To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Granting of a Pipeline Franchise Renewal to California Resources Production Corporation
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
ADOPT a resolution granting a ten-year pipeline franchise renewal to California Resources Production Corporation for a pipeline located in the unincorporated area of Bay Point as recommended by the Public Works Director.
FISCAL IMPACT:
The pipeline franchise will generate approximately $3,500 per year 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 10, 2017, this Board approved Resolution No. 2017/5 granting a pipeline franchise to California Resources Corporation pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305. This existing franchise includes the Ryer Discharge Pipeline and the Union Island Pipeline.
California Resources Corporation has filed a written application with the County, dated May 13, 2026, 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. Since this Board approved Resolution No. 2017/5, California Resources Corporation assigned the Ryer Discharge Pipeline to California Resources Production Corporation, a wholly owned subsidiary of California Resources Corporation.
The Union Island Pipeline previously included in the franchise under Resolution No. 2017/5 has been assigned to California Resources Pipeline Company, LLC, a subsidiary of California Resources Corporation, and will be included in a separate pipeline franchise renewal.
California Resources Corporation provided the deposit to cover all administrative costs associated with the granting of this pipeline franchise renewal, as required by Ordinance No. 2013-19 and Resolution No. 2013/305.
Approval of Resolution No. 26- will grant a pipeline franchise renewal to California Resources Production Corporation for the following pipeline for a term of 10 years:
Ryer Discharge - 12-inch diameter, 1,400 feet, Natural Gas
CONSEQUENCE OF NEGATIVE ACTION:
California Resources Production Corporation will not obtain the required authorization to continue to operate and maintain their pipeline within the County right-of-way under the Pipeline Franchise Ordinance. The Pipeline Franchise Ordinance includes provisions to protect the County from risks associated with pipelines.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
body
IN THE MATTER OF a resolution of the Board of Supervisors of the County of Contra Costa authorizing the granting of a ten-year pipeline franchise renewal to California Resources Production Corporation. 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 10, 2017, this Board approved Resolution No. 2017/5 granting a pipeline franchise to California Resources Corporation pursuant to the terms and conditions of County Ordinance No. 2013-19 and County Resolution No. 2013/305.
WHEREAS, California Resources Corporation has 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, California Resources Corporation assigned the following pipeline to California Resources Production Corporation, a wholly owned subsidiary of California Resources Corporation, and the pipeline will be covered under the proposed pipeline franchise renewal as:
1. Ryer Discharge Pipeline - 12-inch diameter, 1,400 feet, Natural Gas.
WHEREAS, the County has reviewed the application as well as relevant documents, staff reports, and recommendations and it is the intent of the Board to grant a pipeline franchise renewal to California Resources Production Corporation pursuant to Ordinance No. 2013-19 and Resolution No. 2013/305.
NOW, THEREFORE, BE IT RESOLVED
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 California Resources Production Corporation for a term of ten years.
a. A franchise to operate a 12-inch diameter natural gas pipeline intersecting the County from north to south and crossing various County rights of way for a lineal distance of approximately 1,400 feet (Ryer Discharge Pipeline) is hereby granted to California Resources Production Corporation.
3. The location of the pipeline is depicted on the map 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, California Resources Production Corporation 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. 2023-19, 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.
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