2000M07-GAS TRANSMISSION615152.2
ORDINANCE NO. 00- ,'~ -.._.~
AN ORDINANCE GRANTING A PERMIT AND CONSENT
GAS TRANSMISSION, TEXAS CORPORATION, PG
TRANSMISSION TECO, INC., AND PG&E ENERGY TROD
CORPORATION, THEIR WHOLLY OWNED SUE
CORPORATIONS AND WHOLLY OWNED SUBSIDIARY f2
AND LIMITED PARTNERSHIPS, AND THEIR SUCC
LESSEES OR A$$1ONS, TO MAINTAIN~ USE AND (
CERTAIN NATURAL GAS AND/OR NATURAL GAS
Ti~NSMISSION PIPELINES ALONG, ACROSS, AND
PUBLIC PROPERTY AND RIGHTS OF WAY IN THE
SCHERTZ, TEX~S, AND DECL~RINO AN EMERGENC5
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SC
Section 1.
Permit and consent granted; consideration.
That the City of Schertz, Texas ("the City"), for and in con,,
of the payment of the "Agreed Settlement Sum" (as defined herei
includes a one-time, lump sum payment equal to (a) an annual p~
two thousand dollars ($2,000.00), for each year of the "Term" (a:
herein) hereof, reduced to present value usin§ a 15% per year disc{
(b) an annual payment of fifteen cents ($.15) for each linear fo{
constituting part of "the PG&F: Pipeline System" (as defined here
currently located within City Rights of Way (as defined herein, but ~
for purposes of this payment calculation only any in-City portk
designated state highway system), to be calculated for each y~
Term and reduced to present value using a 6% per year discount
(c) a payment for past damages for trespass relating to undocume
in the PG&E Pipeline System in the City Rights of Way, and other
valuable consideration, the receipt and sufficiency of which ar
acknowledged, and subject to the terms and conditions of the Full
Release and Settlement Agreement executed and approved by
contemporaneously herewith and the terms, conditions and defin
forth herein, hereby grants to Grantee (as defined herein) ape
consent for the Term to operate, use and maintain the PG&E
System and to exercise the rights and privileges granted by this O
TO PG&E
&E GAS
lNG-GAS
~SIDIARY
}ENERAL
ESSORS,
IPERATE
LIQUIDS
UNDER
CITY OF
ltERTZ, TEXAS'
;ideration
n), which
~yment of
~ defined
~unt rate,
)t of pipe
in) that is
.~xcluding
~n of the
.ar of the
rate, and
~ted pipe
]odd and
~ hereby
~nd Final
the City
~tions set
..rmit and
Pipeline
rdinance.
Section 2.
Definitions.
(a)
(b)
(c)
(d)
For purposes of this Ordinance, "the PG&E Pipeline Sys~
me:an tho intrastate, interurban natural [las and natural ~
transmission pipelines and all their appurtenant facilities,
but not limited to, mains, spurs, laterals, meters, valves,
protection systems, city gates, and all other similar f;
Grantee, located in, under or along City Rights of Way. '
Pipeline System includes all pipelines and facilities owne,
operated and/or controlled, in whole or in part (such as thro~
venture or partnership, for example), by Grantee. The PG&
System has beon disclosed to the City and/or its counsel
written descriptions or by other identification. The PG&[
Sy,tem is not a "Local Distribution Company" or "LDC" (~
herein). The consent, permit, rights and privileges granb
Ordinance encompass the PG&E Pipeline System and the o
lines of business, and business activities of Grantee in the
grants however do not allow the PG&E Pipeline System or a
thereof hereatter to be operated, used or maintained as ar
In this Ordinance, "City Rights of Way" shall mean a
easement, street, road, avenue, highway, freeway, toll roa
alley, boulevard, sidewalk, park, parkway, lane, drive, circ
sanitary or storm sewer runoff, drainage ditch, dump, landfi
lem" shall
las liquids
including,
corrosion
~cilities of
'he PG&E
:1, leased,
Jgh a joint
~ Pipeline
by maps,
-- Pipeline
~s d erined
.~d by this
~erations,
7,ity; such
~y portion
LDC.
