12-19-2019
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Diversion Authority/NuStar - Pre-NDPSC Application Work Payment Agreement 68892716 - Page 1 <br />AGREEMENT FOR PAYMENT OF COSTS OF WORK NECESSARY TO PREPARE APPLICATIONS NECESSARY TO COMPLETE RELOCATION PROJECT <br />This Agreement (“Agreement”) is made and entered into effective as of _________ ___, 2019 by and between the METRO FLOOD DIVERSION AUTHORITY, a North Dakota political subdivision, whose post office address is P.O. Box 2806, Fargo, ND 58108-2806 (the <br />“Diversion Authority”) and NUSTAR PIPELINE OPERATING PARTNERSHIP L.P., a <br />Delaware limited partnership with its principal office at 19003 IH-10 West, San Antonio, TX 78257 (“NuStar”). Collectively, Diversion Authority and NuStar may be referred to hereinafter as the “Parties.” <br />RECITALS <br />WHEREAS, the Diversion Authority is pursuing the Fargo-Moorhead Metropolitan Area Flood Diversion Project (the “Diversion”), which involves construction of a diversion channel and related structures located, among other places, west of the City of West Fargo, North <br />Dakota; <br />WHEREAS, NuStar owns and operates a pipeline system known as the North System Pipeline, which extends from the Tesoro Refinery in Mandan, North Dakota, to a terminal in Roseville, Minnesota (the “Pipeline”); <br />WHEREAS, the Diversion Authority has requested that NuStar relocate a portion of the Pipeline to accommodate the Diversion (the “Relocation Project”); <br />WHEREAS, the Parties are in negotiations over the Memorandum of Understanding <br />(“MOU”) that will govern the Relocation Project; <br />WHEREAS, the Diversion Authority has indicated to NuStar that it desires NuStar’s Relocation Project to be complete at a time to be determined, but as soon as the fall of 2020; <br />WHEREAS, in order to complete the Relocation Project, NuStar may need to obtain <br />approvals from the North Dakota Public Service Commission (“NDPSC”), one of which may be a Certificate of Corridor Compatibility and a Route Permit (“CCC/RP”); <br />WHEREAS, in order to make required applications to the NDPSC to gain approvals to <br />complete the Relocation Project, NuStar needs to engage in certain survey and study work and <br />analysis, including but not limited to identification of study area, survey corridor, right-of-way, and route, agency consultation, field survey work and report preparation, right-of-way acquisition, and CCC/RP application preparation and related work (collectively, the “Application-Related Work”); <br />WHEREAS, the Application-Related Work will require NuStar to incur expenses and costs, including but not limited to expenses and costs for third party surveyors, environmental consultants, and legal counsel, plus 20% to cover overhead related to third party costs (the “Application-Related Work Expenses”); <br />Item 6d.
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