In 2008, ORC began assisting Phillips 66 (formerly ConocoPhillips) by providing general real estate services for day-to-day operations. ORC’s efforts are divided into two segments: 1) Refinery expansion 2) Pipeline maintenance and monitoring.
ORC first assisted Phillips in 2008 with a $3 billion Wood River Refinery expansion project. This expansion aimed to increase refining capacity at the Wood River, IL facility originally constructed in the 1930s. ORC assisted Phillips 66 by securing permits and easements for infrastructure construction. The WRB refinery facility was hindered by the presence of other oil company refining operations, private property owners, and local governments that owned the land surrounding the operations facility. ORC was needed to provide support for obtaining appropriate permits, easements, leases, and right-of-way contracts.
Projects included acquiring necessary approvals and negotiating permitting fees where applicable. For example, on several occasions, construction encroached on roads and highways maintained by the State of Illinois. Alleviating any traffic disturbance depended on obtaining IDOT permits and establishing a traffic flow plan. Additionally, this area was home to assets owned by several railroads. In some instances, we obtained temporary approval from the railroads. In other instances, addressing railroad property encroachments required negotiating long-term leases. Refineries in this area owned by different companies co-exist in proximity to each other. The construction of several new crude pipelines crossed the assets and property of other pipeline companies. To this end, competing oil and pipeline companies needed to obtain proper notifications and permissions.
ORC continues to support Phillips 66 Pipeline LLC through facilitating pipeline maintenance projects. ORC’s efforts include negotiating terms and damages for pipeline encroachment projects and settling mitigation claims resulting from DOT-required pipeline maintenance digs. Much of the pipeline system was constructed in the 1930s. Per the right-of-way contract, Phillips 66 maintains the right to occupy, construct, maintain, remove, and repair its pipeline. Phillips 66 consistently monitors the pipeline and maintains its easement. When problems arise, Phillips 66 must repair the damaged asset quickly and efficiently. However, often the pipeline easement is located inconveniently for the property owner. ORC assists with notifying property owners of an upcoming project and negotiating monetary claims for damages caused to the property. Moreover, ORC works with property owners when Phillips 66 needs to clear and maintain their pipeline right-of-way.
ORC’s scope of work also includes remediation and removal projects by which land owners work with Phillips 66 Pipeline LLC to remove abandoned pipe and secure vacated right-of-way. Due to the potential presence of environmental issues, Phillips 66 presents property owners with strict policies and procedures that must be followed to vacate an easement or right-of-way. To this end, ORC works with the property owner to ensure he/she understands the policies and follows the procedures accordingly.