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HomeMy WebLinkAbout04018 ORD - 12/29/1954. .+.war.�p....o�wW, ''L•SY • t 1.31. ��t. k•XlnAA.Y u.N+SL °"- "�r.�J.s�.� ORDINANCE N0. I/ GRANTING A FRANCHISE TO HOUSTON NATURAL GAS CORPORATION AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI GRANTING TO HOUSTON NATURAL GAS CORPORATION THE RIGHT, PRIVI- LEGE AND FRANCHISE TO CONSTRUCT AND OPERATE GAS PIPES AND MAINS ALONG THE STREETS, AVENUES, ALLEYS AND PUBLIC PLACES OF THE CITY OF C0BPU8 CHRISTI AS FULLY DESCRIBED IN SUCH ORDINANCE FOR DISTRIBUTION AND SALE OF NATURAL GAS - PROVIDING THAT WORK BE DONE UNDER SUPERVISION OF THE CITY'S DIRECTOR OF PUBLIC WORKS - EBTABLISHING DESIGN CRITERIA Alm STANDARDS - PROVIDING FOR EX- TENSIONS TO NEW CUSTOMERS - 888381IDG TO CITY THE RIGHT OF REGULATION - PROVIDING FOR GAS OF GOOD QUALITY - PROHIBITING INTERFERENCE WITH DRAINAGE - PROVIDING THAT SAID FRANCHISE 18 NOT EXCLUSIVE - RESERVING TO CITY THE RIGHT TO INSPECT METERS - PROHIDITING INTERFERENCE WITH SEWERS AND OTHER PIPES AND DRAINS - RESERVINO RIGHT TO CITY TO REPAIR STREETS AT CORPORATION'S COST IN EVENT OF UNREASONABLE DELAY - REQUIRING REMOVAL OF RUBBISH AND MATERIAL - SUBJECTING WORK OF REFUSING AND REPAIRING EXCAVATIONS AND STREETS TO SUPERVISION OF THE CITY'S 00430TOR OF PUBLIC WORKS - LIMITING INTERFERENCE WITH USE OF STREETS FOR TRAVEL - RESERVING TO CITY FULL REGULATORY POWERS - PROVIDING FOR BOND - RESERVING TO CITY RIGHT TO DECIDE CONFLICTING AMENS UNDER THIS FRANCHISE AND OTHER FRANCHISES - REQUIRING RELOCATION OF PIPES TO ACCOF8d0DATE PUBLIC WORKS - RESERVATION OF LIEN BY CITY TO TOME MONIES DUE CITY UNDER FRANCHISE AND FOR TAXES - PROVIDING FRAN- CHISE SHALL NOT IMPAIR RIGHT OF CITY TO PRESCRIBE CHARGES - aPRESCRIBING CONSIDERATION FOR FRANCHISE - PROVIDING POR PAYMENT BY SAID CORPORATION TO CITY OF TWO PER CENT (2$) OF GROSS RECEIPTS FROM SALE OF GAS 1N TERRITORY COVERED HY AND INCLUDED IN THIS FRANCHISE - REQUIRING ANNUAL STATEMENT TO CITY - REQUIRING PROPER MAINTENANCE OF PIPEAGE SYSTEM - PRESCRIBING TERM OF FRANCHISE AND OPTION OF CITY TO PURCHASE DEFINED PHYSICAL PROPERTIES OF THE CORPORATION AND PRESCRIBING BASIS FOR VALUATION AND PROCEDURES TO BE FOLLOWED - PRESCRIBING TERMS OF FORFEITURE - PROVIDING FOR AN APPEAL - RESERVING RIGHT TO CITY TO REGULATE CORPORATION - SUBJECTING BOOKS AND RECORDS OF CORPORATION TO EXAMINATION AND INSPECTION - MAKING PRANCHISE BINDING ON CORPORATION'S SUCCESSORS OR ASSIGNS - FIXIIKt GENERALLY THE RIGHTS OF THE PARTIES UNDER SUCH FRANCHISE AND FIXING PENALTIES - AND PROVIDING FOR PUBLICA- TION. Lioi? BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI: SECTION 1. There is hereby granted to Houston Natural Gas Corporation, a Texas corporation with its domicile and principal place of business at Houston, in Harris County, Texas, hereinafter referred to as Grantee, its successors and assigns, subject to the terms and conditions hereof, the right, privilege and franchise to construct, extend, operate and maintain, from time to time and con- tinuously during the term hereof, a plant and pipeage system, including all lines, connections and other equipment necessary and incident thereto, for the distri- bution and sale of natural gas to the people residing in and the industrial, commercial, educational and other institutions located in the portion or portions of the City of Corpus Christi as designated and described in SECTION 3 hereof at such rates as the City Council of the City of Corpus Christi shall make, from time to time, and for the transportation and sale by Grantee of natural gas in, into and through the portion or portions of the City of Corpus Christi designated and des- cribed in SECTION 3 hereof, upon, beneath, over and across the streets, avenues, thoroughfares, bridges, streams, alleys, parka, lanes and squares of said City of Corpus Christi located in the territory designated and described in SECTION 3 hereof, upon the conditions and stipulations set forth in this ordinance. SECTION 2. Throughout this ordinance the Houston Natural Gas Corporation is referred to as "Grantees, the City of Corpus Christi is referred to as "The City ", and the City Council of the City of Corpus Christi is referred to as "City Council ", and shall be so understood. SECTION 3. The territory covered by this franchise, whether within the boundaries of the corporate limits of the City of Corpus Christi at the present time or not, and to which this franchise ie, or shall become applicable as portions thereof are annexed to the City of Corpus Christi, is described as follows, to -wit: AREA 1 SOUTH ABM Beginning at the intersection of the south boundary line of Doddridge Street projected and the shoreline of Corpus Christi Bay; Thence in a southwesterly direction with the projection of the south boundary line of Doddridge Street and the south boundary line of Doddridge Street to a point in the east boundary line of Alameda Drive, same being the northwest corner of Lamar Park Subdivision; Thence in a southeasterly direction with the northeast boundary line of Alameda Drive to the intersection of the west boundary line of Airline Road; Thence in a southerly direction along and with the west boundary line of Airline Road to a point of intersection with a line parallel to and 132 feet northwest of the northwest boundary line of Section #14, Flour Bluff and Encinal Farm and Garden Tracts, same line being parallel to and 132 feet northwest of the northwest boundary line of Koolside Addition; Thence in a southwesterly direction along and with a line parallel to and 132 feet northwest of the northwest boundary line of Section #14, Flour Bluff and Encinal Farm and Garden Tracts to a point of intersection with the center line of McArdle Road; Thence in a southeasterly direction along and with the center line of McArdle Road to the most northerly corner of Section #13, Flour Bluff and Encinal Farm and Garden Tracts; Thence in a southwesterly direction along and with the northwest boundary line of Section #13, Flour Bluff and Encinal Farm and Garden Tracts and the center line of South Staples Street (Dump Road) to a point of inter- section with the southwest boundary line of Holly Road; Thence in a southeasterly direction along and with the southwest boundary line of said Holly Road to a point 180 feet southeast of the center line of South Staples Street (Dump Road); Thence in a northeasterly direction along a line 180 feet southeast of and parallel to the center line of said South Staples Street (Dump Road) to a point 180 feet southwest of the center line of a county road sometimes known as Thompson Road or Williams Drive, same being a point 180 feet S.E. of the center of South Staples Street (Dump Road) and 180 feet southwest of the northeast line of Lot 17, Block 13 of the Flour Bluff and Encinal Farm and Garden Tracts; Thence in a southeasterly direction along a line 180 feet southwest of and parallel to the northeast bounAnry line of Dote 17 to 24 inclusive, Section #13, Flour Bluff and Encinal Farm and Garden Tracts and the center line of Thompson Road or Williams Drive to a point 660 feet southeast of the center of Rodd Field Road sometimes called Langley Blvd. as now existing, same being a point on the southeast line of Lot 17, Block 28, and 180 feet southwest of the northeast line of Lot 17, Block 28 of the Flour Bluff and Encinal Farm and Garden Tracts; Thence in a northeasterly direction along a line 660 feet southeast of and parallel to the center line of said Rodd Field Road or Langley Blvd. as now existing to the mean low tideline of the Cayo Del Oso, same line being in a northeast direction along the southeast line of Lots #17, #16, and #1 of Block #28, and Lots #6 and #1 of Block #29, Flour Bluff and Encinal Farm and Garden Tracts; - Thence in a northerly direction with the meanders of the said mean low tide- line of the Cayo Del Oso to a point at the intersection of the said mean low tideline with the eastern boundary line of Ennis Joplin Road as now