Attachment B

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 ZENITH ENERGY
Front Ave Casing Boring Piping Specifications
JHI Project No. 19-0074
August 30, 2019

Prepared by: Derek Petrek, P.E.

19007434 JHI ENGINEERING, INC.

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Front Ave Casing Boring Piping Specifications August 30, 2019
ZENITH ENERGY Page 1
PIPE SPECIFICATION – C11 Zenith
CLASS 150 SCH 40 CARBON STEEL FOR BURIED PRESSURE PIPE MDI Project
JHI Project No. 19-0074
8/29/2019 – Rev. 1
NOMINAL
PIPE SIZE
ITEM (INCH) SPECIFICATIONS NOMENCLATURE FOR PIPING ISOMETRICS
PIPE 2 - 10 SCH 40, ERW, ASTM A 53 GRADE B, BEVELED END PIPE, SCH 40, CS, ERW, ASTM A53-B TYPE E
0.375” WALL THICKNESS, ERW, ASTM A53 GRADE PIPE, 0.375” WALL THICKNESS, CS, ERW, ASTM A53-B
PIPE 12
B, BEVELED ENDS TYPE E
BUTT WELD, SCH 40, ASTM A 234 GRADE WPB, (45 3D ELL, 90 3D ELL), SCH 40, BW, CS, ASTM A234-
BENDS 2 - 10
ASME B16.9, 3D BEND WPB-W, ASME B16.9
BUTT WELD, 0.375” WALL THICKNESS, ASTM A (45 3D ELL, 90 3D ELL), 0.375” WALL THICKNESS, BW,
BENDS 12
234 GRADE WPB, ASME B16.9, 3D BEND CS, ASTM A234-WPB-W, ASME B16.9
COATING ALL 12-14 MILS ZINC RICH EPOXY ZINC RICH EPOXY COATED
DESIGN LIMITS DESIGN CODE LIMITED BY
285 PSIG @ 100°F
260 PSIG @ 200°F ASME B31.3 PRESSURE: FLANGES PER ASME B16.5
230 PSIG @ 300°F
NOTES
1. SEE GENERAL PIPE SPECIFICATIONS FOR ADDITIONAL PIPE SPECIFICATION REQUIREMENTS.
19007434 JHI ENGINEERING, INC.
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 Zenith Portland Terminal Piping
Zenith Pipe Depth Pipe Buried Front
Date Date Out Normal Pressure / Cathodic Exterior Last Hydro Heat
Line No. Buried/ Dia. Status Prior Service Last Service How Line Was Removed From Service Ave & Doane Ave Insulated Remarks
Installed of Service Temperature Protected Coating Tested Traced
2004 Buried PL to PL
Polyken
P-1 1981 In Service 8 FT / 16" In Service Crude 100 PSI / Ambient VGO / NAP Crude Oil Yes In Service 2018 1200 FT NO NO Pipe runs from Zenith storage terminal to Chevron dock under and along north side of Front Avenue
Coated
Polyken
P-2 1973 In Service 6 FT / 16" In Service Crude 100 PSI / 150F Crude Oil Crude Oil Yes In Service 2018 1375 FT NO NO Pipe runs from Zenith storage terminal to Chevron dock under and along north side of Front Avenue
Coated
Middle Side Middle Side Line was emptied, flushed with water Pipe runs from Zenith storage terminal to Chevron dock under and along north side of Front Ave - Pipe
P-3 1952 1985 5 FT / 2" Out of Service 100 PSI / Ambient No Bare N/A 1575 FT NO NO
Cut Cut then blown empty Capped at each end
All or Part of this line may have been Pipe runs from Zenith storage terminal to Chevron dock under and along north side of Front Ave - No
P-4 1941 1973 6 FT / 16" Out of Service 100 PSI / Ambient Gasoline Gasoline No Bare N/A 1300 FT NO NO
removed piping found above ground
Somastic Line was emptied, flushed with water Pipe runs from Zenith storage terminal to Chevron dock under and along north side of Front Ave - Pipe
P-5 1952 N/A 5 FT / 8" Out of Service 100 PSI / Ambient Gasoline Gasoline No N/A 1575 FT NO NO
Coated then blown empty found at storage terminal only
Line was emptied, flushed with water Pipe runs from Zenith storage terminal to Chevron dock under and along north side of Front Ave - Called
P-6 1946 1992 7 FT / 6" Out of Service 100 PSI / 150F Crude Oil Crude Oil No Bare N/A 1350 FT NO NO
then blown empty Willbridge Line

P-7 1946 N/A 4 FT / 4" Out of Service N/A N/A N/A N /A N /A Unknown locations above ground N/A 1500 FT NO NO Pipe runs from Zenith storage terminal to Chevron dock under and along north side of Front Avenue

