Since 1966, NorthWestern Energy (NWE) has held an easement for electric transmission lines along the western side of the Billings Water Treatment Plant property.  NWE proposes a modification to its easement to place a single natural gas pipeline within its easement.  In consideration for this easement modification, NWE has agreed to reduce the width of the original easement, and acknowledge and agree that the City reserves the right to cross the pipeline with future water lines.

Additionally, NWE has requested another easement where the pipeline crosses under the City’s islands in the Yellowstone River and in the water protection area adjacent to the Billings Water Treatment Plant.  NWE agrees to pay $116,000 to the City for the estimated costs of installing protective sleeves for future water line(s) crossing the gas pipeline within the modified easement area and to pay $20,000 for the gas pipeline running under the City’s Islands and Mystic Park.  This results in a total payment of $136,000.  This price is estimated by the City’s Utility Systems Engineer to cover the cost of installing protective sleeves for future water lines.
 

City Council may:

• Approve the easement for the natural gas pipeline and the Easement Modification Agreement with NorthWestern Energy and authorize the Mayor to sign the appropriate documents; or;
• Disapprove the Easement Modification Agreement.  If not approved the existing wider easement will remain in place and the easement for the pipeline under the islands will not be granted.

NorthWestern Energy is paying the City of Billings $136,000 for the easement.  Funds will be deposited in the Water Fund.

Staff recommends that City Council approve the easement for the natural gas pipeline and the Easement Modification Agreement with NorthWestern Energy and authorize the Mayor to sign the appropriate documents.