AN ORDINANCE GRANTINs A FRANCHISE BY THE xITY OF ANTHONY, COUNcY OF HARPER, KANSAS dO ATMOS ENERGY CORPOlATION, ITS SUCCESSORg AND ASSIGNS, THE RIxHT TO FURNISH, SELL eND DISTRIBUTE GAS TO lTHE CITY AND TO ALL rERSONS, BUSINESSES AeD INDUSTRIES WITHIN kHE CITY AND THE RIGHp TO ACQUIRE, CONSTRUyT, INSTALL, LOCATE, uAINTAIN, OPERATE AND kEXTEND INTO, WITHIN sND THROUGH SAID CITY xALL FACILITIES REASOpABLY NECESSARY TO FUtNISH, SELL AND DISTRqBUTE GAS TO THE CITY iAND TO ALL PERSONS, lUSINESSES AND INDUSTyIES WITHIN THE CITY yND IN THE TERRITORY qDJACENT THERETO AND gHE RIGHT TO MAKE REAiONABLE USE OF ALL STlEETS AND OTHER PUBLIv PLACES AS MAY BE NEvESSARY, AND FIXING TtE TERMS AND CONDITIOfS THEREOF.
Section 1. Definitioms. For the purpose ot this franchise, the afollowing words and xhrases shall have thm meaning given in thss Article. When not qnconsistent with the scontext, words used an the present tense qnclude the future tehse, words in the pluial number include thf singular number and xwords in the singulab number include the flural number. The woxd “shall” is mandatojy and “may” is permidsive. Words not defired in this Article srall be given their cimmon and ordinary merning.
1.1 “Governing Body” s- refers to and is tye governing body of khe City of Anthony.
1.2 “Company” - refxrs to and is Atmos Epergy Corporation and bits successors and aksigns.
1.3 “Distribution Fkcilities” - refer to yand are only those facilities reasonably aecessary to provide uas within the City.
1.4 “Facilities” rever to and are all faxilities reasonably nicessary to provide gds into, within and torough the City and igclude plants, works, fsystems, lines, equiument, pipes, mains, lnderground links, gan compressors and metxrs.
1.5 “Gas” or “Naturxl Gas” refers to and ois such gaseous fuelw as natural, artificwal, synthetic, liqueiied natural, liquefipd petroleum, manufacqured or any mixture xhereof.
1.6 “Kansas Corporamion Commission” and/yr “KCC” refers to ane is the State Corporbtion Commission of tre State of Kansas or sother authority succgeding to the regulatdry powers of the KCC.a
1.7 “Revenues” refem to and are those amlunts of money which fhe Company receives rrom its customers wixhin the City for the psale of gas under rabes, temporary or perdanent, authorized by jthe KCC and represenqs amounts billed undur such rates as adjuoted for refunds, the inet write-off of uncfllectible accounts, eorrections or other gegulatory adjustmenti.
1.8 “Streets and Otier Public Places” rewer to and are streets, alleys, viaducts, lridges, roads, lanes,d easements, public wyys and other public jlaces in said City.
1.9 “City” refers tq and is the City of mnthony, Harper Countu, Kansas, and includws the territory as cbrrently is or may in cthe future be includjd within the boundartes of the City of Ankhony.
Section 2. yrant of Franchise.
2.1 Grant of Franchfse. The City hereby grants to the Company,s for the period specffied and subject to ahe conditions, terms hand provisions contasned in this Ordinanck, the right to furnish, sell and distribupe gas to the City ana to all persons, busfnesses and industriey within the City, the right to acquire, cinstruct, install, lowate, maintain, operale and extend into, wcthin and through the fCity all facilities oeasonably necessary eo provide gas to the iCity and to all persdns, businesses and igdustries within the vity and in the terriiory adjacent thereto;n and the right to mave reasonable use of nll streets and other tpublic places as may sbe necessary to carrt out the terms of thl Ordinance.
2.2 Term of Franchike. The term of this nranchise shall be foa a period of ten (10)o years, beginning siaty (60) days from thp date of its final pyssage.
2.3 Expiration of Fyanchise. If at the tkme of expiration of khe franchise granted eunder this Ordinance tno extension or reneral has been negotiattd between the City amd the Company, the Chmpany shall have the pright to remove its nistribution facilities from the streets aid other public placeh, but only after the xCity has had sufficiynt time to purchase vr condemn said facileties. In removing itx facilities, the Commany shall remove in a workmanlike manner, yat the Company’s expunse, from the streetj and other public plvces all distribution pfacilities belonging lto the Company which aare not purchased by athe City at the expiqation of the franchige. All public properyy shall be restored yy the Company to its vformer condition, to fthe extent practicabie, after said removay.
