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1999M25-GAS PIPELINESORDINANCE NO. 99-M-25 AN ORDINANCE GRANTING A PERMIT AND CONSENt[ PG&E TEXAS PIPELINE, L.P., ITS SUCCESSORS ASSIGNS TO MAINTAIN, USE AND OPERATE CERT~ NATURAL GAS TRANSMISSION PIPELINES ALO ACROSS, AND UNDER PUBLIC PROPERTY AND RIGI OF WAY IN THE CITY OF SCHERTZ, TEXAS, DECLARING AN EMERGENCY BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY Ol TEXAS- Section 1. Permit and consent granted; consideration. TO ~ND ~IN NG, iTS tND SCHERTZ~ 599899.1/08178181 y (as defined herein ~n of the designated [ced to present value trespass relating to and other good and ~ledged, and subject ement executed and ons set forth herein, partner(s), parent, nd any individual, ~perating the PG&E the term hereinafter rcise the fights and rwise affect any gas >uthem Union Gas does not address or :currence involving >eline System which ~nly in the event the agrees to indemnify System" (as defined herein) that is currently located within City Rights of Wa but excluding for purposes of this payment calculation only any in-city portk state highway system), to be calculated for each year of the Term hereof and redr using a 6% per year discount rate, and (c) a payment for past damages for undocumented pipe in the PG&E Pipeline System in the City Rights of Way, valuable consideration, the receipt and sufficiency of which are hereby acknox~ to the terms and conditions of the Full and Final Release and Settlement Agre approved by the City contemporaneously and the terms, conditions and definiti hereby grants to PG&E Texas Pipeline, L.P., its general partner(s), limiter subsidiary, and other affiliated entities, successors, lessees and assigns a corporations or corporation, receiver or other person or authority owning or c Pipeline System during the Term hereof ("PG&E"), a permit and consent for stated to operate, use and maintain the PG&E Pipeline System and to exe privileges granted by this Ordinance. This Ordinance shall not control or othe franchise ordinance previously or subsequently granted by the City to S Company, Entex, or any other local gas distribution company. This Ordinanc~ concern, and shall not be construed to have any application to, any future ~ leakage, rapture, fire or explosion involving any in-City portion of the PG&E Pi' causes or is alleged to cause any personal injury or property damage. If and City is sued as a result of any such occurrence during the Term hereof, PG&E That the CITY OF SCHERTZ, Texas ("the City"), for and in consider~ tion of the payment of the "Agreed Settlement Sum" (as defined herein), which includes a one-time, lump sum payment equal to (a) an annual payment of two thousand dollars ($2,000.00), for each y~ ar of the "Term" (as defined herein) hereof, reduced to present value using a 6% per year discoun rate, (b) an annual payment of fifteen cents ($.15) for each linear foot of pipe constituting part of' the PG&E Pipeline Section 3. Maintenance, Operation, Repair, Relocation, Ex PG&E Pipeline System. sion or Removal of (a) The consent and permit granted herein includes all fights and p .vileges to maintain, operate, improve, enlarge, extend, repair, remove, and relocate part of the PG&E Pipeline System as may be deemed necessary by PG&E. In lhe event that PG&E finds it necessary to excavate in any City Rights of Way, shall notify the City and shall comply with all then existing City requirements, if concerning such excavation and work performed subject to the provisions of S ',ctions 7 and 10, and, to the extent that such requirements are applicable to other ines and facilities similarly situated. PG&E shall do no permanent injury to City Rights of Way nor in any manner unnecessarily disturb or interfere with uti ity and sewer pipes, lines, conduits, cables, or facilities installed or constructed the City or by any authorized person or corporation, but no utility and sewer ipes, lines, conduits, cables or facilities shall be so installed as to unnecessarily dior interfere with the PG&E Pipeline System. (b) Notwithstanding any other provision of this Ordinance, granted herein does not constitute a franchise under the City Settlement Sum does not constitute a franchise payment the extent PG&E conducts future operations which are not now-existing operations of the PG&E Pipeline System and wh grant a franchise, the City agrees promptly to consider a grant of a franchise for such operations. consent and permit and the Agreed the City Charter. To extensions of the require the City to by PG&E for the Section 4. New Construction. Should PG&E, during the Term of this Ordinance, need to construct o install new pipelines or add new facilities in