Broward County Commission Regular Meeting
Director's Name: Joseph Morris
Department: Port Everglades Division: Director’s Office
Information
Requested Action
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MOTION TO APPROVE License Agreement between Broward County and Florida Power & Light Company for Bulk Petroleum Product Pipelines at Port Everglades for a ten-year term commencing upon full execution by the parties, replacing and terminating the existing license agreement, as amended.
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Why Action is Necessary
Broward County Board of County Commissioners approval is required for license agreements for the use of County-owned property within the Port Jurisdictional Area with terms exceeding three years.
What Action Accomplishes
Approves a new ten-year License Agreement allowing Florida Power & Light Company to continue operating bulk petroleum product pipelines at Port Everglades and terminates and replaces the existing license agreement, as amended, upon full execution of the new agreement by the parties.
Goal Related Icon(s)
☒County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None
Summary Explanation/Background
THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Broward County Board of County Commissioners’ (“Board”) Value of “Ensuring economic opportunities for Broward's diverse population and businesses” and the Goal to “Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs.”
Florida Power & Light Company (“FPL”) owns and operates a jet fuel storage and distribution terminal within the Port Everglades Jurisdictional Area. The FPL terminal has operated at Port Everglades since 1955. To support its terminal operations, FPL has entered into a series of agreements with the County authorizing the installation, maintenance, and operation of bulk petroleum product pipelines on County-owned property.
On April 5, 2016 (Item 11), the Board approved a ten-year License Agreement between Broward County and FPL for bulk petroleum product pipelines at Port Everglades (the “Existing Agreement”). On March 26, 2026 (Item No. 7), the Board authorized the Port Everglades Chief Executive Officer to approve and execute a First Amendment to the Existing Agreement, extending the term by one year to April 7, 2027. The First Amendment was executed on March 27, 2026.
FPL requires continued access to the licensed premises for the installation, maintenance, operation, repair, replacement, relocation, and removal of petroleum pipelines to store and transport jet fuel.
Key provisions of the new License Agreement include:
• Establishes a new ten-year nonexclusive license for FPL to install, maintain, operate, repair, replace, relocate, and remove petroleum product pipelines within designated Port premises consistent with arrangements in place with the other petroleum terminal operators.
• Terminates and replaces the Existing Agreement, as amended.
• Requires FPL to obtain Port approval for permitted pipeline work.
• Provides that pipeline relocation costs generally remain FPL’s responsibility, including relocations requested by the County for Port development, provided the County offers an adequate alternative licensed location.
• Requires payment of applicable wharfage and other Port charges in accordance with the Port Everglades Tariff.
• Allows either party to terminate the agreement upon 180 days’ written notice and addresses pipeline removal or abandonment obligations at expiration or termination.
The new License Agreement deviates from the County’s standard “Indemnification” provision (Section 7.1). With respect to any claim arising from an environmental impairment, liability, or condition, FPL shall have no obligation to indemnify the County to the extent such environmental impairment, liability, or condition is determined not to have been caused by FPL or any person or entity for whose conduct FPL is responsible. If FPL engages in the defense of the County and the environmental impairment, liability, or condition is later determined not to have been caused by FPL or any person or entity for whose conduct FPL is responsible, the County shall fully reimburse FPL for all reasonable attorneys’ fees and costs incurred by FPL and directly attributable to defending the County.
In Section 13.36, the parties also waive any claim against the other party and its officers, commissioners, and employees for any special, punitive, or consequential damages.
The License Agreement has been reviewed by the Port Everglades Risk Manager and approved as to form by the Office of the County Attorney.
Source of Additional Information
Neil J. Kutchera, Assistant Director, Energy and Innovation, Port Everglades Department, (954) 468-3520
Fiscal Impact
Fiscal Impact/Cost Summary
Revenue based on the Port Tariff is anticipated to generate approximately $35 million throughout the term of the Agreement.