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Ennis council OKs TXU Gas item

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Ellis County Press
ENNIS - The Ennis City Commission unanimously gave approval to Texas Utilities Gas to construct, maintain, and operate pipelines and equipment in the city of Ennis for the transporting, delivery, sale and distribution of gas in, out of, and through the city for all purposes.

The city commission's unanimous approval was determined by votes cioncerning the item in public hearing and second reading during regular session Tuesday night, Jan. 2 in commission chambers at city hall.

The ordinance includes providing for the payment of a fee or charge for the use of the public rights-of-ways; and providing such fee shall be in lieu of other fees and charges, excepting ad valorem taxes; and repealing all previous gas franchise ordinances.

The City of Ennis granted TXU Gas Distribution, a Division ofTXU Gas Company, its successors and assigns, consent to use and occupy the present and future streets, alleys, highways, public places, public thoroughfares and grounds for purpose of laying, maintaining, constructing, protecting, oeprating, and repl;acing pipelines and all other appurtenant equipment to deliver, transport, and distribute gas for persons, firms, governmental entities and corporations, including all the general, public, within the city corporate limits, as such limits can be amended from time to time during the term of this franchise, said consent being granted for a term ending Dec. 31, 2015.

The city agreed to accept franchise fee payments in the amount and manner described.

On or before Feb. 15, 2001, TXU shall pay a sum of money that shall be equivalent to four percent of the following:

n The gross revenues received by TXU from the sale of gas to its residential, commercial, industrial and agricultural consumers within the corporate limits of the city during the preceding calendar quarter,

n Gross revenue of TXU derived from the lawful charges to connect gas service, impose a collection charge, and to handle returned checks from customers within the city,

n Gross revenues received by TXU for the transportation of third-party gas through TXU's local distribution system within the city to customers within corporate limits of city during the preceding calendar quarter, and

n Total value of third-party gas transported by TXU through its local distribution system within the city to customers within corporate limits of city during preceding calendar quarter.

Such payment shall be for the rights and privileges granted during the calendar quarter Jan. 1, 2001 to March 31, 2001.

Subsequent payments shall be due and payable quarterly thereafter on or before the 15th day of the second month following the end of the calendar quarter upon which said payment is based, with last payment being made on Nov. 15, 2015.

It's agreed gross revenues exclude taxes imposed by law on customers TXU is obligated to collect and which TXU passes on, in full, to the applicable tax authority or authorities; any investment income earned by TXU; and uncollected accounts.

It's also agreed the aforesaid payments shall be in lieu of any and all other and additional occupation taxes, easement, franchise taxes or charges, municipal license, permit, and inspection fees, bonds, street taxes, and street or alley rentals or charges, and all other and additional municipal taxes, charges, levies, fees, and rentals of whatsoever the city can impose or levy and collect from TXU, excepting only the usual general or special ad valorem taxes, which the city is authorized to levy and impose upon real and personal property.

In order to determine gross revenues received by TXU from the sale of gas to customer within corporate limits of the city, the company agreed that on the same date that the quarterly payments are made, it will file with City Secretary Shirley Trull a report showing gross revenues received by TXU from the sale of gas within the city during the calendar quarter preceding the date of payment.

All previous ordinances of the city granting franchises for gas delivery purposes that were held by TXU will be canceled and annulled.

TXU muist file with the city secretary its written acceptance of this franchise ordinance within 60 days after its final passage and approval by the city.

If such written acceptance of this franchise ordinance is not filed by TXU, the franchise ordinance shall be rendered null and void.

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Nelson Propane

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