Acceptance of Ordinance 05-10289
ACCEPT ANCE OF FRANCHISE ORDINANCE
To the Governing Body of the City of Salina, Saline County, Kansas:
Kansas Gas Service, a Division of ONEOK, Inc., for itself, its successors and assigns,
hereby accepts in writing the Ordinance and all rights and privileges therein granted, passed by
the Governing Body ofthe City of Salina, Kansas, on the 11th day of July 2005, designated as
Ordinance No. 05-10289, and entitled:
AN ORDINANCE, granting to Kansas Gas Service, a Division of ONEOK, Inc., its
successors and assigns, a natural gas franchise, including the right to construct operate,
maintain a natural gas distribution system within the corporate limits of the City of Salina,
Kansas.
This acceptance is executed and filed as provided in Section 12 of said Franchise
Ordinance No. 05-10289 and said Company hereby agrees to all terms and conditions of said
Ordinance. Pursuant to Sections 4 and 18 of the Franchise, Kansas Gas Service will begin
charging the rates set forth in the Franchise on January 1,2006.
Dated at Overland Park, Kansas, this 20th day of July 2005.
KANSAS GAS SERVICE,
A DIVISION OF ONEOK, INC.
BY
IP"
Attest:
~,ftY~
PJ ohn P . DeCoursey, Assistant Secretary
State of Kansas
County of Sa..~
City of ~
I, L'I.e..u.... ~ , City Clerk of the City of ~~ , Kansas, do hereby
certify that the fore~oing is a true and correct copy of acceptance of Ordinance NoCf)-IL:l~f
the City of Sllu...f""lA...., as therein described, the original of which acceptance was filed in the
office of the Clerk of said City on the I Li,-th. day of M~ ,2005, and is now
recorded among the original records thereof, and that I am the keeper of the same.
2005.
Witness my hand and the official seal of said City, this I ~t'k-day of ~u.~
~~
(Published in the Salina Journal on July M, 2005)
ORDINANCE NUMBER 05-10289
AN ORDINANCE GRANTING TO KANSAS GAS SERVICE, A DIVISION OF
ONE OK, INC., ITS SUCCESSOR AND ASSIGNS, A NATURAL GAS FRANCHISE,
INCLUDING THE RIGHT TO CONSTRUCT OPERATE, MAINTAIN A NATURAL GAS
DISTRIBUTION SYSTEM WITHIN THE CORPORATE LIMITS OF THE CITY OF
SALINA, KANSAS.
THEREFORE BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF
SALINA, KANSAS:
Section 1. Definitions.
For purposes of this Franchise, the following words and phrases shall have the meanings
given herein:
City as the Grantor - shall mean the City of Salina, Kansas.
Company as the Grantee - shall mean Kansas Gas Service, A division of ONEOK, Inc.
Distributed or Distribution - shall mean all sales, distribution, or transportation to any
consumer or user for use within the City by the Company or by others through the Facilities of the
Company in the Right-of-Way.
Facilities - shall mean natural gas mains, pipes, boxes, reducing and regulating stations,
laterals, conduits and service extension together with all necessary appurtenances thereto.
Gross receipts - shall mean any and all compensation and other consideration derived
directly by Company from any Distribution of natural gas within the corporate limits of the City to a
consumer for any use, including domestic, commercial, and industrial purposes, and including
without limitation interruptible sales and single sales; and shall include revenues from any operation
or use of any or all of the Facilities in the Right-of-Way by the Company or others including
without limitation charges as provided in tariffs filed and approved, and shall also include all fees or
rentals received by the Company for the lease or use of pipeline capacity within the corporate limits
of the City; but such terms shall not include revenue from certain miscellaneous chargers and
accounts as set forth in the Terms and Conditions of Gas Service on file and approved, including
but not limited to connection and disconnections fees, reconnection fees, customer project
contributions, returned check charges, temporary service charges, and delayed or late payment
charges as such terms are used in tariffs filed and approved.
"MCF" - shall mean a measurement of natural gas equal to one thousand cubic feet. It is
assumed for purposes of this ordinance that one MCF equals 1,000,000 British Thermal Units
(BTUs)
Public Improvement - shall mean any existing or contemplated public facility, building, or
capital improvement project, financed by the City, including without limitation, streets, alleys,
sidewalks, sewer, water, drainage, Right-of-Way improvement, and Public Projects.