~y public
d, bridge,
le, canal,
II or other
public property,
controlled by, and/or located within or which may in the
constructed within or annexed into the corporate limits of,
including all in-City portions of any federal or state highwa'.
market road, or other right of way designated as part of ti
state highway system by the Texas Department of Trans
Texas Transportation Commission, State Highway Cor
and/or any predecessor or successor thereof.
thoroughfare, way, or place currently <~wned or
future be
the City,
/, farm to
le Texas
3ortation,
3mission,
In this Ordinance, "Grantee" shall mean and shall be und~
be PG&E Gas Transmission, Texas Corporation, PG
Transmission Taco, Inc., and PG&E Energy Trading-Gas Co
their wholly owned subsidiary corporations and wholl'
subsidiary general and limited partnerships, and their sui
lessees or assigns.
in this Ordinance, "Agreed Settlement Sum" shall mca
understood to be Grantee's one time, lump sum pa'
$30,217.32 and all other things of value given to and accept
City as consideration for the Full and Final Release and S
,rstood to
&E Gas
~oration,
owned
;cessors,
and be
,merit of
9d'bythe
.~ttlement
615152.2
Agreement executed and approved by the City contempc
herewith and the rights, permit, and consent grante
Ordinance for the Term.
(e)
In this Ordinance, "Local Distribution Company" or "L
mean a person, corporation, general or limited partnershi
entity that owns one or more lines of pipe within a city se
and holds itself out to both residential and commercial(
generally within such city service area to provide public util
through such line or lines of pipe for a foe.
Section 3.
Maintenance, Operation, Repair, Relocation, Exp
Removal of PG&E Pipeline System.
(a)
The consent and permit granted herein includes, without lira
rights and privileges to own, maintain, operate, improve.
extend, repair, remove, and relocate any part of the PG&E
System as may be deemed necessary by Grantee. In the
Grantee finds it necessary to excavate in any City Right
Grantee shall noti~ the City and shall comply with all the~
City and/or other governmental requirements, if any, concer
excavation and work performed, subject to the provi~ior
Ordinance and to the extent that such requirements are apl:
other pipelines and facilities similarly situated. Grantee sh~
with ordinances of general application.
(b)
Notwithstanding any other provision of this Ordinance, th~
and permit granted herein does not constitute a franchise
City Charter, and the Agreed Settlement Sum does not co
franchise payment under the City Charter. To the extent
conducts future operations which are not simply extensio
now-existing operations of the PG&E Pipeline System a~
require the City to grant a franchise, the City agrees pr(
consider a request by Grantee for the grant of a franchise
operations.
Section 4.
New Construction.
(a)
General. Subject to the provisions of Section 2(a) above
limited by Section 4(b) below), should Grantee, durin~ the
this Ordinance, desire to construct or install new pipelines or
facilities in City Rights of Way, Grantee shall notify the
comply with existing City and/or other governmental require
any, concerning such construction to the extent applicable
,raneously
d by this
DC" shall
), or other
'vice area
;ustomers
ity service
ansion or
itation, all
enlarge.
Pipeline
.~vent that
of Way,
existing
ning such
~s of this
~licable to
~11 comply
consent
~nder the
r~stitute a
Grantee
ns of the
~d which
)raptly to
for such
(and as
Term of
add new
City and
ments, if
to other
615152.2
(b)
pipelines and facilities similarly situated, except that no
payment, other than,, what is expressly set forth here
Section 3(b), shall be made during the Term and thereafter
pipelines or facilities shall be made subject to the pro
Sections 6 and 9. In the event any new pipeline const
expansion of an existing pipeline causes a cumulative ir
more than 300 linear feet of pipe along or under City Righ:
then in such event Grantee shall make an additional
payment to the City equal to 15 cents per linear foot of
pipeline within City Rights of Way (excluding for purpos
payment calculation only any in-City portion of the design
highway system), multiplied by the number of years remain
Term, reduced to present value using a 6% discount ra
completion of construction and compliance with existing C
other governmental requirements, if any, the new pipeline a.
facilities shall become a part of the PG&E Pipeline System ~
herein and covered by this Ordinance. For the purpose of c
any lump sum payment obligation, the terms "new pipeline"
facilities" do not include any upgrades, replacements, cf
diameter, size or configuration, of any part of the existi]
Pipeline System which do not substantially affect the no~
operations of the PG&E Pipeline System. Further, any rel~
the existing PG&E Pipeline System due to any change in
expansion or widening of the paved road surface portion o
Rights of Way shall not be considered to be a "new pipelin~
facility" for the purpose of calculating any lump sum
obligation. Nothing in this Ordinance shall effect the rights,
the City to receive any money from the Texas Depa~
Transportation that may, in the future, be collected by or th
Texas Department of Transportation from any user of the T~
highway system.
