To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Chevron U.S.A. Inc. Revised Pipeline Length and Annual Fee
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ACKNOWLEDGE changes to the annual fee amount and pipeline length in Resolution No. 2026-92 which granted a ten-year pipeline franchise renewal to Chevron U.S.A. Inc. pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305 for pipelines located in unincorporated areas of the County near Bay Point, Brentwood, Byron, Martinez, and North Richmond, as recommended by the Public Works Director.
FISCAL IMPACT:
The change to Resolution No. 2026-92 described in the Background section below will modify the amount generated by the pipeline franchise per year from approximately $3,000 to approximately $3,400 commencing with calendar year 2026. The annual franchise payment will be calculated at the rate of $1.77 per cubic foot of pipeline within the County right-of-way. The number of cubic feet of pipeline subject to the franchise fee rate will be calculated by taking the area of the inside diameter of the pipeline plus 1” and multiplying it by the length of the pipeline within the County right-of-way. A minimum inside diameter of six (6) inches will be used for these calculations. The annual franchise fee rate of $1.77 per cubic foot is increased annually by the change in the Consumer Price Index, all Urban Consumers for the San Francisco-Oakland-Hayward Area (1982-84 = 100), with December 2012 (239.53) as the base CPI month.
BACKGROUND:
On August 13, 2013, this Board adopted Ordinance No. 2013-19 (establishing regulations for granting pipeline franchises in County rights-of-way) and Resolution No. 2013/305 (establishing pipeline franchise fee amounts).
On January 5, 2016, this Board approved Resolution No. 2016/13 granting a pipeline franchise to Chevron U.S.A. Inc. pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305.
Chevron U.S.A. Inc. filed a written application with the County, dated December 9, 2025, wherein it requested the granting of a pipeline franchise ten-year renewal pursuant to the terms and conditions of County Ordinance No. 2013-19.
On March 31, 2026, this Board adopted Resolution No. 2026-92 (Item C.90) granting a ten-year franchise renewal to Chevron U.S.A. Inc. for the following pipelines for a term of 10 years:
1. Bay Area Products Line (BAPL) - 8-inch diameter, 691 feet Petroleum Products.
2. Bay Area Products Line (BAPL) - 10-inch diameter, 403 feet Petroleum Products.
3. Northern California (NCG) System - 12-inch diameter, 285 feet Natural Gas.
4. Northern California (NCG) System - 18-inch diameter, 154 feet Natural Gas.
All four (4) pipelines were included in the approval of Resolution No. 2016/13. Since then, Buchanan Road has been annexed into the City of Pittsburg and Marsh Creek Road is now under Caltrans jurisdiction as part of State Highway 4. Also, the County confirmed the width of public right-of-way corresponding to the pipeline crossing McAvoy Road is 64 feet and the width of public right-of-way corresponding to the pipeline crossing Holey Road and N Bruns Way are 52 feet and 74 feet respectively. As a result, the lengths for the 8-inch BAPL, 10-inch BAPL, and 12-inch NCG pipelines have been revised accordingly.
Subsequent to approval of Resolution No. 2026-92, County staff identified an additional 350 feet of pipeline in County right of way shown on Location Map 1 for the 8-inch diameter line (BAPL). Approval of changes to Resolution No. 2026-92 will document the revised annual fee and the following pipelines in County right of way.
1. Bay Area Products Line (BAPL) - 8-inch diameter, 1,041 feet Petroleum Products.
2. Bay Area Products Line (BAPL) - 10-inch diameter, 403 feet Petroleum Products.
3. Northern California (NCG) System - 12-inch diameter, 285 feet Natural Gas.
4. Northern California (NCG) System - 18-inch diameter, 154 feet Natural Gas.
CONSEQUENCE OF NEGATIVE ACTION:
Resolution No. 2026-92 will not accurately reflect the length of pipelines in County right of way.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
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IN THE MATTER OF changes to Resolution No. 2026-92 recognizing a modification to pipeline length and annual fee amount included in the granting of a ten-year pipeline franchise renewal to Chevron U.S.A. Inc.
The Board of Supervisors of the County of Contra Costa finds and declares:
WHEREAS, on August 13, 2013, this Board adopted Ordinance No. 2013-19 (establishing regulations for granting pipeline franchises in County rights-of-way), which became effective September 12, 2013; and Resolution No. 2013/305 (establishing pipeline franchise fee amounts).
