ORDINANCE NO. 445

AN ORDINANCE OF THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, GRANTING TO FOUR CORNERS PIPE LINE COMPANY, A CORPORATION ORGANIZED AND EXISTING UNDER AND BY VIRTUE OF THE LAWS OF THE STATE OF DELAWARE, ITS SUCCESSORS AND ASSIGNS, A FRANCHISE FOR A PERIOD OF FORTY (40) YEARS, TO CONSTRUCT, MAINTAIN, OPERATE, REPAIR, RENEW AND/OR REMOVE PIPE LINES FOR THE TRANSPORTATION OF OIL, GAS, AND OTHER HYDROCARBONS, OR ANY THEREOF, TOGETHER WITH ALL NECESSARY APPURTENANCES AS MAY BE REQUIRED TO OPERATE AND MAINTAIN SAID PIPE LINES IN, ALONG, UNDER AND ACROSS THE PUBLIC HIGHWAYS AND OTHER PUBLIC PLACES WITHIN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS THE SAME NOW EXISTS OR MAY HEREAFTER EXIST, EXCEPTING THEREFROM ANY AND ALL PORTIONS OF SAID TERRITORY WITHIN THE LIMITS OF ANY INCORPORATED CITY, TOGETHER WITH THE RIGHT TO CARRY, TRANSPORT, CONVEY AND CONDUCT OIL, GAS OR OTHER HYDROCARBONS IN AND THROUGH SAID PIPE LINES.

THE BOARD OF SUPERVISORS OF THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, DO ORDAIN AS FOLLOWS:

Section 1. As used in this franchise, the singular number includes the plural and the plural includes the singular. Unless it shall be apparent from the context that they have a different meaning, the following words and phrases shall have the meaning stated in this section, that is:

County: The County of Riverside

Grantee: The person, firm or corporation to whom this franchise is awarded and granted by the Board of Supervisors, and any person, firm or corporation to which it may hereafter be lawfully transferred as herein provided.

Board: The Board of Supervisors of the County.

Franchise Property: All property constructed, installed, operated or maintained in a public highway pursuant to any right or privilege granted by this franchise, provided that any such property shall retain its character as "franchise property" only so long as it shall remain in or upon any public highway pursuant to a right or privilege granted by this franchise.

Highway: Any public highway, road, street, lane, alley, court, sidewalk, parkway, or other public place, including the area above or below the same, which now exists or which may hereafter exist within the unincorporated area of the county.

Section 2. The franchise, privilege and right is hereby granted to Four Corners Pipe Line Company, a corporation organized and existing under and by virtue of the laws of the State of Delaware, its successors or assigns, for a period of forty (40) years from and after the effective date of this ordinance, to construct, maintain, operate, repair, renew and/or remove pipe lines for the transportation of oil, gas and other hydrocarbons, or any thereof, together with all necessary appurtenances as may be required to operate and maintain said pipe lines in, along, under and across the public highways within the County of Riverside, State of California, as the same now exists or may hereafter exist, excepting therefrom any and all portions of said territory within the limits of any incorporated city; together with the right to carry, transport, convey and conduct oil, gas or other hydrocarbons in and through said pipe lines.

Section 3. This franchise is granted under the terms and conditions hereinafter set forth and within 30 days after passage of this ordinance the Grantee shall file with the County Clerk of the County a written acceptance hereof, which shall be its agreement to abide by such terms and conditions.

Section 4. The pipelines to be constructed and operated under this franchise shall be built and constructed in a good and workmanlike manner and of good material. All pipelines laid, located or maintained under this franchise shall be placed at such locations as not to interfere with the use of public highways by the traveling public or with the use of public property or public works for their primary purposes. The Grantee shall make and fill all excavations in such manner as to leave the highway or other public property in as good condition as it was prior to said excavation. All such work shall be performed in compliance with the laws of the State of California and the ordinances of the County, and with any rules, regulations or standards adopted pursuant thereto. The Grantee, its successors or assigns, shall at all times hold the County of Riverside harmless from any and all damage resulting from the laying, use, operation and maintenance of said system.

Section 5.

a. The county, state and any municipal corporation, political subdivision or governmental agency or instrumentality of the State of California, when acting in a governmental capacity, may improve any highway or portion thereof in which franchise property has heretofore been constructed or installed and may construct, install, repair and maintain in any such highway, and may remove from any such highway any public improvement.

b. If notice in writing is given to the Grantee thirty (30) days in advance of the fact that work is to be done pursuant to any right reserved in subdivision (a) of this section, specifying the general nature of the work and area in which the same is to be performed, then the Grantee shall do all things necessary to protect its franchise property during the progress of such work and if ordered by the board or by the governmental agency performing such work the Grantee shall disconnect, remove or relocate its franchise property in the highway to such extent and in such manner as shall be necessary to permit the performance of such work, and to permit the maintenance, operation and use of such public improvement or of the highway as so improved. All of such things to be done and work to be performed by the Grantee shall be at the sole cost and expense of the Grantee.

Section 6. In the event that the County or any governmental agency above mentioned shall hereafter construct, install, reconstruct or repair any bridge or artificial support in or underlying any highway in which Grantee's franchise property is located or which is prescribed as the location for any of Grantee's franchise property, and in the event that the cost thereof be increased in order to provide for the installation, maintenance or operation of Grantee's franchise property in or on the highway area covered or underlain by said bridge or other artificial support, then the Grantee shall pay to the county or to such governmental agency or instrumentality doing such work the full amount of such increase of cost upon completion of such construction, installation or repair.

Section 7. No provision of this franchise shall be so construed as to impose upon the county any duty or obligation to construct, repair or maintain any highway included in the area in which Grantee's franchise property is located in any particular manner or to any particular standard.