City Rights of Way as extensions of the now-exisl' operations of the PG&E Pipeline System, PG&E shall notify the City and comply with existi~ City requirements, if any, concerning such construction to the extent applicable to other pipelines facilities similarly situated, except that no additional payment, other than what is expressly s, :t forth herein, and in Section 3(b), shall be made during the Term hereof and thereafter such new pipelines or facilities shall be made subject to the provisions of Sections 6 and 9. In the ew any new pipeline construction or expansion of an existing pipeline described in this Section ;es an increase of more than 300' of pipeline along or under City Rights of Way, then in such event PG&E shall make an additional lump sum payment to the City equal to 15 cents per linear foot of such new pipeline within City Rights of Way, multiplied by the number of years remainin on the Term hereof, reduced to present value using a 6% discount rate. After completion of corn ' and compliance with any other City requirements, the new pipeline and/or new facilities .1 become a part of the PG&E Pipeline System as defined herein and made the subject of this Ordin: The terms "new pipeline" and "new facilities" do not include upgrades, replacements, chang in diameter, size or configuration, of any part of the existing PG&E Pipeline System which do tot substantially affect 599899.1/08178181 3 the now-existing operations of the PG&E Pipeline System, or any relocatio] change in location, expansion or widening of the paved road surface. Section 5. Substances. The following substances may be transported and delivered for purp, resale, transportation or purchase in any pan of the PG&E Pipeline System' gas liquids, in gaseous or liquid state or the equivalent thereof, whether natural may transport and deliver its own substances, and transport and deliver for hi by affiliates, governmental entities and third parties. Section 6. Nature And Sufficiency of Consideration. (a) Findings. The consideration paid to the City is consistent provide for the City's reasonable recovery of costs associated w City's authority and police powers as may be necessary for the and welfare with regard to the construction, operation and main Pipeline System within affected City Rights of Way and al administration of the consent and permit granted by this Orc hereof. (b) Exclusive Charge. Subject to Section 3(b), the consideratio: 1 shall be the exclusive compensation, tax (other than ad v assessed by the City), fee, rental, assessment or other charge, h{ payable or due to the City by PG&E pertaining to the presen¢ of the PG&E Pipeline System, and the natural gas or natt purchases, transportation and other business activities relate Term of this Ordinance. Subject to Section 3(b), PG&E's a consideration shall be full consideration during the Term consent and permit for the fights and privileges granted by th/ be in lieu of all other license, sales, gross receipts, or occ~ exactions, rentals or charges which may be levied or attempt~ City. (c) Ad Valorem Taxes Not Exempt. Nothing herein shall co: to PG&E from any ad valorem property taxes levied by the C: property owned by PG&E within the City. Section 7. Term. The consent and permit granted by this Ordinance shall continue and r. effect for a period of twenty-five (25) years from and after its effective date 1: thereof due to any >ses of sale, sale for tatural gas or natural or synthetic. PG&E re substances owned evith and sufficient to ~th the exercise of the public health, safety tenance of the PG&E reasonable costs of [inance for the Term a described in Section alorem taxes, if any, >wever characterized, :e, use, and operation tral gas liquid sales, d thereto, during the ,,reement to pay such ~ereof for the City' s s Ordinance and shall ~pation taxes, levies, .~d to be levied by the nstitute an exemption [ty on real or personal :main in full force and ursuant to Section 15. 599899.1/08178181 4 Section 8. Expiration of Term; Renewal. If PG&E desires a renewal of this consent and permit, it shall notify t] least two (2) years prior to the expiration date of the Term. The City sha withhold or refuse renewal of this consent and permit. The City shall not re terms or require greater consideration from PG&E for renewal than those the persons and entities that are using or occupying City Rights of Way similarly t( acting in good faith and with a reasonable basis decides not to renew this cor City shall give PG&E formal written notice of such decision not later than 1 expiration of the Term. After receipt of such notice, PG&E shall have until th find a buyer or buyers to acquire all or any divisible parts of the PG&E Pipeli part of the PG&E Pipeline System PG&E is unable to sell or convey alter ex' PG&E shall have a reasonable time after the expiration of such Term to remc of Way those parts, and shall restore affected City Rights of Way to the cond such removal. Section 9. Existing Obligations Affecting The PG&E Pipeline (a) (b) 599899.1/08178181 .