The Pecos City Council on Jan. 9 authorized the city manager to negotiate a temporary pipeline right-of-way and easement letter agreement with Vital Energy for a 12-inch temporary water line across city property in Section 12, Block 54, T&P Railroad Company Survey in Reeves County.
Assistant City Attorney/Staff Parker Johnson (transcript label) and other staff described the negotiations: Johnson said Vital Energy submitted its standard form and proposed $15 per "ride" for a 12-inch line, while city schedule (ET schedule) would value the right-of-way at $100 per "ride." He recommended using the city's standard form and negotiating terms including the term length and consideration. "If we can get them to agree on consideration that, you know, our standard amount plus standard terms that we would put in any other easement, I have no problem with them getting to that easement," staff said.
Why it matters: The agreement would allow a temporary water pipeline across city land while production continues; staff noted the line is described as temporary and that the term could be conditioned (for example, a 10-year cap with renewal options) depending on production and negotiation outcomes.
Council action: Councilman Arona moved to authorize the city manager to negotiate with Vital (transcript mentions Lytle/Lytle Energy in motion language) on the temporary pipeline right-of-way; Councilman Saldanha seconded. The motion carried by voice vote. Staff noted a typographical error in the company's letter referencing "Tom Reeves" and missing "U.S." in a name; staff said they will use the city's form and negotiate terms.
Next steps: City staff will negotiate consideration, term, and standard easement provisions and return to council if necessary. The transcript does not specify a finalized term length or compensation after negotiation.