existing; Thence in a northerly direction along and with the eastern boundary line of said Ennis Joplin Road to a point of intersection with the northeast boundary line of Section #17, Flour Bluff and Encinal Farm and Garden Tracts; Thence in a southeasterly direction along and with the northeast boundary line of Section #17, Flour Bluff and Encinal Farm and Garden Tracts, to the west bank of Cayo Del Oso; Thence in a northeasterly direction following the meanders of the west bank of Cayo Del Oso, same being the present city limits line to its intersection with Corpus Christi Bay; Thence in a northwesterly direction with the shoreline of Corpus Christi Bay to the south boundary line of Doddridge Street, projected, being the place of beginning. The South Area or Area 1, above described, shall also include all contiguous territory, when such territory - is hereafter annexed by the City of Corpus Christi, but shall be limited to the territory lying and situated south, and southeasterly of South Staples Street (Dump Road) and of any projection or extension of such street or road. AREA 2 SOUTHWEST AREA Beginning at the intersection of the center line of Gollihar Road and on the southeast boundary line of Carroll Sane; Thence in a northeasterly direction with the southeast boundary line of Carroll lane to a point 185 feet northeast of the northeast boundary line of Houston Street; Thence in a northwesterly direction with a line that is 185 feet northeast of and parallel to the northeast boundary line of Houston Street to its inter- section with the southwest boundary line of Westgard Lane and following the southwest boundary line of Westgard Lane and its northwesterly extensions thereof to a point in the southeast boundary line of Sam Houston Addition; Thence in a southwesterly direction with the southeast boundary line of Sam Houston Addition, to the northeast boundary line of Horne Road; Thence in a northwesterly direction along and with the northeast boundary line of Horne Road and the southwest boundary line of Cliff Maus Municipal Airport to the point of intersection with the northwest line of Old Brownsville Road; Thence in a northeasterly direction along and with the northwesterly boundary line of Old Brownsville Road to a point of intersection with center line of County Road 4134 sometimes known as Hennipen Street or Kosar Road, near the southeast corner of Block #15 of the Russell Farm Tracts; Thence in a westerly direction along and with the center line of said County Road #34 sometimes known as Hennipen Street or Moser Road to a point of inter- section with a line parallel to and one - quarter (1/4) mile northwest of the center line of Old Brownsville Road as now existing; Thence in a southwesterly direction with a line parallel to and one - quarter (1/4) mile northwest of the center line of Old Brownsville Road to a point one - quarter (1/4) mile southwesterly from the center line of Lexington Blvd. right of way for a corner; Thence in a southeasterly direction along a line one - quarter (1/4) mile south- westerly from and parallel to the center line of said Lexington Blvd. right of way to the most northern corner of Southland Estates Subdivision, same line being the northeast boundary line of Lots #6 and #3, Section /4, and the north- east line of Lot #6, Section #3 of the Bohemian Colony lands; Thence in a southwesterly direction with the northwest bonndery line of said Southland Estates Subdivision to the most westerly corner of said subdivision; Thence southeast along the southwest line of Southland Estates Subdivision and the Moravian Village Subdivision and its southeasterly extension to a point 180 feet southeast of the center line of Kostoryz Road; Thence northeast with a line 180 feet southeast of and parallel to the center line of Kostoryz Road to a point in the northeast line of Lot 6, Section 2, Bohemian Colony Lamy, said point being 180 feet southeast of the center line of Kostoryz Road;/- Thence southeast along the northeast lines of Lots 46 and #3, Section 42, Bohemian Colony Lands to a point one (1) foot northwest of the southeast boundary line of Weber Road; -4- Thence northeast with a line parallel to and one (1) foot northwest of ' the southeast boundary line of Weber Road to a int of the center line of Gollihar Road; point 99.75 feet southwest Thence southeast with a line parallel to and 99.75 feet southwest of the center line of Gollihar Road a distance of 141 feet to a point, same being the most southerly corner of Houston Natural Gas Corporation's meter and regulator station site out of Lot #12, Section "A ", Paisley's Subdivision of the Hoffman Tract; Thence northeast with a line parallel to and 180 feet southeast of the center line of Weber Road to a point in the center line of Gollihar Road; Thence northwest with the center line of Gollihar Road to the southeast boundary line of Carroll Lane, the plate of beginning. The Southwest Area or Area 2, above described, shall also include all contiguous territory lying and situated southwesterly of such area, when such terri- tory is hereafter annexed to the City of Corpus Christi, but shall be limited to territory thereof lying and situated between an extension or projection of the most northwesterly line of such area, described above, and of any extension or projection of Weber Road. AREA 3 WEST AREA Beginning at the intersection of the west boundary of Poth Lane and the north boundary line of Up River (Shell)Road; Thence in a northwesterly and westerly direction along the north boundary line of Up River (Shell) Road to its intersection with the northeasterly extension of the boundary line between the Meany 55-acre tract and the Dunn 100 -acre tract, said boundary line being the east line of said Dunn tract described in a deed recorded in Volume K, on Page 90, of the Deed Records of Nuecea County, Texas; Thence southwesterly with the aforesaid extension of the common boundary line between the Meany and Dunn tracts and continuing on along said common boundary line to a corner, said corner being the most southwesterly corner of the John Dunn 14.5 -acre tract and being the southwestern corner of the tract described in a deed recorded in Volume 153, Page 421, Deed Records of Nuecea County, Texas; Thence in an easterly direction with the southerly boundary Dunn 14.5 -acre tract to its intersection with the northerly line of the said most westerly boundary line of Ebony Acres Addition No. ,Y s extension of the Volume II, Page 35 of the map or plat records of Nueces County,�Tems; Thence in a southerly direction with the northerly extension of the west boun- dary line of said Ebony Acres Addition No. 3, to the north boundary line of said Ebony Acres Addition No. 3; Thence in a westerly direction along the westerly extension of the most north- erly boundary line of said Ebony Acres Addition No. 3, and continuing along the north boundary line of the James McBride Partition a distance of 300 feet to a point for corner; Thence in a southerly direction along a line which is 300 feet west of and parallel to the west boundary line of said Ebony with the northeasterly extension of the northwest nboundary 3 to the of that certain 6.689 -acre tract as described in a deed recorded in ume e boo, Page 326, Deed Records of Nuecea County, Texas; Thence in a southwesterly direction along the said extension of the said northwest boundary of the,said 6.689 -acre tract and continuing along the said -5- northwest boundary of said tract to the most westerly corner of the said tract; Thence in a southeasterly direction along the southwest boundary line of the said 6.689 -acre tract and its southeasterly extension to the point of inter- section with a line parallel to and 360 feet southwesterly from the center line of the right of way of Lexington Boulevard as now existing; Thence in a southerly direction along said line 360 feet southwesterly and westerly from and parallel to the center line of said Lexington Boulevard right of way to a point in the