AN ORDINANCE GRANTING TO THE GREELEY GAS COMPANY, A COLORADO CORPORATION, DULY AUTHORIZED TO ENGAGE IN BUSINESS IN THE STATE OF KANSAS, ITS TRUSTEES, SUCCESSORS AND ASSIGNS, A NATURAL GAS FRANCHISE, PRESCRIBING THE TERMS THEREOF AND RELATING THERETO, AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES INCONSISTENT OR CONFLICTING WITH THE TERMS THEREOF.

Section 1. That in consideration of the benefits to be derived by the City of White City, Kansas, and its inhabitants, there is hereby granted to the Greeley Gas Company, a Colorado Corporation, hereinafter sometimes designated as “company,” the right, privilege and authority for a period of 20 years from the effective date of this ordinance, subject to the conditions hereinafter stated, the lawful Rules and Regulations of the State Corporation Commission, and any other regulatory agency having jurisdiction over the company, and the laws of the State of Kansas, to occupy and use the present and future several streets, alleys, avenues, roads, bridges and other public places in the city, including any territory hereafter added thereto or coming under the city’s jurisdiction, for the placing and maintaining of pipe lines and all other equipment necessary to carry on the business of selling and distributing natural gas for all purposes to the city and its inhabitants, and through the city and beyond the limits thereof; to obtain the natural gas from any source available; to do all things necessary or proper to carry on the natural gas business in the city.

Section 2. That all mains, services, pipes and all other equipment necessary to carry on the business of selling and distributing natural gas, which shall be laid or installed under this grant, shall be so located and laid as not to unnecessarily obstruct or interfere with any public or private drains, sewers, water pipes, or other public improvements already installed, and with the lawful use of the streets, alleys, avenues, roads and other public places of the city.

Section 3. In consideration of the premises, the company agrees to pay to the city and the city agrees to accept as adequate compensation and consideration for the franchise hereby granted and in lieu of occupation, license, privilege and all other taxes and fees, three percent of the total of the gross receipts for gas sold by the company to all consumers located in the present or future corporate boundaries of the city during the term of this franchise. Any consideration hereunder shall be reported and paid to the city by the company no less frequently than semi-annually, and if paid semi-annually, shall be paid on the last days of August and February of each year.

Section 4. In the event the city should propose to construct, change or repair any water mains, sewers, pipes, drains or other public improvements or change the grade of any of its streets, alleys, roads or public grounds where the company is using the streets, alleys, roads or public grounds for its mains or other pipes, or equipment, then the city shall give reasonable notice in writing of such contemplated changes or repairs to the company and the company shall raise, lower or relocate at company’s own expense unless funds are available for reimbursing to company for any such expenses by reason of any laws, rules and regulations, state or federal, applicable to the project necessitating such construction, changes or repairs. The company shall furnish the city with a map showing the size and location of its gas distribution system, and, upon written request of the city, company shall make any changes or additions·necessary to update the map.

Section 5. That the company, in the construction, maintenance and operation of its natural gas system shall use all reasonable and proper precaution to avoid damage or injury to persons or property, and the company shall be liable for all losses, injuries or damages which may result to the city or to its inhabitants, by reason of the sole negligence of the company, its agents or servants, in the construction or maintenance of its system and shall at all times hold and save the city harmless from any and all liability to the city arising from claims for damages or injuries to others due to the sole negligence of the company, its agents or servants, in the construction, maintenance and operation of the system in the streets, alleys, roads and public places of the city.

Section 6. During the continuance of this franchise, the company shall furnish natural gas to the city and its inhabitants in accordance with the terms of this franchise, the rates, charges, rules and regulations now on file with the State Corporation Commission of the State of Kansas, or such revision of rates, charges, rules and regulations as may be lawfully established from time to time in accordance with the laws of the State of Kansas.

Section 7. It is recognized that the natural gas to be delivered hereunder is to be supplied from company’s pipe line system transporting natural gas from various sources of supply; and the company, by its acceptance of this franchise as hereinafter provided, does obligate itself to furnish natural gas in such quantity and for such length of time, limited by the terms hereof, as the sources of supply and the pipe lines are reasonably capable of supplying.

Section 8. The company shall have the right to make reasonable rules and regulations for the protection of its property, for the prevention of loss and waste in the conduct and management of its business, and for the sale and distribution of gas, including rules and regulations with reference to extensions or additions to its gas distribution system, as from time to time is deemed necessary.

Section 9. The company shall have the right to assign this franchise, and the rights and privileges herein granted, to any person, firm or corporation, subject to the approval of the State Corporation Commission of the State of Kansas, or any other body having jurisdiction over such assignment, and any such assignee, by accepting such assignment, shall be bound by the terms and provisions hereof. All such assignments shall be in writing and authenticated copies thereof shall be filed with the clerk of the city.

Section 10. That in the event any other ordinances of the city conflict with this ordinance, the terms and conditions set out herein shall prevail and the conflicting portions of other ordinances shall be deemed inapplicable.

Section 11. That this ordinance shall not take effect and be in force until after the expiration of 60 days from the date of this final passage and acceptance by the company, within the 60 days, in writing, if no acceptance as hereinbefore provided has been filed, then this ordinance shall be ipso facto, absolutely, null and void.

Section 12. In the event that the Kansas Corporation Commission takes any action which is within its jurisdiction and authority over the company, which would preclude company from recovery from its customers any cost or fee provided for herein, the parties hereto agree to renegotiate this ordinance with any lawful ruling of the Corporation Commission.

Section 13. This franchise is granted pursuant to the provisions of K.S.A. 12-2001, and shall take effect and be in force as therein provided.

(2-3-1988)