1962-016 ORDINANCE NO. ~
A~ ORDINANCE GRANTING TO LONE STAR GAS COMPANY, ITS
SUCCESSORS AND ASSIGNS, THE RIGHT, PRIVILEGE AND FRAN-
CHISE TO DISTRIBUTE GAS IN THE CITY OF DENTON~ TEXAS,
REGULATING SAID DISTRIBUTION, PROVIDING OTHER REGULA-
TIONS FOR THE CONDUCT OF SAID SYSTEM BY THE COMPANY,
PROVIDING FOR A RENTAL FOR THE USE OF THE STREETS IN
THE CITY OF DENTON, TEXAS
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 Sub3ect to the terms and condztlons mentioned in
this ordinance the Czty of Denton, Texas, hereinafter called "City,"
hereby grants to Lone Star Gas Company, a Texas corporation, here-
lnafterlcalled "Company," ~ts successors, lessees and assigns, con-
sent to use the present and future streets, alleys, highways, public
places, public thoroughfares and grounds of the City for the purpose
of laying, maintaining, operating therein and thereon pipe lines and
all appurtenant equipment needed and necessary to deliver and sell
gas to persons, firms and corporations, including all of the general
public within the City's corporate limits and the environs thereof,
said consent being granted for a term of nineteen (19) years from
the effective date of this ordinance
SECTION 1-A~ Company agrees to pay and City agrees to accept,
on or before the first day of April, 1963, and on or before the
same day of each succeeding year during the l~fe of this franchise,
up to and including the year 1981, a sum of money to be known as a
street rental charge which shall be equzvalent to two per cent (2%)
of the gross receipts received by Company from the sale of gas to
its domestic and commerczal consumers in sa~d City, expressly ex-
cludlng,i however, recelpts derived from sales to ~ndustr~al consumers
in said City for the precedIng calendar year, which annual payment
shall be for the rights and privileges herein granted to Company,
including expressly, without llmltatlon, the rlghts to use the
streets, alleys and public ways of saad City It as also under-
stood ~nd agreed subject to the provaslons of the following para-
graph, that during the life of this franchise the above charge,
measured in the manner herelnabove provided, shall be the entire
and maxlmum charge which the City shall be entitled to make for
the use of the streets, alleys and public ways regardless of whether
said charge shall be designated as a rental or otherwise, and whether
measured by gross receipts, units of lnstallataon or in any other
manner
Should the Legislature of the State of Texas authorize cities
and towns within said State to levy and impose a greater street
rental charge than two per cent (2%) of the gross receapts deraved
from the sales of gas, then Caty and Company agree to enter into
negotiations for the purpose of determining whether all or any part
of such increased gross receipts charge should be applied an the
City of Denton, Texas If the part~es are unable to agree, City
shall have the right to impose such additional charge upon nanety
(90) days notice to Company
"Industrial users or consumers," as herein used, are those
generally and commonly classlfled as such by Company, and who are
billed on a schedule of rates less than the Company's domestic and
commercial schedules
In order to determine the gross receapts received by Company
from the sale of gas (expressly excluding sales of gas to industrial
consumers wlthln the corporate limits of City) Company agrees that
on ~e same date that payments are made as provided an the preceding
paragraph of this Section l-A, it will file with the City Secretary
a sworn report showing the gross receipts received from the sale of
gas to its domestic and co~ercaal consumers wathan said City llmats
for the calendar year preceding the date of payments City may,
if it ~ees fit, have the books and records of Company examined by
a representative of said City to ascertain the correctness of the
sworn ~eports agreed to be filed herein
SECTION 2 Company shall lay its pipes, mains and laterals
in the alleys where practical but when laid in the streets and
avenues, they shall be laid in a line parallel with the curb line
thereof and such work shall be subject to the approval of the City
Engineer or some other designated representative of the City
SECTION 3 In the opening and refilling of all openings made
by the Company, subject to the ordinances applicable thereto, it
shall relay the pavements and do all other work necessary to complete
restoration of the streets, pavements, sidewalks, or grounds to a
condition equally as good as when disturbed, and when the Company
shall open any ground in said City for the purpose of laying any gas
pipes, or for any other purpose whatever, the Company shall open no
more space at any one time or at any one place than is necessary for
the work for which same shall have been opened, and it is especially
required that in all cases where work requires the exercise of skill,
as in the relaying of pavements and sidewalks, the Company shall
employ skilled workmen, familiar with the execution of such work,
and all of such work will be done at Company's expense, and subject
to the approval of the City Council of the City of Denton, Texas, or
other proper authority designated by it
T~e Company hereby agrees to fill up with tar or some other
suitable substance any and all holes made in the pavement by driving
bars through the pavement ~n ohecklng for leaks in the gas mains and
service l~nes Company, at its option, may also use permanently
placed covered bar holes for the purpose of testing for leaks
Company shall obtain a permit from the C~ty Engineer before excava-
tions ~ay be made in paved streets
S~CTION 4 This franchise is granted subject to any and all
valid ~rovlslons of the existing City Charter of the City of Denton,
Texas, and all of said Charter provisions, which are not inconsistent
with the Constitution or general laws of the State of Texas, are
applicable hereto and are hereby made a part of this franchise as
fully as though copied at length herein
Nothing in this franchise shall be construed in such a manner
as in ~ny way to abridge the police power of the City of Denton,
Texas, to pass the necessary ordinances for the protection of the
citizens of Denton, Texas, their property, and the property of
this Company, and this franchise shall be subject to any lawful
ordinances which may hereafter be passed which are not inconsistent
herewith
SECTION 5 The Company shall do no permanent an~ury to any
street, avenue, alley, lane, bridge, stream, water course, park or
public place nor in any manner disturb or interfere unnecessaraly
with any electric lines, conduits, or equipment or wath any water
or other pipes, nor with any public or private sewer now or hereafter
lald or constructed by said City of Denton, or by any authorized per-
son or,corporation, but all electric conduits or water or sewer pipes
or other pipes shall be so laid as not to interfere unnecessarily
with any gas mains or pipes which shall be laid prior to the time
of laylng such conduits, sewer or water lines or other pipes
S~CTION ~ The Company shall at all times keep and display the
necessary danger signals and proper guards around all excavations
and obstructions and whenever possible s~all keep sufflcaent space
an good condition for travel of vehicles on at least one sade of
all excavations and obstructions, and shall, as soon as practacable,
restore all openings on the highways, streets, avenues and alleys
and other public places to a condltaon equally as good as before
said openings or obstructions were made
Company shall hold the City harmless from all expense or
blllty for any act or neglect of the Company hereunder
The City shall not be liable for any damage caused by electrolysis
to Company's system by the City of Denton's utility system, but if a
condition is found to exist where damage is being caused by elec-
trolysis the City will use reasonable diligence to correct the situa-
tion causing such damage
SECTION 7 All service pipes shall be constructed and maintained
by the Company at its own expense to the curb line where its main is
located in a street or to the property line where its main is located
in an alley, but it shall be entitled to contract with the customers
for laying and furnishing service pipe from the curb or property line
to and through the customer's premises, but it shall be optional with
the consumer as to whether he shall employ Company
SECTION 8 Company shall not be required to extend its pipe
lines or laterals more than 100 lineal feet in order to serve any one
consumer
The Company shall maintain lts gas system and equipment in good
operating condition at all tames, and meters shall be maintained
within the range of accuracy required by the laws and regulations of
the State of Texas
SECTION 9 The Company shall furnish to City annually a map
showing the additions, changes and extensions to its gas plant an
the City of Denton
SECTION 10 The City reserves the right to require and the
Company agrees to make reasonable reports in the same manner as to
other regulatO~y authorities ancludzng the Railroad Commission of the
State of,Texas with respect to Company's gas distribution system an
the City of Denton, Texas The City also reserves the right to have
Company's books, records and accounts examined and audltsd by its
authorized agents and representatives, such examinations or audits
to he done and performed after reasonable notice to Company and
within Company's usual hours of operation
SECTION 11 This franchise shall not be transferred by Lone
Star Gas Company except with the approval of the City Council of
#
the City of Denton expressed by ordinance
SECTION 12/The City reserves the right by resolution or other-
wise to designate the location of any gas mains or gas service lines
with reference to other municipal street facilities such as sewer and
water mains and services, in such a manner as to promote the public
safety and to protect public property Any designation or location
or inspection authorized herein shall be accomplished so as not un-
necessarily to delay the Company in any of its operations
Whenever the City shall pave or repave any street or shall
change the grade or line of any street or public place or shall con-
struct or reconstruct any conduit, water main, sewer or sewer connec-
tion or other municipal public works or utility, it shall be the duty
of the ~ompany, when so ordered by the City, to change, replace,
repair, recondition or relay its mains, services and other property
in the streets or public places at its own expense so as to conform
to the established grade or line of such street or public place and
so as not to interfere with the conduits, sewers and other mains as
constructed or reconstructed and so as to properly protect said new
pavement and make the normal life of such pipe equal to the normal
life of such new pavement
SEqTION 13 In addition to the rates charged for gas supplied,
Company Imay make and enforce reasonable charges, rules and regulations
for service rendered in the conduct of its business, including a charge
for services rendered in the inauguration of natural gas service, and
may require, before furnishing service, the execution of a contract
therefor Company shall be entitled to require from each and every
consumer of gas, before gas service is commenced, a deposit of twice
the amount of an estimated average monthly ball, which said deposit
may be retained by Company until service is discontinued and all bills
therefor have been paid Company shall then return sa~d deposit to
the consumer, together with slx per cent (6%) interest thereon from
the date of said deposit up to the date of d~scont~nuance of service
Company ,shall be entitled to apply said deposit, with accrued interest,
to any ~ndebtedness owed Company by the consumer making the deposit
SEqTION 14. All ordinances or parts of ordinances heretofore
adopted by the City Council of the C~ty of Denton, Texas, granting
gas franchises to any person, f~rm or corporation, are hereby expressly
repealed and are of no further force or effect
SECTION 15 Each section of this ordinance and each part of
each section hereof is hereby declared to be an independent sectlon
or part of section, and the holding of any section or part thereof
to be unconstitutional, void, illegal, ineffective or contrary to law,
for any reason, shall not affect any other section or part of section
of this ordinance.
