Ordinance No. 1,198ORDINANCE NO. 1198
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN
GRANTING TO UNITED GAS CORPORATION, ITS SUCCESSORS AND
ASSIGNS, THE RIGHT, PRIVILEGE AND FRANCHISE TO CONSTRUCT,
LAY, MAINTAIN, OPERATE, USE, EXTEND, REMOVE, REPLACE AND
REPAIR IN, OVER, ACROSS, AND ALONG ANY AND ALL OF THE
PRESENT AND FUTURE STREETS, AVENUES, PARKWAYS, SQUARES,
ALLEYS, THOROUGHFARES, ROADS, HIGHWAYS, SIDEWALKS, VIADUCTS,
BRIDGES, STREAMS, PUBLIC GROUNDS, PUBLIC PROPERTIES AND
OTHER PUBLIC PLACES OF THE CITY OF BAYTOWN WITH THE EX-
CEPTION OF A SPECIFICALLY DESCRIBED AREA, A SYSTEM OF PIPES,
PIPELINES, GAS MAINS, LATERALS, CONDUITS, FEEDERS, REGU-
LATORS, METERS, FIXTURES, CONNECTIONS AND ATTACHMENTS AND
OTHER DESIRABLE INSTRUMENTALITIES AND APPURTENANCES NECESSARY
OR PROPER FOR THE PURPOSE OF TRANSPORTING, DISTRIBUTING,
SUPPLYING AND SELLING GAS (NATURAL AND /OR ARTIFICIAL AND /OR
MIXED) FOR HEATING, LIGHTING, POWER AND FOR ANY OTHER PURPOSES
FOR WHICH GAS MAY NOW OR HEREAFTER BE USED, TO THE CITY AND
THE INHABITANTS OF THE PORTION THEREOF COVERED BY THIS GRANT
OR ANY OTHER PERSON OR PERSONS WITHIN SAID PORTION OF THIS
CITY COVERED BY THIS GRANT FOR A PERIOD OF FIFTEEN 15
YEARS COMMENCING SIXTY (60) DAYS AFTER ITS FINAL PASSAGE AND
APPROVAL; REGULATING THE USE OF STREETS BY THE GRANTEE IN
THE REPAIR AND RESTORATION OF STREETS DISTURBED BY CONSTRUCTION;
CONTAINING A CONTRACT BY THE GRANTEE TO PROVIDE FIRST -CLASS
SERVICE AND THE GRADE OF SERVICE TO ITS CUSTOMERS AS PROVIDED
BY ITS RATES SCHEDULED, EXCEPT UNDER CONDITIONS BEYOND THE
GRANTEE'S CONTROL; LIMITING REQUIRED EXTENSIONS OF SERVICE
WITHIN THE CITY OF BAYTOWN; PROVIDING FOR COMPENSATION TO
BE PAID TO THE GRANTOR AND FOR A PENALTY IF PAYMENT IS NOT
MADE WHEN DUE; PROVIDING FOR INDEMNITY BY THE GRANTEE TO THE
CITY OF BAYTOWN; PROVIDING FOR THE GRANTEE'S OBLIGATION TO
FURNISH EFFICIENT SERVICE AT REASONABLE RATES; AND FOR A
PENALTY UPON GRANTEE'S FAILURE TO DO SO; PROVIDING THAT THIS
FRANCHISE SHALL NOT BE EXCLUSIVE; CONTAINING A SAVINGS CLAUSE;
CONTAINING A REPEALING CLAUSE; RESERVING ALL POWERS OR REGU-
LATIONS; PROVIDING FOR RESOLUTION BY THE CITY COUNCIL OF CON-
FLICTS WITH OTHER HOLDERS OF FRANCHISES; PROVIDING FOR THE
EXAMINATION OF GRANTEE'S BOOKS AT ALL REASONABLE TIMES; PRO-
VIDING FOR CONDITIONAL FORFEITURES IN THE EVENT OF DEFAULT BY
GRANTEE; PROHIBITING CONSOLIDATIONS, SALES, PURCHASES, COM-
BINATIONS OR AGREEMENTS AFFECTING THE SALE OR DISTRIBUTING OF
GAS WITHOUT THE AUTHORIZATION AND APPROVAL OF THE CITY COUNCIL;
PROVIDING THAT THE TERMS AND PROVISIONS OF THIS FRANCHISE SHALL
WILL TO AND BE BINDING UPON THE SUCCESSORS AND ASSIGNS OF GRANTEE;
PROVIDING FOR ACCEPTANCE BY GRANTEE; AND PROVIDING AN EFFECTIVE
DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN:
SECTION 1. That, subject to the terms, conditions, and provisions
of this ordinance, the City of Baytown, Harris County, Texas, herein called
"Grantor ", does hereby grant unto United Gas, Inc., its successors and
assigns, herein called "Grantee ", the right, privilege, and franchise to
THENCE Westerly with the North line of the Missouri
Pacific Railroad right of way to the Northerly line
of State Highway 146;
THENCE Westerly with the Northerly line of State Highway
146 to its intersection with the Easterly shoreline of
Black Duck Bay;
THENCE Northerly and Westerly with the shoreline of Black
Duck Bay to the 2500 foot Houston Port Authority Limits;
THENCE Northwesterly with the 2500 -foot Houston Port
Authority Limits to the Easterly shoreline of Scott Bay;
THENCE in a generally Northwesterly direction following
the meanders of the shoreline of Scott Bay, Crystal Bay
and Burnet Bay to the intersection of the centerline of
