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HomeMy WebLinkAboutOrdinance - 2022-O0084 - West Texas Gas LLC Natural Gas Operations - 06/14/2022First Reading May 24, 2022 Item No. 7.5 Second Reading June 14, 2022 Item No. 6.1 ORDINANCE NO. 2022-00084 AN ORDINANCE OF THE CITY OF LUBBOCK, TEXAS, GRANTING TO WEST TEXAS GAS, LLC, A TEXAS CORPORATION WITH ITS PRINCIPAL OFFICE IN THE CITY OF MIDLAND, MIDLAND COUNTY, TEXAS, THE FRANCHISE AND RIGHTS TO CONDUCT IN SUCH CITY THE BUSINESS OF ACQUIRING, MAINTAINING, CONSTRUCTING, LAYING, REPAIRING, REMOVING, REPLACING, INSTALLING, OPERATING, AND DISPOSING OF A GAS SYSTEM FOR THE SALE, TRANSPORTATION, AND DISTRIBUTION OF NATURAL GAS WITHIN THE MUNICIPAL BOUNDARIES OF THE CITY AND TO THE RESIDENTS AND BUSINESSES LOCATED THEREIN FOR LIGHT, HEAT, POWER, AND ANY OTHER, PURPOSES AND THE RIGHT TO USE THE PRESENT AND FUTURE STREETS, ROADS, HIGHWAYS, ALLEYS, PUBLIC WAYS, AND REAL PROPERTY IN SUCH CITY AND OWNED OR CONTROLLED BY SUCH CITY FOR SUCH PURPOSES; PRESCRIBING THE TERMS AND CONDITIONS TO WHICH SUCH FRANCHISE AND RIGHTS ARE SUBJECT; AND PRESCRIBING THE TERM OF SUCH FRANCHISE AND RIGHTS. BE IT HEREBY ORDAINED by the CITY of LUBBOCK, TEXAS (hereinafter referred to as the "City") that, subject to the terms and conditions hereinafter set forth, WEST TEXAS GAS, LLC, a Texas corporation with its principal office in the City of Midland, Midland County, Texas (hereinafter referred to as "West Texas Gas" or "Company"), be, and hereby is, granted the non-exclusive franchise and rights to conduct in the City the business of acquiring (by purchase, lease, or otherwise), maintaining, constructing, laying, repairing, removing, replacing, installing, operating, and disposing of (by sale, lease, or otherwise) a gas system, as hereinafter defined, for the sale, transportation, delivery, and distribution of natural gas within the municipal boundaries of the City and to the residents and businesses located therein for light, heat, power, and any other purpose during the term set forth below. Such franchise and rights shall include, but not be limited to, the right to use the present and future streets, roads, highways, alleys, public ways, and other real property owned by or under the control of the City for purposes of maintaining, constructing, laying, repairing, removing, replacing, installing, and operating any and all components of the gas system, together with access, at all times and from time to time, to such streets, roads, highways, alleys, public ways, and other real property during the term hereof. ARTICLE I DEFINITIONS For purposes of this ordinance, the following terms shall have the meanings set forth below: Section 1.1. Gas System. The term "Gas System" or "System" shall mean any and all pipes, pipelines, as hereinafter defined, gas mains, laterals, feeders, regulators, meters, fixtures, valves, compressors, anti -corrosion items, facilities, structures, machinery, equipment, connections, and any other equipment or instrumentalities and appurtenances of any kind that West Texas Gas may deem necessary or advisable, used in or incident to providing delivery, Page 2 of 13 transportation, distribution, supply and sales of natural gas for heating, lighting, power, and any other purpose for which natural gas may now or hereafter be used, located within the corporate limits of the City and used for the exercise of the franchise and rights granted to West Texas Gas herein. Section 1.2. Gross Revenues. The term "gross revenues" shall mean all revenue derived or received, directly or indirectly, by West Texas Gas from or in connection with the operation of the Gas System and for its services and related services provided by West Texas Gas to residential, commercial, industrial, governmental and municipal customers located within the corporate limits of the City and including, without limitation: (a) All revenues received by West Texas Gas from the sale of gas within the City to all customers within the City; and (b) All revenues received by West Texas Gas from the transportation of gas through the pipeline system of West Texas Gas within the City to commercial and industrial customers within the City. (c) Gross revenues shall not include: (1) the revenue of any affiliate or subsidiary of West Texas Gas operating solely outside the corporate limits of the City or is not operating a Gas System; (2) taxes imposed by law on customers that West Texas Gas is obligated to collect and which West Texas Gas passes on, in full, to the applicable tax authority or authorities; (3) any investment income earned by West Texas Gas, or (4) revenues from the sale, distribution or transportation of natural gas to or for governmental or municipal customers located within the corporate limits of the City to the extent any franchise fees payable to the City on account of such gross revenues are not recoverable, whether by applicable law or