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05-10289 Natural Gas Franchise
(Published in the Salina Journal on July(� 2005) ORDINANCE NUMBER 05-10289 AN ORDINANCE GRANTING TO KANSAS GAS SERVICE, A DIVISION OF ONEOK, 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 solely from a request or requirement of a third (3rd) party primarily for the benefit and use of a third (3`d) party. Right -of -Way — 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 15`h 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 -of -Way — 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. x'Fe-Sa�ina I 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 1 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 -Way 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 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. The term of this Franchise shall be fifteen (15) years from the effective date of this Ordinance. 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 2 1 1 1 CI-UldSAII 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. 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: A sum equal to 5 percent (5%) of the Gross Receipts received from the Distribution of natural gas. ii. 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 3 C1111 d1t1d Sa_I protect the proprietary information of the Company but which do not unreasonably frustrate the 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. 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, 4 -saimeens�u�a 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 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 5 1 7 L C 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. 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 of this 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. C 1 1 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 The failure of either party to insist in any one or more instances upon the strict performance of any one 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. 7 1 (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. [SEAL] AT EST: Lieu Elsey, CMC, City Cle Introduced: June 27, 2005 assed: July 11, 2005 Deborah Divine, Mayor -- —� ----- Attachment A (Specimen for to be completed annually based upon updated figures) E i / C k / k ¢ § § CL .3 § CO / CO \ & � © CL 0 >JƒmEƒ/2/E l�ozo«> ■ <a�c�=*�m�=aJaG2 o x ® 7�/££I@2RGnn�o2222EeE [ rrr &—K3;gRc`�2[�,���� k J ¥ 4•� s§ m 3 J m,; g ®a t c ;D< 2 :<-<:< :< -< ` , } M $ ƒ 2 3 [ I ¥ i' 0- § ƒ 7 9 F | � — \ i t j a 7@) | C % ƒ K\ 2 � / n + ) C> � �0< $ E z [ & § g } CO g C=EJ \ .t(� « �§ G /rL . � _2ao � �\ � ° \ ) m g .a E i / C k / k ¢ § § CL .3 § CO / CO \ & � © CL 0 >JƒmEƒ/2/E l�ozo«> ■ <a�c�=*�m�=aJaG2 o m/ ® 7�/££I@2RGnn�o2222EeE [ rrr &—K3;gRc`�2[�,���� k �Q ¥ 4•� s§ m 3 J m,; g ®a t � ;D< 2 :<-<:< :< -< , } M $ 2 ] E � kC [ I ¥ i' =h /\ 7 9 _ r g � j a 7@) Cc K\ 2 —' k E n + g� '} E �0< $ E z [ � E 2 g 7 � § CO g C=EJ 2 a .t(� « �§ G /rL . \/gam _2ao � �\ � �CL g .a I — q /J j {CM/ n 0 tr a � � k f\ � � . $/ ACCEPTANCE 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 of the City of Salina, Kansas, on the 1 lth 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 11710 Bradle3 O. ixon, resident Attest: / 60(�A4� ohn P. DeCoursey, Assistant Secretary State of Kansas . County of st lit ev-, City of 1, LltA-L PqV" , City Clerk of the City of S Q rtic._ , Kansas, do hereby certify that the foregoing iLU s a true and correct copy of acceptance of Ordinance NoCfL_jj �f the City of S&LL as therein described, the original of which acceptance was filed in the office of the Clerk of said City on the j L,6t' day of ?Q„o LA -C,+ , 2005, and is now recorded among the original records thereof, and that I am the keeper of the same. Witness my hand and the official seal of said City, this I ion day of i, -"+ , 2005. City Clerk