WHEREAS, on January 5, 2016, this Board approved Resolution No. 2016/13 granting a pipeline franchise to Chevron U.S.A. Inc. pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305.
WHEREAS, Chevron U.S.A. Inc. filed a written application with the County, wherein it has requested the granting of a ten-year pipeline franchise renewal pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305.
WHEREAS, Chevron U.S.A. Inc. identified the following four (4) pipelines, which it owns and will be covered under the proposed pipeline franchise renewal as:
1. Bay Area Products Line (BAPL) - 8-inch diameter, 691 feet Petroleum Products.
2. Bay Area Products Line (BAPL) - 10-inch diameter, 403 feet Petroleum Products.
3. Northern California (NCG) System - 12-inch diameter, 285 feet Natural Gas.
4. Northern California (NCG) System - 18-inch diameter, 154 feet Natural Gas.
WHEREAS, on March 31, 2026, this Board adopted Resolution No. 2026-92 granting a pipeline franchise renewal to Chevron U.S.A. Inc. pursuant to Ordinance No. 2013-19 and Resolution 2013/305.
WHEREAS, subsequent to approval of Resolution No. 2026-92, County staff identified an additional 350 feet of pipeline within County right of way shown on Location Map 1 of Exhibit 1 for the 8-inch diameter line (BAPL).
WHEREAS, the change to Resolution No. 2026-92 will include the following pipelines owned by Chevron U.S.A. Inc. as:
1. Bay Area Products Line (BAPL) - 8-inch diameter, 1,041 feet Petroleum Products.
2. Bay Area Products Line (BAPL) - 10-inch diameter, 403 feet Petroleum Products.
3. Northern California (NCG) System - 12-inch diameter, 285 feet Natural Gas.
4. Northern California (NCG) System - 18-inch diameter, 154 feet Natural Gas.
NOW, THEREFORE, BE IT RESOLVED
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1. The Board of Supervisors of Contra Costa County finds and declares that the foregoing recitals are true and correct.
2. Pursuant to Ordinance No. 2013-19, a franchise renewal to operate pipelines in certain rights of way as described below is hereby granted to Chevron U.S.A. Inc. for a term of ten years.
A. A franchise to operate an 8-inch diameter petroleum products pipeline bisecting the County from north to south and crossing various County rights of way for a lineal distance of approximately 1,041 feet (BAPL Pipeline).
B. A franchise to operate a 10-inch diameter petroleum products pipeline bisecting the County from north to south and crossing various County rights of way for a lineal distance of approximately 403 feet (BAPL Pipeline).
C. A franchise to operate a 12-inch diameter natural gas pipeline bisecting the County from east to west and crossing various County rights of way for a lineal distance of approximately 285 feet (NCG System Pipeline).
D. A franchise to operate an 18-inch diameter natural gas pipeline bisecting the County from east to west and crossing various County rights of way for a lineal distance of approximately 154 feet (NCG System Pipeline).
3. The location of the pipelines is depicted on the maps attached hereto as Exhibit 1.
4. The annual franchise payment to be paid pursuant to County Resolution 2013/305 shall be calculated at the rate of $1.77 per cubic foot of pipeline within the County right-of-way. The number of cubic feet of pipeline subject to the franchise fee rate will be calculated by taking the area of the inside diameter of the pipeline plus 1” and multiplying it by the length of the pipeline within the County right-of-way. A minimum inside diameter of six (6) inches will be used for these calculations. The annual franchise fee rate of $1.77 per cubic foot is increased annually by the change in the Consumer Price Index, all Urban Consumers for the San Francisco-Oakland-Hayward Area (1982-84 = 100), with December 2012 (239.53) as the base CPI month.
5. The Director of Public Works, or his designee, is authorized to administer the pipeline franchise granted pursuant to this resolution.
6. The Resolution shall take effect upon the following:
Within 30 days of the date of this Resolution, Chevron U.S.A. Inc. must file with the Public Works Department the following: (1) a written acceptance of the terms and conditions of the franchise granted to the Resolution, Ordinance No. 2013-19, and Resolution No. 2013/305; (2) a performance bond in the form approved by the Board, and, (3) insurance coverage as required by Ordinance No. 2013-19.