center line of State Highway No. 44 as now existing; Thence in an easterly direction along the center line of State Highway No. 44 as now existing to a point of intersection with the west boundary line of Old Robstown Road; Thence in a northerly direction with the west boundary line of Old Robstown Road to the most southerly corner of Glen Royal Addition; Thence in a northwesterly direction along the southwest boundary line of Glen Royal Addition and the southwest boundary line of Villa Gardens Addition to the most westerly corner of said Villa Gardens Addition; Thence is a northeasterly direction along the northwest boundary line of Villa Gardens Addition (same being the southeast boundary line of the Paul Sturm Tract) and the southeast boundary line of Westchester Place to the place of beginning. The West Area or Area 3, above described, shall also include all contiguous territory lying and situated northeasterly, north and west of such area, when such territory is hereafter annexed by the City of Corpus Christi, but shall not include territory lying and situated south of Agnes Street (State Highway No. 44). AREA 4 INDUSTRIAL AREA In addition to the industrial rights granted and included in Areas 1, 2 and 3 above, the territory contiguous to Grantee's existing industrial transport and delivery pipe lines as the same exist at the effective date hereof, with such use being limited to customers located directly on such line and using gas for industrial purposes, a map showing such lines being on file in the office of the City Secretary, to which reference is here made. In the event of the extension of the present city limits of Corpus Christi, howsoever the same may be brought about, all of the rights, duties, lia- bilities,obligations and covenants herein set forth shall likewise apply to the portion; of the areas above described which are outside the present city limits as the same are added to the territorial limits of the City of Corpus Christi, but not otherwise. SECTION 4. Grantee, subject to the performance by it of all obligations herein assumed by it, shall have the right, subject to the Charter and ordinances -6- of The City, and the terms and conditions hereinafter set, forth, to extend, replace and repair its pipeage system now in use and hereafter constructed coextensive with the limits of the territory described in SECTION 3 hereof, but shall restore the streets upon which the pipes are extended, replaced, repaired or constructed, put- ting them in as good condition as before. Grantee shall be required, before doing any work in the streets, to first notify the Director of Public Works of its inten- tion to do so; all such work shp» be done under approved specifications and super- vision of said Director. To this end, The City hereby grants and concedes to Grantee the right and privilege to enter upon, and to construct, operate and main- tain its mains and pipes in, upon, across and along any and all of the streets, squares, parks, lanes, alleys and public thoroughfares of The City, and over and across any stream or streams, bridge or bridges, owned or controlled by The City, when approved by the Director of Public Works, and to take up paving and sidewalks in and upon said streets, alleys, and lanes, and over and across any stream or bridge, and to make such excavations as may be necessary, and to take up, construct, repair, replace, operate and maintain its pipes and lines in, along, over and across the same, such rights and privileges being restricted, however, to the terri- tory described in SECTION 3 hereof. All excavations made in any of said streets, squares, parks, lanes, alleys and bridges shall be done in such a manner as to give the least inconvenience to the public; all work shall be done speedily and all excavations and openings shall be replaced in good condition at the cost and ex- pense of Grantee, and to the satisfaction of the Director of Public Works. Grantee shall hold the City harmless on all claims for loss due to property damage or personal injury occasioned by the acts of Grantee, its servants, agents, contract- ors, and employees in exercising the rights herein granted. Wherever feasible, all paved street crossings shall be bored or punched but not cased, and all pipe lines laid in any street area shall be laid between the curb and sidewalk whenever it is possible to do so. SECTION 5. Each of the provisions herein stipulated is accepted by Grantee as a condition to the grant, and failure to comply herewith after being notified in writing through action by the City Council shall, at the option of the Council, subject this franchise to cancellation in accordance with the provisions of Section 28 hereof. SECTION 6. Grantee shall extend its pipes within the territory des- cribed in SECTION 3 hereof and shall furnish services, from time to time, as -7- r �• - - ,;... +h-- .. a .... < .*too, • .., .x....d. City Council may demand, upon a showing that one new customer for gas for every one hUndre (1009 feet of new extension has made an application in writing to take and use gas on such extension. SECTION 7. In granting this franchise, the City does not waive its regulatory powers, or any other rights, under its Charter as it now exists, or as it may be amended hereafter, nor any of its rights under the laws, present and future, of the State of Texas, nor any of its rights under present or future ordinances of said City. Any restriction or limitation on the Grantee, or reserving powers in the City by reason of the State Constitution or laws, or by reason of the City Charter, as such constitution, laws or charter now exists, or as the same may be hereafter amended, are hereby made a part hereof as restrictions and limitations on the grant hereby made and as reserving rights, privileges or options in the City to the same effect as if written herein. SECTION 8. Grantee shall furnish gas with a minimum 900 B.T.U. per standard cubic foot heating value with not more than 20 grains of total sulphur or more than one (1) grain of hydrogen sulphide per 100 standard cubic foot, as ascertained and determined, from time to time, by the City Council under its present or future regulatory powers. SECTION 9. Grantee shall not impair in any manner the natural or arti- ficial drainage of The City or its underground fixtures, and in crossing any stream, canal or waterway with its lines it shall do so in such manner as not to impair navigation or the natural drainage of the stream, and to the satifaction of the City Council. SECTION 10. The rights herein granted shall not be exclusive and The City reserves the power to grant like rights for similar uses, subsequent grants, and further reserves the right to extend its own lines and distribute gas in the territory covered by this franchise. SECTION 11. Grantee's meters shall be subject, at all reasonable times, to inspection by the authorized agents of The City. Grantee shall be subject to all ordinances now in force and all ordinances that may be hereafter passed by the City Council. SECTION 12. In making extensions or repairs to its pipeage system, Grantee shall not interfere with any sewer, water or heating pipes or public or private drains in any street, highway, alley, public easement, or other city -8- property, nor shall the same be disturbed or molested in any manner except with the consent and under the direction of the Director of Public Works. SECTION 13. If, in the opinion of the City Council, there is an un- reasonable delay by Grantee in restoring streets, highways, bridges, etc., after ""' excavations; repairs and /or extenaions have been made; The City= ahall-have; the right to restore or repair same and to require Grantee to pay the reasonable cost thereof. SECTION 14. All dirt, rubbish, and material left after the streets, highways, alleys or other public property have been restored or repaired by Grantee shall be removed by it at once. If, after such restoration or repairing, the places excavated and refilled become