Chapter 85 – Natural Gas Franchise

Chapter 85–Natural Gas Franchise


(ORD. # 19-08)


Section 1. That there is hereby granted to Missouri Gas Energy, a division of Southern Union Company, a Delaware Corporation operating a gas distribution system, herein called the Company, its successors and assigns, the rights privileges and franchise for a period of twenty (20)years from August 7, 2008, to construct, maintain and operate in the present and future streets, alleys, bridges and public places in the City of Holden, Missouri, herein called City, its gas distribution system as now located, together with the right, privilege and franchise to acquire construct, maintain and operate therein and thereon such additions and extensions thereto as may be necessary or desirable all for the purpose of supplying natural gas for all purposes to the inhabitants of said City and consumers in the vicinity thereof, which grant shall be subject to all lawful ordinances of the City of Holden now in existence or hereafter enacted which are not inconsistent herewith.


Section 2.  Whenever because of public necessity or welfare the City engages in any public improvement construction project on any property owned by the city or dedicated wholly for public use and a portion of Company’s plant system interferes with or obstructs such public improvement project Company shall, as soon as reasonably possible after written request from the

City, alter reset or relocate at its own expense such portions of Company’s plant system located on such property for which the sold legal basis for occupancy is this franchise ordinance; provided, however, that where the City acquires additional property or right of way over Company’s existing plant system, and thereafter requires Company to alter, reset or relocate its system, such alteration, resetting or relocation shall be at the expense of the City.

Section 3.  All rates established and charges made by Company for gas transported, distributed and sold hereunder shall be subject to valid and lawful orders of the Public Service Commission of the State of Missouri, and other competent authority having jurisdiction in the premises, and the transportation, distribution and sale of gas to consumers shall be governed by the present operating rules, regulations and customs of Company and such rules and regulations as may hereafter be prescribed or approved.


Section 4. That in consideration of and as compensation for the right, privilege and franchise hereby granted, the Company, its successors and assigns, shall furnish gas at such pressure and of such quality as shall be designated by lawful orders of the Public Service Commission of said State, if such gas is reasonably procurable; shall furnish to each consumer a recognized standard meter or other instrument for measurement of gas sold or computation of consumer’s bills and keep same in repair at its cost, which meter shall at all times be subject to inspection by said City; shall at all times save the City harmless from any and all damages which said City may be liable to pay that may arise from the construction, maintenance and operation by the Company of its plant system or any part hereof; shall limit all excavations of street, alleys

or public places to the necessity of  efficient operation and shall not an any one time open or encumber more of any highway or public place than shall be reasonably necessary to enable Company to proceed with advantage in laying or repairing mains or pipes and shall not permit such highway or public place to remain open longer than necessary for the purpose for which it was opened; shall refill all excavations and replace all pavements with like material and leave same as good condition as when altered or removed; shall perform all work on streets, alleys, and public places, under supervision of a representative of said City if so desired; and shall repay said City all expense to which it has been put in the repair or replacement of streets, highways or pavements in the event such work is done by said City after the neglect or refusal of Company to perform same in a reasonable time.


Section 5. Company shall not later than the first day of

each calendar month in each year, make a report to the governing board of the

City of its gross receipts from the sale of natural gas for domestic and commercial purposes within the corporate limits of said City for the one(1)month period ending on the first day of the month next preceding that on which the report is due; and at the time of making such reports, pay into the City treasury a sum equal to five (5%) percent of said gross receipts subsequent to the effective date of this franchise. So long as Company shall be required, by any regulatory authority having jurisdiction to separately state the franchise tax increment of its charges for natural gas service rendered under the franchise herby granted, the term “gross receipts” as used herein shall not include the separately stated tax increment. Said percentage of Company’s gross receipts is hereby levied and assessed as an occupation and license tax (in lieu of all other occupation, license or other revenue taxes or fees) for the privilege of engaging in the business herein recited during the term hereof and as a further consideration for this franchise, Company agrees to recognize the same as a valid tax and make said payment during such periods.


Section 6. If a majority of the Council express their assent to the granting of said franchise, said franchise shall become effective immediately, provided that the Company shall file its written acceptance of said franchise within thirty (30) days from the date said governing body shall have declared the results of said vote.