as app>= - Ih N BE IT FURTHER RESOLVED that Surety Bond RLB0015322 from RLI Insurance Company, 8 Greenway Plaza, Suite 400, Houston, Texas 77046, in the amount of $1,500,000.00, be and hereby is, cancelled and released. Pyittri6stoemiriv,N2 "fell tio 2013-3263 EG0068 BC0045 CONSENT TO ASSIGNMENT OF TEMPORARY CONSTRUCTION EASEMENT FROM ROCKY MOUNTAIN PIPELINE SYSTEM, LLC, TO MAGELLAN PIPELINE GP, LLC PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 20th day of November, A.D., 2013. BOARD OF COUNTY COMMISSIONERS WELD COLORADO Weld County Clerk to the Board Deputy Werk to the Board APPROVED AS TO FORM: ount A orney Date of signature: NOV 2 7 2013 3983867 Pages: 2 of 5 12/13/2013 10:16 AM R Fee:$0.00 Steve Moreno, Clerk and Recorder, Weld County, CO IIII FRI If ArliVIC 11111 rbara Kirkmeye 2013-3263 EG0068 BC0045 7 ROCKY MOUNTAIN PIPELINE SYSTEMS November 14, 2013 Bruce T. Barker, Esq. Weld County Attorney 1150 "O" Street Greeley, CO 80632 Via Email and FedEx Re: Consent to Assignment of Temporary Construction Easement Dear Mr. Barker: Rocky Mountain Pipeline System LLC ("RMPS") entered into that certain Agreement for the Provision of a Temporary Construction Easement for Reconstruction of a Pipeline with Weld County, Colorado on October 10, 2013 ("Instrument"). RMPS and Magellan Pipeline GP, LLC hereby notify you of RMPS's intention to sell its Rocky Mountain refined products pipeline assets and property to Magellan Pipeline Company, L.P. (an affiliate of Magellan GP, LLC, hereinafter, "Magellan") pursuant to a Purchase and Sale Agreement dated June 27, 2013. The closing of such disposition is scheduled for November 15, 2013. The date on which the Closing occurs is herein referred to as the "Closing Date". In connection with the above disposition, RMPS and Magellan respectfully request your consent to the release of the bond issued to Weld County on behalf of RMPS pursuant to the Instrument upon delivery of a replacement bond issued on behalf of Magellan. Upon obtaining your consent and effective as of the Closing Date, RMPS will assign to Magellan all of its interest in the Instrument, and Magellan will accept the assignment and assume, be bound by and perform all of the covenants, agreements, terms, conditions, obligations (including, but not limited to, the obligation to provide a surety bond as required by Section 7 of the Instrument), liabilities and stipulations of the Assignor in the Instrument to the same extent and with the same force and effect as if Magellan had been named as a party thereto as of the Closing Date in place and stead of Assignor. If you agree to the foregoing, please sign the duplicate copy of this letter in the signature blank below and return it to the undersigned in the enclosed reply envelope at your earliest convenience. 3983867 Pages: 3 of 5 12/13/2013 10:16 AM R Fee:$0.00 Steve Moreno, Clerk and Recorder, Weld County, CO Zvir1lt fkCIOMIMI'a,iifiCACIAINali h'ilikIIIII ii PAA: LAW_COM: 7317457v1 &13-3,&& Title:Chair If you have any questions regarding this request, please contact Carol Sandvick at (713) 993 — 5307 or Matt Bisson at (713) 646-4421. We appreciate your assistance and cooperation in this matter. Sincerely, ASSIGNOR: Rocky Mountain Pipeline System LLC By: Name: Title: MAGELLAN: Magellan Pipeline Company, L.P. By: Magellan Pipeline GP, LLC, its general partner By: Name: Title: The undersigned hereby agrees to the foregoing this day of 'toVen1b ; 2013. Board of County Commissioners Weld County, Colorado N0V 2 02013 ,Board of Weld County Commissioners 3983867 Pages: 4 of 5 12/13/2013 10:16 AM R Fee:$0.00 Steve Morena, Clerk and Recorder, Weld County, CO �IIIIK��4IIX «i'Ail IrKilL'OJWRVNIAI Wag1I III PAA: LAW_C0M: 731746v1 javo-3 403 If you have any questions regarding this request, please contact Carol Sandvick at (713) 993 — 5307 or Matt Bisson at (713) 646-4421. We appreciate your assistance and cooperation in this matter. Sincerely, ASSIGNOR: Rocky Mountain Pipeline System LLC MAGELLAN: Magellan Pipeline Company, L.P. By: By: Magellan Pipeline GP, LLC, its Name: general p. ner Title: By: Name: Brett C. Riley Title: Senior Vice Presi.•nt The undersigned hereby agrees to the foregoing this Board of Conn Commissioners Weld County, Colorado By: Name: William F. Garcia Title: Chair., Board of Weld County C9mmissioners day of A@'1IemhS2013. NOV 2 02013 3983867 Pages: 5 of 5 12/13/2013 10:16 AM R Fee:$0.00 Steve Moreno, Clerk and Recorder, Weld County, CO Ill! �11Nh�,h'rl:G�9 l�� kh4��+�.u��14uWi,GVhJ�Y4 , �� HI (00040803.1( PM: LAW COM: 731745v1 U1&/3 3,1103 1a MIDSTREAM PARTNERS, Memorandum Date: November 15, 2013 To: Monica Daniels -Mika Board of County Commissioners 1150 'O' Street Greeley, CO 80631 Subject: Performance Bond for Board of County Commissioners of Weld County From: Sandra K. Moore, CPCU, ARM Director, Risk Management Ph 918.574.7651 Comments: Please find attached a bond for the Temporary Pipeline Construction Easement near the Hokestra Pit. If you have any questions, please don't