depressed or sink because of work done by Grantee so as not to be in as good condition as before the excavations were made, then, and in such event, Grantee shall again, and from time to time, as necessary, restore said streets, highways or alleys so that same shall be in as good condition as before the excavations were made, and upon Grantee's failure so to do The City shall have the right to make such restorations, for the reasonable cost of which Grantee shall be liable to The City. - SECTION 15. In the construction, maintenance and repair of its lines, Grantee, without express consent of the Director of Public Works, shall not per- mit the existence of any unfilled excavation or ditch in excess of a total distance of five hundred (500') feet on any public street, alley, thoroughfare and /or other public place. Any work being done, whether extensions or repairs, necessitating the excavating or tearing up of a street shall be done with all reasonable dis- patch and in such manner as not to interfere unnecessarily with the use of the street for travel. SECTION 16. The enumeration herein of special duties required of Grantee shall not be construed as a limitation of the powers and duties conferred upon The City by its Charter, the laws of the State of Texas and all present and future ordinances, and Grantee shall perform all duties required of it by the Charter and all valid ordinances of The City and the laws of the State of Texas. SECTION 17. If Grantee, in laying its pipes, comes in conflict with the rights of any other person or corporation having a franchise from The City, the City Council shall decide all questions concerning any conflicting rights of the respective parties, and shall determine the location of the structures of said parties and what changes, if any, should be made and at whose coat, and shall -9- reconcile the differences of the parties in such matter. SECTION 18. If The City, in constructing its sewers, streets, or other public works, should require any pipe or pipes of Grantee to be shifted or relo- cated, such pipe or pipes shall be promptly shifted or relocated by Grantee, at its own expense as and when required by The City. SECTION 19. For nay and all moneys which maybe justly due, or become due to The City under the provisions of this ordinance, as well as any lawful taxes which may be imposed and become due and payable to The City upon this franchise, and /or any other property of Grantee, situated within the corporate limits, The City shall have a valid and enforceable lien upon all of Grantee's property as well as the franchises and rights herein granted. SECTION 20. If any pipe or other equipment of Grantee should get out of order or in bad condition so as to affect or threaten to affect the public health, safety or conveniences of the public, Grantee, on request of the Director of Public Works, will restore same to good condition; and upon Grantee's failure so to do, The City shall have the right to remove such pipe or equipment, or put the same in good condition, for the reasonable cost of which Grantee shall be liable. SECTION 21. In granting this franchise The City reserves its rights to regulate all public utilities, including Grantee, and to regulate the rates, installation and service charges within the City agreeable to the constitution and laws of the State of Texas. SECTION 22. As further consideration for the granting of this franchise, Grantee shall pay to The City annually, during the period of this franchise, two per cent (2%) upon its annual gross receipts from the sale of gas to ultimate con- sumers at sale delivery points located within the territory covered by this fran- chise, such payment to be made on or before sixty (60) days after the end of each calendar year. SECTION 23. Grantee shall furnisp,on or before sixty (60) days after the closing of each calendar year during the life of this franchise, to the City Council,a written statement showing its gross receipts from the sale of gas in the territory covered by this franchise, for the previous calendar year, and Grantee shall simultaneously with the furnishing of the aforesaid statement, make payment to The City of the two per cent (2%) of the gross receipts as provided for in the preceding section. The books of the Grantee shall be subject, at all times, -10- to inspection by the City Council and other authorized City officials. SECTION 24. The City, at its option, after the expiration of this fran- chise may purchase the gas distribution system of Grantee upon the terms and con- ditions hereinafter set out: A. PROPERTY The property covered by this option during the time when such option may be exercised shall include the following: (1) All gas mains then owned and used by Grantee in its distribu- tion systems within the City of Corpus Christi, whether within or without areas covered by this franchise, save and except Grantee's gas mains located in the area. described as "Area 3, West Area ". (2) All gas mains then owned and used by Grantee in its distribution systems outside the City of Corpus Christi when such gas mains are directly con- nected to and dependent for gas supply upon Grantee's gas mains located inside the areas of the City described in (1) above. (3) All gas appurtenances then affixed or connected to the gas mains detailed in (1) and (2) above, including regulators, valves, fittings and meters. (4) All easements and rights of way that are then owned by Grantee and which are used exclusively in the operation of the gas mains defined in (1) and (2) above. No value shall be allocated to easements acquired by gift. (5) Such additional items of property as may be mutually agreed upon in writing between The City and Grantee. (6) For all purposes herein "gas mains" are defined to mean, and shall mean, all gas feeder and gas distribution pipe lines that are normally operated by Grantee at inlet pressures up to 25 p. s. i. g. and normally having inlet peak load operation up to 60 p.s.i. g., and being located and found in the areas specified in (1) and (2) above. This definition shall neither be construed to include any of Grantee's gas measurement and delivery facilities then functioning as city gate stations and /or as industrial delivery stations nor be construed to include any gas pipe lines then operated by Grantee as gas transmission lines, industrial gas transport lines, or industrial gas delivery lines. (7) All assignable customer contracts, security deposits, and accounts receivable of customers located in the areas above described who are then being served by Grantee. (8) No part of Grantee's industrial gas system or any of its con- tracts which provide for the sale of gas for industrial purposes shall be in- cluded within the terms of this option, it being intended that Grantee shall coati ue.to.operate its industrial gas system and-to sell gas for industrial purposes within the then city limits subsequent to the date of the expiration of this franchise under such franchise as may then be granted to Grantee. B. OPTION PRICE The price to be paid for such property, for purposes of this option, shall be the sum of: (1) The fair and reasonable value of items (1) through (6) above, inclusive, when used for the purpose for which it was intended, determined as of the date of the inventory hereinafter mentioned. Due regard shall be given to the physical condition of such property, but no allowance shalt be made for "going concern ", "franchise ", or goal will value; (2) The book cost of all additions and improvements made to such property subsequent to the date of the inventory and prior to the consummation of the purchase; (3) The book value of accounts receivable and security deposits of customers located in the areas covered by this option who are then being served by Grantee. C. PROCEDURES (1) If the City elects to exercise its option to buy such property, the City shall, at some time between the date three years and nine months from the effective date hereof and the date