city of johnson arkansas logo

Ordinance #54

SECTION 1. That the City of Johnson , hereby grants to
the Arkansas Western Gas Company the exclusive right, privilege and authority
within the present and all future expansions of the corporate limits
of the City of Johnson  (1) to sell, furnish, transmit
and distribute natural gasto all inhabitants and consumers within the said
limits; and (2) subject to the terms, conditions and stipulations mentioned
in this ordinance, consents and the right, permission and franchise is
hereby given to the Arkansas Western Gas Company, a corporation organized
and existing pursuant to the laws of the State of Arkansas, Grantee, and to
its successors, lessees, and assigns to lay, construct, equip, operate/
repair, and maintain a system of gas mains, pipes, conduits, feeders and
the appurtenances for the purpose of supplying and distributing natural gas
for light, fuel, power, and heat and for any other purpose, to the residents
or inhabitants of the said City; and further, the right to lay,
construct, operate and maintain a system of gas mains, pipe lines, pipe
conduits and feeders and the necessary attachments, connections, fixtures
and appurtenances for the purpose of(conveying, conducting or distributing
natural gas from any point beyond said City limits in order to enable the
said Grantee to distribute and sell natural gas to the said City and to the
residents or inhabitants thereof,, and to others. As used in this ordinance
the terms "natural gas" and "gas" shall be defined as including, in addition
to natural gas, such alternate, substitute or supplemental fuels as
(without necessarily limited to) liquefied natural gas, liquefied petroleum
gas, synthetic natural gas and propane  air.
SECTION 2. The Grantee herein is expressly given the permit subject
to the proviso hereinafter contained) to use the streets, avenues, roads,
highways, alleys, sidewalks and other public places, as now laid out, or
hereafter to' be established, for the purpose of laying gas mains, pipe
lines, conduits and feeders, and the necessary attachments, fixtures,
connections and appurtenances for the purpose of conveying or conducting
natural gas from any point within the said City or to any point beyond the
City limits of the said City, or to any other point, through and beyond the
City limits of said City, and to operate and maintain a system of pipe
lines, pipes, conduits, feeders and the necessary attachments, connections,
fixtures and appurtenances for the distribution of natural gas within said
City to serve the said City and the residents and inhabitants thereof, and
others; provided, however, that where alleys are accessible £or laying
mains and pipes, the City shall have the right to require that the mains
and pipes shall be laid in the alleys instead of the streets, so long as
this is economically feasible (does not create an economic hardship) .
SECTION 3. No fees or charges of any kind shall be imposed by Grantor
upon the Grantee or upon any successors, or upon any consumer of natural
gas for the breaking or opening of any highway, street, road, avenue,
alley, or other public places, or for the laying of any main, service pipe
or other connections therein, except as would be generally imposed on
others performing similar work under similar circumstances and conditions.
Nothing in this franchise shall be construed in such manner as to in
any manner abridge the right of the City to pass and enforce the necessary
police regulations for the purpose of protecting the citizens of said City
and their property and the property of the Grantee.
Grantee shall at all times keep and display the necessary danger
siynals and. proper guards around all excavaLions and obstructions and shall
keep sufficient space in good condition for the travel of vehicles on nt
least one side of all excavations and obstructions, and shall as soon as
practicable restore all openings on the highway, road, street, avenue,
alley and other public places to condition equally as good as before said
openings or obstructions were made. Anything to the contrary notwithstanding,
when in the judgment of Grantee it is necessary for the safety of
the citizens, to divert or detour traffic from the area of excavations they
have the power to so do upon notice to said City.
SECTION 4. The Grantee shall do no injury to any highway, road,
street, avenue, alley, lane, bridge, stream or water course, park or public
place, except as specifically allowed, nor with any public or private sewer
or drainage system, or water lines, now or hereafter laid or constructed by
the said Town or by any authorized person or corporation, but no sewer or
water pipes, electric conduits, telephone or TV cables shall be so laid as
to interfere unnecessarily with any gas main or pipes which shall have been
laid prior to the time of laying such electric conduits, telephone and TV
cables, sewer or water pipes. The Grantee shall fully indemnify and save
harmless the City, from any and all claims for damage for which said City
shall or might be made or become liable by reason of the granting of this
franchise, or any negligence or carelessness on the part of said Grantee,
or because of any act or omission of the Grantee in the construction and
operation of its system of mains and pipes.