otherwise, by West Texas Gas through its service rates, surcharge or line -item billing. Section 1.3. Pipelines. The term "pipelines" shall mean any and all above -ground and below -ground pipes, including, but not limited to, mains, distribution lines, secondary lines, laterals, and other pipes, that have been, are being, or are intended to be used at any time in, or in connection with, the sale, transportation, or distribution of natural gas within the City. Section 1.4. Public Right -of -Way. The term "public right-of-way" shall mean public streets, alleys, highways, bridges, easements, public places, public thoroughfares, grounds, and sidewalks of the City, as they now exist or may be hereafter constructed, opened, laid out or extended within the present limits of the City, or in such territory as may hereafter be added to, consolidated or annexed to the City. Section 1.5. Transport Customer. The term "transport customer" shall mean any person or entity for which West Texas Gas transports gas through the pipeline system of West Texas Gas within the City to customers for delivery or consumption within the City. Page 3 of 13 ARTICLE II If��77T1 Section 2.1. Term. Unless earlier terminated in accordance with the terms and provisions hereof, the term of the franchise and rights hereby granted to West Texas Gas shall be for a period of fifteen (15) years, commencing on the effective date hereof as defined in Section 7.7., below. ARTICLE III ACKNOWLEDGMENT AND GRANT OF SPECIFIC RIGHTS OF WEST TEXAS GAS Section 3. L Rights and Powers of West Texas Gas. In addition to the franchise and rights granted herein to West Texas Gas, West Texas Gas has rights and powers granted pursuant to federal and state statutes and laws and the rules and regulations adopted by the Railroad Commission of Texas. Unless specified herein, this franchise does not abrogate such rights. ARTICLE IV OBLIGATIONS OF WEST TEXAS GAS Section 4.1. Franchise Fee. (a) As consideration for the grant of the franchise and rights herein and for the use by West Texas Gas of the streets, roads, highways, alleys, public ways, and other real property owned or controlled by the City, West Texas Gas shall pay to the City, within thirty (30) days after the end of each calendar quarter, a franchise fee equal to five percent (5%) of West Texas Gas's gross revenues derived from the sale, transportation, and distribution by West Texas Gas of natural gas in the City limits during the preceding calendar quarter. At any time during the term of this franchise, the City may increase the franchise fee payable hereunder. In the event the franchise fee herein provided, whether initially or as subsequently increased, is in excess of the amount recovered by West Texas Gas through base rates or surcharges, the City agrees that West Texas Gas may immediately add a line -item surcharge to the monthly bills of West Texas Gas's customers located within the City in an amount sufficient to recover such increase. (b) Nothing in Subsection 4.1(a) shall preclude, or be deemed to preclude, West Texas Gas and the City from agreeing to an increase in the franchise fee in excess of the limitations imposed in such subsection or as otherwise allowed by applicable law. Page 4 of 13 (c) The franchise fee, together with any and all charges of the City for water, sewage, and garbage services provided by the City to West Texas Gas, any and all sales taxes collected by West Texas Gas, any and all reimbursement West Texas Gas is obligated to pay to City for repair of streets, and any and all ad valorem taxes assessed by the City against West Texas Gas' property, shall constitute the only amounts for which West Texas Gas shall be obligated to pay to the City and shall be in lieu of any and all other costs, levies, assessments, fees, or other amounts, of any kind whatsoever, that the City, currently or in the future, may charge West Texas Gas or assess against West Texas Gas' property. (d) If West Texas Gas fails to pay when due any payment provided for in this Section, West Texas Gas shall pay such amount plus interest thereon at the current U.S. Prime Rate as published in the Wall Street Journal on the last business day of the quarter in which the payment was due. In the event the Wall Street Journal ceases to publish the U.S. Prime Rate, the City may use the U.S. Prime Rate published in any other newspaper of general circulation in the U.S. The reimbursement of the City by West Texas Gas for hiring experts in connection with the rate making process pursuant to state law for which West Texas Gas may be legally liable shall not be deducted from the gross receipts payment. Section 4.2. Construction and Work Done By West Texas Gas; Insurance Requirements. (a) All construction and the work done by West Texas Gas, and the operation of ! its business, under and by virtue of this ordinance, shall be in conformance with the ordinances, rules