four years from the effective date hereof, give notice to Grantee in writing that the City contemplates the acquisition of such property. (2) Within sixty (6o) days from receipt of such notice, Grantee shall submit to the City its determination of the fair and reasonable value of such property, accompanied by a map or maps showing the locations of such proper- ties, together with a summary inventory of the various items comprising items (1) through (6), inclusive, of such property. (3) In the event no agreement is reached as to the fair and reasona- ble value of the property within sixty (60) days after receipt of Grantee's pro- posal and inventory, or by earlier agreement of the parties, an independent engineering or valuation firm shall be engaged to make an appraisal of such value of the property reported in said inventory. « ' Such independent engineering or valuation firm shall be selected by a majority vote of a committee of five persons, two of whom shall be named by the City and two by the Grantee; the fifth member shall be selected by a majority vote of the other four members of the committee. Selection of committee members and engagement of such engineering or valuation firm shall be completed not later than ninety (90) days after the above mentioned inventory is delivered. The engineers, or valuation firm, in arriving at the value of the inventoried properties, shall be governed by the following: (A). The fair value of the inventoried properties shall /be the then replacement cost, less depreciation. (8). Depreciation under (A) shall be computed on a straight line basis at three per cent (3 %) per annum from be- ginning of calendar year of installation or acquisition to end of calendar year preceding date of inventory. The City shall not be required to purchase, and the Company shall have the right to remove any meters or regulators included in the properties sub- ject to the option which, in the opinion of the independent engineers, or valuation firm, are deemed to be obsolete. The engineering or valuation firm shall make its report to such committee within thirty (30) days after engaged, and upon approval of a majority of the members such appraised value shall be accepted by both the City and the Grantee as the value of the properties included in said inventory. (4) In the event the appraised value reported to the committee is not approved by a majority of the members, another engineering or valuation firm shall, within thirty (30) days after the first report is received, be se- lected in the same manner as the first firm and for the some purpose to report within thirty (30) days after engaged. (5) If the second appraised value is not approved by a majority of the committee within fifteen (15) days after reported, then within five (5) days thereafter an average of the two appraised values shall be determined by the committee and reported to the parties as the value of the properties included in said inventory. (6) To the value of the properties reported in the inventory fur- nished to the City, however determined, there shall be added: -13- (a) The book cost of all additions and improvements to such property made subsequent to the date of the inventory and prior to the consumma- tion of the purchase; and (b) The book value of the accounts receivable and security deposits of customers located in the areas covered by this option who are then being served by Grantee. (7) The cost of the first appraisal shall be borne by the City; the cost of the second appraisal, if rejected by less than a unanimous vote, shall be borne by the party whose representatives constitute a majority of the members who disapprove of the appraised value. If the second appraisal is rejected unanimously by the City and Grantee's representatives, the cost thereof shall be borne equally by the City and the Grantee. Copies of all valuation and committee reports shall be submitted to all parties. (8) Upon the determination of the value of the properties as of the inventory date, the City Council shall call an election and submit to the proper and qualified voters of the City, at such election, as separate propositions, the following: (a) Whether the City should acquire the property subject to this option and issue bonds sufficient to pay therefor; (b) Whether the City should grant the Company (Grantee) a 30 -year extension of its franchise without the specific option rights to purchase Grantee's properties which are contained in Section 24 hereof. Such election shall be held within ninety (90) days from the date of the determination of the value of the properties as of the inventory date. (9) In the event that the City does not elect to exercise its option to buy such property within the time and in the manner herein provided, or in the event that such option is exercised and the sale and purchase is not completed by payment of the full purchase price in cash five years and three months from the effective date hereof, or within any extension of such time by reason of any event extending such period as herein provided, then such option and all rights of the City to purchase such property and the obligation of the Grantee to sell same shall be of no further force and effect and the City Council shall, if it has not previously done so, forthwith submit to the qualified voters of the city the single question of granting a franchise to the Grantee extending -14- its then present franchise for a period of thirty (30) years from the date of its termination without the specific option rights to purchase the properties which are contained in Section 24 hereof. The cost of the election shall be paid by Grantee. (10) Failure of the Grantee to timely make and furnish the infor- mation provided for in (2) above, or to make the appointment of its committee men as provided for in (3) above, if required, shall constitute a default hereunder. In the event of such default, the City is hereby authorized, at the cost and expense of Grantee, to employ an independent engineering or valuation firm to prepare a correct inventory and appraisal of the value of such property. Such appraised value shall be accepted by both the City and the Grantee as the value of such properties. (11) Time is agreed to be of the essence in complying with the pro- cedures outlined herein; however, the time for action by either party shall be extended for such period as (1) it may be restrained by judicial decree, (2) per- formance is delayed by acts of God or force majeure, or (3) performance is pre- cluded by the presence of a period of time permitting no contract by restrictions of the City Charter. (12) In the event that the committee provided for under Paragraph (3) above shall fail or refuse to act within the time provided herein, then such committee shall be subject to dismissal by either party and a new committee shall forthwith be appointed for the same purpose, in the same manner and within the same time limits as are herein provided. The total time authorized for action hereunder shall be extended to compensate for any resulting loss of time. SECTION 25. In addition to the rights, privileges, and franchise granted to Grantee, as hereinabove set forth, Grantee is hereby granted the right of ingress and egress for the purpose of serving the areas described herein and areas beyond the present city limits, including the U. S. Naval Air Training Station. SECTION 26. The rights, privileges and franchise herein granted to Grantee shall extend to and include its successors and assigns, and the terns, conditions, provisions, requirements, and agreements in this ordinance contained, and each of them, shall be binding upon the successors and assigns of Grantee. No assignment of this franchise, however, shall be binding uppn The City without its consent and approval thereof having been obtained by action of the City Council. -15- ,.k • - SECTION 27. Grantee has heretofore filed with the City its bond and obligation, in the sum of $25,000.00, conditioned that no