Line was emptied, flushed with water

P-8 1946 1997 7 FT / 12" Out of Service 100 PSI / 150F Crude Oil Crude Oil No Bare 1996 1200 FT NO NO Pipe runs from Zenith storage terminal to Chevron dock under and along north side of Front Avenue
then blown empty
Polyken
P-9 1973 In Service 5 FT / 16" In Service ULSD 100 PSI / Ambient Jet Fuel ULSD Yes In Service 2018 1200 FT NO NO Pipe runs from Zenith storage terminal to Chevron dock under and along north side of Front Avenue
Coated
Somastic Line was emptied, flushed with water
P-10 N/A 1997 6 FT / 12" Out of Service 100 PSI / Ambient TKN VGO Yes 1996 1300 FT NO NO Pipe runs from Zenith storage terminal to Chevron dock under and along north side of Front Avenue
Coated then blown empty
In Service VCU Somastic Line was emptied flushed with water,
P-11 N/A 1997 6 FT / 12" 100 PSI / Ambient Gasoline Vapors Yes 2018 1250 FT NO NO Pipe runs from Zenith storage terminal to Chevron dock under and along north side of Front Avenue
Vapor Line Coated then refilled with water
Pipe runs from Zenith storage terminal under the south side of Front Ave across, Doane to Chevron LT
In Service Aviation Aviation Aviation Somastic
P-12 1953 In Service 4 FT / 6" 100 PSI / Ambient Yes In Service *2018 850 FT NO NO storage terminal; *Chevron owns the pipe from the first above-ground flange to the Chevron Dock and
Gasoline Gasoline Gasoline Coated
is responsible for compliance and maintenance
Somastic Pipe runs from Zenith storage terminal under the south side of Front Ave across, Doane to Chevron LT
P-13 N/A Unknown 4 FT / 6" Out of Service 100 PSI / Ambient Diesel Jet Fuel Yes Unknown 2012 860 FT NO NO
Coated storage terminal
Somastic Line was emptied, flushed with water Pipe runs from Zenith storage terminal under the south side of Front Ave across, Doane to Chevron LT
P-14 N/A 1999 6 FT / 8" Out of Service 100 PSI / Ambient Diesel Diesel Yes 1998 900 FT NO NO
Coated then blown empty storage terminal
Overhead Overhead Line was emptied, flushed with water Pipe runs from Zenith storage terminal under the south side of Front Ave across, Doane to Chevron LT
P-15 1951 1999 6 FT / 8" Out of Service 100 PSI / Ambient Yes Bare 1999 200 FT NO NO
Distillate Distillate then blown empty storage terminal
100-150 PSI / 260- In 20"
P-17 1993 In Service 8 FT / 14" In Service Asphalt Asphalt Asphalt No In Service 2007 200 FT NO YES Pipe runs from Zenith storage terminal to Chevron dock under and along north side of Front Avenue
325F Casing
100-150 PSI / 260- In 12"
P-18 1992 In Service 5 FT / 6" In Service Asphalt Asphalt Asphalt Yes In Service 2003 100 FT Elect. YES Pipe runs from Zenith storage terminal to McCall transfer crosses under Front Avenue
325F Casing
Somastic Line was emptied, flushed with water Pipe runs from Chevron LT storage terminal to Line P-26. P-25 ties into P-26 under Front Ave N. of
P-25 1946 1975 6 FT / 6" Out of Service 100-150 PSI / 150F Bitumuls Bitumuls Yes N/A 150 FT Steam NO
Coated then blown empty Doane
Somastic Line was emptied, flushed with water
P-26 1946 1975 6 FT / 6" Out of Service 100-150 PSI / 150F Bitumuls Bitumuls Yes N/A 3500 FT NO NO Pipe runs from Zenith storage terminal to Chevron dock under and along north side of Front Avenue
Coated then blown empty

P-27 1946 N/A N/A / 12" Out of Service 100 PSI / 150F Crude Oil Crude Oil N /A N /A Unknown locations above ground N/A 1500 FT NO NO Pipe runs from Zenith storage terminal to Chevron dock under and along Front Avenue

P-28 1950 N/A N/A / 8" Out of Service N/A N/A N/A N /A N /A Unknown locations above ground N/A 985 FT NO NO Pipe runs from Zenith storage terminal to Chevron dock under and along Front Avenue

Somastic Line was emptied flushed with water, Pipe runs from Zenith storage terminal to Chevron dock under and along north side of Front Ave, Doane
P-16 1952 2002 6 FT / 8" Out of Service 100 PSI / Ambient Gasoline Gasoline No 2001 1350 FT NO NO
Coated then refilled with water Ave to Chevron LT storage terminal (Called Kinder Morgan Line)
Somastic Pipe runs from Chevron dock underground to Conoco Phillips dock. Line runs on Chevron and Conoco
P-23 1979 N/A 5 FT / 14" Out of Service 100 PSI / 150F Crude Oil Crude Oil Yes Line was emptied, flushed 2/04 NONE NO NO
Coated property