and regulations now in force and that may hereafter be adopted by the City, relating to the use of its Public Rights -of -Way and grounds of the City. j (b) West Texas Gas shall, when reasonably practicable, install all pipelines under -ground at such depth and in such manner so as not to interfere with the existing pavement, curbs, gutters, or underground wires, cables, or water or sewer pipes owned or controlled by the City. West Texas Gas shall attempt to utilize the alleys of the City insofar as is reasonably practicable in conducting its work and activities hereunder. Notwithstanding the foregoing, however, West Texas Gas may, when reasonably necessary, utilize the streets and any other public ways owned or controlled by the City to perform such work and activities. West Texas Gas shall not, unnecessarily or for any unreasonable period of time, obstruct or interfere with the public use of any of the streets, roads, highways, alleys, public ways, or other real property owned or controlled by the City. (c) In determining the location of West Texas Gas's pipeline within the City, West Texas Gas shall minimize interference with then -existing underground structures of City or other utility franchises. Likewise, in determining the location of the facilities of the City and other utility franchises within the City, Page 5of13 City shall minimize interference with existing facilities of West Texas Gas and shall request other utility franchises to minimize interference with existing facilities of West Texas Gas. (d) When West Texas Gas makes or causes to be made excavations or places or causes to be placed obstructions in any Public Right -of -Way or other public place, the public shall be protected by barriers and lights placed, erected, marked and maintained by West Texas Gas in accordance with applicable state and federal requirements. West Texas Gas shall repair, clean up, and restore to as good a condition as before commencement of work, all Public Rights -of -Way or other public places disturbed during the construction and repair of its gas distributing system. In the event West Texas Gas fails to restore the Public Rights -of -Way or public places to as good a condition as before the commencement of the work and within a reasonable time, the City may restore or maintain same, after giving West Texas Gas thirty (30) days' written notice, provided however that if West Texas Gas is proceeding diligently to restore the property, the time for restoration shall be extended for such time as is necessary for West Texas Gas to complete the restoration. If West Texas Gas fails to restore the Public Rights -of -Way or public places appropriately, West Texas Gas will receive a bill for the cost of the City repairing same. West Texas Gas shall, within thirty (30) days after receiving such bill, pay the actual cost for such service. In the second such instance of a failure, and in each instance of failure thereafter, to restore the Public Right -of -Way or public places appropriately in any calendar year, the City may include a penalty of up to ten percent (10%) of the City's cost of repairs. Any penalty of less than One Hundred Dollars ($100.00) shall be waived as de minimus. (e) If City abandons any Public Right -of -Way in which West Texas Gas has facilities, West Texas Gas shall have the right to maintain its use of the former Public Right -of -Way as may be provided by applicable law. (f) West Texas Gas shall carry a policy or policies of insurance issued by an insurance company or companies reasonably acceptable to City. Such policy or policies in the aggregate shall provide for the following minimum coverages: (i) Standard comprehensive general liability including coverage for premises, operations, explosion, products & completed operations, contractual liability, underground property damage, broad form property damage, independent contractors and personal injury; and (ii) General liability, combined single limit, $1,000,000 per occurrence. Nothing herein prevents the City from agreeing to substitute self-insurance coverage for the previously listed coverage requirements, upon proof of such self-insurance submitted to the City. Section 4.3. Relocation of West Texas Gas Equipment. (a) If the City in constructing its sewers, streets, utilities or other public works should require any mains, pipes or other system facilities or equipment located in public right-of-way to be shifted or relocated, such mains, pipes or other Page 6 of 13 system equipment shall be timely shifted or relocated by West Texas Gas at its own expense as and when required by the City. (b) When the West Texas Gas is required by the City to remove or relocate its mains, laterals, and other system facilities or equipment located in public right- of-way to accommodate construction of Public Rights -of -Way or other public or City -owned facilities and West Texas Gas is eligible for