Public Project - shall mean any project planned or undertaken by the City for construction,
reconstruction, maintenance, or repair of public facilities or improvements, including without
limitation streets, alleys, sidewalks, sewer system, water system, drainage system, Right-of-Way
improvement, or any other purpose of a public nature paid for with public funds.
Public Project for Private Development - shall mean a Public Project, or that portion
thereof, arising solell from a request or requirement of a third (3rd) party primarily for the benefit
and use of a third (3r ) party.
Right-o.fWay - shall mean present and future public streets, alleys, bridges, rights-of-way,
public utility easements, and easements dedicated in plats of the city for streets and alleys.
Settlement Prices - shall mean the settlement prices for natural gas futures contracts traded
on the New York Mercantile Exchange (NYMEX) on the 15th day of each month as published daily
in the Wall Street Journal (WSJ) on the following business day (or the next day in which Settlement
Price is published).
Street Right-o.fWay - shall mean the entire width between property lines of land, property,
or an interest therein of every way publicly maintained where any part thereof is open to the use of
the public for purposes of vehicular traffic, including street, avenue, boulevard, highway,
expressway, alley, or any other public way for vehicular travel by whatever name.
Transport Gas - shall mean all natural gas transported by the Company or by others, but not
sold by the Company, to any consumer or user within the City through the Facilities of the
Company in the Right-of-Way.
Volumetric Rate - shall mean that sum measured in cents per MCF as determined by the
City by ordinance or such amount as may be hereafter adjusted according to the provisions of this
Section. The Volumetric Rate Calculation Form incorporated herein as Attachment A shall be used
for the recalculation of the Volumetric Rate. The recalculation shall be effective each January I and
shall be based on Settlement Prices for the twelve-month period beginning in July of the second
proceeding year and ending in June of the preceding year. For the 15th day of each month during
said twelve-month period, the Settlement Prices for the next twelve months will be summed and
divided by twelve to determine an average Settlement Price. The average Settlement Prices for
each of the twelve months shall be summed and divided by twelve and multiplied by 5% to obtain
the Volumetric Rate to be effective January 1 of the next succeeding year. The Volumetric Rate
shall be calculated by the City in accordance with the procedures in Attachment A and filed with the
City Clerk by July 31 of each year after written notice to the Company.
Section 2.
Grant.
(a) There is hereby granted to Company, the non-exclusive right, privilege, and
franchise to construct, maintain, extend, and operate its Facilities in, through, and along the Right-
of- W ay of the City for the purpose of supplying natural gas to the City and the inhabitants thereof
for the full term of this Franchise; subject, however, to the terms and conditions herein set forth.
Nothing in this grant shall be construed to franchise or authorize the use of the Company's Facilities
or the Right-of-Way by the Company or others, for any purpose not related to the provision of
natural gas. The Company may not allow a subsidiary, affiliate, or a third (3rd) party to acquire
rights to occupy the Rights-of-Way under this Franchise; provided, that nothing in this section shall
prevent Company from allowing the use of its Facilities by others when such use is compensated to
the City under the provisions of this franchise or in accordance with the provisions of Ordinance
No. 05-10291 and any amendments thereto.
(b) Company shall not enter into or continue any arrangement by which natural gas
owned by any party other than Company shall be transported, distributed, or sold through any
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portion of Company's Facilities in the Right-of-Way for delivery to any person within the City
unless the City is compensated for such use by the Company, transporter, consumer, or some other
party in accordance with the provisions of Ordinance No. 05-10291 and any amendments thereto.
(c) By this franchise, the Company is granted the authority to collect on behalf of the
City the compensation to be made to the City by other parties using the Company's Facilities for
Distribution of Transport Gas. The Company agrees to collect such sums for the City and to submit
such payments in the manner provided in Section 4. Nothing in this Section allowing the
transportation of gas owned by others shall relieve Company from the responsibility of complying
with the franchise requirements to maintain its Facilities in the Right-of-Way.
Section 3.
Term.
a.
Ordinance.
The term of this Franchise shall be fifteen (15) years from the effective date of this
b. Upon written request of either the City or the Company, the franchise may be
reviewed after five (5) years from the effective date of this ordinance and either the City or the
Company may propose amendments to any provision of this franchise by giving thirty days written
notice to the other of the amendment(s) desired. The City and the Company shall negotiate in good
faith in an effort to agree upon mutually satisfactory amendment(s).
c. Upon written request of either the City or the Company, the franchise shall be
reopened and renegotiated at any time upon any of the following events:
1. Change in federal, state, or local law, regulation, or order which materially
affects any rights or obligations of either the City or the Company, including but not limited
to the scope of the grant to the Company or the compensation to be received by the City; or
2. Change in the structure or operation of the natural gas industry which
materially affects any rights or obligations of either the City or the Company, including but
not limited to the scope of the grant to the Company or the compensation to be received by
the City; or
3. Any other material and unintended change or shift in the economic benefit to
the City or a change the Company did not anticipate upon accepting the grant of this
Franchise.
d. The compensation provision of this franchise shall be reopened and renegotiated if
energy consumers within the City have access to alternative natural gas suppliers or other suppliers
of energy through pipelines who use the Right-of-Way and/or easements granted on publicly owned
property and do not pay a franchise fee or other payment substantially equivalent to this franchise,
which results in a material and unfair disadvantage to the Company. The use of Right-of-Way
provision of this franchise shall be reopened and renegotiated if energy consumers within the city
have access to alternative natural gas suppliers or other suppliers of energy through pipelines who
use the Right-of-Way and do not have requirements on the use of Right-of-Way substantially
equivalent to the requirements of this franchise, which results in a material and unfair disadvantage
to the Company. Upon any such event, the City shall have up to one hundred twenty (120) days
after written request of the Company in which to restore competitive neutrality, provided that any
adjustment in compensation resulting from renegotiations under this Subsection (d) shall be
effective no later than 120 days after such notice.
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e. Failure of the City and Company to successfully renegotiate the materially affected
provisions of the franchise under subsection (c) or (d) shall give rise to dispute resolution as
follows: At the expiration of 180 days from the date of the written request (or sooner if requested
by both the City and the Company) the City and the Company shall each select a representative who
shall jointly select a third representative. The three representatives shall hear the positions of the
City and Company and shall determine the matters in disagreement by majority vote. Such decision
shall be presented to City and the Company as the renegotiated language under subsection (c) or (d).
Rejection of the dispute resolution by either the City or the Company shall give rise to the remedies
provided by Section 10, or at the option of the parties, the franchise shall remain in effect according
to its then existing terms.
f. Amendments under this section, if any, shall be made by ordinance as prescribed by
statute. The franchise shall remain in effect according to its terms pending completion of any
review or renegotiation pursuant to subsections (b), (c), (d), or (e).
Section 4.
Compensation to the City.
a. In consideration of and as compensation for the franchise hereby granted to the
Company by the City, the Company shall make an accounting to the City of all natural gas that has
been Distributed on a monthly basis. The Company shall pay the City:
1. A sum equal to 5 percent (5%) of the Gross Receipts received from
the Distribution of natural gas.
11. A sum equal to the Volumetric Rate multiplied by the number of MCF of
Transport Gas.
The sums in (i) and (ii) above shall be adjusted for uncollectible receivables and for uncollectible
receivables which are later collected.
b. Payment of the compensation above shall commence on the Effective Date identified
in Section 18 as the first day of January, 2006. Prior to the Effective Date, payments shall continue
to be calculated and be paid in the manner previously provided in Ordinance 86-9126. Such
payments shall be made to the City under procedures, which are mutually agreed to by the
Company and the City within thirty (30) days of the last day of the month to which such accounting
shall apply.
c. In the event the accounting rendered to the City by the Company is found to be
incorrect, then payment shall be made on the corrected amount, it being agreed that the City may
accept any amount offered by the Company, but the acceptance thereof by the City shall not be
deemed a settlement of such item if the amount is in dispute or later found to be incorrect. The
Company agrees that all of its books, records, documents, contracts and agreements as may be
reasonably necessary for an effective compliance review of this Ordinance shall upon reasonable
notice and at all reasonable times be opened to the inspection and examination of the officers of the
City and its duly authorized agents, auditor, and employees for the purpose of verifying said
accounting. Notwithstanding the obligation herein, the Company shall have the right to require the
reasonable protection of proprietary information and to provide redacted documents or require the
City or its agents to enter into such agreements pertaining to confidentiality as may reasonably
protect the proprietary information of the Company but which do not unreasonably frustrate the
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purposes of this subsection. The Company shall have no obligation, however, to make payment
upon Transport Gas for which the Company has not been paid.
