Chapter 17-Natural Gas Franchise

2-17-10 ELECTION

2-17-1 FRANCHISE GRANTED. That Northern Natural Gas Company, a corporation, (operating as PEOPLES NATURAL GAS Division) its lessees, successors, and assigns, hereinafter referred to as Grantee, be and are hereby granted a non-exclusive authority for a period of twenty-five (25) years, to erect, construct, maintain and operate, a gas distribution system and any and all necessary mains, pipes, services and other appurtenances and equipment thereunto appertaining, in, upon, over, across and along the streets, alleys, bridges and public places in the City of Maquoketa, Iowa, for the transmission, distribution and sale of natural and/or mixed gas for lighting, heating, industrial and all other uses and purposes in said Maquoketa, Iowa, and for the purpose of transmitting, transporting and conveying such gas into, through or beyond the immediate limits of towns to other towns, cities and customers.

2-17-2 PROTECTION OF EXCAVATIONS. Whenever the Grantee, in the construction or maintenance of its system or in the installation of any extension thereto, shall cut into or take up any pavement or shall make any excavation in any street, avenue, alley or public place, within the corporate limits of the City, the same shall be done in a manner so as not to interfere with the use of such thoroughfares by the public. The Grantee shall use such safeguards as may be necessary to prevent injury to persons or property during such construction work and upon its completion, all pavement shall be replaced in as good condition as it was before taken up. All excavations shall be refilled and all obstructions shall be removed at the expense of the Grantee and to the satisfaction of the Grantor. In the event that the Grantee shall fail to comply with the provisions of this Section after having been given reasonable notice, the Grantor may do such work as may be needed to properly repair said thoroughfare and the cost thereof shall be repaid to the Grantor by the Grantee.

2-17-3 INTERFERENCE WITH PUBLIC WAYS. The Grantee in constructing and maintaining said gas distribution system, and in entering and using said streets, highways, avenues, alleys, and public places in said City and in laying and installing its mains, services, piping, and related appurtenances and equipment, shall not in any manner interfere with or injure any improvement which said City now has or may hereafter have upon any of its streets, alleys, highways, or public places.

2-17-4 SUFFICIENT SYSTEM MAINTAINED. Grantee agrees for and in behalf of itself, its lessees, successors and assigns, that for and during the term and period of this grant, it will maintain in the City of Maquoketa, Iowa, an adequate modern, standard and sufficient gas system and appurtenances and shall maintain and operate the same in a modern and adequate fashion and in a manner adequate to meet the necessities and requirements of said City, its industries and inhabitants, provided, however, that Grantee shall not be required to extend its gas distribution system more than 100 feet for each customer to be serviced from any extension thereof, and provided further, that no obligation shall extend to, or be binding upon the Grantee, to construct or extend its mains or furnish natural gas or gas service within said City if Grantee is, for any reason, unable to obtain delivery of natural gas at or near the corporate limits of said City or an adequate supply thereof to warrant the construction or extension of its mains for the furnishing of such natural gas or gas service, and provided further, that when the limits of said City is insufficient to meet the additional firm requirements of connected or new customers, Grantee shall have the right to prescribe reasonable rules and regulations for allocating the available supply of natural gas for such additional firm requirements to domestic, commercial and industrial consumers in that order of priority.

2-17-5 CITY’S AUTHORITY. Grantee agrees for and in behalf of itself, its lessees, successors and assigns that all authority and rights in this Ordinance contained shall at all times be subject to all rights, power and authority now or hereafter possessed by the City of Maquoketa, Iowa, to regulate the manner in which Grantee shall use the streets, alleys, bridges and public places of the City and concerning the manner in which Grantee shall use and enjoy the franchise herein granted.

2-17-6 QUALITY OF GAS. The Grantee shall, at all times, maintain under adequate pressure a supply of clean, standard gas of the British Thermal Unit heating value of not less than nine hundred (900) British Thermal Units, per Cubic Foot of Gas. Should the British Thermal Units fall below nine hundred (900), the rate then in effect shall be automatically and correspondingly lowered and reduced during any period or periods of time in which such lower British Thermal Unit value shall be furnished. The City shall have the privilege of requesting Grantee to furnish satisfactory proof of British Thermal Unit content of gas.

2-17-7 CITY HELD HARMLESS. The Grantee shall hold the Grantor harmless from any and all claims and actions, litigation or damage, arising out of the passage of this Ordinance or of the construction, erection, installation, maintenance, or operation of its properties operated by authority of this Ordinance within the corporate limits of the City of Maquoketa, Iowa, or the negligence of its employees in the operation thereof, including the Court costs and reasonable attorney fees in making defense against such claims. A copy of the process served upon the Grantor shall be served by the Grantor upon the Grantee. The Grantee shall have the right to defend in the name of the Grantor and to employ counsel for such purpose.

2-17-8 DEFAULT PROVISION. If the Grantee shall be in default in the performance of any of the terms and conditions of this Ordinance and shall continue in default for more than thirty (30) days after receiving notice from the City of Maquoketa, Iowa, of such default, the City may, by Ordinance duly passed and adopted, terminate all rights granted under this Ordinance to the Grantee. The said notice of default shall specify the provision or provisions in the performance of which is claimed the Grantee is in default. Said notice shall be in writing and served in the manner provided for notice in civil actions.

2-17-9 FRANCHISE LENGTH. The right and authority herein granted shall be nonexclusive and continue for a period of twenty-five (25) years from and after the effective date of this Ordinance.

2-17-10 ELECTION. This Ordinance, following its passage, its ratification by a majority of the qualified voters of said City, voting at an election called for the purpose of voting thereon, and its publication as by law provided, shall become effective upon its acceptance by the Grantee.

EDITOR’S NOTE. Ordinance No. 567, granting a natural gas franchise to Northern Natural Gas Company operating as Peoples Natural Gas Division, was adopted by the Council on March 17, 1980. Election was held on April 22, 1980, and the Ordinance became effective May 10, 1980.