Chapter V · Business Regulations

Article 7. Natural Gas Services

Sections 5-701 to 5-711 · 11 sections

5-701 Title.

This Article shall be referred to and cited as the “Natural Gas Services.” (Throughout this Article the Natural Gas Services Code may be referred to as “this Code.”)

(Ord. 3624; Code 2010, 15-800s; Code 2018)

5-702 Definitions.

For the purposes of this Code, the following words and phrases shall have the meanings given herein:

(a)“City” - shall mean the City of Osawatomie, Kansas.

(b)“Consumer” - shall mean, without limitation, any Entity that receives natural gas or Other Energy within the Corporate City limits through a Distribution System or Distribution Facilities.

(c)“Distribution System” or “Distribution Facilities” - shall mean a pipeline or system of pipelines, including without limitation, mains, pipes, boxes, reducing and regulating stations, laterals, conduits and services extensions, together with all necessary appurtenances thereto, or any part thereof, for the purpose of Distribution or supplying natural gas or Other Energy for light, heat, power and all other purposes.

(d)“Entity” - shall mean any individual person(s), governmental entity, business, corporation, partnership, firm, limited liability corporation, limited liability partnership, unincorporated association, joint venture or trust and shall include all forms of business enterprise not specifically listed herein.

(e)“Franchise” - shall mean the grant of authority by the City to distribute, transport or sell natural gas or Other Energy within the City and to operate a Distribution System or Distribution Facilities. The grant of authority shall be in accordance with the provisions of K.S.A. 12-2001, et seq., as amended, and City ordinances.

(f)“Franchisee” - shall mean any Entity that has a Franchise granted by the City pursuant to this Code and K.S.A. 12-2001, et seq., as amended.

(g)“Franchise Fee” - shall mean consideration paid in the form of a charge upon a Franchisee as prescribed in this Article granting the Franchise.

(h)“MCF” - shall mean a measurement of natural gas equal to one thousand (1,000) cubic feet. It is assumed for purposes of this Code that one MCF equals one million (1,000,000) British Thermal Units (BT Us).

(i)“Other Energy” - shall mean any energy provided in a gaseous, liquid, or slurry mixture form through pipelines for light, heat, power, and all other purposes as an alternative or replacement for natural gas, but specifically, it shall not include electrical energy.

(j)“Right-of-Way” - shall mean present and future streets, alleys, rights-of-way, and public easements, including easements dedicated to the City in plats of the City for streets and alleys. The “Right-of-Way” shall not include property owned by the City outside of said streets, alleys, rights-of-way, and easements, or public easements limited in their dedication of purpose or otherwise not intended for placement of Distribution Facilities (for example, a public easement dedicated only for storm water purposes).

(Ord. 3624; Code 2010, 15-800s; Code 2018)

5-703 Applicability.

The provisions of this Code shall apply from and after its effective date, and shall apply to the full extent of the terms herein. Said provisions shall be deemed incorporated into each Franchise.

(Ord. 3624; Code 2010, 15-800s; Code 2018)

5-704 Preservation of police power authority.

Any rights granted pursuant to this Code and pursuant to any Franchise required herein are subject to the authority of the City to adopt and enforce ordinances and regulations necessary to the health safety and welfare of the public. Franchisees shall be subject to and comply with all applicable laws and regulations enacted by the City, provided nothing in this Code shall be deemed to waive a right, if any, that an Entity might have to seek judicial or regulatory review as provided by law.

(Ord. 3624; Code 2010, 15-800s; Code 2018)

5-705 Franchise requirement.

It shall be unlawful for any Entity to construct, operate or maintain a Distribution System or Distribution Facilities or to distribute, transport or sell natural gas or Other Energy within the City without first obtaining a Franchise authorizing the same and requiring a Franchise Fee. This franchise requirement applies to any distribution, transportation or sale to a Consumer within the City whether or not the portion of the Entity’s Distribution System is in the Right-of-Way. Provided, in the event the Distribution System or Distribution Facilities of a Franchisee are used by an Entity without its own Distribution System or Distribution Facilities within the City for the transportation or sale of said Entity’s natural gas or Other Energy to a Consumer, said Entity shall be exempt from the requirement of obtaining a Franchise if it reports, calculates and pays (either directly or through the Franchisee) a sum to be submitted to the City for such services that is equivalent to the calculation of the Franchisee’s Franchise Fee. In such event, if gross receipts are not or cannot be reported, a sufficient volumetric rate multiplied by the number of MCF of the transported natural gas or Other Energy may be used in making such calculation.

(Ord. 3624; Code 2010, 15-800s; Code 2018)

5-706 Nature of rights granted by any franchise.

Franchises shall not convey title, equitable or legal, in the Right-of-Way or any other public property, and shall give only the right to occupy the Right-of-Way for the purposes of providing natural gas or Other Energy and as may be further authorized by the Franchise. No Franchise shall grant the right to use facilities owned or controlled by the City or a third-party, without the consent of such party, nor shall a Franchise excuse a Franchisee from obtaining appropriate access or attachment agreements before locating its facilities on the facilities owned or controlled by the City or a third-party. Any Franchise granted by the City shall be nonexclusive.

(Ord. 3624; Code 2010, 15-800s; Code 2018)

5-707 Indemnification of the city.

Any Entity constructing, operating or maintaining a Distribution System or Distribution Facilities or otherwise distributing, transporting or selling natural gas or Other Energy within the City shall hold the City harmless from any and all damages or claims arising from the exercise of any right or privilege granted under this Code or a Franchise, and from any and all damages or claims accruing from the negligence or intentional acts or omissions of its employees, agents, or servants in the exercise of said construction, operation, maintenance, distribution, transportation or sale. Failure of said Entity to obtain or maintain a Franchise shall in no manner waive this requirement and obligation.

(Ord. 3624; Code 2010, 15-800s; Code 2018)

5-708 Initial franchise applications.

Any Entity desiring an initial Franchise shall first file an application with the City. A non-refundable applicable fee as may be hereinafter established by the City shall accompany the application, which shall not be considered or credited against the collection of applicable Franchise Fees. Upon receipt of any application for an initial Franchise, the designated city official shall prepare a report and make a recommendation respecting such application to the Governing Body.

(Ord. 3624; Code 2010, 15-800s; Code 2018)

5-709 Franchise renewal.

Franchise renewals shall be in accordance with applicable law. The City and any Franchisee, by mutual consent or as otherwise provided in such Franchisee’s Franchise, may enter into renewal negotiations.

(Ord. 3624; Code 2010, 15-800s; Code 2018)

5-710 Violation.

Any Entity violating this Code shall be subject to a fine of $500.00 per day. The payment of such fine notwithstanding, all such violators shall be subject to all other applicable provisions of this Code to fullest extent allowed by law, including, but not limited to, the payment of a Franchise Fee and indemnification of the City.

(Ord. 3624; Code 2010, 15-800s; Code 2018)

5-711 Savings clause.

The provision of this Code shall be liberally construed to effectively carry out its purposes, which are hereby found and declared to be in furtherance of the public health, safety, welfare, and convenience. If any clause, sentence or section of this Code shall be held to be invalid, it shall not affect the remaining provisions of this Code.

(Ord. 3624; Code 2010, 15-800s; Code 2018)