Model Franchise Agreement (Page 6 of 9) in pdf

b. The issuance of an insurance policy as provided in this Paragraph shall not be

construed as relieving the Gas Company of liability not covered by such insurance

or in excess of the policy limits of such insurance.

c. Upon request by the Corporation, the Gas Company shall confirm that premiums

for such insurance have been paid and that such insurance is in full force and

effect.

11. Alternative Easement

The Corporation agrees, in the event of the proposed sale or closing of any highway or

any part of a highway where there is a gas line in existence, to give the Gas Company

reasonable notice of such proposed sale or closing and, if is feasible, to provide the Gas

Company with easements over that part of the highway proposed to be sold or closed

sufficient to allow the Gas Company to preserve any part of the gas system in its then

existing location. In the event that such easements cannot be provided, the Corporation

and the Gas Company shall share the cost of relocating or altering the gas system to

facilitate continuity of gas service, as provided for in Paragraph 12 of this Agreement.

12. Pipeline Relocation

a. If in the course of constructing, reconstructing, changing, altering or improving

any highway or any municipal works, the Corporation deems that it is necessary

to take up, remove or change the location of any part of the gas system, the Gas

Company shall, upon notice to do so, remove and/or relocate within a reasonable

period of time such part of the gas system to a location approved by the

Engineer/Road Superintendent.

b. Where any part of the gas system relocated in accordance with this Paragraph is

located on a bridge, viaduct or structure, the Gas Company shall alter or relocate

that part of the gas system at its sole expense.

c. Where any part of the gas system relocated in accordance with this Paragraph is

located other than on a bridge, viaduct or structure, the costs of relocation shall be

shared between the Corporation and the Gas Company on the basis of the total

relocation costs, excluding the value of any upgrading of the gas system, and

deducting any contribution paid to the Gas Company by others in respect to such

relocation; and for these purposes, the total relocation costs shall be the aggregate

of the following:

the amount paid to Gas Company employees up to and including field

supervisors for the hours worked on the project plus the current cost of

fringe benefits for these employees,

ii.

the amount paid for rental equipment while in use on the project and an

amount, charged at the unit rate, for Gas Company equipment while in use

on the project,

iii.

the amount paid by the Gas Company to contractors for work related to

the project,

Model Franchise Agreement Page 6