Board of Commissioners approves amendment to Vancouver Energy lease
The amendment extends the Conditions Precedent Outside Date (CPOD) to March 31, 2017, with automatic three-month extensions after that date unless either party provides written notice of termination.
The CPOD is the date by which both parties must be satisfied that conditions such as permits to operate and environmental baseline work are met. If either party is not satisfied that these conditions are met on or before March 31, 2017, the lease can be terminated. If no action is taken, the lease continues for another three months.
The amendment also:
- Increases the Contingency Period fee from $50,000 to $100,000 per month, starting May 1, 2016.
- Eliminates the opportunity for Vancouver Energy to operate a second petroleum-by-rail facility at the port.
- Provides Vancouver Energy 30 months to resolve any appeals if licenses, permits or approvals are granted and appealed.
- Allows the port to use the premises during the extended contingency period.
- Stipulates that oil moved through the facility must be “pipeline grade” and destined for domestic ports.
“I think we’ve ended up with a compromise that allows us to continue through the EFSEC process, but with some defined ending,” said Commissioner Brian Wolfe.
Vancouver Energy is moving through the robust Washington state Energy Facility Site Evaluation Council (EFSEC) process. EFSEC began reviewing the project in August 2013. A recommendation to Gov. Jay Inslee, who makes the final decision on the project, is expected late this year or early next year.
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