hesitate to call me at 918.574.7651 Best Regards, Sandra K. Moore Director, Risk Management BOND NO. 106012848 PERFORMANCE BOND FOR BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY, COLORADO KNOW ALL PERSONS BY THESE PRESENTS, THAT Magellan Pipeline Company, L.P., a foreign limited liability company, with its principal office located at One Williams Center, P.O. Box 22186, Tulsa, OK 74121-2186, and Colorado registered agent is The Corporation Company, whose address is at 1675 Broadway, Suite 1200, Denver, CO 80202, hereinafter called "Principal", and Travelers Casualty and Surety Company of America, of One Tower Square, Hartford, CT 06183, hereinafter called "Surety", are held and firmly bound unto Board of County Commissioners of Weld County, Colorado, 1150 "0" Street, Greely, Colorado 80631, on behalf of Weld County, Colorado, hereinafter called "Obligee" in full and penal sum of One Million Five Hundred Thousand and No/100 Dollars ($1,500,000.00), lawful money of the United States for the payment of which well and truly made, we bind ourselves, our heirs, administrators, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, the above -bound Principal has obtained or is about to obtain from the Obligee Temporary Construction Easement permit, and pursuant to the requirements of said permit, has entered into a Temporary Construction Easement, dated October 10, 2013, (the "Agreement") with Obligee, and WHEREAS, The Temporary Construction Easement Agreement requires Principal to obtain a performance bond in an amount equal to the total cost of the construction for which Principal is responsible and naming Obligee as beneficiary, and WHEREAS, the value of construction for which Principal is responsible equals One Million Five Hundred Thousand and No/100 Dollars ($1,500,000.00), and NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if Principal shall well, truly and faithfully perform its duties, and all of its undertaking, covenants, terms and conditions as set forth in the Temporary Construction Easement Agreement, and if Principal shall satisfy all claims and demands set forth in said agreement, and shall fully indemnify and save harmless Obligee from all costs and damages which it may suffer by reason of Principal's failure to perform as agreed, and shall reimburse and repay Obligee all outlay and expense which Obligee may incur in making good any default, then this obligation shall be null and void; PROVIDED FURTHER, that if Principal shall default in any of its obligations set forth in the Temporary Construction Easement Agreement, and thereafter fail to fully indemnify and save harmless Obligee from all costs and damages which it may suffer by reason of said default, this obligation shall remain in full force and effect; PROVIDED FURTHER, regardless of the number of years this Bond is in force, or the number of continuation certificates issued, the liability of the Surety shall not be cumulative in amounts from period to period and shall in no event exceed the amount set forth above, or as amended by rider; PROVIDED FURTHER, that Surety, for value received hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Temporary Construction Easement 19-13/c27 1 Agreement to the work to be performed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Improvements Agreement. PROVIDED FURTHER, this bond is effective November 15, 2013 to November 15, 2015, to guarantee that Principal shall well, truly and faithfully perform its duties, and all of the undertakings, covenants, terms, and conditions set forth in the Temporary Construction Easement, and any extensions therefore which may be granted by Obligee with or without notice to Surety. The parties to this Performance Bond acknowledge that through the Temporary Construction Easement Agreement, Obligee reserves the right to require Principal to obtain a different Performance Bond from a financial institution other than Surety in the event that the rating of Surety by AM Best falls below a B+ rating. IN WITNESS WHEREOF, this instrument is executed in four (4) counterparts, each one of which shall be deemed an original, this 13`h day of November, 2013. Magellan Pipeline Company, L.P 114 i�a C ,tc—cc✓-ni tnciP al Secretary/Witnes (SEAL) Qrm-o M•) Witness as to Surety 2211 7`h Avenue South Address Birmingham, AL 35233 Address Principal By: Ohm Q, • lido ill7 A-- Srandrn K- Mohr° R+lorncL\-in- Fac± (Printed Name & Title) Travelers Casualty and Surety Company of America Surety By: A Mark W. Edwards, II, Attorney -in -Fact 2211 7`h Avenue South Address Birmingham, AL 35233 Address Board of County Commissioners of Weld County, Colorado Obligee By: William F. Garcia, Chair (Printed Name & Title) IMPORTANT: Surety company executing bond must appear on the Treasury Department's most current list (Circular 570 as amended) and be authorized to transact business in the State of Colorado. Bond must be accompanied with Attorney -in Fact's authority from the surety company certified to include the date