Spring Gully with the Northerly shoreline of Burnet Bay,
which is the Point of Beginning;
(said area so excepted from this grant being shown on United Gas, Inc. Drawing
No. UY -6428 attached hereto and made a part hereof as EXHIBIT "A "); a system
of pipes, pipe lines, gas mains, laterals, conduits, feeders, regulators,
meters, fixtures, connection, and attachments and other desirable instrumentalities
and appurtenances necessary or proper for the purpose of transporting, distributing,
supplying and selling gas (natural and /or artificial and /or mixed) for heating,
lighting, power and for any other purposes for which gas may now or hereafter
be used, to said Grantor and the inhabitants of the portion thereof covered
by this grant or any other person or persons within or without said portion
of Grantor.
SECTION 2. Upon the filing with the Grantor by the Grantee of
the acceptance required hereunder, this franchise shall be in full force
and effect for a term and period of fifteen years commencing sixty (60)
days after its final passage and approval.
SECTION 3. All pipe, fittings, fixtures and equipment installed
by Grantee shall be of sound material and good quality, and shall be so
laid as not to interfere with the traffic over public thoroughfares of
Grantor nor with the natural or artificial drainage of the Grantor or its
underground fixtures, or with navigation in or the natural drainage of
any stream. All mains shall be buried under the surface of the ground.
The Grantee shall at all times keep on file in the office of the Director
of Public Works a current map or set of maps of its system within the City.
-3-
construct, lay, maintain, operate, use, extend, remove, replace and repair
in, under, over, across, and along any and all of the present and future
streets, avenues, parkways, squares alleys, thoroughfares, roads, highways,
sidewalks, viaducts, bridges, streams, public grounds, public properties,
and other public places of Grantor, and in all tracts, territories, and
areas hereafter annexed to or acquired by and placed within the corporate
boundaries of Grantor, with the exception of the following described area
within which Grantee is not hereby granted the right, privilege and franchise
herein described, the area so excepted from this grant being described
as follows:
BEGINNING at the intersection of the centerline of
Spring Gully with the Northerly shoreline of Burnet
Bay;
THENCE Northerly with the centerline of Spring Gully to
the Southwesterly line of Decker Drive;
THENCE Southeasterly with the Southwesterly line of
Decker Drive to the West line of Bayway Drive;
THENCE South with the West line of Bayway Drive to its
intersection with the Westerly projection of the South
line of Baker Road;
THENCE East with the South line of Baker Road to the
Southwesterly line of Decker Drive;
THENCE Southeasterly with the Southwesterly line of
Decker Drive to its intersection with the Westerly pro-
jection of the South Tine of Park Street;
THENCE Easterly with the South line of Park Street, and
its Easterly projection, to the East line of North Main
Street;
THENCE North with the East line of North Main Street to
the South line of Bob Smith Road;
THENCE Easterly with the South line of Bob Smith Road to
State Highway 146 and continuing Easterly with the South
line of State Highway 146 to its intersection with the
West line of Ferry Road;
THENCE East to the West bank of Cedar Bayou;
THENCE Southerly with the meanders of the West bank
of Cedar Bayou to the North line of the Missouri Pacific
Railroad right of way;
-2-
As extensions of pipelines are made, from time to time, the Grantee shall
file with the Director of Public Works maps or plans showing the extension.