reimbursement or surcharge under federal, state, county, local or other programs for reimbursement of costs and expenses incurred by West Texas Gas as a result of the ordered relocation, and the application for reimbursement or surcharge is required by statute, written governmental policies, or rules to be filed and processed by the City, the City shall make reasonable efforts to timely and promptly notify West Texas Gas of any application deadlines of which it may be aware, and West Texas Gas costs and expenses shall be included in any application by City for reimbursement, if West Texas Gas submits its costs and expense documentation to the City prior to the filing of the application. Any failure by City to notify West Texas Gas of any application deadlines or to include West Texas Gas within any reimbursement application hereunder shall not constitute a waiver of West Texas Gas's rights, if any, to seek available reimbursement under applicable law. (c) Nothing herein shall be construed to prohibit, alter or modify in any way the right of West Texas Gas to seek or recover a surcharge from customers for the cost of relocation pursuant to Section 104.112 of the Texas Utilities Code. Section 4.4. Laying of Lines in Advance of Paving. West Texas Gas shall be given sixty (60) days' written notice of the intention of the City to pave any such Public Right -of -Way and specifying the new locations for the lines. Within sixty (60) days from receipt of such notice, West Texas Gas shall initiate work and thereafter proceed in a workmanlike manner to completion of the necessary work. If West Texas Gas should fail to so proceed, and such street or alley is thereupon paved, except in an emergency, West Texas Gas shall for three (3) years thereafter not be allowed thereafter to cut such pavement or excavate in such paved street or alley for any purpose, except by written permission of the City Manager under such reasonable terms and conditions as the City Manager may prescribe. Section 4.5. Extensions to Residential Customers. West Texas Gas shall, extend an existing distribution main up to one hundred (100) feet for each single residential customer provided the potential consumption and revenue will be of such amount and permanence as to warrant the capital expenditures involved to make the investment economically feasible. Each customer of gas shall install and maintain suitable piping within his or her property lines and suitable appliances and fixtures, except meters. Section 4.6. Installation of Meters. West Texas Gas shall install upon or immediately adjacent to the premises of each customer a meter of standard type for the purpose of accurately measuring the gas consumed by such customer. If a meter is installed in or near the Public Rights -of -Way, West Texas Gas agrees to discuss with the City Engineer or his delegate the Page 7 of 13 aesthetics of the meter placement. If agreement cannot be reached, West Texas Gas may install standard equipment. Section 4.7. Rates. (a) West Texas Gas shall furnish reasonably adequate service to the public at reasonable rates and charges for such service; and West Texas Gas shall maintain its Gas System in good order and condition. Such rates shall be established in accordance with all applicable statutes and ordinances. West Texas Gas shall, at all times, keep on file with the City a schedule setting forth current residential and commercial rates for natural gas and services rendered to customers within the City. Nothing contained in this ordinance, however, shall adversely affect West Texas Gas' right to apply for an increase in all or any of its rates at any time and from time to time during the term hereof and to a lawful and equitable decision with respect to any such application. (b) West Texas Gas shall not grant, directly or indirectly, any rebate, in the form of money or any other thing of value, to any consumer in order to circumvent the rate schedule filed with the City pursuant to this franchise agreement. (c) In addition to the rates charged for gas supplied and transported, West Texas Gas may make and enforce reasonable charges, rules and regulations for service rendered in the conduct of its business in accordance with its tariffs, rate schedules, service policies, and Quality of Service Rules as approved by the City and filed with the Railroad Commission of Texas. West Texas Gas may require, before furnishing service, the execution of a contract for such service. (d) West Texas Gas shall be entitled to require each and every residential customer of gas, before gas service is commenced or reinstated, to satisfactorily establish credit pursuant to West Texas Gas's Quality of Service Rules as may be in effect during the term of this franchise. Said deposit shall be retained and refunded in accordance with such Quality of Service Rules and shall bear interest, as provided by applicable law. Upon termination