excavations shall be made unnecessarily, and that any and all excavations made or obstructions placed in any street, alley or public grounds of the city, under this franchise, shall at all times be properly guarded by Grantee and any and all pavements, sidewalks, and intersections that maybe opened or torn up by Grantee shall be replaced speedily, properly and safely, with all reasonable dispatch and in first class manner, and such bond and obligation, or a replacement thereof, shall be continued in force and effect during the life of this franchise to cover the obligations imposed by Grantee hereunder. SECTION 28. If Grantee fails to maintain its plant and pipeage system, including all of its lines, connections and other equipment in good condition, or fails to operate the same with efficiency and at reasonable rates, or if Grantee fails to comply with the provisions of this franchise, then at the option of the City Council the Grantee shall forfeit and surrender all the rights, franchises and privileges herein granted, and the same shall terminate subject to the right of Grantee within thirty (30) days of such action of the City Council to file an action in the appropriate court or regulatory body having jurisdiction for the purpose of having such failure judicially determined. Upon the filing of such action, the forfeiture shall be suspended during the pendency of such action, sub- ject however to proper orders of the jurisdictional authority; the power here given to forfeit the franchise herein granted is in addition to the powers reserved or given to the City by other parts of this ordinance and by the Charter of said City and the laws of the State of Texas, and this section shall not be construed as limiting or restricting such other powers. SECTION 29. Each and every construction and reconstruction of Grantee's gas feeder pipe lines to effect delivery of gas to other than industrial consumers and to effect distribution of gas within residential areas, being such pipe lines that are located in any of the city streets, private or public rights of way and utility easements, shall be planned, constructed and completed in accordance with the following basic control standards: (1) In developing plans for such gas mains the basin criteria shall be: (a) A normal design pressure up to 25 p.s.i.g. and a peak load design pressure up to 60 p.s.i.g. without second stage regulation, (b) The length of pipe to be -16- used in calculations shall be the length between point of supply and end point in the system, and (c) Pipe lines shall be designed to carry a mini= volume of three hundred and forty (340) cubic feet per hour per acre to area to be served. (2) The specifications of materials used in constructing and recon- structing such gas mains and methods for protecting the same shall be as follows: (a) Seamless or welded black steel pipe shall be used and shall have properties as prescribed by the current American Standards Association specification B36.1, with Schedule 40 thereof to apply up to 6 -5/8" 0.D. pipe sizes. (b) The coating and wrapping of pipe shall conform to the equal or better of Rosson - Richards Company minimum specifi- cation RR -1 or of Pipe Line Service Company's Bitumastic specification "A ". (c) Cathodic protection shall be applied that is equal to the minimum or better of the several methods of practices generally used and accepted by the gas pipe line industry, ex- cept that D. C. rectifier methods shall not be used. (3) When the City's Director of Public Utilities and the Grantee's Chief Engineer agree in writing upon the necessity for an exception to the basic design criteria set forth in (1) above and /or to any specification set forth in (2), next above, and when their such writing also reflects their agreement upon a substituting criteria and /or specification to apply, then their agreed deviation from the basic control standards in Item (1) and /or (2) above shall be authorized, provided, how- ever, that such signed agreement shall be in the custody of the Grantee's Chief Engineer before performing deviating construction or reconstruction. Otherwise, the basic control standards provided in (1) and /or (2) above shall continue in force and effect and shall be followed. (4) Within thirty (30) days following the effective date of this franchise, Grantee shall furnish to the City's Director of Public Works two prints of its block maps showing thereon all gas feeder and gas distribution pipe lines being operated by Grantee within the design criteria set forth in (1) above. Thereafter, as to each construction and reconstruction of such pipe lines the Grantee qhnil furnish the City's Director of Public Works a print of the final survey and, if available, a copy of the plan and plat for each such gas main in- stallation or reconstruction and will reflect thereon the location and size of -17- • such gas main, in order that the City may currently post the block maps furnished by Grantee. Grantee shall not be required to show the location of customer ser- vice lines extending from such gas mains. SECTION 30. Nothing contained in this franchise shall be construed to be a waiver of any right which The City has or may have ”ntler its charter, home - rule powers, or other authority to acquire by exercise of the power of eminent domain all or any pert of the property or properties of Grantee at any time. SECT/0N 31. Upon the faithful compliance by Grantee with the terms and conditions of this ordinance, Grantee shall have and enjoy the rights, powers and privileges herein granted for a term ending and expiring five (5) years from and after the effective date of this ordinance. SECTION 32. The Grantee herein shall have the right to appeal to the City Council any act or omission, decision or order of any representative of the. City which may affect its rights, duties or obligations hereunder. Notice of such appeal shall be in writing and delivered to the City Secretary within fifteen (15) days after such act, omission, decision or order. SECTION 33. Simultaneously with the final passage of this ordinance Grantee sham file its written acceptance of same with the City Secretary. SECTION 34. This ordinance shall be effective January 1, 1955, follow- ing its passage, approval and publication as.provided by the City Charter. The foregoOg ordinance was read and passed to the second reading on the /J. day of 1954, by the following vote: P. C. Callaway Elroy King James S. Naismith D. James Brace F. P. Peterson, Jr. The foregoing ordinen ���yJ�as rend the second time and passed to the third reading on the 7 day of N- e_c_x„. -. , 1954, by the following vote: P. C. Callaway Ellroy King James S. Naismith D. James Brace P. P. Peterson, Jr. - The foregoing ordinance was read the third time and passed and ordered- - approved by the Mayor, on the .? day oY y,,,A,,,/ , 1954, by the following vote: P. C. Callaway Ellroy King James S. Naismith D. James Brace F. P. Peterson APPROVED this day of APPROVED AS TO LEGAL FORM: , 1954. -19- MAYOR City of Corpus Christi, xa /, !, , u' I /F, .1 I p / r August 9. 1956 }r. W. C. Dahlman, Chief Engineer Houston &atural Gas Corporation Houston. Texas Agar Sirs This is to inform you that 2 agree Kith the change in pips from specification schedule ZO to .183" wall thickness for 4.1f20 0. 