(a) There is hereby granted to Company, the non-exclusive right, privilege, and franchise to construct, maintain, extend, and operate its Facilities in, through, and along the Right-of-Way of the City for the purpose of supplying natural gas to the City and the inhabitants thereof for the full term of this Franchise; subject, however, to the terms and conditions herein set forth. Nothing in this grant shall be construed to franchise or authorize the use of the Company’s Facilities or the Right-of-Way by the Company or others, for any purpose other than the provision of natural gas. The Company may not allow a subsidiary, affiliate, or a third (3rd) party to acquire rights to occupy the Rights-of-Way under this Franchise; provided, that nothing in this section shall prevent Company from allowing the use of its Facilities by others when such use is compensated to the City under the provisions of this Franchise.

(b) Company shall not enter into or continue any arrangement by which natural gas owned by any other than Company shall be transported, distributed, or sold through any portion of Company’s Facilities in the Right-of-Way for delivery to any person within the City unless the City is compensated for such use by the Company, transporter, consumer, or some other party in accordance with the provisions of Ordinance No. 18296 and any amendments thereto.

(c) By this Franchise, the Company is granted the authority to collect on behalf of the City the compensation to be made to the City by other parties using the Company’s Facilities for Distribution of Transport Gas. The Company agrees to collect such sums for the City and to submit such payments in the manner provided in Section 4. Nothing in this section allowing the transportation of gas owned by others shall relieve the Company from the responsibility of complying with the franchise requirements to maintain its Facilities in the Right-of-Way. (Ord. 18295 § 2, 7-20-04.)