AN ORDINANCE GRANTING TO K N ENERGY, INC. A KANSAS CORPORATION, ITS SUCCESSORS AND ASSIGNS, THE RIGHT AND AUTHORITY TO CONSTRUCT, INSTALL, MAINTAIN AND OPERATE A GAS TRANSMISSION AND DISTRIBUTION SYSTEM, INCLUDING MAINS, PIPES, CONDUITS, SERVICES AND OTHER NECESSARY STRUCTURES AND APPLIANCES THERETO APPERTAINING, IN, UNDER, UPON, OVER, ACROSS AND ALONG THE STREETS, ALLEYS, BRIDGES AND PUBLIC GROUND WITHIN THE PRESENT AND FUTURE CORPORATE LIMITS OF THE CITY OF NATOMA, KANSAS, FOR THE FURNISHING, TRANSMISSION AND SALE OF GAS WHETHER ARTIFICIAL, NATURAL, MIXED OR OTHERWISE, FOR HEATING, DOMESTIC, INDUSTRIAL AND OTHER PURPOSES, AND FOR TRANSMITTING GAS INTO, THROUGH AND BEYOND THE CITY; DEFINING THE TERMS UPON WHICH SUCH RIGHT AND AUTHORITY ARE GRANTED AND PROVIDING FOR THE REPEAL OF ORDINANCE NO. 207, OF THE CITY, PASSED ON THE 11TH DAY OF JULY, 1968.
Section 1. That in consideration of the benefits to be derived by the city and the public thereof from the installation and operation of a gas distribution system in the city, the right and authority be and hereby are granted to K N Energy, Inc., a Kansas corporation, its successors and assigns (hereinafter collectively referred to as grantee), to construct, install, maintain, and operate a gas transmission and distribution system, including mains, pipes, conduits, services and other necessary structure and appliances thereto appertaining, in, under, upon, over, across, and along the streets, alleys, bridges and public grounds within the present and future corporate limits of the city for the furnishing, transmission, distribution and sale of gas, whether artificial, natural, mixed, or otherwise, for heating, domestic, industrial and other purposes, and for transmitting gas into, through and beyond the city.
Section 2. All mains, pipes, conduits and services shall be installed and maintained so as to interfere as little as practicable with traffic over the streets, alleys, bridges and public places of the city. When the grantee shall do any work or construction, repair or maintenance of the system in the course of which any pavement, curbing or gutter upon any street, alley, bridge or public place shall be excavated, grantee shall properly protect excavations and shall promptly restore such street, alley, bridge or public place as far as practicable to as good condition as before such work was done. After grantee’s pipelines are installed, grantee shall be compensated for any costs incurred by it in moving or relaying its lines or facilities or raising or lowering the same, where required by construction of new or additional water or sewer lines by the city.
Section 3. Grantee shall have the right to make all such reasonable rules and regulations in the conduct of its business as it may deem necessary or expedient, including meter deposits in such amounts as may be required to assure payment of bills. Grantee shall make such reasonable extensions of its mains form time to time and shall install service to the curbline where mains are located in the street, and to property lines where mains are located in an alley, as may be required to furnish service within the municipality to parties making application therefor; but grantee shall not be required to make any extension for the purpose of serving any consumer or consumers if grantee is, for any reason, unable to obtain an adequate supply of gas to warrant the construction of the extension will require the installation of more than 100 feet of mains for each consumer to be served, nor where the estimated revenue to be derived from serving such new consumer or consumers is not sufficient to show an adequate return upon the total additional investment required to serve such consumer or consumers. Grantee shall have the right to enter the premises of consumers at all reasonable times for the purpose of reading meters, inspecting pipes and gas appliances and disconnecting and removing meters.
Section 4. In case the available supply of gas shall at any time fail or become insufficient to supply the needs of the public of the municipality, or should grantee for any reasonable unable to furnish the service herein contemplated, or upon the termination of this franchise for any reason whatsoever, grantee shall have the right to remove any and all of its pipe and other equipment or property from the municipality, but in such event grantee shall restore the streets, alleys and other public places to as good condition as before such removal, and will hold the municipality harmless from damage and expense incident to such removal.
Section 5. Grantee agrees during the term hereof, at all times to project, hold harmless and indemnify the city from any and all liability or judgment, legally established, arising or growing out of the construction, maintenance and operation of the system by grantee and due to or caused by the fault or negligence of grantee.
Section 6. In consideration of the rights and privileges herein granted, the grantee shall pay to the city treasurer a semi-annual payment for each year of the duration of this franchise, in an amount equal to 1.5 percent of the gross receipts derived by the grantee from sale so gas delivered to residential (commonly known as domestic) and commercial customers within the city. Payment shall be made on or before September 1 of each year for the first six months of the year and on or before March 1 for the last six months of the preceding year and each such payment shall be accompanied by a statement showing the total amount of the gross receipts upon the basis of which the computation for such payment was made. Such payment shall be in lieu of any and all other fees, charges, licenses, taxes or assessments which the city may impose for the rights and privileges herein granted or for the privilege of doing business within the city and, in the event any such fee, charge, license, tax or assessment shall be imposed by the city, the payment to be made in accordance with the provisions of this section shall be refunded in an amount equal to the annual burden of such fee, charge, license, tax or assessment imposed upon the grantee. Ad valorem property taxes imposed generally upon all real and personal property within the city shall not be deemed to affect the obligation of the grantee under this section.
Section 7. The right and authority herein granted shall continue for the period of 20 years from and after the date this ordinance goes into effect under Section 12 hereof.
Section 8. This ordinance and the respective rights and obligations of the parties hereunder are subject to all present and future valid governmental legislation or regulation, whether federal or state, of duly constituted authorities which have jurisdiction over this ordinance, one or both of the parties, or any transaction hereunder.
Section 9. This ordinance and the rights, authority and franchise hereby granted shall terminate and be of no further force or effect
(a) unless within four months after the legal enactment hereof grantee shall file with the city clerk of the city a written acceptance hereof; also
(b) if and when after such acceptance grantee, its successors or assigns, shall make and file with the city clerk of the city a surrender hereof in writing.
Section 10. Wherever the term grantee is used herein the same shall be held to mean and include the K N Energy, Inc., its successors and assigns.
Section 11. Ordinance No. 207, passed under date of July 11, 1968, is hereby repealed and of no further force and effect.
Section 12. If any clause, subsection or section of this ordinance shall be held invalid, unreasonable or otherwise unlawful, it shall be conclusively presumed that the governing body of the city would have enacted the remainder of this ordinance without such invalid, unreasonable or otherwise unlawful clause, subsection or section.
(8-4-1988)