HomeMy WebLinkAboutC-3005 - Agreement for Delivery of Wastewater Discharge from Tidelands Oil Operation to West Newport Oil CompanyMODIFICATION OF AGREEMENT
DELIVERY OF WASTEWATER DISCHARGE FROM TIDELANDS OIL OPERATION
TO WEST NEWPORT OIL COMPANY
THIS MODIFICATION OF THE AGREEMENT NUMBER C-3005, is made and
entered into this /4 day of May, 2002, by and between the City of Newport
Beach, a municipal corporation, hereinafter referred to as "City" and West Newport Oil
Company, hereinafter referred to as "WNOC".
RECITALS
A. In May 1994, Agreement Number C-3005 was entered into by and
between City and WNOC (hereinafter "Agreement").
B. City and WNOC desire to modify the Agreement on the terms and
conditions set forth herein.
NOW THEREFORE, it is mutually agreed by and between the undersigned
parties as follows:
1. Section III of the Agreement is modified to read as follows:
"The City shall meter all wastewater discharge deliveries hereunder
shall pay WNOC Twenty Cents ($0.20) per barrel of wastewater
discharge delivered."
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date above written:
APPROVED AS TO FORM:
Robin Clauson
Assistant City Attorney
ATTEST:
9&!v )0, 1
.LaVonne Harkless
City Clerk
City of Newport Beach,
A municipal corporation
Tod W. Ridge w y Mayor
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�� West t O
New oril Company
NtA
Jay R. Vice P sident
"WNOC'
OGREEM ENT
WASTEWATER DISCHARGE
FROM
TIDELANDS OIL OPERATION TO WEST NEWPORT OIL COMPANY
THIS AGREEMENT is made and entered into this day of 1994,
by and between West Newport Oil Company a California Corporation her after
referred to as "WNOC ", and the "CITY OF NEWPORT BEACH ", a municipal
corporation, hereinafter referred to as "CITY ".
WITHESSETH:
WHEREAS, "CITY', owns and operates oil producing facilities which
generates a wastewater discharge, and;
WHEREAS, "CITY', desires to dispose of the wastewater discharge in the
most cost effective manner, and;
WHEREAS, "CITY', has determined that the most cost effective way to
discharge the wastewater is to deliver it to "WNOC" and;
WHEREAS, "CITY', will be required to pay for initial piping
improvements necessary for the delivery of the wastewater to WNOC, and;
WHEREAS, "CITY ", will be required to pay a fee for each barrel of
wastewater discharge delivered, and;
NOW THEREFORE, in consideration of the foregoing, it is mutually agreed
and understood that:
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I. PARTIES AND PURPOSES
"WNOC" hereby agrees to accept from "CITY" the wastewater discharge produced from
" CITY's" oil producing facilities. The "CITY" will identify a mutually acceptable point of
delivery outside the "CITY'S" oil producing facilities. "WNOC" will not be required to
construct pipeline facilities or improvements within the "CITY'S" oil producing facilities.
II. TERM
The term of this agreement shall be one (1) month commencing on the date executed
by both parties. The term shall be automatically renewed for consecutive one (1)
month periods, unless 20 calendar days prior notice of intent to cancel this
Agreement is provided by the party wishing to terminate the Agreement.
III. PAYMENT FOR SERVICES
The "CITY" shall pay "WNOC" a one time payment of Five Thousand Dollars
($5,000.00) to reimberse "WNOC's" costs to construct such pipelines and facilities for
"WNOC" to accept from "CITY" its waste water discharge at the point of delivery
pursuant to paragraph I above, which pipelines and facilities shall be owned and
maintained by "WNOC ". All pipelines and facilities required to deliver the " CITY's"
waste water discharge to "WNOC's" pipelines and facilities at the point of delivery
shall be owned and maintained by the "CITY ". The Five Thousand Dollars
($5,000.00) is due and payable upon execution of this Agreement by "WNOC ".
If "WNOC" terminates this Agreement pursuant to Section V, paragraph 1, prior to
the tenth (10th) month of the term, then "WNOC" shall pay "CITY" an amount equal
to $500.00 multiplied by the number of months of the term subtracted from 10. For
example, if "WNOC" terminates this Agreement after 5 months, "WNOC" would pay
"CITY" $2,500.00, calculated as follows: $500.00 x (10 -5).
