LOS ALAMITOS : Pipeline Operation Agreement Renewed
The City Council gave preliminary approval this week to renew Shell Oil Co.’s franchise to operate an oil pipeline under Los Alamitos Boulevard and Cerritos Avenue. The city will receive $1,350 a year for the duration of the 15-year franchise and a onetime renewal fee of $2,500, officials said.
In addition, Shell Oil Co. will pay for street repairs and other damages to public properties that may be caused by the operation of the pipeline, which carries crude oil from Brea to refineries in Long Beach.
City Atty. Thomas W. Allen said that the city has more protection under the new franchise agreement than before. The city received $50 a year in franchise fees under the old franchise agreement, he said.
Allen said Shell Oil Co. will pay the city for environmental damage in case of leaks. He said the oil company has posted a $50,000 bond to assure compliance.
The council will consider final approval of the franchise request on May 9.
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