Limitations on Future Expansion. Although this 0
grants consent to expand the PG&E Pipeline Systerr
construction or installation of new pipelines or new facilit
consent shall be limited by this Section as follows:
(i)
During the Term, if and only in the event any
construction involving new pipelines or new
facilities is proposed in any City Rights of Way
open to the public but not located along or under
a road or other City Right of Way subject to
vehicular traffic- such as an airport, public park,
municipal building site, or landfill site- the
additional
n and in
such new
visions of
:ruction or
~crease of
ls of Way,
ump sum
such new
es of this
]ted state
lng on the
re. After
'.ity and/or
~d/or new
~s defined
alculating
and "new
anges in
~g PG&E
v-existing
~cation of
location,
f any City
~" or "new
payment
if any, of
~ment of
'ough the
~xas state
'dinance
, by the
les, such
615152.2 -4-
(ii)
Grantee entity(les) that owns and/or operates
the in-City portion of the PG&E Pipeline System
("Pipeline Owner")will file an application for
consent to construct new pipelines or new
facilities. In addition, in no event shall the City
seek or impose any terms, conditions or
consideration in granting the application that are
greater or more onerous than those being
imposed or received by the City upon or from
any other person or entities that are similarly
situated to or compete with Pipeline Owner. The
City agrees to act on such application in a timely
fashion, not to exceed 60 days; and/or
During the Term, if and only in the event that the
Pipeline Owner desires to construct or install
new pipelines or add new facilities in a manner
that. would cause the PG&E Pipeline System to
cross under or along any additional City Rights
of Way, forthe purpose of delivering gas directly
(it being agreed that direct deliveries of gas shall
not include a sale for resale nor a delivery of gas
to the LDC or any other third party transporter) to
any retail gas consumer not served by the
Pipeline Owner as of the effective date of this
Ordinance and located inside the City, the
Pipeline Owner agrees to provide notice to the
City. To the extent required by this Section
4(b)(ii), the Pipeline Owner will file an application
for consent to construct new pipelines or new
facilities, such consent not to be unreasonably
withheld by the City. In addition, in no event shall
the City seek or impose any terms, conditions or
consideration in granting the application that are
greater or more onerous than those being
imposed or received by the City upon or from
any other person or entity that is similarly
situated to or compete with Pipeline Owner. The
City agrees to act on such application in a timely
fashion, not to exceed 60 days. Notwithstanding
anything to the contrary, this Section 4(b)(ii) shall
not apply to the construction or installation of
new pipelines or addition of new facilities to
615152.2
615152.2
deliver gas to existing or new electric power
generating plants.
Section 5.
Substances.
Subject to the terms and conditions of this Ordinance, (a) th
substances may be transported and/or delivered for purposes of
for resale, transportation or purchase in any part of the PG&E
System by Grantee' natural gas or natural gas liquids, in gaseou
state or the equivalent thereof, whether natural or synthetic ("Sub:
and (b) Grantee may transport and deliver its own Substances, anc
and/or deliver for hire Substances owned by affiliates, govemmenl
and/or third parties.
Section 6.
following
sale, sale
~ Pipeline
s or liquid
stances");
transport
al entities
(a)
(b)
(c)
Nature And Sufficiency of Consideration.
Findings. Subject to Section 3(b), the money paid to th~.~ City and
the agreements set forth in Section 4 are sufficient consid(;ration for
all purposes
Exclusive Charge. Subject to Section 3(b), the con=;ideration
described in Sections 1 and 4 shall be the exclusive compensation,
tax (except as provided in Subsection (c) below), fe,9, rental.
assessment or other charge, however characterized, paya )la or due
to the City by Grantee pertaining to the presence, use, o,Nnership,
and/or operation of the PG&E Pipeline System, and the n~tural gas
or natural gas liquid sales, purchases, transportation ~nd other
business activities related thereto, during the Term of this Ordinance.