Section 5.
Payment and Charges.
The payments and compensation herein provided shall be in lieu of all other licenses, taxes,
charges, and fees, except that the usual general property taxes and special ad valorem property
assessments, sales and excise taxes, or charges made for privileges which are not connected with the
natural gas business, will be imposed on the Company and are not covered by the payments herein.
From and after the date hereof, however, the permit fees required of the Company by any ordinance
presently in effect or hereafter adopted for a permit to excavate in or adjacent to any street, alley, or
other public place shall be deemed a part of the compensation paid in Section 4 and shall not be
separately assessed or collected by the City; in no event, however shall this provision be interpreted
to waive the requirement of notice to the City and the procedural requirements of such ordinance.
Section 6.
Use of Right-of-Way.
The use of the Right-of-Way under this Franchise by the Company shall be subject to all
rules, regulations, policies, resolutions, and ordinances now or hereafter adopted or promulgated by
the City in the reasonable exercise of its police power relating to use, placement, location, or
management of utilities located in the City's Right-of-Way. In addition, the Company shall be
subject to all laws, rules, regulations, policies, resolutions, and ordinances now or hereafter adopted
or promulgated by the City in the reasonable exercise of its police power relating to permits,
sidewalk and pavement cuts, utility location, construction coordination, screening, and other
requirements on the use of the Right-of-Way; provided, however, that nothing contained herein
shall constitute a waiver of or be construed as waiving the right of the Company to oppose,
challenge, or seek judicial review of, in such manner as is now or may hereafter be provided by law,
any such rules, regulation, policy, resolution, or ordinance proposed, adopted, or promulgated by
the City and, further provided, other than the items enumerated in Section 5 above, that such laws,
rules, regulations, policies, resolutions, or ordinances shall not require the payment of additional
fees or additional costs for the use of the Right-of-Way. In any event, the Company is granted an
offset for such fees and costs against the franchise fees required to be paid hereunder. Further, the
Company shall comply with the following:
a. The Company's use of the Right-of-Way shall in all matters be subordinate to the
City's use of the Right-of-Way for any public purpose. The Company shall coordinate the
installation of its Facilities in the Right-of-Way in a manner which minimizes adverse impact on
Public Improvements, as reasonably determined by the City. Where installation is not otherwise
regulated, the Facilities shall be placed with adequate clearance from such Public Improvements so
as not to conflict with such Public Improvement.
b. All earth, materials, sidewalks, paving, crossings, utilities, Public Improvements, or
improvements of any kind located within the Right-of-Way damaged or removed by the Company
in its activities under this Franchise shall be fully repaired or replaced promptly by the Company to
the reasonable satisfaction of the City and without cost to the City. However, when such activity is
a joint project of utilities or franchise holders, the expenses thereof shall be prorated among the
participants.
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c. Except in the event of an emergency, as reasonably determined by the Company, the
Company shall comply with all laws, rules, regulations, policies, resolutions, or ordinances now or
hereinafter adopted or promulgated by the City relating to any construction, reconstruction, repair,
or relocation of Facilities which would require any street closure which reduces traffic flow.
Notwithstanding the foregoing exception all work, including emergency work performed in the
traveled way or which in any way impacts vehicular or pedestrian traffic shall be properly signed,
barricaded, and otherwise protected in conformance with the latest edition of the Manual of
Uniform Traffic Control Devices, unless otherwise agreed to by the City.
d. The Company shall cooperate promptly and fully with the City and take all
reasonable measures necessary to provide accurate and complete information regarding the location
of its Facilities located within the Right-of-Way when requested by the City or its authorized agents
for a Public Project. Such location and identification shall be promptly communicated to the City in
writing or shall be identified through physical markings of the location without cost to the City, its
employees, agents, or authorized contractors. The Company shall designate and maintain an agent,
familiar with the Facilities, who is responsible for providing timely information needed by the City
for the design and replacement of Facilities in the Right-of-Way during and for the design of Public
Improvements. At the request of the Company, the City may include design for Facilities in the
design of Public Projects. Also at the request of the Company, the City and/or its contractor(s) or
agent(s) shall provide accurate and timely field locations of proposed Public Projects in the event
the Company is required to install new and/or relocate its Facilities.