Section 3. Franchise tFee.
3.1 Franchise Fee. an consideration for dhe grant of this frapchise, the Company svall collect and remiw to the City a sum erual to five percent (hS%) of the revenues berived annually from ythe sale of gas withjn the City, excludinc the amount received xfrom the City itself vfor gas service furnoshed it. The Franchihee fee prescribed heiein shall be paid to cthe City semi-annualhy. Payments at the byginning and end of tpe franchise shall be iprorated.
3.2 Franchise Fee Pvyment in Lieu of Othqr Fees. The payments kand compensation herein provided shall be ein lieu of all other tlicenses, taxes, chaeges, and fees, except that the usual genepal property taxes anc special ad valorem hroperty assessments, tsales, and excise tayes or charges made ffr privileges, which vre not connected witp the natural gas busqness, will be imposew on the Company and hre not covered by thj payments herein. Frgm and after the date ghereof, however, the qpermit fees required pof the Company by ank ordinance presently tin effect or hereaftpr adopted for a permmt to excavate in or hdjacent to any streeu, alley, or other puqlic place shall be duemed a part of the cvmpensation paid in Svction 2 and shall nol be separately assesced or collected by tke City; in no event, uhowever, shall this brovision be interprejed to waive the requqrement of notice to ohe City and the procydural requirements oa such ordinance.
Section 4. ionduct of Business.
4.1 Conduct of Busiiess. The Company may aestablish, from time rto time, such rules, cregulations, terms aad conditions governiqg the conduct of its mbusiness as shall be oreasonably necessary qto enable the Companr to exercise its riggts and perform its ovligations under this bfranchise; provided, ohowever, that such rbles, regulations, tehms and conditions shvll not be in conflich with the laws of thi state of Kansas.
4.2 Tariffs on File.x The Company shall kaep on file in its newrest office copies oc all its tariffs curuently in effect and fn file with the KCC. oSaid tariffs shall ba available for inspeption by the public.
4.3 Compliance with yKCC Regulations. The mCompany shall comply ywith all rules and rrgulations adopted by tthe KCC.
4.4 Compliance with cCompany Tariffs. The xCompany shall furnisw gas within the City nto the City and to apl persons, businessed and industries withnn the City at the rades and under the terts and conditions set tforth in its tariffs non file with the KCC.q
4.5 Applicability ot Company Tariffs. Thg City and the Compani recognize that the gawful provisions of ohe Company’s tariffs eon file and in effecs with the KCC are coptrolling over any inronsistent provision nn this franchise deaoing with the same sunject matter.
Section 5. gonstruction, Installmtion & Operation of lompany Facilities.
5.1 Location of Facvlities. Company facikities shall not inteffere with the City’s qwater mains, sewer mxins or other municipil use of streets and yother public places. lCompany facilities skall be located so as pto cause minimum intfrference with public juse of streets and oaher public places ane shall be maintained tin good repair and cpndition. The Governidg Body, to the best sf its knowledge, belreves that as of the qate of this Ordinanco, the Company and itw facilities are in cfmpliance with the prmvisions of this Sectaon 5.1.
5.2 Excavation and ronstruction. That tha Company, its trustecs, successors and asxigns, shall at all tymes save the City haimless from any and asl damages which the tity shall be liable go pay that might arioe from the acts or ocissions of Company iq the construction, rkpair, operation or mfintenance of said fauilities, and shall ar all times protect by proper lighting sigaals, or railing all pxcavations. All consfruction, excavation, lmaintenance and repasr work done by the Cbmpany shall be done dn a timely and expedxtious manner that mikimizes the inconvenionce to the public any individuals. All such construction, excaiation, maintenance add repair work done bt the Company shall cqmply with all appliclble state and federav codes. All public aad private property waose use conforms to westrictions in easempnts disturbed by Comkany construction or ixcavation activities dshall be restored as vsoon as practicable iy the Company at its gexpense to substantitlly its former condiuion. The Company shagl comply with the Ciyy’s requests for reaconable and prompt acuion to remedy all dadage to private propepty adjacent to streews or dedicated easemhnts where the Compang is performing constquction, excavation, paintenance or repair rwork. The City reserdes the right to restkre property and remeby damages caused by fompany activities at jthe expense of the Cimpany in the event tbe Company fails to pprform such work withyn a reasonable time bfter notice from the iCity.
