20190709Notice of Affiliate Transaction.pdf

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July 9,2019
Idaho Public Utilities Commission
472West Washington
Boise,ID 83702-5983
Attention: Diane Hanian
Commission Secretary
Re: PacifiCorp Notice of Affiliate Transaction
Case No. PAC-E-05-8
Dear Ms. Hanian:
This letter will serve as notice pursuant to Commitunentl lT(2), incorporated in the
Idaho Public Utilities Commission Order No. 29973 issued February 13,2006, as supplemented
by OrderNo.29998 March 14,2006, in the above-referenced proceeding, approving the
acquisition of PacifiCorp by MidAmerican Energy Holdings Company (now "Berkshire
Hathaway Energy Company" or "BHE"), of an affiliate tansaction with Kem River Gas
Transmission Company ("Kern River"), for an encroachment permit to allow PacifiCorp to
construct and connect a new transmission line to an existing transmission line located in an
easem€nt on Kern River's property near Eagle Mountain, Utah. A copy of the encroachment
permit is included as Attachment A.
PacifiCorp is a wholly-owned indirect subsidiary of BFIE. Kem River is also a wholly-owned
indirect subsidiary of B[IE. Therefore, BIIE's ownership interest in PacifiCorp and Kern River
creates an affiliated interest relationship between PacifiCorp and Kern River in some PacifiCorp
jurisdictions.
Kem River owns and operates the Kem River pipeline system, which tansports natural gas to
California, Nevada, and Utah. Certain of Kern River's Utah pipelines are in an area being used
by PacifiCorp for a transmission line near Eagle Mountain, Utah. PacifiCorp is conskucting new
transmission lines that will connect perpendicular to the existing transmission line located on
Kem River's property. No fee is being paid by PacifiCorp to Kern River for the encroachment
permit.
Diane Hanian
Notice of Affiliate Transaction
July 9,2019
The encroachment permit is needed to enable PacifiCorp to construct new transmission lines to
enable PacifiCorp to continue to provide safe and reliable service in the area. Accordingly,
execution of the Agreements is in the public interest.
Please do not hesitate to contact me if you have any questions.
Best Regards,
R.J
Vice and General Counsel
PacifiCorp
Enclosures
lKqrn Eid-! . ,. rratlU&Wi rof,tarlG.lrGltpt,
Permit No,
Drt€
One Call Ticket No(s),
ENCROACHMENT PERMIT
This Encroachmmt Pemit is mde md entercd into on the date indicated below by md betwem the encroaching party ("PERMITTEE") md Kem fuver Gas Tmsmission Compmy ("KERN
not limited to: fee prcperties, eaements, pipelines, meter buildings md valve sites.
PERMITTEE:
Name:Easement Tract
Locationofencroachment:[CAENvnUTtrWYCounty:-City:
Line #: _ Milcpost To:From: _ Eng. Stations:
Section; _ Township: _ Range: _ GPS Coordinats:
Line #: _ Milepost To:From:Eng. Stations:
Section: _ Township: _ Range: _ GPS Coordinata:
E EvA E FIL E LAS
Description of Encroachmenti
This pemit is gmted to PERMITTEE subject to the r
specifically in accordmce with the following item(s):
tems, conditions md my special provisions shom below, with the encroachment specifications shown on the reverse side of this fom md
NOTICE: AIIY DAMAGES TO KERN RIVER,S FACILITIES SHALL BE REIMBURSED IN ENTIRETY BY PERMITTEE
It is mdemtood that PERMIfiEE will cause the encroachment at no expense to KERNRMR. PERMITTEE shall be responsible for restomtion of all disturbed lmd on
KERN RIVER'S right of way caused by the construction or maintmmce of said
encroachment. PERMITTEE agrees to supply KERN RMR plms md drawings, in
detail, illustrating the proposed encroachment md KERN RMR'S facilities, mless
KERN RIVER elects not to require such plms.
So that KERN RMR my schedule its penomel - md not delay PERMITTEE'S work
- PERMITTEE agrees to noti! KERN RIVER 48 hous before my work comences
on or neil its right ofway.