SECTION 5. Natural gas service shall be provided under the terms and
conditions herein specified and pursuant to the rules and regulations of
the Arkansas Public Service Commission governing utility service, as well
as Grantee's rules and regulations governing natural gas service on file
with the Arkansas Public Service Commission and as interpreted and enforced
by grantee. All utility services shall conform with these rules and regulations,
as well as any other applicable rules and regulations, federal or
state laws, including but not limited to the Arkansas Plumbing Code.
The rates which are to be charged by Grantee for natural gas service
hereunder shall be those which are now lawfully approved or prescribed, and
as said rates may, from time to time, be lav/fully approved or prescribed by
the Arkansas Public Service Commission or any successor regulatory authority
having jurisdiction thereof.
The Grantee shall have the right to make and enforce as a part of the
conditions under which it will supply natural gas for heat, power, light,
fuel or other purposes as herein provided, all needful rules and regulations
not inconsistent with lav; and the provisions of this franchise.
SECTION 6. The Grantee shall furnish promptly to the proper authorities
any and all information which may be asked for by them in regard to
the size, location or depths of any of the pipes, mains, conduits, or
service pipes, in any form whatsoever, and any other information in regard
to its occupation of roads, highways, streets, avenues, or public grounds
of said City, which they may demand. Whenever the word. Grantee occurs in
this ordinance, it shall mean and it shall be understood to be the Arkansas
Western Gas Company, its successors, lessees or assigns, and whenever the
words "authorities" or "proper authorities" occur in this franchise they
shall mean and shall be understood to mean the authorized officer or
officers, committee or board representing the City of .Johnson ,
Arkansas, or Grantor.
SECTION 7. During the life of this franchise the Grantee shall pay to
Grantor each year a franchise tax in an amount equal to: two percent
( 2%) of the Grantee's revenues before taxes for residential' and commercial
revenues as paid to the Grantee by residential and commercial customers
located within the corporate limits of the City of Johnson.
Payments shall be made by the Grantee to the Grantor in quarterly installments
and Grantoe shall have thirty (30) days after the end of each
calendar quarter within which to make such payment. Residential and commercial
gas revenues are those revenues so classified pursuant to Guarentee's
uniform classification standards. Grantor shall have the right to examine
and verify, from the records of the Grantee, any data relating to the ijross
revenues of Grantee from customers on which said franchise tax is due. In
the event of a controversy between the Grantor and Grantee as to the amount
of gross revenues received by Grantee in the City of Johnson
upon which said tax is due, such controversy shall be referred to the
Arkansas Public Service Commission, or such successor regulatory agency
which may have jurisdiction over the Grantee, for final determination, and
the decision of said Commission shall be binding upon both parties hereto.
It is expressly agreed and understood by the Grantor and Grantee that
the aforesaid payment shall constitute and be considered as complete payment
and discharge by the Grantee, its successors and assigns, of all
licenses, fees, charges, impositions or taxes of any kind (other than
automobile license fees, improvement districts, special millage taxes, and
the general ad valorem taxes) which are now or might in the future be
imposed by the Grantor under authority conferred upon the Grantor by law.
In the event such other tax or taxes are imposed by Grantor, the obligation
of the Grantee set forth in Section 7 hereof, to pay the franchise taxes
annually shall immediately terminate.
SECTION 8. This franchise shall take effect and continue and remain
in force perpetually as provided in Section 44 of Acts of 1935, No. 324,
Acts of the State of Arkansas, as same may be amended from time to time,
and upon the written the Grantee of the terms and conditions
of this franchise.
SECTION 9. If any section, paragraph, subdivision, clause, phrase or
provision of this ordinance shall be adjudged invalid or unconstitutional,
the same shall not affect the validity of this ordinance as a whole, or any
part or provision, other than the part so decided to be invalid or unconstitutional.
SECTION 10. It is hereby determined by the City of Johnson
that this Franchise is necessary in order that the needs of the city may be
properly protected. Therefore, an emergency is declared to exist and the
Franchise being necessary for the preservation of the public peace, health
and safety shall take effect and be in full force from the date of its
passage and approval.