e. Upon request by the City, the Company shall promptly locate, remove, relocate, or
adjust any Facilities located in Right-of-Way if reasonably necessary for a Public Project. Such
location, removal, relocation, or adjustment for a particular Public Project shall be performed by the
Company once without expense to the City, its employees, agents, or authorized contractors and
shall be specifically subject to rules and regulations of the City pertaining to such; provided, that if
the Company demonstrates to the satisfaction of the City that the Facility was originally established
in a private easement that thereafter became part of the Right-of-Way for which no compensation
was paid to the Company by the City, the removal, relocation, or adjustment shall be without
expense to the Company unless such private easement had been acquired by the City from the
Company. If additional location, removal, relocation, or adjustment becomes necessary as a result
of inaccurate or mistaken information provided by the Company or City, the party which provided
such inaccurate or mistaken information shall be responsible for costs associated with such
additional location, removal, relocation, or adjustment without expense to the other party. The City
shall continue to use its best efforts to provide a location in the Right-of-Way for the Company's
existing facilities as part of a Public Project, provided that the Company has cooperated promptly
and fully with the City in the design of its Facilities as part of the Public Project.
f. The Company shall not be responsible for the expenses of relocation to
accommodate any new Public Project for Private Development initiated after the effective date of
this Ordinance. The expenses attributable to such a project shall be the responsibility of the third
(3rd) party upon the request and appropriate documentation of the Company. Before such expenses
may be billed to the third (3rd) party, the Company shall be required to coordinate with the third
(3rd) party and the City on the design and construction to ensure that the work required is necessary
and done in a cost effective manner.
g. It shall be the responsibility of the Company to take adequate measures to protect
and defend its Facilities in the Right-of-Way from harm or damage. If the Company fails to
accurately locate Facilities when requested, it shall have no claim for costs or damages against the
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City and its authorized contractors except to the extent the City and its authorized contractors are
responsible for the harm or damage by their negligence or intentional conduct. The Company shall
be responsible to the City and its agents, representatives, and authorized contractors for all damages
including, but not limited to, repair costs, penalties or other expenses arising out of the failure of the
Company to perform any of its obligations under this Ordinance except to the extent another party
is responsible for the harm or damage by its negligence or intentionally caused harm, provided, that
if the responsibility of the City and its agents, representatives, and authorized contractors does not
arise as a contractual obligation, the Company shall have the right at its option to step in and defend
such claim in its own right. The above general provisions notwithstanding, the City and its
authorized contractors shall take reasonable precautionary measures including calling for utility
locations through Kansas One Call and exercising due caution when working near the Company's
Facilities. Subject to the Company's responsibilities above, the Company shall have the right to
collect for damages to its Facilities resulting from negligence or intentional misconduct by the City
and its duly authorized agents, representatives and contractors.
h. All technical standards governing construction, reconstruction, installation,
operation, testing, use, maintenance, and dismantling of the Facilities in the Right-of-Way shall be
in accordance with applicable present and future federal and state laws and regulations, including
but not limited to the most recent standards of the Kansas Corporation Commission and U.S.
Department of Transportation, and further, to the extent they are not inconsistent with federal or
state laws, City of Salina standard technical qualifications as may be amended from time to time, or
such substantive equivalents as may hereinafter be adopted or promulgated. It is understood that
the standards established in this paragraph are minimum standards and the requirements established
or referenced in this Franchise may be additional to or stricter than such minimum standards.
Section 7.
Indemnity and Hold Harmless.
The Company shall indemnify and hold and save the City, its officers, employees, agents,
and authorized contractors, harmless from and against all claims, damages, expense, liability, and
costs including reasonable attorney fees, to the extent occasioned in any manner by the Company's
occupancy of the Right-of-Way, except to the extent that such were caused by the negligence or
intentional conduct of the City, its officers, employees, agents, or authorized contractors. In the
event a claim shall be made or an action shall be instituted against the City growing out of such
occupancy of the Right-of-Way by Facilities of the Company, then upon notice by the City to the
Company, the Company shall assume responsibility for the defense of such actions at the cost of the
Company, subject to the option of the City to appear and defend at its own cost, any such case;
provided, that the Company shall have no duty to defend any such action to the extent that such
action has resulted from the negligence or intentional conduct of the City, its officers, employees,
agents, or authorized contractors.
