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O-2356-1-05ORDINANCE NO. 2356-145 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, EXTENDING UNTIL JUNE 30, 2005, THE FRANCHISE GRANTED TO ATMOS ENERGY, TO OWN, OPERATE, AND MAINTAIN A GAS DISTRIBUTION SYSTEM IN THE CITY OF ALLEN; PROVIDING A REPEALING CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on December 24, 1953, the City Council of the City of Allen ("City") granted a gas Franchise to Lone Star Gas Company to own, operate, and maintain a gas distribution system in City; and, WHEREAS, Atmos Energy, formerly TXU Gas Company and Lone Star Gas Company, is the current holder of this gas Franchise in City which would have expired on August 17, 2003; and, WHEREAS, both parties desire to extend the current Franchise Agreement to January 30, 2005, as previously extended by the parties in the past; and, WHEREAS, negotiations regarding renewal of the Franchise are still underway; and, WHEREAS, both parties agree that an extension of the current Franchise under the same terms and conditions until June 30, 2005, is in their best interest; and, ' WHEREAS, City and Atmos Energy agree that the extension of this Franchise shall not be deemed a waiver by either party to exercise any right afforded by law or any defense. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, THAT: SECTION 1. The City Council hereby agrees to extend the Franchise granted to Atmos Energy, under the same terms and conditions until June 30, 2005. SECTION 2. City and Atmos Energy do not waive any claims or defenses that may exist currently or arise in the future as a result of this extension. SECTION 3. Should any word, sentence, paragraph, subdivision, clause, phrase or section of this Ordinance be adjudged or held to be void or unconstitutional, the same shall not affect the validity of the remaining portions of said ordinance which shall remain in full force and effect. SECTION 4. All provisions of the Ordinances of the City of Allen, Texas, in conflict with the provisions of this Ordinance, be, and the same are hereby, repealed, and all other provisions not in conflict with the provisions of this Ordinance shall remain in full force and effect. SECTION 5. This Ordinance shall take effect immediately from and after its passage and acceptance and it is accordingly so ordained. DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, ON THIS THE 11T" DAY OF JANUARY 2005. APPROVED AS TO FORM: ailve& Peter G. Smith, CITY ATTORNEY APPROVED: 'jiQ nap Stephen errell, MAYOR ATTEST: Shelley B. Georg C, CITV SECRETARY Ordinance No. 2356-1-05. Page 2