of service, West Texas Gas shall be entitled to apply said deposit, with accrued interest, to any indebtedness owed West Texas Gas by the customer making the deposit. (e) West Texas Gas shall have the right to contract with each customer with reference to the installation of, and payment for, any and all of the gas piping from the connection thereof with West Texas Gas's main in the right-of-way to and throughout the customer's premises. West Texas Gas shall own, operate and maintain all service lines, which are defined as the supply lines extending from West Texas Gas's main to the customer's meter where gas is measured by West Texas Gas. The customer shall own, operate, and maintain all yard lines and house piping, which are defined as supply lines extending from the point of connection with West Texas Gas's customer meter where gas is measured to the point of connection with customer's house piping. Page 8 of 13 Section 4.8. Maps of Gas System. West Texas Gas shall have available a map or maps showing the current location of all pipelines and other components of West Texas Gas's natural gas distribution facilities located in the City. Section 4.9. Removal of Gas System and Bond for Removal. West Texas Gas may remove all or any portion of the gas system upon the termination by the City, pursuant to this ordinance, of the franchise and rights granted hereby. West Texas Gas shall, upon electing to remove all or any portion of the gas system in accordance with this ordinance, file with the Secretary of the City a bond in a reasonable amount and with a proper and adequate surety, securing West Texas Gas's obligation to promptly repair, at West Texas Gas's sole expense, any damage to any real property owned or controlled by the City caused by West Texas Gas' removal of all or any portion of the gas system and to restore such property to substantially the same condition it was in immediately prior to the incident causing such damage. Section 4.10. Federal, State Licenses and Regulations. West Texas Gas shall maintain all certifications, licenses, and permits required in order to conduct a gas system within the municipal limits of the City and within the State of Texas whether such certifications, licenses or permits are required by federal, state or local law, statute, administrative rule or regulation. Without acting as a limitation on any other provision within this franchise, this provision shall be deemed a material provision and failure by West Texas Gas to comply with this provision shall be considered a material breach and the City may pursue any and all remedies available to it including, without limitation, termination of this franchise as provided for in Article VI. ARTICLE V RIGHTS OF THE CITY Section 5.1. Reservation of Rights: General. (a) The City reserves to itself the right and power at all times to exercise, in the interest of the public and in accordance with state law, regulation and control of West Texas Gas's rates and services to insure the rendering of efficient public service at reasonable rates. (b) The rights, privileges, and franchises granted by this ordinance are not to be considered exclusive, and City hereby expressly reserves the right to grant, at any time, like privileges, rights, and franchises as it may see fit to any other person or corporation for the purpose of furnishing gas for light, heat, and power and for City and the inhabitants thereof. (c) City expressly reserves the right to own and/or operate its own system for the purpose of transporting, delivering, distributing, or selling gas to and for the City and inhabitants thereof. Section 5.2. Right to Indemnification; Right to be Held Harmless. West Texas Gas shall indemnify, defend and hold harmless the City and all of its present, future and former agents, employees, officials and representatives in their official, individual and representative capacities from and against any and all liability created by, arising from or in any manner Page 9 of 13 relating to the construction, operation, maintenance, repair or replacement of West Texas Gas's System and facilities or the use of the Public Rights -of -Way or in any way growing out of the granting of this franchise, either directly or indirectly, or by reason of any act, negligence, or nonfeasance of the contractors, agents or employees of West Texas Gas. As used herein, the term "liability" includes, but is not limited to, any and all claims, demands, causes of action, judgments, liens, and expenses (including attorney's fees, whether contractual or statutory), costs and damages (whether common law or statutory, and whether actual, punitive, consequential or incidental) of any conceivable character, due to or arising from injuries to persons (including death) or to property (both real and personal). The indemnity provided herein expressly include, without limitation, any liability arising through the