Within the streets or other public ways of the Grantor, the location and
route of all mains, pipes and piping and other fittings or fixtures, shall
be subject to the reasonable and proper regulation, control and direction
of the Director of Public Works which regulation and control shall include,
but Rot by way of limitation, the right to require in writing the relocation
of Grantee facilities at Grantee's cost within the streets or other public
ways whenever such shall be necessary on account of the widening, change
of grade, relocation, or other city construction within such streets or
public ways. No paving cuts shall be made by the Grantee without first
obtaining the permission of the City Council or its delegate.
SECTION 4. The surface of any public road, highway, streets,
lanes, alleys, or other public place disturbed by Grantee in laying, constructing,
maintaining, operating, using, extending, removing, replacing, or repairing
its piping system shall be restored immediately after the completion of
the work to as good a condition as before the commencement of the work
and maintained to the satisfaction of the Director of Public Works for
one (l) year from the date of completion of said work, after which time
responsibility for the maintenance shall become the duty of the Grantee.
No public road, highway, street, lane, alley, or other public place shall
be encumbered by construction, maintenance or removal work by Grantee for
a longer period than shall be necessary to execute such work. If there
is in the opinion of the City Council an unreasonable delay by the Grantee
in restoring and maintaining streets, highways, parks and alleys after
excavation, repairs and extensions have been made, the Grantor shall have
the right without further notice to restore or repair same and require
the Grantee to pay the reasonable cost of so restoring or repairing them.
SECTION 5. The service furnished hereunder to the Grantor and
its inhabitants shall be first class in all respects, considering all circumstances,
and Grantee shall. furnish the grade of service to its customers as provided
S0
by its rate schedules and shall maintain its system in reasonable operating
condition during the continuance of this agreement. An exception to this
requirement is automatically in effect when due to shortages of materials,
supplies and equipment beyond the control of the Grantee and when due to
fires, strikes, riots, storms, floods, war and other casualties, and when
due to governmental regulations, limitations and restrictions as to the
use and availability of materials, supplies and equipment and as to the
use of the service, and when due to unforeseen and unusual demands for
service. In any of said events, the Grantee shall do all things reasonably
within its power to restore normal service. Grantee may require reasonable
security for the payment of its bills.
SECTION 6. Grantee at its own expense shall run or extend not
more than one hundred (100) feet of main, not to exceed a maximum diameter
of two (2) inches, plus reasonable service lines, to serve any person,
firm, association, individual, or corporation applying for or demanding
gas or gas service and /or additional gas or gas service. Grantee shall
not be required to run or extend any main a distance greater than that
specified in the preceding sentence to any person, firm, association, individual,
or corporation applying for or demanding gas or gas service and /or additional
gas or gas service unless the probable expected use of such gas or gas
service by such person, firm association, individual or corporation will
provide to Grantee a reasonable and compensatory return or income on the
value of the additional main, service line and other equipment which must
necessarily be installed to comply with such application or demand.
SECTION 7. In consideration for the rights and privileges herein
granted, Grantee agrees to pay to Grantor for each year of the term of
this franchise a sum equal to three percent (3%) of the gross receipts
collected by Grantee from the sale of gas delivered in the portion of Grantor
covered by th.is franchise. Payment shall be made by the 1st day of each
April for the preceding calendar year. For fractional calendar years said
three percent (3%) shall be based upon the gross receipts as defined
-5-
above for that part of the year involved. Said payments
of any license charge or fee, street or alley rental, or
of charge or levy by Grantor for the use or occupancy of
parkways, squares, alleys, or other public places in the
covered by this franchise.
