ORDINANCE NO. 567

AN ORDINANCE AMENDING THE EXISTING GAS FRANCHISE BETWEEN THE CITY AND ATMOS ENERGY CORPORATION, (A TEXAS AND VIRGINIA CORPORATION, WITH ITS PRINCIPAL OFFICE IN THE CITY OF DALLAS, DALLAS COUNTY TEXAS), TO PROVIDE FOR A DIFFERENT CONSIDERATION; PROVIDING AN EFFECTIVE DATE; PROVIDING FOR ACCEPTANCE BY ATMOS ENERGY CORPORATION; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW.

WHEREAS, Atmos Energy Corporation (hereinafter called “Atmos Energy” or “Company”) is engaged in the business of furnishing and supplying gas to the general public in the City, including the transportation, delivery, sale, and distribution of gas in, out of, and through the City for all purposes, and is using the public streets, alleys, grounds and rights-of-ways within the City for that purpose under the terms of a franchise ordinance heretofore duly passed by the governing body of the City and duly accepted by Atmos Energy; and

WHEREAS, the City and Atmos Energy desire to amend said franchise ordinance to provide for a different consideration;

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PANHANDLE, TEXAS: that

SECTION 1:For the purpose of calculating the franchise fee payable to the City by Atmos Energy, the definition of “Gross Revenues” contained in the franchise ordinance duly passed by the governing body of this city and accepted by Company is hereby amended to include:

  1. fees collected pursuant to the franchise agreement; and
  2. the value of gas transported by Atmos Energy for transport customers through the System of Atmos Energy to a delivery point within the City (excluding the value of any gas transported to another gas utility in City for resale to its customers within City), with the value of such gas to be established by utilizing Atmos Energy’s monthly Weighted Average Cost of Gas charged to industrial customers in the West Texas division of Atmos Energy, as reasonably near the time as the transportation service is performed.

SECTION 2:In all respects, except as specifically and expressly amended by this ordinance, the existing effective franchise ordinance heretofore duly passed by the governing body of the City and duly accepted by Atmos Energy shall remain in full force and effect according to its terms until said franchise ordinance terminates as provided therein.

SECTION 3:This ordinance shall take effect upon the first day of the calendar quarter following its final passage and Atmos Energy’s acceptance. Atmos Energy shall, within thirty (30) days from the receipt of this ordinance, file its written acceptance of this ordinance with the Office of the City Secretary in substantially the following form:

To the Honorable Mayor and City Council:

Atmos Energy Corporation, acting by and through the undersigned authorized officer, hereby accepts in all respects, on this the ____ day of ______, 201_, Ordinance No. ______amending the current gas franchise between the City and Atmos Energy Corporation.

Atmos Energy Corporation, West Texas Division

By ______

Jeffrey Foley, Vice President

SECTION 4: The City shall provide a copy of this Ordinance to Mr. Jeffrey Foley, VP of Rates and Regulatory Affairs, Atmos Energy Corporation, 5110 80th Street, Lubbock, Texas 79424, no later than ten (10) business days after its final passage and approval.

SECTION 5: It is hereby officially found and determined that the meeting at which this Ordinance is passed is open to the public as required by law and that public notice of the time, place and purpose of said meeting was given as required.

PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF PANHANDLE, TEXAS, this the 8th day of November, 2012, at which meeting a quorum was present and voting.

______

Mayor

ATTEST:

______

City Secretary