Presenter: Dennis Gissell

Commission Agenda Item No. 13
Proposal for Petroleum Pipeline Easement
Resaca De La Palma State Park
Cameron County
April 2002

I. Discussion: The Department has been requested to provide an easement for a petroleum product transmission pipeline on tracts of land known as the Resaca de la Palma State Park and the former Brasil Unit of the Las Palomas Wildlife Management Area. Two petroleum product transmission pipelines (8.625 inches and 6.625 inches in diameter) were installed by a subcontractor of Penn Octane Corp., on Texas Parks & Wildlife property during fiscal year 2000, under a Presidential Permit, and without the knowledge or authorization of Texas Parks & Wildlife. The pipelines were constructed to provide petroleum products to Mexico. Following extensive investigation and assessment of alternatives including removal of the pipelines, staff recommends that the lines be allowed to remain in place, but be identified as legal easements. The proposed easement would be 30 feet wide, about 1,493 feet long, and the entire easement would encompass approximately 1.028 acres. The staff recommends the Commission adopt this easement, subject to the restrictions shown in Exhibit A.

II. Recommendation: Staff recommends that the Parks and Wildlife Commission adopt the following motions:

"The Executive Director is authorized to approve the granting of a petroleum product transmission pipeline easement to the Board for Lease for Parks and Wildlife Lands. Damage to wildlife habitat is assessed at $100,000. In addition, a fee of $10/rod for each of the two pipelines in this 90.48 rod easement are assessed at $1809.70 per year, for a total of $18,096.96 for the 10 year easement. Damages are to be paid in monthly installments for 12 months and easement fees are to paid in one lump sum payment, incorporating the restrictions set out in Exhibit A."

Attachments – 2

1. Exhibit A – Conditions
2. Exhibit C – Fiscal Note (Available upon request)

Commission Agenda Item No. 13
Exhibit A

Damage Payment Conditions

The lease shall contain the following provision:

1) All damage payments shall be cash payments to be paid monthly by the easement holder for a 12-month period of time. Additional limits, requirements and stipulations are contained in the easement document.