This pemit des not chmge or modift my provisions of KERN RIVER'S existing
right of way contracts or eaements. This pemit is revocabl€ at KERN RMR'S sole
discretion for safety resom or for nonmmplimce with my tem, re4uirements,
conditions md,/or specificatiom of this Pemit upon witten notice givm to
PERMITTEE md/or cuent oms of record. KERN RIVER is not liable for my costs
or dmages related to revocation of this pemit.
DISCLAIMER OF WARRANTY - KERN RMR does not wumt the condition of
its right of way or facilities nor its fitness or suitability for my particulu purpose.
Additionally, KERN RMR does not wmt its right of way or frcilities for
subsidence, compaction or geotechnical stability ofuy kind.
PERMITTEE hereby represents md wffiilts that it hm or will obtain prior to
construction all necessary agreements, approvals, authoriations, certificates, licenses,
zoning ud pemits from my md all lmdomers ud agmcies, public md private, for
the construction activities set forth herein.
Speciel provisions:
' PERMITTEE agrces to save md hold harmless KERN RMR, its officers, agents,
employees md its subcontractorc md thet officen, agents md mployees from my md
all claim for dmages, injury or death resulting from the continution md maintmme
of said encroachment. A KERN RIVER representatiye must be present duing a.ll
construction activities. PERMITTEE shall be liable for all costs incmed for my
dmages.
' GOVERNING LAW AND JURY WAIVER. This Agrcement md the rights md duties
of the prties aising out of this Agreement shall be govemed by md construed in
accordmce with the laws ofthe State ofUtah, except provisions ofthat law refening to
govemilce or construction of the laws of mother juisdiction. Any suit. action. or
proceeding uising out ofor relating to this Agreement may only be institut€d in a state
or fedeml court in Salt Lake City, Utah. Each party waives my objection which it may
have now or hereafter to exclusive venue of such action or proceeding in the state or
federal courts of Salt Lake City, Utah, md inevocably submits to the juisdiction of my
such state or federal court in my such suit, action or proceeding. TO THE FULLEST
EXTENT PERMITTED BY LAW, EACH OF THE PARTIES HERETO WAIVES
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS AGREEMENT.
EACH PARTY FURTHER WAIVES ANY zuGHT TO CONSOLIDATE
ANY ACNON IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH
ANY OTHER ACTION IN WHICH A ruRY TRIAL CANNOT BE OR HAS
NOT BEEN WAIVED
PERMITTEE agrees that KERN RIVER may remove any encroachment, or
portion thereof, if in k'ERN RIVER'S sole judgment it is reasonably
necessary to do so in order to construct, alter, maintain, protect, repair or
replace gas transmission facilities located within the right of way and
easement. Should KERN RIVER remove any such encroachments, or
KRGT - I 009 @ev I 0/l 7)
Printed docwflt may be out of date
portions thereof, KERN RIVER will not be liable to PERMITTEE or its
successors or assigns for any damages resulting by reason of such removal,
except for those damages arising out of the sole negligence of KERN
RIVER.. KERN RIVER may request evidence of general liability and other
appropriate and usual insurance prior to any activity and/or construction on
or near I(ERN RIVER's rights of way. In the event of excavation under
KERN RIVER's pipelines, KERN RIVER must be named as an additional
insured. Any rights of subrogation or recovery will be waived by
PERMITTEE in favor of KERN RIVER. The insurance limits, terms and
conditions that may be required will be dependent on the specific facilities
potentially impacted and what would be usually and prudently obtained in
similar industry situations.. All metallic utility lines impacting KERN RIVER's pipelines sha[[ have
cathodic test leads connecting both the utility and the pipelines. KERN
RIVER will install, at PERMITEE'S expense, such test leads on its pipelinesif required. If KERN RIVER determines in its sole discretion that
interference studies and/or mitigation (including; but not limited to, bonds
or galvanic drains) are required, PERMITTEE agrees to pay for the studies
and/or mitigation necessary to protect against the metallic utility lines.. For high voltage AC power lines, high voltage DC power lines or DC
traction systems impacting KERN NVER's pipelines, if KERN RIVER
determines in its sole discretion that AC or DC mitigation studies and/or AC
or DC mitigation is required from any of PERMII"TEE'S facilities,
PERMITTEE agrees to pay for the studies and/or mitigation necessary
(including future studies and/or additional mitigation, and maintenance of
the mitigation systems) to protect against the power lines for the life of the
facility.
