8h. Memo

T91 Settlement Agreements

COMMISSION 
AGENDA MEMORANDUM                        Item No.          8h 
ACTION ITEM                            Date of Meeting       June 25, 2024 

DATE :     June 7, 2024 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Elizabeth Black, Deputy General Counsel 
SUBJECT:  Authorization to Execute Two Settlement Agreements for Recovery of Cleanups Costs
at Terminal 91 
Amount of this request:                      N/A 
Total estimated project cost:                  N/A 
ACTION REQUESTED 
Request  Commission  authorization  for  the  Executive  Director  to  execute  two  settlement
agreements to recover approximately $5 million in costs associated with the Port’s cleanup of the
Terminal 91 uplands. 
EXECUTIVE SUMMARY 
Over several decades, the Port has spent more than $28.5 million on the environmental cleanup of
Terminal 91. The Port is working to recover these costs, as well as estimated future costs, from
other responsible parties who caused or contributed to contamination at the site. 
Contamination at Terminal 91 resulted from a variety of sources. From the late 1800s through 1920,
owners of the area included various railroads, land development companies, and private
individuals. The Great Northern Railroad began to develop the area in the early 1900s by filling in
the area between the Magnolia Bluff and Queen Anne Hill. Philip Services constructed a tank farm
in the 1920s and operated it as a fuel storage facility in the late 1920s and 1930s. The U.S. Navy
acquired the entire facility in 1942 and operated the tank farm primarily as a fuel and lubricating oil
transfer station until 1972, when the Port leased back the consolidated facility and subleased the
tank farm to Philip Services. Philip Services conducted waste oil recovery and wastewater treatment
until 1995 when they ceased operation and performed above-ground closure activities. The tank
farm was subsequently used for fuel storage and blending until 2003 and was demolished in 2005. 
Under the proposed settlement agreements, Crowley Maritime will pay $1.975 million and BP will
pay $3.15 million to the Port for their shares of cleanup costs associated with their contribution of
contamination to the site.  This matter was further discussed in privileged attorney-client
communications. There are no attachments to this memo. 

Template revised January 10, 2019.

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