J-3 GAS DISTRIBUTION SYSTEM

J-3-1 MUNICIPALITY AND GRANTEE

For convenience, herein, said City of Fort Pierre, South Dakota, is designated and referred to as “Municipality” and Montana-Dakota Utilities Co. is designated and referred to as “Grantee”. Any reference to either includes their respective successors and assigns.

Source:  Ord 967

Authority: SDCL 9-35

J-3-2 RIGHT AND FRANCHISE

There is hereby granted to Montana-Dakota Utilities Co., a Division of MDU Resources Group, Inc., a corporation, its successors and assigns, subject to the limitations herein stated, the right and franchise to occupy and use the streets, alleys and public grounds of the municipality as now, or hereafter constituted, for the purpose of constructing, maintaining, and operating, within, upon, and in the under the same, a gas distribution system for transmitting and distributing natural or manufactured gas or a mixture of both for public and private use. The placement and location of the system shall be by prior approval of the Common Council or its designee adopting a map identifying location of the initial system and including all additions to the natural gas distribution system.

Source:  Ord 967

Authority: SDCL 9-35

J-3-3 DISTRIBUTION SYSTEM

The Grantee shall maintain an efficient distribution system for furnishing natural or manufactured gas for public and private use at such reasonable rates as may be approved by the Public Utilities Commission of the State of South Dakota wherein said municipality is located and under such orders, rules or regulations as may be issued by any federal or state agency having jurisdiction thereof.

Source:  Ord 967

Authority: SDCL 9-35

J-3-4 GROSS HEATING VALUE

The natural gas to be supplied hereunder shall contain a monthly average gross heating value of not less than 900 BTU per cubic foot when tested at 60 degrees Fahrenheit, saturated with water vapor and under a pressure of 14.7 pounds per square inch absolute. This section shall not be construed as a requirement of minimum purchase by the municipality or its residents.

Source:

Authority: SDCL 9-35

J-3-5 NON-EXCLUSIVE FRANCHISE

This franchise shall not be exclusive and shall not be construed to prevent the Municipality from granting to any other party the right to use the streets, alleys and public grounds of the Municipality for like purposes or for other purposes as may be authorized.

Source:  Ord 967

Authority: SDCL 9-35

J-3-6 RIGHT TO REGULATE

The Municipality reserves any right it may have or hereafter acquire, under its police power, or otherwise, to control or regulate the use of said streets, alleys and public grounds by Grantee in the event of the removal of such distribution system.

Source:  Ord 967

Authority: SDCL 9-35

J-3-7 HOLD HARMLESS

The Grantee shall indemnify and defend and save and hold the Municipality, its Council Members, officers, agents and employees harmless from any and all liabilities for injury to or death of any person or from any loss or damage including attorney fees resulting due to construction, operation, and maintenance of its distribution system, and its use of the streets, alleys and public grounds of the Municipality.

Source:  Ord 967

Authority: SDCL 9-35

J-3-8 REPLACEMENT OF DISTURBED RIGHT-OF-WAYS

Should it become necessary for the Grantee, in exercising its rights and performing its duties hereunder, to interfere with any sidewalk, graveled or paved streets, roads or alleys, or any other public or private improvement, the Grantee shall repair in a workmanlike manner such sidewalk, graveled or paved streets, road, alley or other improvement after the installation of its pipes or other structures. The Grantee shall use due and reasonable care not to interfere with or damage any water mains, sewers, underground utilities or other structures or property whether private or public now in or which may hereafter be placed in said streets, alleys or other public places and shall be responsible for any such damage caused by grantee in their placement, maintenance or repair of their system.

If at any time, it shall be necessary to change the positions of any gas main or service connection of the Grantee to permit the Municipality works in public streets, such changes shall be made by the Grantee at its own expense.

Source:

Authority: SDCL 9-35

J-3-9 AUGMENTATION

Grantee shall have the right to augment its natural gas supply by the introduction and mixing of propane-air with the natural gas during peak use period, should the demand so require.

Source:

Authority: SDCL 9-35

J-3-10 RIGHT TO ASSIGN

The Grantee shall have the right to assign this franchise to any party, or corporation, but all obligations hereunder shall be binding upon its successors and assigns.

Source:

Authority: SDCL 9-35

J-3-11 ACCEPTANCE OF FRANCHISE

Within thirty (30) days after Grantee is notified of passage and final approval of this Ordinance, Grantee shall file with the finance officer of the Municipality its written acceptance of this franchise. Grantee shall upon demand pay for the cost of publishing the Ordinance.

Source:

Authority: SDCL 9-35

J-3-12 RECORDS

The Grantee shall at all times keep full and complete plans, maps and records showing the location of all natural gas lines and other facilities installed in the streets, alleys and other public places within the corporate limits. Grantee shall make available to the municipality, upon completion of the distribution system, a current map or maps identifying the location of all parts or portions of the system.

Source:

Authority: SDCL 9-35

J-3-13 EVACUATION OF PUBLIC PLACES

For purposes of carrying into effect the privileges granted hereunder, Grantee is authorized to make all necessary evacuations in streets, alleys, sidewalks and public places but such evacuation shall be carried out with reasonable dispatch and with as little interference with or inconvenience to the rights of the public as reasonable possible. In the event any obstruction caused by Grantee shall remain longer than reasonable necessary, or in the case of neglect by Grantee to safeguard any dangerous places, the Municipality may remove such obstruction or safeguard such dangerous place at the expense of Grantee and after reasonable notice to the Grantee an opportunity to make the necessary correction.

Source:

Authority: SDCL 9-35

J-3-14 TERM

This non-exclusive franchise shall continue and remain in full force and effect for a period of twenty (20) years from the date upon which this ordinance shall become effective as provided by law.

Source:

Authority: SDCL 9-35-4