The compensation set forth in the foregoing par
shall be in lieu
other character
the streets, avenues,
portion of Grantor
agraph shall be
paid and received in lieu of any license, charge, fee, street or alley
rental or other character of charge for use and occupancy of the streets,
alleys or public ways of the Grantor, or any occupation or privilege tax;
provided, however, that the foregoing paragraph shall never be pleaded
in defense or in bar against the imposition of an involuntary gross receipts
tax or charge by the Grantor which is greater than three_ percent
(3%) set forth in the foregoing paragraph, if the Grantor is hereafter
by statute authorized to impose the same, and if it has imposed said greater
involuntary tax or charge uniformly upon all persons, firms, or corporations
then engaged in rendering gas or electric service within said City, but
the amounts due under the foregoing paragraph shall be included within
and credited upon any such greater involuntary tax or charge, if the same
ever be imposed.
Grantee shall pay Two Hundred and No /100 ($200.00) Dollars per
day as penalty if payment is not made when due as hereinabove provided.
SECTION 8. Grantee, its successors and assigns, shall protect
and hold Grantor harmless against all claims for damages to any person
or property by reason of the construction and maintenance of its natural
gas distribution system, or in any way growing out of the granting of this
franchise, either directly or indirectly, or by reason of any act, negli-
gence, or nonfeasance of the contractors, agents, or employees of Grantee,
its successors or assigns, and shall refund to Grantor all sums which it
may be adjudged to pay on any such claim, or which may arise or grow out
of the exercise of the rights and privileges hereby granted, or by the
abuse thereof, and Grantee, its successors and assigns, shall idemnify
-6-
and hold the Grantor harmless from and on account of all damages, costs,
expenses, actions and causes of action that may accrue to or be brought
by any person, persons, company or companies at any time hereafter by reason
of the exercise of the rights and privileges hereby granted, or of the
abuse thereof.
SECTION 9. It shall be the Grantee's obligation as provided in
Section 5 hereof to furnish good quality natural gas service to the public
at reasonable rates and to maintain its property in good repair and working
order, except when prevented from so doing by forces and conditions not
reasonably within the control of Grantee. Should Grantee fail or refuse
to maintain its properties in good order and furnish efficient service
at all times throughout the life of this grant, except only when prevented
from so doing by forces and conditions not reasonably within the control
of Grantee, or should the Grantee fail or refuse to furnish efficient service
at reasonable rates, lawfully determined by the Grantor, throughout the
life of this grant, excepting only during such periods as the Grantee shall
in good faith and diligently contest the reasonableness of the rates in
question, then it shall forfeit and pay to the Grantor the sum of Two Hundred
Dollars ($200.00) for each day it shall so fail or refuse after reasonable
notice thereof and a hearing thereon by the Grantor. Any suit to recover
such penalty shall be filed within one (1) year from the date the penalty
accrues.
SECTION 10. Nothing contained in this ordinance shall ever be
construed as conferring upon Grantee any exclusive right or privileges
of any nature whatsoever.
SECTION 11. Savings Clause. If any provision, section, exception,
subsection, paragraph, sentence, clause or phrase of this ordinance or
the application of same to any person or set of circumstances, shall for
any .reason be held unconstitutional, void or invalid, such invalidity shall
not affect the validity of the remaining provisions of this ordinance or
-7-
their application to other persons or sets of circumstances and to this
end all provisions of this ordinance are declared to be severable.
SECTION 12. Repealing Clause. All ordinances or parts of ordinances
inconsistent with the terms of this ordinance are hereby repealed; provided,
however, that such repeal shall be only to the extent of such inconsistency
and in all other respects this ordinance shall be cumulative of other ordinances
regulating and governing the subject matter covered by this ordinance.
SECTION 13. In granting this franchise, it is understood that
the lawful power vested by law in the Grantor to regulate all public utilities
within the City, and to regulate the local rates of public utilities within
the City within the limits of the constitution and laws, and to require
all persons or corporations to discharge the duties and undertakings, for
the performance of which this franchise was made, is reserved; and this
grant is made subject to all lawful rights, powers and authorities, either
of regulation or otherwise, reserved to the Grantor by its Charter or by
the general laws of this State.
SECTION 14. If the Grantee, in laying its pipes, shall come into
conflict with the rights of any other person or corporation having a franchise
from the Grantor, the City Council shall decide all questions concerning
the conflicting rights of the respective parties, and shall determine the
location of the structures of the said parties and what changes, if any,
should be made and at whose cost, and shall reconcile their differences.