Subject to Section 3(b), Grantee's agreement to I:,ay such
consideration shall be full consideration during the Term for the City's
consent and permit for the rights and privileges grante,:! by this
Ordinance and shall be in lieu of all other ~ranchise license,
regulatory, use, sales, gross receipts, or occupation ta~es, fees,
assessments, exactions, rentals or charges which, may levied or
attempted to be levied by the City.
Certain Taxes Not Exempt. Nothing herein shall con ;titute an
exemption to Grantee from (i) ad valorem taxes levied by tt ~e City on
real or personal property owned by the Grantee within the (;ity, or (ii)
any new tax (including any new increment to an existing tax) first
authorized, mandated or imposed by the state or federal go'¢ernment
after the effective date of this Ordinance if such new ta:x or new
increment is equally applied to all persons and entities with
that are similarly situated to or compete with Grantee.
-d-
i'~ th e City
Section 7. Term.
The consent and permit granted by this Ordinance shall co
remain in full force and effect for a period of twenty-five (25) yea
after its effective date pursuant to Section 15 ("the Term").
nue and
from and
Section 8.
Expiration of Term; Renewal.
If Grantee desires a renewal of this consent and permit, it
the City at least t~o (2) years prior to the expiration date of the
City shall not be compelled to renew but shall not unreasonably
refuse renewal of this consont and permit. Tho City shall not
onerous terms or conditions nor require greater consideration
for renewal than those then in effect for other pemons and
I! notify
'erm. The
hold or
uire more
Grantee
~s that are
similarly situated to or compete with Grantee and are using or pying City
~ights of Way. If the City, a~ing in good f~ith and with a reason~ hie basis
decides not to renew this consent and permit, the City shall Grantee
formal written notice of such decision not later than 18 months efore the
expiration of the Term. After receipt of such notice, Grantee shall have until
the end of the Term to find a buyer or buyers to acquire all or an' divisible
parts of the PG&E Pipeline System. For any part of the PG& Pipeline
System Grantee is unable to sell or convey after expiration of :he Term,
Grantee shall have a reasonable time after the expiration of sue Term to
remove from City Rights of Way those pads, and shall restore City
Rights of Way to the condition existing before such removal.
Section 9.
Existing Obligations Affecting The PG&E Pipeli
System.
(a)
As of the effective date of this Ordinance, there may b~ existing
contracts, ordinances, easements, leases, agreements r permits
imposing obligations and/or City requirements pertaining to l he PG&E
Pipeline System or Grantee ("Existing Pipeline Facility Obli ations").
It is the intent of City and Grantee that any such payment, igation
shall be subsumed into Section 6(b) hereof and that this (: rdinance
shall control and supercede any such Existing Pipelin Facility
Obligations to the extent they conflict or vary in any mannel from this
Ordinance.
(b)
Grantee and City further agree and declare that:
(i)
the consideration paid under this Ordinance satis' in
full any fee, charge or payment obligation that otherw ~e
615152.2
(ii)
would be due under Existing Pipeline Fa~
Obligations after the effective date of this Ordinan~
the term, if any, for any such I:×i~ting Pipelir
Obligations is hereby extended to coincide with th
this Ordinance; and
Grantee and City shall execute such further doc[
necessary to conform Existing Pipeline Facility Obi
this Ordinance.
Section 'I0. Notice.
(a)
Written Notice. All notices required or sent in accordanc
Ordinance shall be in writing.
(b)
Addresses. All notices shall be addressed to the other p;
address below or at such other address as the receiving
subsequently designate by notice to the sending party
(i)
Notice to the City shall be sent to:
City of Schertz, Texas
1400 Schertz Parkway
Schertz, Texas 78154
Attn: City Manager
(ii)
Notice to Grantee shall be sent to:
PG&E Gas Transmission, Texas Corporation and
PG&E Gas Transmission Teco, Inc.
