Agenda Item # 6

Columbus Consolidated Government
Council Meeting
April 26, 2016
Agenda Report # 116


TO: Mayor and Council

SUBJECT: Lease Agreement for Right-of-Way on Miller Road at Marathon Petroleum Company

INITIATED BY: Community Reinvestment

Recommendation: Approval is requested to allow Marathon Petroleum Company to transfer all of its rights, duties and obligations to MPLX Terminals LLC which are required in the lease agreement with the City of Columbus. The City assumed this lease in 1996 as part of the Rails to Trails program. The City is not responsible for any maintenance, expenses, or liabilities with this lease agreement and will receive $15 per year for this right of way lease agreement. The gasoline pipeline starts around 5030 Miller Road (Marathon Petroleum) and crosses the Fall Line Trace at Miller Road. (See attached map)

Background: On June 3, 1954 a lease was entered into between Southern Railway Company and Republic Oil Refining Company to construct and maintain a four (4) inch steel gasoline pipeline under the rail line at Miller Road with an annual rent of $15.00.

In June 1957, Republic Oil Refining Company assigned the lease to Plymouth Oil Company, then in April 1962, Plymouth Oil Company assigned the lease over to The Ohio Oil Company. In August 1962, The Ohio Oil Company changed its name to Marathon Oil Company.

On October 9, 1996, all agreements, leases, licenses and ordinances for this property, and others, were assigned over to the City of Columbus per Council Resolution 529-96 as part of the Rails to Trails program for the development of the Fall Line Trace.

Marathon Petroleum Company LP is currently a party to this lease and intends to transfers all of its rights, duties and obligations in the Lease to its affiliate, MPLX Terminals LLC. MPLX Terminals shall assume all the rights, duties and obligations of Marathon Petroleum Company under the lease.

Analysis: The City of Columbus has been involved in this lease agreement since 1996. The City is not responsible for any maintenance, expenses, or liabilities in conjunction with this lease agreement. All requirements of the current lease will remain in effect and will be assumed by MPLS Terminals LLC.

Financial Considerations: The City of Columbus receives $15 per year for this right-of-way lease agreement. There are no expenses incurred by the City as a part of this lease agreement.

Legal Considerations: Any lease agreement involving the City requires Council approval.

Recommendations/Actions: Approval is requested to consent to assignment and assumption of lease agreement dated June 3, 1954 to MPLX Terminals LLC from Marathon Petroleum Company, as subsequently amended and/or assigned by and between City of Columbus, successor in interest to Southern Railway Company and Marathon Petroleum Company LP, successor in interest to Republic Oil Refining Company in Columbus, GA, for use of City right-of-way located at the Fall Line Trace at Miller Road for a gasoline pipeline.



Marathon Petroleum Co. documents.pdfMarathon Petroleum Co. documents.pdfPipeline Map at Miller Road.pdfPipeline Map at Miller Road.pdf


A RESOLUTION
No. ____

A RESOLUTION AUTHORIZING THE CITY MANAGER TO CONSENT TO ASSIGNMENT AND ASSUMPTION OF LEASE AGREEMENT DATED JUNE 3, 1954 TO MPLX TERMINALS LLC. FROM MARATHON PETROLEUM COMPANY, AS SUBSEQUENTLY AMENDED AND/OR ASSIGNED BY AND BETWEEN CITY OF COLUMBUS, SUCCESSOR IN INTEREST TO SOUTHERN RAILWAY COMPANY AND MARATHON PETROLEUM COMPANY LP, SUCCESSOR IN INTEREST TO REPUBLIC OIL REFINING COMPANY IN COLUMBUS, GA, FOR USE OF CITY RIGHT-OF-WAY LOCATED AT THE FALL LINE TRACE AT MILLER ROAD FOR A GASOLINE PIPELINE.

WHEREAS, the lease agreement was originated on June 3, 1954 between Southern Railway Company and Republic Oil Refining Company to construct and maintain a four (4) inch steel gasoline pipeline under the rail line at Miller Road, Columbus, Georgia with an annual rent of $15.00; and,

WHEREAS, on October 9, 1996, all agreements, leases, licenses and ordinances for this property, and others, were assigned over to the City of Columbus per Council Resolution 529-96 as part of the Rails to Trails program for the development of the Fall Line Trace; and,

WHEREAS, Marathon Petroleum Company LP has requested that their interest in the lease agreement be assigned and assumed by MPLX Terminals LLC.

NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:

Authorize the City Manager to consent to assignment and assumption of lease agreement dated June 3, 1954 to MPLX Terminals LLC from Marathon Petroleum Company, as subsequently amended and/or assigned by and between City of Columbus, successor in interest to Southern Railway Company and Marathon Petroleum Company LP, successor in interest to Republic Oil Refining Company in Columbus for use of City right-of-way located at the Fall Line Trace at Miller Road for a gasoline pipeline.
________________

Introduced at a regular meeting of the Council of Columbus, Georgia, held the _________ day of _____________, 2016 and adopted at said meeting by the affirmative vote of ____________ members of said Council.


Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Buck voting __________.
Councilor Davis voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor Thomas voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.



_______________________________ __________________________
Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor