Model Franchise Agreement (Page 3 of 9) in pdf

3. To Use Highways.

Subject to the terms and conditions of this Agreement the consent of the Corporation is

hereby given and granted to the Gas Company to enter upon all highways now or at any

time hereafter under the jurisdiction of the Corporation and to lay, construct, maintain,

replace, remove, operate and repair a gas system for the distribution, storage and

transmission of gas in and through the Municipality.

4. Duration of Agreement and Renewal Procedures.

a. If the Corporation has not previously received gas distribution services, the rights

hereby given and granted shall be for a term of 20 years from the date of final

passing of the By-law.

b. If the Corporation has previously received gas distribution services, the rights

hereby given and granted shall be for a term of 20 years from the date of final

passing of the By-law provided that, if during the 20-year term this Agreement,

the Model Franchise Agreement is changed, then on the 7

anniversary and on the

anniversary of the date of the passing of the By-law, this Agreement shall be

deemed to be amended to incorporate any changes in the Model Franchise

Agreement in effect on such anniversary dates. Such deemed amendments shall

not apply to alter the 20-year term.

c. At any time within two years prior to the expiration of this Agreement, either

party may give notice to the other that it desires to enter into negotiations for a

renewed franchise upon such terms and conditions as may be agreed upon. Until

such renewal has been settled, the terms and conditions of this Agreement shall

continue, notwithstanding the expiration of this Agreement. This shall not

preclude either party from applying to the Ontario Energy Board for a renewal of

the Agreement pursuant to section 10 of the Municipal Franchises Act.

Part III - Conditions

5. Approval of Construction

a. The Gas Company shall not undertake any excavation, opening or work which

will disturb or interfere with the surface of the travelled portion of any highway

unless a permit therefor has first been obtained from the Engineer/Road

Superintendent and all work done by the Gas Company shall be to his satisfaction.

b. Prior to the commencement of work on the gas system, or any extensions or

changes to it (except service laterals which do not interfere with municipal works

in the highway), the Gas Company shall file with the Engineer/Road

Superintendent a Plan, satisfactory to the Engineer/Road Superintendent, drawn to

scale and of sufficient detail considering the complexity of the specific locations

involved, showing the highways in which it proposes to lay its gas system and the

particular parts thereof it proposes to occupy.

Model Franchise Agreement Page 3