1100 Louisiana, Suite 1000
Houston, Texas 77002
Attn: General Counsel
Section 11, Satisfaction of Consent and Permit Requiremen'
Subject to Section 3(b), City acknowledges and agrees tha
has satisfied and fully paid all of Grantee's obligations
responsibilities, fees and charges, and liability, if any, includin~
limited to any derivative liability, with regard to all past and present
and regulatory consent requirements pertaining to use or occupati
City Rights of Way under any state or municipal law or regulation a
to Grantee, including, by way of example and not limitation, Texa.~
Civil Statutes art. 1175, Texas Local Government Code § 282.0£
Transportation Code § 311.071, Texas Utilities Code §§ 181.006
e Facility
e Term of
ments as
~ations to
with this
arty at the
3arty may
ts
t Grantee
duties,
but not
statutory
on of any
~pplicable
Revised
3, Texas
181.023
615152.2
61.51.52.2
and 181.026, the City Charter and Code of Ordinances, if any, ~
City ordinance, resolution, permit or consent requirement, if any,
or applicable to the PG&E Pipeline System or Grantee.
Section 12. Severability.
It is hereby declared to be the intention ofthe parties that th~
clauses, sentences, paragraphs, and Section~ of this Ordi~
severable, and, if any phrase, clause, sentence, paragraph, or Sec
Ordinance shall be declared void, ineffective, or unconstitutional b
judgment or final decree of a court of competent jurisdiction or a f
rule or regulation of a governmental regulatory authority, such
ineffectiveness, or unconstitutionality shall not affect any of the
phrases, clauses, sentences, paragraphs, and sections of this (
since the same would have been enacted by the City wi
incorporation herein of any such void, ineffective, or unconstitution
clause, sentence, paragraph, or section.
Section 13. Transfer or Assignment.
Grantee is expressly given the right, power and privileg
convey, transfer, lease, or assign, to any person or entity, Grant~
under this consent and permit, and to sell, convey, transfer, lease,
all or any portion of the PG&E Pipeline System. Grantee agre~
written notice to the City, within a reasonable time afterward, of
conveyance, sale, transfer, lease, or assignment, but f~ilure to pro
notice shall not constitute a forfeiture of any of Grantee's rights
terms and conditions of the Ordinance. The consent, perm[t, r
privileges granted by this Ordinance encompass the PG&E Pipelin
and the operations, lines of business, and business activities of ~
the City; but such grants do not allow the PG&E Pipeline Syste
portion thereof hereafter to be operated, used or maintained as ar
such term is defined above). Therefore, absent separate and ex[
consent and agreement, no such conveyance, sale, transfer,
assignment by Grantee, as authorized herein, shall constitute or
any buyer, transferee, lessee, or assignee the right, power or p~
operate as an LDC within the City.
Section 14. Indemnity.
Except as expressly provided for below, this Ordinance
address or concern, and shall not be construed to have any appli
any future occurrence involving leakage, rupture, fire or explosion
any in-City portion of the PG&E Pipeline System which causes or
-9-
~nd/or any
pertaining
.~ phrases,
ance are
tion ofthis
y the valid
inal order,
voidness,
remaining
;)rdinance
thout the
al phrase,
;e to sell,
~e's rights
or assign
;s to give
any such
vide such
Jnder the
ights and
e System
rantee in
rn or any
LDC (as
tess City
ease, or
:onvey to
ivilege to
does not
cation to,
involving
s alleged
615152.2
to cause any personal injury or property damage. IF AND ON£
EVENT THE CITY IS SUED AS A RESULT OF ANY SUCH OCCI,
DURING THE TERM, AND SUBJECT TO THE LANGU~
CONDITIONS HEREOF, THE PIPELINE OWNER AGREES TO IN
AND HOLD HARMLESS THE CITY FROM ANY ADJUDGED !
AND DAMAGES CAUSED lily ANY NEGLIGENT ORWRONGFU
OMISSION OF PIPELINE OWNER RELATING TO THE CONSTF
MAINTENANCE, OPERATION, OR REPAIR OF THE PG&E
SYSTEM; PROVIDED, HOWEVER, THE CITY SHALL PROMPTL
PIPELINE OWNER IN WRITING OF SUCH CLAIM OR LAWSLi
event that City desires to settle any such claim or suit relating to
for which indemnification is or will be sought by City hereunder, p~
judgment by the court, then this indemnity shall be without lc,
unless the City obtains Pipeline Owner's written consent to such s
Pipeline Owner shall have the right, but not the obligation, to
defense of any claim made against the City relating to any matte
indemnification is or will be sought hereunder. PIPELINE OWNER
TO BEAR THE COSTS OF DEFENSE IN CIRCUMSTANCES I
PIPELINE OWNER ASSUMES THE DEFENSE.