~e City in writing at 11 not unreasonably :quire more onerous ',n in effect for other PG&E. If the City, sent and permit, the 8 months before the e end of the Term to ne System. For any firation of the Term, ,ve from City Rights ition existing before System. As of the effective date of this Ordinance, there may be existing ~:ontracts, ordinances, easements, leases, agreements or permits imposing obli~;ations and/or City requirements pertaining to the PG&E Pipeline System ("existing pipeline facility obligations"). It is the intent of City and PG&E that any suc[ payment obligation shall be subsumed into Section 6(b) hereof and that this Ordina ace shall control and supercede any such existing pipeline facility obligations to th~: extent they conflict or vary in any manner from this Ordinance. PG&E and City further agree and declare that: (i) the consideration paid under this Ordinance sa~:isfies in full any fee, charge or payment obligation that otherwise would be due under existing pipeline facility obligations after the effective date of this Ordinance; (ii) the term, if any, for any such existing pipeline hereby extended to coincide with the Term of (iii) PG&E and City shall execute such further docc conform existing pipeline facility obligations 5 facility obligations is Ihis Ordinance; and ments as necessary to this Ordinance. Section 10. Notice. (a) Written Notice. shall be in writing. All notices required or sent in accordance (b) Addresses. All notices shall be addressed to the other party or at such other address as the receiving party may subsequentl~ to the sending party. (i) Notice to the City shall be sent to: City of Schertz, Texas 1400 Schertz Parkway Schertz, Texas 78154 Atto: City Manager (ii) Notice to PG&E shall be sent to: PG&E Texas Pipeline, L.P. 1100 Louisiana, Suite 1000 Houston, Texas 77002 Attn: General Counsel Section 11. Satisfaction of Consent and Permit Requirements. Subject to Section 3(b), the City acknowledges and agrees that PG&E paid all of PG&E's obligations, duties, responsibilities, fees and charges, including but not limited to any derivative liability, with regard to all past, pre~ Term hereof, any future statutory and regulatory consent requirements occupation of any City Rights of Way under any state or municipal law or re~ PG&E, including, by way of example and not limitation, Texas Revised Cix Texas Local Government Code § 282.003, Texas Transportation Code § 31 Code §§ 181.006, 181.023 and 181.026, the City Charter and Code of Ordinam City ordinance, resolution, permit or consent requirement, if any, pertainin~ PG&E Pipeline System. Section 12. Severability. It is hereby declared to be the intention of the parties that the phrase paragraphs, and Sections of this Ordinance are severable, and, if any phn paragraph, or Section of this Ordinance shall be declared void, ineffective, c the valid judgment or final decree of a court of competent jurisdiction or regulation of a governmental regulatory authority, such voidness, with this Ordinance ~t the address below designate by notice as satisfied and fully and liability, if any, ;ent, and, through the )ertaining to use or ulation, applicable to ,il Statutes art. 1175, .071, Texas Utilities :es, if any, and/or any ; or applicable to the s, clauses, sentences, tse, clause, sentence, ~r unconstitutional by a final order, role or ineffectiveness, or 599899.1/08178181 6 unconstitutionality shall not affect any of the remaining phrases, clauses, sentem sections of this Ordinance since the same would have been enacted by th incorporation herein of any such void, ineffective, or unconstitutional phras paragraph, or section. Section 13. Transfer or Assignment. PG&E is expressly given the fight, power and privilege to sell, conve3 to any person or entity, PG&E's rights under this consent and permit, and to s~ lease, or assign all or any portion of the PG&E Pipeline System. PG&E agrees t. to the City, within a reasonable time afterward, of any such conveyance, sal assignment, but failure to provide such notice shall not constitute a forfeitur{ fights under the terms and conditions of the Ordinance. The consent, permit, ~ granted by this Ordinance encompass the PG&E Pipeline System and the business, and business activities of PG&E in the City; but such grants do n Pipeline System or any portion thereof