The Bellingham City Council has approved a new 10-year franchise agreement between Bellingham and Olympic Pipe Line Co. A franchise is a legal agreement that is technically required to permit a utility company to operate within the city. Key features of the agreement include:

• a $50,000-a-year fee that the company will pay to cover the city's costs in making sure the pipeline is operated safely.
• a requirement that pipeline operators notify the city of significant incidents in pipeline operations, such as leaks and spills, or when pressure limits are exceeded.
• a requirement to move a section of pipeline to a deeper location under Whatcom Creek.
• a requirement to notify the city 10 days in advance of any alterations or significant testing or repair work on the pipeline on city property.
• granting rights to the city to inspect pipeline testing results.
• annual meetings between city and company officials to discuss emergency procedures.
• a requirement for the company to maintain a $100 million insurance policy to protect the city from any liability in future accidents.