Section 15. Effective Date and Controlling Effect of this Ord
This Ordinance shall become effective upon the last in 1
adoption by the City in the form accepted by the Grantee and th~
in full to the City of the Agreed Settlement Sum. Upon such efta(
thi~ Ordinance shall constitute a contract between the City and Gr~
shall govern the rights and relationships between the City and G
the duration of the Term, and it shall supersede and take preced~
inconsistent ordinances, resolutions, or regulations hereafter or ~
passed by the City. Ordinance number 99-M-25 is hereby repeal
Section 16. Emergency Provision.
By vote of not less than two-thirds of the members of the Ci'.
present at the meeting at which this Ordinance was considered
Council has determined that an emergency exists which requires i~
action, and this Ordinance is hereby adopted on a single read
Ordinance shall be in force and effect from and after its final pas'.
it is so ordained_
-]0-
.Y IN THE
IRRENCE
,GE AND
DEMNIFY
.lABILITY
LACTOR
~,UCTION,
PIPELINE
Y NOTIFY
IT. In the
~ny matter
'ior to final
;Iai effect,
.~ttlement.
;sume the
for which
AGREES
N WHICH
inance.
:ime of its
payment
;tive date,
antee and
rantee for
~nce over
eretofore
ed.
Iy Council
, the City
~mediate
lng. This
~age, and
READ, CONSIDERED, PASSED and APPROVED at a Regular
Council of the City of Scheft2_, on the ~ day of/~t~t.~~ , 2000, held in a{
Open Meetings Act, Texas Gov't Code {}551.001 et. seq., at which a quorum ~
APPROVED by the Mayor of the City of Schertz, Texas, on th
2000.
By:
CITY OF S~HERT~
~.__------,.,,.~ /
Mayor
A-I-I-EST:
City Secretary
APPROVED AS TO FORM:
City Attorney
(SEAL OF CITY)
Meeting of the City
:cordance with the
vas present.
is the ~ day of
615152_2 -1 1-
READ, CONSIDERED, P,~~. xSED and APPROVED at a Regular
Council of the City of Schert~, or~ the .~ da~ olr~~.J.- , 2000. heid i~ ~,
Open Meetings Act, Texas Gov't C~de ~551.~1 et. seQ.. at which a quorum v
APPROVE[::) by the Mayor of the City of Schefl~. Texes. on th
.2000.
Mayor
Clty Secretary
Ai
Crty'Affomey
(SEAL OF CITY}
615152.2
-tt-
~leeting of the City
~ec~rdenc~ with the
fas p~nt,
is the ..'~'_,~-,_ day of
STATE OF TEXAS
COUNTY OF GUADALUPE
!, the undersigned City Secretary of the City of Schertz, Texas, hereby c~
and forogoing is a full. true and correct copy of an ordinanc.~ adoj~ted by the Cit
at the meeting of such City Council held on the ~7~ day of .~?_~.c/-. '
appears in the official minutes of the City Council of the City.
2000.
WITNESS MY HAND AND SEAL of the City of Schertz, Texas, this _'~
City Secretary
City of Sche~_, Texas
615152.2
-]2-
~rtify that the above
Council of the City
!000, as the same
THE STATE OF TEXAS,
PUBLISHER'S AFFIDAVIT
County of Guadalupe
Before me, the undersigned authority, on this date personally appeared
Debbie Gunckel, known to me, who, being by me duly sworn, on her oa
says that she is the Advertising Director of The Seguin Gazette-Enterpr se, a
newspaper published in said county; that a copy of the within and foreg~
published in said newspaper 1 time before the return day named thereir
publications being on the following dates'
March 12 2000 -,
' ,o~ ~ ~oz ~~ ~' -
-
,
--
and a newspaper copy of which is hereto attached.
th deposes and
)ing notice was
such
Sworn to and subscribed before me this
f~'~ day of
Notary Public, Guadalup
A.D., 2000.
.e County, Texas