SECTION I5. The Grantor shall have the right and power to examine
the books and records of Grantee at all reasonable times and Grantee shall
make all books and records available to Grantor and its designated representatives.
SECTION 16. The Grantor may, at any time, declare a conditional
forfeiture of this grant for a continuing violation by the Grantee of any
of the substantial terms hereof. In such event, the Grantor shall give
written notice, specifying all grounds on which forfeiture is claimed,
by registered mail, addressed and delivered to the Grantee, to the attention
of its President, in Houston, Texas. The Grantee shall have sixty days
IF-011
after the receipt of such notice within which to discontinue said alleged
violation, or to file suit in a court of competent jurisdiction for an
adjudication or declaration of the rights of the parties with respect to
forfeiture of the franchise. No forfeiture shall become effective until
and unless (1) the Grantee shall have continued such violation or violations
for more than sixty days after receipt of such written notice from the
Grantor without filing such a suit; or (2) the Grantee shall have continued
such violation or violations for more than sixty days (or such longer period
as the Court in its discretion shall allow) after the entry or afirmance
in a court of last resort of a final judgment finding and establishing
the existence of such violation or violations, and that such violations
are sufficiently substantial to warrant forfeiture, and decreeing forfeiture
as a consequence thereof. The Grantee shall not in any event be deemed
to be in default of performance of any provisions of this grant, nor shall
any forfeiture be invoked for violation or violations for failure to perform
any provision hereunder when due to shortages of material, supplies and
equipment beyond the control of the Grantee, or to fires, strikes, riots,
floods., war or other casualties, or to governmental regulations, limitations
or restrictions as to the use or availability of materials, supplies or
equipment or as to the use of the service, or to unforeseen or unusual
demands for service, or for any other cause not reasonably or practicably
within the control of the Grantee.
SECTION 17. No consolidation, sale, purchase, combination or
agreement affecting the sale or distribution of gas within the City limits
of the City of Baytown can be had or entered into by the Grantee with any
other gas utility company within the City limits of the City of Baytown,
unless the same be expressly authorized and approved by the City Council
of the City of Baytown.
SECTION 18. The rights, privileges, and franchise herein granted
to the Grantee shall extend to and include its successors and assigns, and
the terms, conditions, provisions, requirements and agreements in this Or-
dinance contained, and each of them, shall be binding upon the successors
and the assigns of the Grantee.
W11
SECTION 19: The Grantee shall, within thirty (30) days from the
date this Ordinance takes effect, file with the City Secretary a written
statement signed in its name and on its behalf in the following form:
"To the Honorable Mayor and City Council of
the City of Baytown:
"The Grantee for itself, its successors and
assigns, hereby accepts the attached Ordinance
and agrees to be bound by all of its terms and
provisions.
UNITED GAS CORPORATION
By.
"Dated the day of , 1972."
INTRODUCED, READ and PASSED on FIRST READING this 21st
day of March , 1972.
L�
C. GLEN WALKER, Mayor
ATTEST:
o . t-
EDNA OLIVER, City Clerk
APPROVFD-
INTRODUCED, READ and PASSED on SECOND READING this 28th
day of March , 1972.
ATTEST:
CL4
EDNA OLIVER, City Clerk
� le
C. GLEN WALKER, Mayor
-10-
APPROVED:
d
NEEL RICHA Q N, City Attorney
INTRODUCED, READ and PASSED on THIRD and FINAL READING this
2nd day of Ma , 1972•
C. GLEN WALKER, Mayor
ATTEST:
E N OLIVER, City Clerk
APPROVED:
E RIC Q ON, ,ty Attorney
-11-
{ ,�...T,�_a_as�-- w, ?.o.���.. .._LL...a��..4,W a� ,..._Y__ _.�... -� .�,• ..._ �_..__, m.•.o_.., n_..,._.._ �- ..�....__._�r•.��. :�..,..�H,�_ . �,. .�w,��.,.�,�...._.,_,e�.�.�...�
r•
h �
- X15
0
'A
N
a
13NNVND
a
A
P
z �
ip
c
e
>
Z
n
x
D
N
- -CAI \• •
G
zdrl
0
nf-�
)•< r
LP
Fl pr-0
�a
3N