Staff recommends the City Council accept the right-of-way agreement for a 10 ft x 10 ft cathodic protection facility with Phillips 66. This facility would be located along the Kiwanis Trail near the intersection with Yellowstone River Road.
 

Phillips 66 has two (2) existing petroleum pipelines on City property along the Kiwanis Trail near the intersection with Yellowstone River Road. This City property is primarily used as corridor for a large sewer interceptor pipe but also includes the Kiwanis Trail. Phillips 66 is requesting right-of-way for a new cathodic protection facility to prevent corrosion and maintain a safe and reliable pipeline system. Above ground facilities will be contained in a 10 ft x 10 ft (100 square feet) chain length fence with a privacy screen and approximately 100 ft of aerial cable to connect to the adjacent power lines. Below ground facilities include one (1) 10" diameter x 300 ft deep drill hole or two (2) 10" diameter x 150 ft deep dill holes. The holes would contain an anode material for cathodic protection. 

City Council may:

• Approve the right-of-way agreement with Phillips 66; or,
• Not approve the right-of-way agreement.  If the agreement is not approved, Phillips 66 will not be able to install the cathodic protection for their facilities.

The value of right-of-way for 100 square feet is less than an appraisal would cost so staff reviewed land costs and determined that $10/sf was higher than this type of land is worth in Billings and Phillips 66 was amenable to paying that rate. Phillips 66 will provide $1,000.00 as compensation for the right-of-way agreement.