doctrines of strict or products liability and any liability arising under the constitutions of the United States or Texas or any liability arising through any type or form of environmental claim or cause of action. Upon the commencement of any suit or proceeding at law against the City relating to or covering any matter covered by this indemnity, the City shall tender the defense of said suit or proceeding at law to West Texas Gas, and West Texas Gas shall thereupon at its own cost and expense defend, compromise, or settle the same. Any settlement involving a claim or cause of action against the City shall, unless otherwise agreed to by the City, release the City from any and all liability as a result of said claim or cause of action. This indemnity and hold harmless agreement shall not apply to any situation to the extent the city is liable for the actions, suits or claims of injury or damage by reason of City's negligence. Section 5.3. Right to Renegotiation. If either City or West Texas Gas requests renegotiation of any term of this franchise ordinance, West Texas Gas and City agree to renegotiate in good faith revisions to any and all terms of this franchise ordinance. If the parties cannot come to agreement upon any provisions being renegotiated, then the existing provisions of the franchise ordinance will continue in effect for the remaining term of the franchise. Section 5.4. Right to Use of Streets. The right of West Texas Gas hereunder to use any streets, roads, highways, alleys, public ways, and other real property owned or controlled by the City shall in no way affect the right of the City or its agents to maintain, construct, lay, repair, remove, replace, install, or operate any pavement, curbs, gutters, or underground wires, cables, or water or sewer pipes owned by the City and located on or near such streets, roads, highways, alleys, public ways, and other real property. Section 5.5. Inspection of Books and Records. City may, if it sees fit, have the books and records of West Texas Gas examined by a representative of said City to ascertain the correctness of the sworn reports agreed to be filed herein. If such an examination reveals West Texas Gas has underpaid the City, then upon receipt of written notification from City regarding the existence of such underpayment, West Texas Gas shall immediately remit the amount of underpayment to City. To the extent that the underpayment is greater than three (3) percent of the franchise fee payment made, West Texas Gas is responsible for reimbursing the City for the costs of the audit. Page 10 of 13 ARTICLE VI REMEDIES UPON DEFAULT BY WEST TEXAS GAS Section 6.1. Termination of Franchise and Rights. (a) In addition to any rights set out elsewhere in this ordinance, the City reserves the right to terminate the franchise and all rights and privileges pertaining thereto, in the event that West Texas Gas violates any material provision of the franchise or West Texas Gas becomes insolvent, or is adjudged bankrupt. (b) Procedures for Termination. (1) The City may, at any time, terminate this franchise for a continuing material violation by West Texas Gas of any of the substantial terms hereof. In such event, the City shall give to West Texas Gas written notice, specifying all grounds on which termination or forfeiture is claimed, by registered mail, addressed and delivered to West Texas Gas at the address set forth in Section 7 hereof. West Texas Gas shall have sixty (60) days after the receipt of such notice within which to cease such violation and comply with the terms and provisions hereof. In the event West Texas Gas fails to cease such violation or otherwise comply with the terms hereof, then West Texas Gas's franchise is subject to termination under the following provisions. Provided, however, that, if West Texas Gas commences work or other efforts to cure such violations within thirty (30) days after receipt of written notice and shall thereafter prosecute such curative work with reasonable diligence until such curative work is completed, then such violations shall cease to exist, and the franchise will not be terminated. (2) Termination shall be declared only by written decision of the City Council after an appropriate public proceeding whereby West Texas Gas is afforded the full opportunity to be heard and to respond to any such notice of violation or failure to comply. West Texas Gas shall be provided at least ten (10) days prior written notice of any public hearing concerning the termination of the franchise. In addition, ten (10) days notice by publication shall be given of the date, time and place of any public hearing to interested members of the public, which notice shall be paid for by West Texas Gas. (3) The City, after full public hearing, and upon finding material violation or failure to comply, may terminate the franchise or excuse the violation or failure to comply, upon a showing by