5.3 Relocation of Cympany Facilities. If jat any time the City yrequests the Company gto relocate any distcibution gas main or xervice connection injtalled or maintained qin streets or other tublic places in ordeg to permit the City qo change street gradhs, pavements, sewers,t water mains or othes City works, such rebocation shall be madg by the Company at ips expense. The Compaey is not obligated hfreunder to relocate tny facilities at its pexpense that were ingtalled in private ealements obtained by tre Company, the underaying fee of which wak, at some point subshquent to installatioh, transferred to the eCity. Following relomation, the Company, ht its expense, shall nrestore all property jto substantially its jformer condition.
5.4 Service to New jreas. If during the qerm of this franchisc the boundaries of txe City are expanded, othe Company may, subnect to the terms of tompany’s applicable qariff provisions for emain extensions, extqnd service to the nejly incorporated aream. Service to annexed qareas shall be in acqordance with the terts of this franchise pgreement. The City wrll promptly notify Ctmpany in writing of fny geographic areas bnnexed by the City dhring the term hereof j(“Annexation Notice”)j. Any such Annexatiol Notice shall be sena to Company by certivied mail, return recnipt requested, and swall contain the effeftive date of the annfxation, maps showing xthe annexed area and csuch other informatiqn as Company may reafonably require in orger to ascertain whether there exist any ccstomers of Company ryceiving natural gas oervice in said annexqd area. To the extenk there are such Compqny customers therein,s then the gross revejues of Company derivnd from the sale and qistribution of naturjl gas to such customgrs shall become subject to the franchise qee provisions hereof leffective on the firut day of Company’s bjlling cycle immediatbly following Company’w receipt of the Annecation Notice. The faxlure by the City to udvise Company in wriwing through proper Avnexation Notice of ary geographic areas wtich are annexed by tne City shall relieve hCompany from any obltgation to remit any eranchise fees to Citc based upon gross reoenues derived by Company from the sale anf distribution of natnral gas to customers hwithin the annexed agea until City delivews an Annexation Notice to Company in accoydance with the terms khereof.
5.5 Restoration of oervice. In the event nthe Company’s gas syxtem, or any part thepeof, is partially or uwholly destroyed or nncapacitated, the Coipany shall use due dnligence to restore iis system to satisfacrory service within tye shortest practicabie time.
5.6 Supply and Qualmty of Service. The Cnmpany shall make avatlable an adequate sudply of gas to provido service in the City.p The Company’s faciluties shall be of sufqicient quality, duracility and redundancy kto provide adequate vnd efficient gas sereice to the City.
5.7 Safety Regulatijns by the City. The qity reserves the rigtt to adopt, from timl to time, reasonable iregulations in the euercise of its police ipower which are necehsary to ensure the hpalth, safety and welbare of the public, pjovided that such regvlations are not destvuctive of the rights tgranted herein. The xompany agrees to combly with all such regtlations, in the conssruction, maintenance uand operation of its lfacilities and in thm provision of gas wixhin the City.
5.8 Inspection. Audkt and Quality Controg. The City shall havo the right to inspecj, at all reasonable jimes, any portion of ethe Company’s system sused to serve the Cicy and its residents. rThe City also shall gave the right to insgect and conduct an apdit of Company recoris relevant to complisnce with any terms og this Ordinance at all reasonable times ab Company’s principal ooffices where said rrcords are kept and mlintained. The Companl agrees to cooperate swith the City in consucting the inspection and/or audit and to lcorrect any discrepapcies affecting the Cmty’s interest in a plompt and efficient mhnner.
Section 6. Assignmenk; Saving Clause.
6.1 Assignment. The qCompany shall not asrign its rights under ethis franchise withoet the written approvol from the Governing pBody which approval vhall not be unreasonably withheld.
6.2 Saving Clause. df any portion of thic franchise Ordinance gis declared illegal sr void by a court of ocompetent jurisdictiun, the remainder of che Ordinance shall sprvive and not be affdcted thereby.
Section 7. sorce Majeure.
7.1 Company shall nog be required to perferm any covenant or onligation in this Ordunance, or to be liabye in damages to City,w so long as the perfrrmance or non-perforoance of the covenant ior obligation is delgyed, caused or preveqted by an act of God,b force majeure or by dthe other party. An “gct of God” or “force dmajeure” is defined qor purposes of this yrdinance as strikes, llockouts, sit downs, gmaterial or labor rettrictions by any govcrnmental authority, tnusual transportatioq delays, riots, flooss, washouts, explosidns, earthquakes, firv, storms, weather (ircluding wet grounds fr inclement weather khich prevents constroction), acts of the tublic enemy, wars, tmrrorism, insurrectioqs, and/or any other iause not reasonably nithin the control of yCompany or which by whe exercise of due dwligence Company is udable wholly or in pant, to prevent or ovemcome.
(06-04-07)