“City as the grantor” shall mean the City of Topeka, Kansas.

“Company as the Grantee” shall mean Kansas Gas Service, a division of ONEOK, Inc.

“Distributed” or “distribution” shall mean all sales, distribution, or transportation to any consumer for use within the City by the Company or by others through the Facilities of the Company in the Right-of-Way.

“Facilities” shall mean natural gas mains, pipes, boxes, reducing and regulating stations, laterals, conduits, and service extension, together with all necessary appurtenances thereto.

“Gross receipts” shall mean any and all compensation and other consideration derived directly or indirectly by the Company from any Distribution of natural gas to a consumer for any use, including domestic, commercial and industrial purposes, and including without limitation interruptible sales and single sales; and shall include revenues from any operation or use of any or all of the Facilities in the Right-of-Way by the Company or others including without limitation, charges as provided in tariffs filed and approved, and shall also include all fees or rentals received by the Company for the lease or use of pipeline capacity within the corporate limits of the City; but such term shall not include revenue from certain miscellaneous charges and accounts, including but not limited to delayed or late payment charges, connection and disconnection fees, reconnection fees, customer project contributions, returned check charges, and temporary service charges.

“MCF” shall mean a measurement of natural gas equal to one thousand (1,000) cubic feet. It is assumed for purposes of this Ordinance that one MCF equals one million (1,000,000) British Thermal Units.

“Public improvement” shall mean any existing or contemplated public facility, building, or capital improvement project, financed by the City, including without limitation, streets, alleys, sidewalks, sewer, water, drainage, Right-of-Way improvement, and Public Projects.

“Public project” shall mean any project planned or undertaken and financed by the City or any governmental entity for construction, reconstruction, maintenance, or repair of public facilities or improvements, or any other purposes of a public nature paid for with public funds.

“Public project for private development” shall mean a Public Project, or that portion thereof, arising solely from a request or requirement of a third (3rd) party primarily for the benefit and use of a third (3rd) party.

“Right-of-Way” shall mean present and future streets, alleys, rights-of-way, and public easements, including easements dedicated to the City in plats of the City for streets and alleys.

“Settlement prices” shall mean the settlement prices for natural gas futures contracts traded on the New York Mercantile Exchange (NYMEX) on the fifteenth (15th) day of each month as published daily in the Wall Street Journal (WSJ) on the following business day (or the next day in which a Settlement Price is published).

“Street Right-of-Way” shall mean the entire width between property lines of land, property, or an interest therein of every way publicly maintained where any part thereof is open to the use of the public for purposes of vehicular traffic, including street, avenue, boulevard, highway, expressway, alley, or any other public way for vehicular travel by whatever name.

“Transport gas” shall mean all natural gas transported by the Company or by others, but not sold by the Company, to any consumer or user within the City through the Facilities of the Company in the Right-of-Way.

“Volumetric rate” shall mean that sum measured in cents per MCF as determined by the City by ordinance or such amount as may be hereafter adjusted according to the provisions of this section. The Volumetric Rate calculation form incorporated herein as Attachment A shall be used for the recalculation of the Volumetric Rate. The recalculation shall be effective each January 1 and shall be based on Settlement Prices for the twelve (12) month period beginning in July of the second (2nd) preceding year and ending in June of the preceding year. For the fifteenth (15th) day of each month during said twelve (12) month period, the Settlement Prices for the next twelve (12) months will be summed and divided by twelve (12) to determine an average Settlement Price. The average Settlement Prices for each of the twelve (12) months shall then be summed and divided by twelve (12) and multiplied by the Volumetric Rate as defined in Ordinance No. 18296 to be effective on the date specified in said Ordinance and to be adjusted as specified in Section 5 of said Ordinance. The Volumetric Rate shall be calculated for the City in accordance with the procedures set out herein and filed with the City Clerk by July 31 of each year. (Ord. 18295 § 1, 7-20-04.)