1). and 6-5/80 0. D. pipe, as set forth in your letter of August 7, 1956 referring to Ordinance No. 4018, granting franchise to Houston Mature' Gas Corporation and specifically to Section 29. (2). (A) of that Ordinance. This agreement is as provided for in Section 29, (3) of that Ordinance. The specification of material change requested is in lino with practices which have teen followed in• aes System Construction by the City of Corpus Christi Gas Divi- sion since 1953. Yours very: truly, CI+'Y g7 CORPUS iR1ST G. C. Letch Director of Public Utilities HPL/ sk co _ City Manager City Attorney City Secretary, General Superintendent gas System File L. N. F W000 ALLEN CECIL E. BURNEY FRANK W. NESBITT GEORGE L. BRUNDRETT FISCHER, WOOD, BURNEY & NESBITT ATTORNEYS AT LAW 19B FLOOR ROBERT DRISCOLL BUILOINO CORPUS CHRISTI, TEXAS January 5, 1954 Mr. T. Ray Kring City Hall Corpus Christi, Texas Dear Mr. Kring: In accordance with your request, we are enclosing herewith a new certificate which provides that the bond now in the hands of the City of Corpus Christi is effective and in force to cover the obligations assumed by Houston Natural Gas Corporation or imposed upon Houston Natural in the franchise granted to us by Ordinance No. 4018. If we can be of further assistance, please advise. ;iSincerely, 'ISC , WOOD, BURNEY & NESBITT Cecil . Burney CEB :pjw Encl. E.YECUIIVE ONF[CE' NEW YORE - e.•`�� � ANEW Y088: CORPORATION City of Corpus Christi Corpus Christi, Texas Bond No. B 277474 Reference is made to P anohi.ae Bond as above numbered in ehich Houston Natural Gae Corporation is principal and the Globe Indemnity Company is surety in the sum of $25,000.00 dated Maroh 1, 1949 in favor of the City of Corpus Christi, Texas. Bond is continuous in form and is now in full force and effect and mill continue to cover on the obligations assumed by Houston Natural Gas Corporation or imposed upon Houston Nature]. Gas Corporation in the franchise granted by Ordinance No. 4018. Signed and sealed this 29th day of December, 1954. HOIIS'T[bj MEAL GAS CORPORATION 4) - -7-01irC3904V4P0r4r0WITrere'ereg-s. --- 0-WW0voNgrtrigr0 0 _4 _4,0% ®O;O :O,O;0;0 :0..,0:0 :0 :0 :o :o :o :0`0:0;0,.000 000 0 0 0000 OQOOO;O'[O] •O -' -•� 0 }y" -'^ I.O. '® INDEMNITY -1} �' COMPANY� o o it HEAD OFFICE : NEW YORK A NEW YORK CORPORATION O O O.' A STOCK COMPANY I O ®l . 0 �0 0 �0 0 !:: City of Corpus Christi Corpus Christi, Texas a ® 0, Bond No. B 277414 f;1 Reference is made to FYanchise Bond as above numbered in , which Houston Natural Gas Corporation is principal and the ti Globe Indennity Company is surety in the sum of $25,000.00 la �`0 0 •p Odated March 1, 1949 in favor of the City of Corpus Christi, i0 , Texas. �0 1 0 0 01 Bond is continuous in form and is now in full force and 1O effect and will continue to cover on franchise changes which O• 0 O PO are effective as of this date. 0 9 Signed and sealed this 29th day of December, 1954. I,0 HOUSTON T TURAL GAS CORPORATION 0' 0 , 0 p' By I O I® Secretary 0 GLOBE • e,r• 5.0 r 4 0 0_I 0 O �// o Attorney-in -Fcct 0 0 0 1O• 0 O' • o ;O io IO. 01 0 O' 0 O o' 0 0 O 0 O O 0 i0 i0 O I0 0 0 0_00,40,0,0A0,0,0,,a0a0A040A0, 0, 0,,,O ,0 40,O„t,OHO,;i0,;10,40AO,4O,0,0 ,0,0 0 0 0 0 00 000,0, 0 ACCEPTANCE OF FRANCHISE THE STATE OF TEXAS ) ) COUNTY OF NUECES KNOW ALL MEN BY THESE PRESENTS, That Houston Natural Gas Corporation, a corporation organized and existing under and by virtue of the laws of the State of Texas, having its domicile and princi- pal office in the City of Houston, Harris County, Texas, but maintaining an office in the City of Corpus Christi, Nueces County, Texas, does hereby accept that certain franchise, and all the terms and provisions thereof, granted to said Houston Natural Gas Corporation by the City of Corpus Christi, Nueces County, Texas, by Ordinance No. finally passed and approved by the City Council of the City of Corpus Christi on December 29, 1954, said Houston Natural Gas Corporation hereby files this its acceptance of said franchise as provided in Section 33 thereof, and agrees to perform and be bound by all of the terms and provisions of said franchise as finally passed and approved by the City of Corpus Christi as above mentioned. WITNESS the hands of the officers and official seal of the said Houston Natural Gas Corporation this the 2.34-1 day of December, A. D. , 1954. ATTEST: HOUSTON NATURAL GAS CORPORATION Aeaieiant Secretary PHONE 4.8209 SOUTHERN COMMUNITY GAS CO. A PUBLIC NATURAL GAS U T I L I T Y HIGHWAY 9 AT McBRIDE BOULEVARD CORPUS CHRISTI, TEXAS May 24, 1952 Ir. C.17. Vetters City Secretary Corms Christi, Texas Dear Mr. Vetters: P. 0 BOX 4179 In regard to the taxes resulting from the Franchise held with the City of Corpus Christi, our records show that the bond was not actually purchased until about January 1, 1952 and Section 29 of the ordinance reads as follows: "This Ordinance shall be effective immediately upon its passage and aprroval as provided by the City Charter and upon Grantee filing and the Mayor approv- ing the Bond as provided for in Section 24 hereof.tl It was for this reason that I did not issue instructions for the payment of taxes that would otherwise be due under this ordinance. Kindly advise if this does not correspond with your records. Yours very truly, SOUTHERN COLEUNITY GAS COMRANY Sheridan C. Lep's---::: 7 President SCL /,j s F / PHONE 4.0209 ....+.. ..xw ... P. O. BOX 299 SOUTHERN COMMUNITY GAS CO. A P U B L I C NATURAL G A B U T I L I T Y HIGHWAY 9 AT M0BRIDE BOULEVARD CORPUS CHRISTI, TEXAS January 2, 1952 City of Corpus Christi Corpus Christi, Texas ATTENTION: Mr. W. B. Collier City Manager Dear Mr. Collier: This letter is written in accordance with terms of Section 28 of the Ordinance of the City of Corpus Christi, granting this Compan>yy certain priviledge and franchise and is Hilly described and dated September 25, 1951 and this letter is to indicate our written acceptance of same and in compliance with Section 29 of said Ordinance, we are submitting for your approval a surety bond in the sum of $10,000.00, guaranteeing faith- ful performance of the terms and conditions of said Ordinance as therein described. SCL /js Encl. Yours very truly, SOIITHERN_COMMIINITY_GAS- COMPANY 1id en_ =ION bY "constrit,,ind operate gas csudg.that,mo -excavations Sha.17.".hmaddiinheCeisaAly., "t' any ziiidiaL-1.,.i_er'Laairaiipaa mole or under ,tiiies,ed.T.Or6litenlr-,gnaided.by the - _Etna- "fiktg:,—ala-e'iraa..s-,Iiitui,inibrsectiops that manner, and itiCh.'oblig, ' lack 'reneweCkitnen,iend,,,,as often as the 2yth-day of pecember; 195l. °=.a • • ,~~~__°~~ w,ryyr. +s4 {• -. _ 4 "i TAY. ✓, t . . . - ytX..✓. - . r �' _. _ - GORDON SMITH INSURANCE AGENCY P.O. Box 4065 CORPUS CHRISTI, TEXAS I 4 City of Corpus Christi Corpus Christi, Texas Gentlemen: January'19, 1956 We are enclosing for your records, Trinity Universal Insurance Company Bond /097403 issued to the City of Corpus Christi for Southern Community Gas Company, in connection with their franchise granted by the City to construct and operate gas pipe lines and mains for distribution and sale of natural gas. - This bond replaces one which was submitted to the City previously and which is now void. GRS: h Enclosure Yours very truly, REPRESENTING GORDON SMITH INSURANCE AGENCY SUPERIOR INSURANCE COMPANY lilt 'r Form No. 707 EllTIMM ill 1, THE STATE OF TEXAS 4 COUNTY OF NUECES NutiAlzakg AIME }NOW ALL NEN BY THESE PRESENTS: That fro, the SOUTHERN CONPIINITY GAS COMPANY as Principal, and the TRINITY UNIVERSAL INSURANCE COMPANY as Surety, are held and firmly bound unto the City of Corpus Christi, Texas, in the penal sum of TEN THOUSAND AND NO /100 ($10,000.00) DOLLARS, for the payment of which well and truly to be made, we bind ourselves, our heirs, executors, and administrators, jointly and severally, firmly by these presents. WHEREAS, the SOUTHERN CONNJNITY GAS COMPANY has been granted a franchise by the City of Corpus Christi to construct and operate gas pipes and mains along the streets, avenues, alleys and public places of a portion of the City of Corpus Christi, for distribution and sale of natural gas; THE CONDITIONS of this obligation are such that no excavations shall be made unnecessarily, and that any and all excavations made or obstructions placed in any street, alley or public grounds of the City, under this franchise, shall at all times be properly guarded by the Principal, and any and all pavements, sidewalks, and intersections that may be opened or torn up by the P rincipal shall be replaced speedily, properly, and safely, with all reasonable dispatch and in first class manner, and such obligation shall be renewed when and as often as the City Council shall require. NOW THEREFORE, if the said Principal shall comply with all of the conditions of the foregoing ordinance, then this obligation to be null and void and of no effect; otherwise to remain in full force and effect. WITNESS GQR HANDS, this the 27th day of December, A. D., 1955. SOUTBE_RN COIg4JNTTY GAS COIiPANY APPROVED: Mayor _w -r B /l— e.e/cicc. yo TRINITY UNIVERSAL INSURANCE COMPANY 83360 — defiled -11„ r ,.aitIBM y.,.Y v TRINITYI��� rR1 UNIVBRSAL `"'9'�,a.:.":.;"""°,y.,r .. a .. x .,oar o+dvL+p+FYNSY+wn+- . , � rid el: � I,. • �. ,: ; .e,, °..ks., ,„.