SECTION 16 Nothing contained herein shall change the present
rates now in effect in the City of Denton, Texas, hut it is under-
stood that such rates and charges shall be subject to revision and
change by either the City or the Company from time to tlme in the
manner authorized by law
SECTION 17 This franchise ordinance shall be effective thirty
(30) days after ~ts final passage and approval, pending such time
the full text of th~s ordinance shall be published once each week
for thrlee consecutive weeks an the Denton Record-Chronicle, the
official newspaper of the C~y of Denton, Texas, Company shall file
its written acceptance of thzs franchise ordinance wzth the offzce
of the Cmty Secretary of the C~ty of Denton wzthln thirty (30) days
after ~ts effectlve date and th~s ordlnance shall be of no force
and effect ~f not accepted wzth~n sa~d period
PASSED AND APPROVED on f~rst readzng this the /~-~ day of
M ~ h; , a D 1962
PASSED AND APPROVED on second readlng this the ~ day of
PASSED AND APPROVED on third readzng thzs the ~ T_.N day of
J UN£ , a D 1962
Mayor
Clty of Denton, Texas
ATTEST
d~ty Secretary
Czty of Denton, Texas
~lty-Attorney
City of Denton, Texas
STATE OF '±'~S
COUNTY OF DENTON
WHEREAS~ there was fmnally passed smd approved on June 14,
1962, to be effective on July 14, 1962, Ordmnauce No 62-16, grantmng
to Lone Stam Gas Company~ a corpormtmon, its s~ceessors a/id ~sslgns,
a franchise to furnmsh smd supply gas to the general publmc mn the
Cmty of Denton, Denton County~ Texas, smd the environs thereof, whmch
ms recorded in Book 17, page ;~ of the Mmnutes of the Cmty Councml
of said Cmty, s~ud mn Volume 3, 0rdmnsuuce Book of the Cmty of Denton~
Texas, smd
WHEREAS~ Sectmon 17 of s&md ordmnsmce provmdes mn part as
follows
" Compsmy shall fmle mts wrmtten acceptance
of this franchmse ordmna~se wmth the Offmce of the
Cmty Secretary of the Cmty of Denton wmthmn thmrty
(30) davs after its effective date smd thms ordi-
nance shall be of no force mn effect mf not accepted
wmthmn said permod"
AND, WHEREAS, mt is the desmre of Lone Star Gas Compamy~
the holder of the rmghts, privmleges smd grsmts under the aforesamd
frsmehise ordmnance~ to comply wmth the above-quoted provmsmons of
Sectmon 17 thereof
NOW~ THERFORE~ premses consmdered Lone Star Gas Compaz~y,
acting by and through its duly authormzed of£mcers, and wmthmn the
tmme prescrmbed by Sectmon 17 quoted above, does hereby agree to
and accept the franchmse granted to it by the above descrmbed ordm-
nauce, in accordance with its terms, prOVlSlO~S~ conditions and
qu~rements~ and subject to the stipulations and agreements therezn
contained
WITNESS THE EXECUTION HEREOF~ on thzs 17th day of
July, ~ 1962
ATT~$T LONE STAR GAS COMPANY
Vice President
-2-
STATE OF TEXAS
COUNTY OF DENTON
I~ W D Buttrzll~ Secretary off the Cmty of Denton~ Texas, do
hereby certmfy that the above and foregoing ms a true and correct copy
o£ a formal acceptance of Franchise Ordmnance No 62-16 fmnally passed
and approved by said City on June 14~ 1962~ and of record in Book 17~
page .~ of the Minutes of the City and mn Volume 3 of the Ordmnaace
Book of the City of Denton, Texas, and I do further cert~£y that
acceptance has been duly presented to the City Councml and filed mn
connection with and as a part of sa~d franchase ordmnance
OF WHICH~ witness my official s~g~ature and the seal of sa~d
Cmty on this the ~ ~ day of ~ ' 1962
Secret~ry
City of Denton, Texas