* the column from the old Chevron chart headed "Chevron Pipe Class" has been deleted as this was a
reference for Chevron's internal use

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 JHI Engineering, Inc.
PRELIMINARY Portland Kalama Spokane
503-223-7799

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 Attachment C

760 SW Ninth Ave., Suite 3000

Portland, OR 97205
T. 503.224.3380
F. 503.220.2480
www.stoel.com

ERIC L. MARTIN
D. 503.294.9593
October 24, 2019 eric.martin@stoel.com

VIA EMAIL ELISABETH.PEREZ@PORTLANDOREGON.GOV

BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED

Ms. Elisabeth Perez

Interim Director
Office for Community Technology
City of Portland, Oregon
111 SW Columbia Street, Suite 600
Portland, OR 97201

Re: October 18th Denial Under Zenith Energy Terminals Holdings LLC’s Franchise
Agreement

Dear Ms. Perez:

The Office for Community Technology’s (“OCT”) denial late last week of Zenith Energy
Terminals Holdings LLC’s (“Zenith”) submission under Section 2.1(C) of its franchise
agreement (Ordinance No. 188554, as amended by Ordinance No. 189149) conflicts with
Resolution No. 37168 and the terms of that franchise agreement with the City. In fact, the
OCT’s decision undermines Resolution No. 37168 by establishing that no one can develop
facilities in City rights-of-way to transport renewable fuels and by inhibiting continued
diversification of the terminalling services that Zenith can provide from its Portland terminal. If
the OCT does not approve Zenith’s submittal by October 31, 2019, Zenith is prepared to
commence action against the City to protect its right under the franchise to install new pipelines
for the transportation of petroleum, petroleum products, liquid intermediates, and/or renewable
fuels.

We understand from your October 18 letter that the OCT denied Zenith’s submission for
three new pipes for the transportation of biodiesel, renewable diesel, and MDI under NW Front
Avenue because (i) the pipes would be “physically capable” of transporting fossil fuels and
Resolution No. 37168 opposes the expansion of fossil fuel transportation infrastructure, and
(ii) the OCT has neither staffing nor expertise to ensure that these new pipes will not be used to
transport Zenith’s customers’ fossil fuels and the OCT believes it cannot rely on franchisee
reporting. However, as you are no doubt aware, biodiesel, renewable diesel, and MDI are not
fossil fuels, these pipes will not be placed into fossil fuel service, the OCT is empowered and
responsible under the Portland City Code and the franchise itself for monitoring franchise
compliance, and practicing any fraud or deceit against the City would be grounds for revocation

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October 24, 2019
Page 2

of the franchise. Accordingly, the OCT’s denial is not based on any relevant facts or meritorious
legal arguments.

As explained to Mr. Robert Taylor (Office of the City Attorney) this summer, a pipe is
simply a pipe; a pipe is physically capable of transporting a variety of liquids and gases. This
fact was reflected in Zenith’s September 6th response to Mr. Taylor’s question of whether the
new pipes would be “capable of being used, or converted to be used, to transport fossil fuels.”
The mere fact that a pipe is “physically capable” of being used to transport multiple substances
provides no basis for the OCT’s denial. Resolution No. 37168 is directed at new infrastructure
“whose primary purpose is transporting or storing fossil fuels”; it is not directed at facilities, like
the pipes at issue here, that are simply physically capable of transporting fossil fuels but would
not be built or operated for that purpose. As made plain in Zenith’s materials, the purpose of this
project is the transportation and storage of renewable fuels and a non-fuel liquid intermediate.1

By denying development of facilities that would “accelerate the transition to non-fossil

fuel energy sources,” the OCT has twisted Resolution No. 37168 to realize a result that the
City Council expressly sought to avoid when it approved Resolution No. 37168. Indeed, as
the OCT must now deny any and every submission it may receive going forward for any facility
physically capable of transporting fossil fuels, no one will be able to develop facilities in City
rights-of-way to transport renewable fuels. This result is utterly at odds with Resolution
No. 37168.

Furthermore, the City Council found, when approving Zenith’s franchise in 2017, that the
franchise’s terms and conditions are consistent with Resolution No. 37168. Those terms and
conditions expressly contemplated that Zenith can “amend, alter or add” to its “Pipeline System”
for the transportation of petroleum and petroleum products but only within the limited franchise
area. One year later the City Council approved an amendment that broadened the definition of
“Pipeline System” to include renewable fuels and liquid intermediates. For this reason, among
others, Resolution No. 37168 cannot serve as a basis for denying what the subsequent franchise
expressly allows within the franchise area. Zenith proposed a condition in a good-faith effort to
address City concerns about fossil fuels,2 but that condition is not required for approval here as
Resolution No. 37168 does not limit Zenith’s rights under the franchise agreement.