PERMITTEE
On this _day of
-,
20 _l acknowledge that I have received, md reviewed
with a KERN RMR reprcsmtative, the requirements, conditions md specifications of
this Pemit. I also mderstmd the provision md prescribed penalties as provided uder the
law regrding excavation.
By:
Title:
Your local KERN RMR contect is:
Phone #
KERN RIVER GAS TRANSMISSION COMPANY
VOID WITHOUT AUTHORIZATION
Title:
By:
Distribution: Whit - Diltri.t Pink - lrnd Gold.n Ro.d - Pemittec Prge I I of2
INTERNAL
Lendowner Name:
ENCROACHMENT SPECIFICATIONS
KERN RIVER GAS TRANSMISSION COMPANY, hETEiNAftET €IIEd 'KERN RIVER' iS AN
inteEtate tEnsporter of natural gas, which is cgulated by the U.S. Departmont of
TEnsportation Office of Pipeline Safety. Tha following specmcatons are d€signed to comply
with appli€ble state and federal regulations to assuro the safety of the public and to protsct
the pipeline.
Tho following specific€tions are minimum requirements for most proposed encroachments to
avoid @nflict with the existing easoment rights. These are not the only types of activities
psmittod. Additional specifi€tions may bs Equired depending upon the proposed
enmachments. Ensoachments will be at PERMITTEE'S @st. Please @ntact the n€arest
KERN RIVER offie to review your indiMdual situation.
Be€use easements run with the land and are subject to KERN RIVER'S rights, encrcaching
parties will need to pass along to subsequent landowne6 the restrictions @ntained herein
which shall be covenants running with th€ land and b€ binding upon PERMITTEE, its heirs,
legal representatives and successors in titl6.
GENERAL REQUIREMENTS FOR SURFACE ALTERATIONSA) Most state Iils require 48 hours, or two working days' notie, be given to utility
companies prior to beginning ex€vation. PERMITTEE will €ll 81 1 to contact tho local
'One Call' or 'Dig Alsrt' system at least 48 hours, or two working days, prior to
commendng any construction or €xcavation activity.
B) KERN RIVER'S easement restricts the placement of a structure or any part of a
structure within the right of way, oxcept as may bo expressly permitted herein.
C) An authorized KERN RIVER reprssentative must be on-site during any work perfomed
on or across the right of way.
D) The KERN RIVER representative will detemine the existing @ver over the pipeline.
E) Any change in the amount of existing @ver material (soil) on and over the right of way
must be approved in advancs and shall be no less lhan that required by the u.s.
Department of TEnsportation.
1) FENCESMALLSA) Fenes shall not be installed paEllel to ths pipeline within the KERN RIVER'S
€asement. Forfenes installod acrcss ths right of way, the fict post either side of the
pipe shall be set 5 feet frcm th6 c6nt6r of the pipeline in a hand dug hole.B) PERirlTTEEshallprovideaccsssthrcughoraroundfene(s)crossingtherightofway
to allow perfomance of normal right of way maintenane.C) lnstaller shall adhere to pmvisions A and C of GENERAL REQUIREMENIS FOR
SURFACE ALTERATIONS,D) Walls will be evaluated on a case by €se basis and may require additional apprcval
or provisions to protect the facilitiss.
2) LANDSCAPING (plantings that require excavating deeperthan 'l foot)A) Flower beds and shrubs are permitted within the right of way, but may be damaged
by rsquired annual surueys, if planted directly orer the Pipeline. Heavy maintenance
may require total dearing of the right of way.B) No trees or deep moted shrubs are alltred within the easement.C) Lawns and vegetable gardens are a@ptable.D) Provisions A and C of th€ GENERAL REQUIREI\iIENTS FOR SURFACE
ALTERATIONS pertain to this type ol planting.
