What is Being Proposed?
The City Council is being asked to approve a Fourth Amendment to Permit No. 708 with Kinder Morgan Tank Storage Terminals, LLC, to extend the company's operation of a marine oil terminal at Berths 118-119 in the Port of Los Angeles for an additional five years (April 14, 2025 through April 13, 2030). The amendment has already been approved by the Board of Harbor Commissioners and the Trade, Travel and Tourism Committee.
Background and Rationale
This amendment extends an existing permit that has been in place, extending the company's total agreement period to 42 years. The terminal handles marine oil storage operations, which are an existing use at the port. The action is classified as categorically exempt from environmental review under California's Environmental Quality Act (CEQA) because it involves continuation of existing operations without significant environmental changes.
Key Details
Annual rent: $2,255,182.88 (remains unchanged but subject to annual adjustments based on the Consumer Price Index) Timeline: Operations continue through April 13, 2029, with site restoration and surrender by April 13, 2030 Financial impact: Estimated to generate $3.1 million annually, or $15.5 million over the five-year extension period for the Harbor Department Committee vote: All three committee members (Park, McOsker, Rodriguez) voted YES on October 14, 2025
Impact
This approval allows continued commercial operations at the port, generating significant revenue for the Harbor Department. The decision benefits Kinder Morgan by securing extended operational rights, while providing the city with reliable rental income. However, residents should note this permits ongoing oil terminal operations in their harbor.