Section 8. The said Grantee, its successors or assigns, shall in good faith commence construction under this franchise within not more than four (4) months from the granting of this franchise and, if not so commenced within said time, this franchise shall be declared forfeited. The completion of the work shall be prosecuted diligently and in good faith by the grantee.

Section 9. Before any excavation or other work requiring excavation in any public road or highway under the jurisdiction, supervision and control of the County of Riverside or the Board of Supervisors of said County is commenced by the Grantee, written notice of the proposed excavation or work shall be given by the Grantee to the County Highway Department of the County of Riverside not less than thirty (30) days prior to commencement of such excavation or work. Provided that, in cases of emergency requiring immediate action, the Grantee may make excavations and perform work in any such public highway for repairing and restoring its pipe lines without giving prior notice to said County Highway Department of such excavation and work, but notice thereof shall be given to said County Highway Department promptly after the commencement of such excavation and work, and the Grantee at its own cost and expense shall without unnecessary delay replace and restore the excavated portion of such public highway in and to as good condition as before such excavation and work.

Section 10. The said Grantee, its successors or assigns, shall, during the life of this franchise, pay annually to the County Treasurer of the County of Riverside, in lawful money of the United States, and in the manner provided by law, two per cent (2%) of the gross annual receipts of the Grantee, its successors or assigns, arising each year from the use, operation or possession of this franchise within the County of Riverside. No percentage shall be paid for the five years succeeding the date of this franchise, but thereafter such percentage shall be paid annually, and in the event said payment is not made, this franchise shall be forfeited; provided, further, that if the franchise shall be a renewal of the rights already in existence, or shall cover a system already constructed, the payment of said percentage of gross receipts shall begin at once. The Grantee of this franchise, its successors or assigns, shall file with the Clerk of the Board of Supervisors of the said County of Riverside, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of said franchise, and within three (3) months after the expiration of each and every calendar year thereafter, a duly verified statement showing the total gross receipts of such Grantee, its successors or assigns, during the preceding calendar year, or such fractional calendar year, arising from the use, operation or possession of said franchise within the County of Riverside. It shall be the duty of such Grantee, its successors or assigns, within fifteen (15) days after the filing of such statement, to pay to the County Treasurer of the County of Riverside, in lawful money of the United States, said two per cent (2%) of the gross annual receipts of said Grantee, its successors or assigns, arising from the use, operation or possession of this franchise. Any neglect, omission or refusal by the Grantee, its successors or assigns, to file such verified statement, or to pay said percentage at the times or in the manner hereinbefore provided shall be grounds for the declaration of a forfeiture of this franchise and all rights thereunder.

Section 11. Whenever any portion of the territory covered by this franchise shall be annexed to, or otherwise become a part of any municipal corporation, or of any other county, the rights reserved under this franchise to the County of Riverside, or any officer thereof, shall inure to the benefit of such municipal corporation or county, and its appropriate officers.

Section 12. The Grantee, its successors or assigns, shall not sell, transfer or assign this franchise, or any of the rights or privileges granted thereby, except by a duly executed instrument in writing, filed in the office of the County Clerk of the County of Riverside; and provided, further, that nothing in this franchise shall be construed to grant to the Grantee, its successors or assigns, any right to sell, transfer or assign said franchise, or any of the rights or privileges granted, except in the manner aforesaid.

Section 13. Any neglect, failure or refusal to comply with any of the conditions of this franchise shall constitute cause for forfeiture thereof in the discretion of the Board of Supervisors, and upon such exercise of this discretion, the County of Riverside by its Board of Supervisors may declare this franchise forfeited and may exclude the Grantee, its successors or assigns, from any further use of the public highways and public places in the unincorporated territory of the County of Riverside under this franchise; and the Grantee, its successors or assigns, shall thereupon surrender all rights in and to the same, and this franchise shall be deemed and shall remain null, void and of not effect.

Section 14. This franchise is granted under and pursuant to the provisions of the laws of the State of California applicable to the granting of franchises by counties and this franchise shall not be exclusive, but the Board of Supervisors of said County of Riverside reserves and shall have the right and power to grant other and additional franchises to persons, firms and corporations as authorized and provided by law.

Section 15. The Grantee shall file a bond running to the County of Riverside with at least two (2) good and sufficient sureties or a corporate surety bond to be approved by the Board of Supervisors of said County in the penal sum of $10,000.00, conditioned that the Grantee shall well and truly observe, fulfill and perform each and every term and condition of this franchise, and in case of any breach of condition of such bond, the whole amount of the penal sum therein named shall be taken and deemed to be liquidate damages and shall be recoverable from the principal and surety or sureties upon said bond. Said bond shall be filed with the Clerk of the Board of Supervisors within five (5) days after this franchise is awarded to the Grantee.

Section 16. The Grantee shall reimburse the County of Riverside for all publication expenses incurred by the County in connection with the granting of this franchise; said payment to be made within thirty (30) days after the County shall have furnished Grantee with a written statement of such expenses.

Section 17. If any section, paragraph, provision, sentence, clause or phrase of this ordinance, or the application thereof to any public highway or other public place included in this ordinance, is for any reason held invalid, the remainder of this ordinance shall not be affected thereby.

Section 18. The franchise herein granted and all provisions, rights, obligations and duties thereof shall extend an inure to and be binding on the Grantee, its successors and assigns.

Section 19. This ordinance shall take effect thirty (30) days from and after its passage, unless suspended by referendum petition filed as provided by law, and shall within fifteen (15) days after its passage, be published one time, with the names of the members of said Board of Supervisors voting for an against the same, in The Daily Enterprise, a newspaper of general circulation published in the County of Riverside.

ADOPTED: 12/2/1957 (Eff.: 1/1/1958)