The "CITY" shall meter all wastewater discharge deliveries hereunder to WNOC and
shall pay "WNOC" Ten Cents ($0.10) per barrel of wastewater discharge delivered.
Payment shall be made monthly based on the meter reading by "CITY" staff.
"WNOC" has the right to inspect the meter upon request.
IV. LIABILITY AND INDEMNIFICATION
Neither "CITY" nor any officer, agent or employee of "CITY" shall be responsible
for any damage or liability occurring by any acts or omissions on the part of
"WNOC" nor any officer, agent or employee of "WNOC ". in connection with any
work, authority or duties to be carried out by "WNOC" under this Agreement.
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2. Neither "WNOC" nor any officer, agent or employee of "WNOC ", shall be
responsible for any damage or liability occurring by any acts or omissions of
the "CITY ", in connection with any work, authority or duties to be carried out
by "CITY' under this Agreement. It is also understood and agreed that,
pursuant to Government Code Section 895.4, "CITY' shall fully indemnify,
defend and hold "WNOC" harmless from any liability imposed for injury (as
defined by the Government Code) occurring by any acts or omissions on the
part of the "CITY' in connection with any work, authority or duties delegated
to "CITY' under this Agreement.
V. DEFAULT & GROUNDS FOR TERMINATION
This Agreement shall terminate:
1. Upon notice pursuant to Section (ll);
2. Upon default by either party where such default is not corrected within ten
(10) days after receipt of written notice, specifying the nature of the default
and the corrective action required or where such default cannot reasonably
be corrected within ten (10) days. A Party shall not be in default so long as
either party commences actions necessary for correction within ten (10)
days of notice and diligently prosecutes the same to completion.
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Any notice, demand, request, consent, approval, or communication either party
desires or is required to give to the other party or any other person, shall be in
writing and either served personally or sent via United States Mail, prepaid, first -
class delivery to the address set forth below. Either party may change its address by
notifying the other party of the change in writing. Notice shall be deemed
communicated at the time personally delivered or in three (3) days from time of the
mailing if mailed as provided in this section.
To CITY: City of Newport Beach, Utilities Department
3300 Newport Boulevard
Newport Beach, California 92658 -8915
Attention: Utilities Director
To WNOC: West Newport Oil Company,
Post Office Box 1487
Newport Beach, California 92663
Attention: J. R. Stair, Vice President
VII. CALIFORNIA LAW
This Agreement shall be construed and interpreted with both validity and performance
of the parties in accordance with the laws of the State of California. Legal actions
concerning any dispute, claim or matter arising out of or in relation to this Agreement
shall be instituted in the Superior Court of the County of Orange, State of California, or
any other appropriate court in such county, and the parties hereto agree to submit to the
personal jurisdiction of such court in the event of any action.
VIII. ATTORNEY'S FEES
If either party of this Agreement is required to initiate or defend any action or
proceeding in any way connected with this Agreement, the prevailing party in such
action or proceeding, in addition to any other relief which may be granted, whether
legal or equitable, shall be entitled to all reasonable attorney's fees. Attorney's fees
shall include attorney's fees on any appeal. In addition, a party entitled to attorney's
fees shall be entitled to all other reasonable costs for investigating such action, taking
depositions and discovery and all other necessary costs the court allows in such
litigation. All such fees shall be deemed to have accrued on a commencement of such
action and shall be enforceable whether or not such action is prosecuted to judgment.
IX. AUTHORITY
"WNOC" warrants and represents that it has the authority to enter unto this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed on the day, month and year first above written.
APPROVED AS TO FORM: CITY OF NEWPORT BEACH
a municipal corporation
Ro in Flory Clarence Turner
Assistant City Attor Mayor
POST
ATTEST: Q� 19 WEST NEWPORT OIL COMPANY
Ln a California corporation
4..
Wanda Raggio Jay R. Stai
City Clerk Vice President
Address and Telephone:
City of Newport Beach West Newport Oil Company
3300 Newport Boulevard Post Office Box 1487
Newport Beach, California 92659-1768 Newport Beach, California 92663
(714)644-3011 (714)646-5204 (FAX) (714)631-1100 (714)650-4005
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