Section 8.
Notice of Property Annexed by City
Notwithstanding anything to the contrary in this Franchise, the fee provided for in Section 4
above shall not become effective within any area annexed by the City until the first of the month
billing cycle which begins no more than 60 days after the date that the City provides the Company
with a certified copy of the annexation ordinance, proof of publication as required by law and a map
of the City detailing the annexed area.
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Section 9. Right of Assignment.
This Franchise shall be assignable only in accordance with the laws of the State of Kansas,
as the same may exist at the time when any assignment is made.
Section 10. Termination and Forfeiture of Franchise.
(a) In addition to all other rights and powers retained by the City under this franchise,
the City reserves the right to terminate the franchise and all rights and privileges of the Company
hereunder, in the event of a material failure on the part of the Company, its successors or assigns, to
comply with any of the provisions of this ordinance, or if the Company, its successors or assigns,
should do or cause to be done any material act or thing prohibited by or in violation of the terms of
the ordinance. In such event, the Company, its successors and assigns, shall forfeit all rights and
privileges granted by this ordinance and all rights hereunder shall cease, terminate and become null
and void, provided that said forfeiture shall not take effect until the City shall carry out the
following proceedings:
(i) Before the City terminates the franchise, it shall first mail to the Company
written notice setting forth in detail the neglect or failure of the Company.
(ii) The Company shall have ninety (90) calendar days thereafter in which to
comply with the conditions ofthis franchise.
(iii) If, at the end of such ninety (90) day period, the City determines that the
Company has not complied with the conditions of this franchise and this franchise is subject to
termination for that reason, the City, in order to terminate this franchise, shall enact an ordinance
setting out the grounds upon which the franchise is to be terminated (the "Termination Ordinance").
(iv) If, within thirty (30) calendar days after the effective date of the Termination
Ordinance, the Company has not filed an action in the Saline County District Court, or some other
court of competent jurisdiction to determine whether or not the Company has violated the terms of
this franchise and that the franchise is subject to termination for that reason, the franchise shall be
terminated as of thirty (30) days following the effective date of the Termination Ordinance.
(v) If within thirty (30) days after the effective date of the Termination
Ordinance, the Company does file an action to determine whether or not the Company has violated
the term of this franchise and that the franchise is subject to termination for that reason, and
prosecutes such action to final judgment with due diligence, then, in that event, in case the court
rules that this franchise is subject to termination by reason of the violation of its terms, this
franchise shall terminate thirty (30) calendar days after such final judgment is rendered.
(b) The failure of the Company to comply with any of the provisions of this franchise or
the doing or causing to be done by the Company of anything prohibited by or in violation of the
terms of this franchise shall not be a ground for the termination of this franchise when such act or
omission on the part of the Company is due to any cause or delay beyond the control of the
Company, its successors and assigns, or bona fide legal proceedings.
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Section 11. Rights and Duties of Company Upon Expiration or Termination of
Franchise.
Upon expiration of this franchise, whether by lapse of time, by agreement between the
Company and the City, or by forfeiture, the Company shall have the right to remove any and all of
its Facilities used in its Natural Gas Utility Service within a reasonable time after such expiration or
termination, but in such event, it shall be the duty of the Company, immediately upon such removal,
to restore the streets, avenues, alleys, parks and other public ways and grounds from which the
Facilities are removed, to the equivalent condition as the same were before said removal was
effected.
Section 12. Acceptance of Terms by Company.
Within sixty (60) days after the final passage and approval of this Ordinance, the Company
shall file with the City Clerk of the City its acceptance in writing of the provisions, terms and
conditions of this Ordinance, this Ordinance shall constitute a contract between the City and the
Company.
Section 13. Conditions of Franchise.
This non-exclusive franchise, grant, and privilege is granted under and subject to all
applicable laws and under and subject to all of the orders, rules, and regulations now or hereafter
adopted by governmental bodies now or hereafter having jurisdiction, and each and every provision
hereof shall be subject to acts of God, fires, strikes, riots, floods, war and other causes beyond
Company's control.
Section 14. Notices.
Except in Emergencies, all notices by either the City or the Company to the other shall be
made by depositing such notice in the U.S. Mail or by other mutually agreed upon method.