3) SIREETS. ROADS, PAVED PARKING LOTSAND DRIVEWAYSA) Residential driveways intended for light vehicle access to a singlefamily dwelling must
have a minimum of 5.5 feet of cover over the pipeline or an altemative engineersd
solution.B) Driveways shall not run lengthwis€ within the right ofway and must cross on an angl€,
which when measured between the proposed drive and the right of way is not less
than 45 degrees.C) An opportunity for KERN RIVER to make a pipe insp@tion must be given prior to the
start d any @nstruction.D) Provisions A, C, D and E of the GENERAL REQUIREMENTS FOR SURFACE
ALTERATIONS pertain to drireway crossings.E) Street or road @nstrudion may require a sp€cific encDachment agr€emsnt from tho
KERN RIVER, and plans lor such crcssings shall be submitted 90 days prior to work
commenement to allow time for prcjecl impact review by the loel KERN RIVER
office.F) KERN RIVER may require l6ak dotection acess points through concrete or asphalt
surfaces.
4) TEMPORARY EQUIPMENT CROSSINGSA) To protecl KERN RIVER'S pipolines from extemal loading, KERN RIVER must
perform an evaluation to detemine the effects ofany proposed equipmsnt use. KERN
RIVER reseryes the right to approv€ or deny the use of ce(ain types of €quipment.
Make/model of equipment, maimum axle weight and crossing lMtion will need to
be provided. Mats, timber bridges, or othor prctective materials deemed necssary by
KERN RIVER shall be placed over KERN RIVER facilities for the duEtion of any
loading. Prctective materials shall b€ purchased, plaed, and removed at no cost to
KERN RIVER. The rjght of way must b€ restored to its original condition.B) KERN RIVER may require markings to identify specific areas where equipmsnt use is
authOrized.
5) OPENWATERWAYSA) Open watsMays smaller than 3 feet wide at the bottom are deflned as "ditches" and
must have a minimum of 3.5 fset of covsr frcm the top ofthe pipe to the bottom of the
ditch, orthe ditch must be lined using an approved method and material. Largsr open
wateMays are defined as "mnals" and are @nsidersd on an individual basis.B) Anyone altering (clearing, rograding or changing alignment) a wateruay must obtain
approval fmm KERN RIVER prior to making changas and shall meet all Provisions of
thE GENERAL REQUIREMENTS FOR SURFACE ALTERATIONS.
C) An opportunity will be provided for KERN RIVER to install €sing and/or other
structural prctection prior to €nal installation.
6) EXCAVATTONA) Plans for any sxcavation on the right of way must be apprcved prior to commencing
work. Exevating within 5 feet of tho pipeline shall be done by hand until th€ pip€line
is exposed and shall be don6 only in the pcsence of an authorized KERN RIVER
representative. Vvhen ex€vating for crossing a ditch line, after the pipe has been
KRGT- 1009(Rev I0A7) Distribution: White-District
Printed document may be out of date
expossd, th6 exGvation equipment must be positioned such that it will not reach
within 2 feet of the pipoline. Final stripping on sidss and top of the pip€line shall be
by hand.B) Vvhen a backhoe is used, the bucket teeth should bs arled under each time it is
brought back into the ditch to Educe the chance of t€eth ontacting the pipe.
C) ln certain circumstanes, KERN RIVER representative may requires bucket teeth to
be bared and side cutteB to be removed, unless writtsn authorization frcm KERN
RIVER is obtained.
GENERAL REQUIREMNET FOR BURIED LINE CROSSINGS
A) All buried lines cmssing KERN RIVER'S right of way shall be installed in ac@rdance
with all appli€ble codes and requirements goveming such installations.
B) All foBign lines shall cross KERN RIVER'S righl of way at an angle as close to 90
degrees as possible. Parallel occrrpancy of KERN RIVER'S right ofway shall not be
allowed unless specifiGlly pemitted by KERN RIVER.
C) All buried lines should cross under the pipeline. Howaver, when obstructions or
unfavorable soil conditions are en@untered, or when the KERN RIVER pipeline is
loGted at a depth greater than 4 feet, approval to cross ovar the line may be gEnted.
D) To avoid unexpected seruie interoptions of buried lines cmssing over KERN RIVER
pipeline, a minimum of 24 inchss of cover (or loml minimum required depth) must be
provid€d ov6r the crossing line.
E) All buned lines crossing the KERN RIVER'S pipeline shall maintain a minimum
separation of 24 inches between the two facilities, with the samo depth €ried asoss
the sntire right of way.F) A joint trench is the recommended method for multipl€ utility crossings. Under nomal
circumstances this Gquires that only one permit bs obtained by the excaEting
company.