hereafter to be operated, used or maint such term is defined above). Therefore, absent separate and express City con no such conveyance, sale, transfer, lease, or assignment by PG&E, as autl~ constitute or convey to any buyer, transferee, lessee, or assignee the fight, p operate as an LDC within the City. Section 14. Waiver of Separate Readings. By vote of not less than two-thirds of the members of the City Council p at which this Ordinance was considered, the City Council has determined that which requires immediate action, and this Ordinance is hereby adopted on a Ordinance shall be in force and effect from and after its final passage, and it i Section 15. Effective Date and Controlling Effect of this Ordin: This Ordinance shall become effective upon the last in time of its adopt form accepted by PG&E and the payment in full to the City of the Agreed Se such effective date, this Ordinance shall govern the fights and relationships 1: PG&E for the duration of the Term, and it shall supersede and take precede~ ordinances, resolutions, or regulations hereafter or heretofore passed by the {2 READ, CONSIDERED, PASSED and APPROVED at a Regular Council of the City of Schertz, on the 16th day of November, 1999, held in Open Meetings Act, Texas Gov't Code {}551.001 et. seq., at which a quorum :es, paragraphs, and e City without the ~, clause, sentence, ,, transfer or assign, ',11, convey, transfer, ) give written notice :, transfer, lease, or of any of PG&E's ~ghts and privileges operations, lines of ot allow the PG&E ained as an LDC (as sent and agreement, .orized herein, shall ower or privilege to resent at the meeting an emergency exists tingle reading. This s so ordained. lnce. .on by the City in the ~.ttlement Sum. Upon .etween the City and tce over inconsistent '~ity. Meeting of the City accordance with the was present. 599899.1/08178181 7 1999. APPROVED by the Mayor of the City of Schertz, Texas, on this the 16th day of November, ATTEST: City Secretary STATE OF TEXAS COUNTY OF GUADALUPE § City of Schertz By: Mayor I, the undersigned City Secretary of the City of Schertz, Texas, hereby and foregoing is a full, true and correct copy of an Ordinance adopted by the meeting held on the 16th day of November, 1999, as the same appears in the ol City Council for the City of Schertz. WITNESS MY HAND AND SEAL of the City of Schertz, Texas this 1 City Secretary City of Schertz, Texas 1999. The above and foregoing Ordinance No.~ and the grants, powers, fights were accepted by PG&E Texas Pipeline, L.P., on and as of the ~ day of PG&E TEXAS PIPELINE, L A Delaware Limited Partners By PG&E Texas Pipeline Co~ General Partner By: Title: PG&E Texas Pipeline :ertify that the above City Council at the ."ficial minutes of the 6th day of November, md privileges thereto ,1999. hip, apany, its ',ompany 599899.1/08178181 8 STATE OF TEXAS COUNTY OF § The foregoing instrument was acknowledged before me on the ~day by , of PG&E Texas Pipeline Company, Gene Texas Pipeline, L.P., a Delaware Limited Partnership, on behalf of said partm GIVEN UNDER MY HAND AND SEAL OF OFFICE this ~dayof Notary Public, State of Texas ,1999, ml Partner of PG&E ~rship. ,1999. 599899.1/08178181 9 PUBLISHER'S AFFIDAVIT THE STATE OF TEXAS, COUNTY OF GUADALUPE BEFORE ME, THE UNDERSIGNED AUTHORITY, ON THIS DATE PERSONALLY APPEARED L.A. REYNOLDS KNOWN TO ME, WHO, BEING BY ME DULY SWORN, ON HIS OATH DEPOSES AND SAYS THAT HE IS THE PUBLISHER OF THE GAZETTE-ENTERPRISE, A NEWSPAPER PUBLISHED IN SAID COUNTY; THAT A COPY OF THE WITHIN AND FOREGOING AD WAS PUBLISHED IN SAID NEWSPAPER 2 TIMES BEFORE THE RETURN DAY NAMED THEREIN SUCH PUBLICATIONS ON THE FOLLOWING DATES' DECEMBER 17,1999 DECEMBER 23, 1999 AND A NEWSPAPER COPY OF WHICH IS HERETO ATTACHED i SWORN TO AND SUBSCRIBED BEFORE ME THIS 27 DAY OF DECEMBER A.D., 1999 NOTARY PUBLIC, GUADLUPE COUNTY, TEXAS OFIDINANCE NO.--gg.M.25 - AN'. ORDINANCE GRANT- lNG A PERMIT AND CONSENT TO PG&E TEXAS PIPELINE, L.P., ITS SUCCESSORS AND AS- SIGNS TO MAINTAIN USE AND OPERATE CERTAIN ~iATURAL GAS TRANS- V~ISSlON PIPELINES ~,LONG, ACROSS, AND JNDER PUBLIC PROP- --RTY AND RIGHTS OF YAY IN THE CITY OF ;CHERTZ, TEXAS, AND )ECLARING AN EMER- (;ENCY. F)ASSED, APPROVED, · Z~ND' ADOPTED the 16th day of November, 1999. I~lom~ Althouse, C;ity Secretary. ORDINANCE NO. 99-M-25 AN ORDINANCE GRANT- lNG A PERMIT AND CONSENT TO PG&E TEXAS PIPELINE, L.P., ITS SUCCESSORS AND AS- SIGNS TO MAINTAIN USE AND OPERATE CERTAIN NATURAL GAS TRANS- MISSION PIPELINES ALONG, ACROSS, AND UNDER PUBLIC PROP- ERTY AND RIGHTS OF WAY IN THE CITY OF SCHERTZ, TEXAS, AND DECLARING AN EMER- GENCY. PASSED, APPROVED, AND ADOPTED the 16th day of November, 1999. Nomna Althouse, City Secretary.