Emergency notices shall be provided by telephone, with written notice immediately following by
U.S. Mail. All notices shall be addressed as follows:
City:
City Clerk
City of Salina, Kansas
P.O. Box 736
Salina, KS 67402-0736
Company:
President
Kansas Gas Service
A Division of ONEOK, Inc.
7421 W. 129th Street
Overland Park, Kansas 66213
Section 15. Non-waiver Provision
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The failure of either party to insist in anyone or more instances upon the strict performance
of anyone or more of the terms or provisions of this ordinance shall not be construed as a waiver or
relinquishment for the future of any such term or provision, and the same shall continue in full force
and in effect. No waiver or relinquishment shall be deemed to have been made by either party
unless the waiver or relinquishment is in writing and signed by the parties.
Section 16. Invalidity of Ordinance.
If any clause, sentence, or section of this Ordinance shall be held to be invalid by a court of
competent jurisdiction, such decision shall not affect the validity of the remainder, as a whole or
any part thereof, other than the part declared to be invalid.
Section 17. Governing Law; Venue
(a) The franchise and the right herein granted are subject to the provisions of existing
federal and state laws, including those hereafter enacted, pertaining to the granting of franchises.
(b) The obligations and undertakings of both parties hereto shall be performed at Salina,
Saline County, Kansas. In the event that any legal proceeding is brought to enforce the terms of this
franchise, the proceeding shall be brought in State or Federal courts, as appropriate, having
jurisdiction for Saline County, Kansas.
Section 18. Effective Date of Ordinance.
After its passage and approval by the City, acceptance by the Company, and publication in
the official city newspaper, this Ordinance shall take effect and be in force on the first day of
January, 2006 (the "Effective Date" of this ordinance).
Section 19. Repeal of Conflicting Ordinances.
Ordinance No. 86-9126, which heretofore granted a non-exclusive franchise to the
Company, and which became a contract between the City and the Company in accordance with its
terms, and all other ordinances and resolutions or parts thereof inconsistent or in conflict with the
terms hereof, are hereby canceled, annulled, repealed, and set aside as of the Effective Date of this
ordinance.
Introduced: June 27, 2005
Pli'e~. JU?) 1 ~' 2~05
MfJnd~ ~~
Deborah Divine, Mayor
[SEAL]
ATTEST:
~~Clerk
10
T~e City of Salina
VolumetrIc Rate Calculation Form
III ' For the Transportation of Natural G~s In Plpellnes'Located In the City of Salina
(I) Based on the NYMEX setliemanl prices for the dales shown, published the following business day
~
::l SOurce
c:n Wall Street Journal
~ Deadline Form must be filed each year with the City Clerk by July 31st and noUee sent to the Na~rural Gas Companies
"
(I) Last Year Last Year Last Year Last Year Last Year Last Year This Year This Year This Year This year This Year This Year
+->
11:3 Month 15=J.uI ~. ~ ~ 1l:.No.1I: ~ 15::Jan .1HM .15:M.aJ: ~ 1Z:Ma3L ~
"
0-
::l Aug tast Year
C Sap Last Year
0
0- DoUast Year
::l Nay Last Year
" Dee Last Year
(I)
III Jan Current '(ear
11:3
.0 Feb Current Year
C:(>, Mar Current Year
+-'..... Apr Current Year
c..... May Curremt,Year
(1)11:3
E::l Jun Current Year'
.s::;.C
UC July Current Yea'r
11:311:3 Aug Current Year
+-'"
+->(1) Sept Current Year
c:(+-' ' OQt Current Year
(I)
..... Noy Current Year
0- Dee Current Year
E
0 Jan Next Year
u
(I) 'Feb Next Year
.0 Mar Next Year
0 Apr Next Year
+-' ' May Next Year
E Jun Next Year
~
0
~ Avg Settlement Price I. 5.105 I 5.100 I . 4.956 I 5.190 I 4.751 I 5.556 I 5.5221 5.3551 5.94.& I 5.9751 6.5321 6.4371
C
(I)
E July 2003 through June 2004 selUement price average 5.536
u
(I)
0-
(/) X Bundled F....nchlse Fee Rate 6%
Nole; If the 15lh of the mon~ faUs on a week-end or holiday,
=Volumetrlo RatelMCF for 2005 0.2768 then usa the next business day settlement price.
~.
~,..-