West Texas Gas of mitigating circumstances or upon a showing of good cause of said violation or failure to comply as may be determined by the City Council. (4) Nothing herein stated shall prevent the City from seeking to compel compliance by suit in any court of competent jurisdiction if West Texas Gas fails to comply with the terms of this franchise after due notice and the providing of adequate time for West Texas Gas to comply with said terms. Page 11 of 13 ARTICLE VII GENERAL PROVISIONS Section 7.1. Force Majeure. Notwithstanding anything expressly or impliedly to the contrary contained herein, in the event West Texas Gas is prevented, wholly or partially, from complying with any obligation or undertaking contained herein by reason of any event of force majeure, then, while so prevented, compliance with such obligations or undertakings shall be suspended, and the time during which West Texas Gas is so prevented shall not be counted against West Texas Gas for any reason. The term "force majeure," as used herein, shall mean any cause not reasonably within West Texas Gas' control and includes, but is not limited to, acts of God, strikes, lock -outs, wars, riots, orders or decrees of any lawfully constituted federal, state, or local body, contagions or contaminations hazardous to human life or health, fires, storms, floods, wash -outs, explosions, breakages or accidents to machinery or lines of pipe, inability to obtain or the delay in obtaining rights -of -way, materials, supplies, or labor permits, temporary failures of gas supply, or necessary repair, maintenance, or replacement of facilities used in the performance of the obligations contained in this ordinance. Section 7.2. Other Ordinances. Except to the extent otherwise expressly provided herein, the franchise and rights granted hereby and the operations and activities performed by West Texas Gas pursuant hereto shall be subject to all valid ordinances and regulations of the City and any valid amendments thereto insofar as, and only insofar as, such ordinances and regulations (i) do not shorten the term hereof or terminate, abrogate, or materially and adversely affect the franchise and rights granted to West Texas Gas hereby or (ii) do not conflict with or are not inconsistent with the terms and provisions contained in this ordinance, such conflicting or inconsistent ordinances hereby being repealed to the extent of such conflict or inconsistency. Section 7.3. Conflicting Franchises. If West Texas Gas, in laying its pipes, shall come into conflict with the rights of any other person or corporation having a franchise from the City, the City Council shall decide all questions concerning the conflicting rights of the respective parties, and shall determine the location of the structures of the said parties and what shall reconcile their differences. West Texas Gas records shall be available to City for review and inspection for compliance with this franchise at reasonable times and upon reasonable notice. Section 7.4. Amendments. This ordinance and the franchise and rights granted herein may be amended only by written agreement of the City and West Texas Gas to such amendment, which amendment shall be published in the same form and manner as the original franchise. Section 7.5. Severability. In the event any part of this ordinance is determined to be invalid or illegal for any reason whatsoever, such invalidity or illegality shall not affect the validity or legality of this ordinance as a whole or of any part hereof. Section 7.6. Binding Effect. This ordinance shall extend to, be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. Page 12 of 12 Section 7.7. Effective Date. This ordinance shall become effective thirty (30) days from the date of the last publication of three required by Chapter 1, Article II, Section 18, of the City of Lubbock Charter at the expense of the utility and West Texas Gas shall file with the Secretary of the City a letter stating that West Texas Gas accepts this ordinance as adopted and agrees to comply with and be bound by all of the terms and conditions hereof. A true and correct copy of this ordinance as finally adopted shall be attached to such letter and by reference made a part thereof, and the letter shall be addressed to the Mayor and the governing body of the City, dated, and executed by an authorized officer of West Texas Gas. Section 7.8. Section and Other Headings. The section and other headings contained in this ordinance are for reference purposes only and shall not affect in any way the meaning or interpretation of this ordinance. AND IT IS SO ORDERED Passed by the City Council on first reading on May 24, 2022 Passed by the City Council on second reading on June 14, 2022 TRAY-- E, AYO ATTEST: Rebecca Garza City Secretary APPROVED AS TO CONTENT: D. 91u Ko telich Chief Financial Officer APPROVED AS TO FORM: ................... Am ms Deputy City Attorney