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CITGO Franchise – Dock 7

January 16, 2012

The Honorable Mike Carrell The Honorable Richard M. Borchard The Honorable Judy Hawley The Honorable Robert Kostelnik The Honorable Mike Scott The Honorable Al Jones The Honorable Charles Zahn Port Commissioners

Port of Corpus Christi Authority

Subject: AGENDA ITEM NO. 6

Accept and Ratify a Change to the Franchise Granting CITGO Refining and Chemicals Company, L.P., the Right to Cross the South Bulkhead Line of the Industrial Canal

From CITGO Dock 7 and Related Rights

Dear Commissioners:

At its meeting on December 13, 2011, the Port Commission granted a Franchise to CITGO Refining and Chemicals Company, L.P., giving CITGO the right to access the Avery Point Turning Basin and Industrial Canal from CITGO Oil Dock 7 and related rights. This dock is on land that was originally conveyed to Southern Alkali Corporation (later called PPG Industries Inc.) in a mutual conveyance with the Nueces County Navigation District No. 1.

CITGO accepted the Franchise, but made one change to it with our permission. We agreed that CITGO could add the word “reasonable” before the word “rental” in the introductory sentence of Section 3 of the Franchise as shown in the attachment to this letter. Staff recommends that you accept and ratify this change and authorize the Executive Director to initial it or substitute the page with this change.

This item is included on the agenda of the January 16 Commission meeting for your consideration and action. Should you have any questions, please call me.

Sincerely,

John P. LaRue Executive Director Attachment

John P. LaRue

EXECUTIVE DIRECTOR

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