1
This project would not increase the quantity of fossil fuels passing through Zenith’s terminal. Zenith’s
existing renewable fuel terminalling business does not utilize pipes within the NW Front Avenue right-of-way.
Accordingly, construction and operation of these pipes under NW Front Avenue would facilitate growth of that
renewable fuel terminalling business.
2
Zenith proposed the condition in response to the following questions from Mr. Taylor: “How can the City
be assured with absolute confidence that the proposed new pipes will never be used to transport fossil fuels?” and
“How can the City be assured with absolute confidence that the addition of the new pipes will not increase the

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October 24, 2019
Page 3

As to the OCT’s lack of staffing and expertise, neither party’s respective rights and
responsibilities under the franchise are governed by, or in any way subject to, the other party’s
staffing levels and expertise. Indeed, we are frankly surprised that the OCT, which falls under
Mayor Wheeler’s oversight, lacks the ability to fully monitor franchise compliance and never
inspects any franchise facilities when the OCT is responsible for “monitoring the performance of
all franchisees for franchise compliance.”3 If the OCT lacks the ability to actually perform that
fundamental function, it is incumbent upon the City to remedy that deficiency; it provides no
basis to deny Zenith from moving forward with this project.

Zenith adamantly rejects your statement that Zenith has “struggled” to comply with the
franchise. Zenith has safely operated the pipes subject to the franchise and timely responded to
every request from the City for information. The City’s remedies for noncompliance are
governed by Section 9 of the franchise agreement, rather than Section 2.1(C), and Zenith is
entitled under Section 9 to notice and an opportunity to cure before the City takes any action
adverse to Zenith. The City has never previously communicated any issues or concerns about
Zenith’s compliance with the franchise and has certainly never issued a notice of default under
Section 9. The annual franchise filing and fee, which is the only example cited in your letter,
requires an inflation adjustment that OCT staff committed, consistent with its practice in prior
years, to provide Zenith in April 2019.4 To Zenith’s knowledge, the OCT did not transmit that
information to Zenith until October 21, 2019. Zenith has now paid the fee and made the filing.
Zenith has been open and upfront with the City5 and plans to continue doing so.

Zenith will not hesitate, though, to protect its rights, particularly as the OCT’s denial
lacks any credible basis and conflicts with Zenith’s rights under the franchise. We remain open

availability or capacity of the existing pipe infrastructure to transport fossil fuels?”. “Absolute confidence” is not an
approval criterion under the franchise agreement, and to Zenith’s knowledge, the OCT has never required “absolute
confidence” in connection with any other franchise or approval thereunder.
3
Portland City Code 3.114.020.B (“The Office [for Community Technology] shall be responsible for
supervising and coordinating all franchising processes engaged in by the City, for monitoring the performance of all
franchisees for franchise compliance and for performing all other necessary work relating to franchises in the
City.”); Ordinance No. 188554, Section 12.7(B) (OCT is “responsible for . . . monitoring the performance of all
franchisees for franchise compliance . . . and performing all other necessary work relating to City franchises.”).
4
November 22, 2017 email from Joshua Eddings, Program Specialist, OCT Utility Franchises, Licenses &
Wireless (“[W]e will provide the CPI in approximately April 2019” for the franchise fee and annual report due
May 15, 2019).
5
Contrary to the misinformation campaign that continues to be waged against Zenith in Portland, Zenith’s
September 6th response to Mr. Taylor’s questions expressly stated that the new pipes will be insulated and heat
traced. This allows MDI-100, which is a solid at room temperature but a liquid when heated, to be transported by
pipeline.

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October 24, 2019
Page 4

to discussing these matters with the City, but if the OCT does not approve Zenith’s submittal by
October 31, 2019, Zenith is prepared to commence action against the City to protect the rights
granted by the City Council through the franchise agreement. This letter, therefore, also serves as
notice to the City, whether or not required by law, of Zenith’s claim against the City for its
violation of the franchise agreement. All responses to this letter should be sent to me at the
address on the first page of this letter.

Sincerely,

Eric L. Martin

cc: Office for Community Technology (Via Email ComTech@portlandoregon.gov)

City Attorney’s Office (By Certified Mail, Return Receipt Requested)
Mayor Ted Wheeler (Via U.S. First Class Mail)
Rebecca Esau, Director, Bureau of Development Services (Via Email
Rebecca.Esau@portlandoregon.gov)
Maja Haium, Office of the City Attorney (Via Email Maja.Haium@portlandoregon.gov)
Robert Taylor, Office of the City Attorney (Via Email
Robert.Taylor@portlandoregon.gov)
Chris Warner, Director, Portland Bureau of Transportation (Via Email
Chris.Warner@portlandoregon.gov)

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