>�a.y.;a.,• - w,P..hy,.y,wA:M POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS. " ' ' Thal TRINITY UNIVERSAL INSURANCE COMPANY, a Texas Corporation, in pursuance of authority granted by that certain resolution adopted at regular muting of W Board of Dt,. ., held at the office of the Company, in the City of Dollar, Texas, on the twenty -third doy of January, 1937 and of which the following is a True, full and complete copy: "temIYed, That Me P;.,Aent, any Vin Pr.sidmh or any 5eaetmy of Mk Campan� b. red they an hereb y o,,h&io.d o d ' ,weed t aka, umM a d deices In 9.901! .f Me Cempan, ante sud, person o. ursens king wlM,n he Unimd 51,5, ,f Arn'ma, M.y y s lea, Its Power of Atmmey con entering a d .ppomfng eod, .0* p. ,f Ana y.l .Pon. i h full r del amherur 1. k.. an n' aer.., ter 11, i 0,9 In 1 9M If yMya I 9.o o,, told rMa b. r.a 1 .d In thh. ,p.,lf. cede M1 I a melon and ,naialanr, bo,n a ei r,M bona. 7. darll,ebil,h rodw .ucM1 a,w.a onno nay mtma egd'. m M In eechlid,elrk:.'tr etmm od. e'' e{ 17ia m . red. fir und.,tuk rep. a„ M' mended eta regular m..n„ g of its Board of Dauton held at Me office of the Company, 9, the City of Dallas, Texas, on the thuty -first day of lame,,, 1951, and of which the fallowing Is o true, full and complete copy law"! u Cemea 5090Jld 00 Anon leaden of *M1e D1nro r 9.I O daMMrh F� r��rtlanhal rhand�dnmp nlaen�s nwnlmf[I tnl in2'mn Y, aM fall eM,i welsher. OWlP,Ia In Me ,alum thin,(, fir 1.119 ,paid k' a a of any of t9. allinfs ,f Me C.opo,Y er of Atrom.YrAn�FON" JOHN E. JONES, JR., CORPLS CHRISTI, TEXAS as true end lawful AHOmey,n•Foct, to make, execute, seal and deliver for and on Its behalf, as surety M The Untied Mates of AmerIcm Any and all bonds provided the penal sum of no one bond exceeds One Million and No /100 ($1,000,000,00) Dollars and to be given for the following purposes only, to -wit: Gua- ranteeing the fidelity of persons holding places of public or private trust; Guaran- teeing the performance of contracts for public or private construction including supply contracts; and all other bonds and undertakings required or permitted in all actions or proceedings or by law required. PROVIDEED that no bid or proposal bond is to be executed where the amount of the estimated contract is in excess of One Hillion and No /100 ($1,000,000.00) Dollars, and PROVIDED, No authority is extended for the execution of Open Ibnalty Bonds No authority is given to execute any bond wherein said attorney -in -fact appears as a party at interest either as principal or obligee. And the execution of sash bonds or undertakings H pursuance of 19.1. presents, Moll b me binding upon the said Company, as fully and amply, to all Intents and purposes, as If they hod been duly executed and acknowledged by M. regularly elected officers of the said Company at Its office in Dallas, Texas, in their own proper persons. In witness whereof, TRINITY UNIVERSAL INSURANCE COMPANY has mused 90 rorpnratcce cc6001 to be hereto affixed and Mew pru.nts to b duly .o...,ed by its proper officer Ws 9th day of ?Ppt#mhPr AN•s1: TRINITY UNIVERSAL INSURANCE COMPANY By L. C. Templeton,•Secretaryg. (SEAL) NI, Herbert P. Much, Vice president Slate of Texas County of Dallas m1 On this doy personally appeared Were me, a Notary Public, in and for the County of Dallas, the above named officer of TRINITY UNIVERSAL INSURANCE COMPANY, who. being duly sworn by coo, did depose and soy thal he Is Me raid officer of M. Company °foretold, and that the seal affixed to the pneding insfsament Is t e cwparo, seal of the said Campeny, and that the said corporate seal and Mrs signature as such officer were duly affixed and subscribed m the said inresament by t• authority and d,mctinn of the said Company. WI* y 9 d d I MI 6th d y f SepteMINIT 19' 55 (SEAT) My commission expires &TN. T, 1957 Bob StaCks Nomry Public 1, the undersigned, AUom•y -in -Fat of TRINITY UNIVERSAL INSURANCE COMPANY, da hereby certify that the originol POWER O RNY of whkh the foregoing is a full, Uve and correct copy, Is In full force and .Hest. In witness whereof, I have hereunto subscribed my name as AHerney -lee -Fan, and a... W �re� of the Cnmpan MI• 27th day of December 19 55 (SEAL) O $ CASON, JR, CERTIFIED COPY OF POWER OF ATTORNEY SEE CERTIFICATION orney -In -Fact i:A•{V, 45r. OFFICE OF PRESIDENT SHERIDAN C. LEWIS PHONE 4.8209 P. O. BOX 4179 SOUTHERN COMMUNITY GAS COMPANY A NATURAL GAS PUBLIC UTILITY CORPUS CHRISTI. TEXAS Mr. T. R. Kring City of Corpus Christi Corpus Christi, Texas Dear Mr. Kring: January 10, 1955 In accordance with Section 4, of An Ordinance, dated December 28, 1954, the Caption of which is as follows: ''FIXING BATES FOR SUPPLYING GAS TO CONSUMERS OTHER THAN INDUSTRIAL CON- SUMERS: MAKING SUCH RATES APPLY SPECIFICALLY TO HOUS- TON NATURAL GAS COMPANY AND SOUTHERN COMMUNITY GAS COMPANY; PROVIDING FOR EXCEPTIONS; PROVIDING FOR AN EFFECTIVE DATE; AND DECLARING AN EMERGENCY.'; we are enclosing herewith a certified copy, giving a list of those with whom we have special contracts and who are consumers of less than 200, 000 cubic feet d gas per month. For the convenience of Mr. Jerry Letch, Director of Public Utilities, a duplicate certified copy of this certificate is being for- warded to him. If there is any ommission in this certificate, I will thank you to call it to my attention and it will be corrected immediately. CC: Jerry Letch Encl. SCL /mh Yours very truly, SOUTHERN COMMUNITY GAS COMPANY r a . President January 10, 1955 I, Sheridan C. Lewis, President of the Southern Community Gas Company, in accordance with Section 4, of An Ordinance adopted by the City of Corpus Christi on December 28, 1954, under the following caption: "FIXING RATES FOR SUPPLYING GAS TO CONSUMERS OTHER THAN INDUSTRIAL CONSUMERS: MAKING SUCH RATES APPLY SPECIFICALLY TO HOUSTON NATURAL GAS COMPANY AND SOUTHERN COMMUNITY GAS COMPANY; PROVIDING FOR EX= CEPTIONS; PROVIDING FOR AN EFFECTIVE DATE„; AND DECLARING AN EMERGENCY do hereby certify that the following is a true and correct list of valid, existing contracts between this Company and the Consumers whose names are listed below: 1. Wells Brass Foundry - Navigation Blvd. - Industry - Contract 2. N. J. Cantwell - 1320 Cantwell Lane 3. G. W. Hatch - Shell Road 4. St. Theresa School,- Lantana Street 5. Mrs. Jimmie Dolan - 853 James Street 6. Mary McBride - Dolan Street 7. T. H. Parker - .Airport and Morgan 8. Houston Oil Company - Savage Lane - Industrial 9. Trade Winds Motel - 5901 Highway 89 10. Nueces Paint Company - Hereford Road - Industrial 11. Roberts Engineering and Manufacturing Co. - Navigation Blvd. 12. AA Motel - 4405 Highway #9 13. Western Natural Gas Company - 201 Westchester Drive 14. Pike's Grill - 4721 Highway #9 15. Perfection Cleaners - 4223 Highway #9 16. Fry and Easley - 3802 Highway 89 17. Broadlawn Motor Hotel - 4024 Highway 89 18. Ranch Motel - 4206 Highway #9 19. Ranch Motel - 4206 Highway 89 (2 Accts.) 20. Houston Engine and Pump Co. - McBride Lane - Industrial 21. Ralph King - Neff Lane and Whelan Drive 22. Guaranty Title and Trust Co. - Hwy. #44 at Lawrence Lane 23. Briner Paint Mdfg. Co. - 3713 Agnes St. - Industrial a4. J. B. Sefcik - 3115 Agnes Street 25. Swift -Train Company - 3200 Agnes Street 26. Parr and Williams - 3822 Agnes Street 27. San Antonio Mahcine & Supply Co. - Savage Lane 28. Bellco Fabricators - Hereford Road - Industrial , 29. Corpus Motel - 4300 Highway 89 Sheridan C. Lewis, r and in bah of SOUTHERN COMMUNITY GAS COMPANY