of the bond. Iq-13/e27 TR-AVELERSJ Attorney -In Fact No. WARNING: THIS POWER OF ATTORNEY IS INVALID WITHOUT THE RED BORDER POWER OF ATTORNEY Farmington Casualty Company Fidelity and Guaranty Insurance Company Fidelity and Guaranty Insurance Underwriters, Inc St. Paul Fire and Marine Insurance Company St. Paul Guardian Insurance Company 223516 • St. Paul Mercury Insurance Company Travelers Casualty and Surety Company Travelers Casualty and Surety Company of America United States Fidelity and Guaranty Company Certificate No. 004913936 KNOW ALL MEN BY THESE PRESENTS: That St. Paul Fire and Marine Insurance Company, St. Paul Guardian Insurance Company and St. Paul Mercury Insurance Company are corporations duly organized under the laws of the State of Minnesota. that Farmington Casualty Company, Travelers Casualty and Surety Company, and Travelers Casualty and Surety Company of America are corporations duly organized under the laws of the State of Connecticut, that United States Fidelity and Guaranty Company is a corporation duly organized under the laws of the State of Maryland, that Fidelity and Guaranty Insurance Company is a corporation duly organized under the laws of the State of Iowa, and that Fidelity and Guaranty Insurance Underwriters, Inc., is a corporation duly organized under the laws of the State of Wisconsin (herein collectively called the "Companies"), and that the Companies do hereby make, constitute and appoint Robert Read Davis of Atlanta, Georgia; Robert M. Verdin of Metairie, Louisiana; Mark W. Edwards, II, Ronald B. Giadrosich, Jeffrey M. Wilson, William M. Smith, Evondia H. Woessner, Robert R. Fred, and Alisa B. Pounders of the City of H itmin • am State of Alabama , their true and lawful Attorney(s)-in-Fact, each in their separate capacity if more than one is named above, to sign, execute, seal and acknowledge any and all bonds, recognizances, conditional undertakings and other writings obligatory in the nature thereof on behalf of the Companies in their business of guaranteeing the fidelity of persons, guaranteeing the performance of contracts and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings allowed by law. IN WITNESS WHEREOF, the Companies have caused this instrument to be signed and their corporate seals to be hereto affixed this day of June 2012 Farmington Casualty Company Fidelity and Guaranty Insurance Company Fidelity and Guaranty Insurance Underwriters, Inc. St. Paul Fire and Marine Insurance Company St. Paul Guardian Insurance Company State of Connecticut City of Hartford ss. By: 11th St. Paul Mercury Insurance Company Travelers Casualty and Surety Company Travelers Casualty and Surety Company of America United States Fidelity and Guaranty Company Georg e(WJ Thompson, fl ice President On this the 11th day of June 2012 before me personally appeared George W. Thompson, who acknowledged himself to be the Senior Vice President of Farmington Casualty Company, Fidelity and Guaranty Insurance Company, Fidelity and Guaranty Insurance Underwriters, Inc., St. Paul Fire and Marine Insurance Company, St. Paul Guardian Insurance Company, St. Paul Mercury Insurance Company, Travelers Casualty and Surety Company, Travelers Casualty and Surety Company of America, and United States Fidelity and Guaranty Company, and that he, as such, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing on behalf of the corporations by himself as a duly authorized officer. In Witness Whereof, I hereunto set my hand and official seal. My Commission expires the 30th day of June, 2016. e. le r>.ea4 Marie C. Tetreault, Notary Public 58440-6-11 Printed in U.S.A. WARNING:THIS POWER OF ATTORNEY IS INVALID WITHOUT THE RED BORDER WARNING: THIS POWER OF ATTORNEY IS INVALID WITHOUT THE RED BORDER This Power of Attorney is granted under and by the authority of the following resolutions adopted by the Boards of Directors of Famtington Casualty Compan'r, Fidelity , and Guaranty Insurance Company, Fidelity and Guaranty Insurance Underwriters, Inc., St. Paul Fire and Marine Insurance Company, St. Paul Guardian Insurance Company, Sr. Paul Mercury Insurance Company, Travelers Casualty and Surety Company, Travelers Casualty and Surety Company of America, and United States Fidelity and Guaranty Company, which resolutions are now in full force and effect, reading as follows: RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President, any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary may appoint Attorneys -in -Fact and Agents to act for and on behalf of the Company and may give such appointee such authority as his or her certificate of authority may prescribe to sign with the Company's name and seal with the Company's seal bonds, recognizances, contracts of indemnity, and other writings obligatory in the nature of a bond, recognizance, or conditional undertaking, and any of said officers or the Board of Directors at any time may remove any such appointee and revoke the power given him or her; and it is FURTHER RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President may delegate all or any part of the foregoing authority to one or more officers or employees of this Company, provided that each such delegation is in writing and a copy thereof is filed in the office of the Secretary; and it is FURTHER RESOLVED, that any bond, recognizance, contract of indemnity, or writing obligatory in the nature of a bond, recognizance, or conditional undertaking shall be valid and binding upon the Company when (a) signed by the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary and duly attested and sealed with the Company's seal by a Secretary or Assistant Secretary; or (b) duly executed (under seal, if required) by one or more Attorneys -in -Fact and Agents pursuant to the power prescribed in his or her certificate or their certificates of authority or by one or more Company officers pursuant to a written delegation of authority; and it is FURTHER RESOLVED, that the signature of each of the following officers: President, any Executive Vice President, any Senior Vice President, any Vice President, any Assistant Vice President, any Secretary, any Assistant Secretary, and the seal of the Company may be affixed by facsimile to any Power of Attorney or to any certificate relating thereto appointing Resident Vice Presidents, Resident Assistant Secretaries or Attorneys -in -Fact for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, and any such Power of Attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding on the Company in the future with respect to any bond or understanding to which it is attached. I, Kevin E. Hughes, the undersigned, Assistant Secretary, of Farmington Casualty Company, Fidelity and Guaranty Insurance Company, Fidelity and Guaranty Insurance Underwriters, Inc., St. Paul Fire and Marine Insurance Company, St. Paul Guardian Insurance Company, St. Paul Mercury Insurance Company, Travelers Casualty and Surety Company, Travelers Casualty and Surety Company of America, and United States Fidelity and Guaranty Company do hereby certify that the above and foregoing is a true and correct copy of the Power of Attorney executed by said Companies, which is in full force and effect and has not been revoked. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed the seals of said Companies this hJ day of Nov Bp -'o .( 20Ia. iff.Kevin E. Assistant Sec tary To verify the authenticity of this Power of Attorney, call 1-800-421-3880 or contact us at www.travelersbond.com. Please refer to the Attorney -In -Fact number, the above -named individuals and the details of the bond to which the power is attached. WARNING:THIS POWER OF ATTORNEY IS INVALID WITHOUT THE RED BORDER LIMITED POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS that Magellan Pipeline Company, L.P., a Delaware limited partnership (the "Company"), having its principal place of business at One Williams Center, Tulsa, Oklahoma, does hereby make, constitute and appoint SANDRA K. MOORE and JEFF HOLMAN, with the full authority hereinafter provided, the true and lawful "Attorneys -in -Fact" of the Company, authorized and empowered on behalf of the Company and in the Company's name, and for the sole and exclusive benefit of the Company and not on behalf of any other person, corporation or association, in whole or in part, to commit the Company under all surety bonds, not to exceed $1,500,000 per surety bond, which are used in the ordinary course of business by the Company, giving and granting, individually, unto said Attorneys -in -Fact full and complete power and authority to bind the Company as fully and to the same extent as if signed by the duly authorized officers of the Company; and all the facts of said Attorneys -in -Fact, pursuant to the authority hereby given, are hereby ratified and confirmed, with the qualification that said authority to act shall terminate on December 31, 2018 and shall be expressly limited for the purpose as herein stated. IN WITNESS WHEREOF, Magellan Pipeline Company, L.P. has caused its name to be subscribed and its seal to be affixed this 1 s` day of November, 2013. Magellan Pipeline Company, L.P. [SEAL] By: Magellan Pipeline GP, LLC, its general partner Attest: Suzarile H. Costin, Secretary ohn D. Chandler, Senior Vice President and Chief Financial Officer CERTIFICATE I, the undersigned, Secretary of Magellan Pipeline GP, LLC, the General Partner of Magellan Pipeline Company, L.P., do hereby certify that the original Limited Power of Attorney of which the foregoing is a full, true and correct copy is in full force and effect on the date of this Certificate, and the Senior Vice President and Chief Financial Officer who executed the said Limited Power of Attorney was and is a duly elected officer of Magellan Pipeline GP, LLC, the General Partner of Magellan Pipeline Company, L.P. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of Magellan Pipeline Company, L.P. to these presents this 1 s` day of November, 2013. [SEAL] �in at Suzanne Costin Secretary [00028117.1) Hello