G) No for8ign appurtenances (meters, poles, drop boxes, @llection basins, etc.) shall be
located on or within ths right of way, ex@pt as may be psmitted herein.
H) A buried waming tape color @ded identifying the ensoaching party shall be pla@d '12
to 18 inchos above the crossing line and extend across the ontire right of way as a
protgctive measurs.l) An authorized KERN RIVER repres€ntative must be on-sit€ during all ex€vation,
bacKill and cl€an-up work performed on the right of way.
7) COMMUNICATION LINES (TELEPHONE, TV, OTHER OATA LINES)
A) Communication linos shall meet all provisions of the GENERAL REQUIREI\TENTS
FOR BURIED LINE CROSSINGSB) Communication lines shall be encased in a rigid nonmetallic conduit acmss the tull
width of ths right of way.
C) Signs shall be plaed by the encroaching party at each sdge of the right of way to
mark the undergound cable angle and path of crcssing.
8) POWER L|NESA) Pow€r lines shall meet all of the above GENERAL REQUIREMENTS FOR BURIED
LINE CROSSINGS and shall be installed in accordanca with the National Eledrical
Safety code.B) Power linos shall have minimum clearanes between lines of 24 inchss for 0 to 600
voltsi 30 inches for 601 to 22,000 volts, 36 inches for 22,001 to 40,000 volts; and 42
inches for 40.001 volts and above.
C) Power lines shall be en€sed in rigid nonmetallic conduit.
D) Signs shall b3 placed by the encroaching party at sach sdge of the rjght of way to
mark the underground cable angle and path of crossing. lf the underground cable
crosses above the pipeline, the signs shall so indicatB.E) lnthe6ventapow6rlinecrcssesoverthepipsling,itwillbenecessarytocoverthe
crossing in red dye concrcte (6 inches thick) asoss the full width of the right ofway.
9) SEWERANDWATERLINESA) Sewer and water lines shall meet all above GENERAL REQUIREMENTS FOR
BURIED LINE CROSSINGS. Nonmetallic water lines are requir€d.
B) Sewer line sossings are limited to tight lines only.
C) Septjc tanks and dEin fields are not pemitted within the right of way.
1O) SUBSURFACE DRAINAGE TILE (NONMETALLIC)A) Orainage tile shall meet all above pmvisions of GENERAL REQUIREMENTS FOR
BURIED LINE CROSSINGS,
1 1) MEIALLIC PIPE CROSSINGSA) All 4 inch and larger metallic pipes crossing KERN RIVER'S pipeline, orany metallic
pipe transporting hazardous materials (petroleum, natural gas, etc.), shall have two
€thodic protection tost leads installed on the KERN RIVER pipeline(s) and two on the
crossing pipe at the point of intersectjon. The test leads shall be terminated in an
abov+ground test post.
B) KERN RIVER p€Bonnel must install the leads on KERN RIVER'S pipeline(s).
C) Metallic pipe mssings shall have a permanent protective coating for the full width of
the right of way.D) Additional interferen@ mitigation may be requirad, and shall be installed at
PERMITTEE'S sxpsns€.
12) ABOVE GROUNO LINE CROSSINGSA) Shall maintaln a minimum o, 30 feet of vertical clearance across the right of way.B) Shall have no poles or appurtenances lo€ted on or within the right of way.
C) Above-ground crossings shall not be above or closer than 25 feet horizontally to any
gas escape vent (e.9., relief valve vent, station blow down vont, block valve vent, etc.).D) High voltage AC, DC or DC traction systems may require additional studies and
mitigation as dotailed.
13) BLASTINGA) Blasting for grade or ditch exevation shall be utilized only after all other reasonable
means have been used and are unsuccessful in achisving the required results.
B) Blasting plans shall be submitted to KERN RIVER for approwl at least 4 business
days priorto the anticipated start ofany blasting aclivities. KERN RIVER must approve
blasting plans, at its sole discretion, prior to blasting activity.
C) All blasting shall be done with the KERN RIVER authorized repr€sentative present.
Pink - Land Golden Road - Permittee Page 12 oJ 2
INIERNAL