Model Franchise Agreement (Page 7 of 9) in pdf

iv.

the cost to the Gas Company for materials used in connection with the

project, and

a reasonable amount for project engineering and project administrative

costs which shall be 22.5% of the aggregate of the amounts determined in

items (i), (ii), (iii) and (iv) above.

d. The total relocation costs as calculated above shall be paid 35% by the

Corporation and 65% by the Gas Company, except where the part of the gas

system required to be moved is located in an unassumed road or in an unopened

road allowance and the Corporation has not approved its location, in which case

the Gas Company shall pay 100% of the relocation costs.

Part IV - Procedural And Other Matters

13. Municipal By-laws of General Application

The Agreement is subject to the provisions of all regulating statutes and all municipal by-

laws of general application, except by-laws which have the effect of amending this

Agreement.

14. Giving Notice

Notices may be delivered to, sent by facsimile or mailed by prepaid registered post to the

Gas Company at its head office or to the authorized officers of the Corporation at its

municipal offices, as the case may be.

15. Disposition of Gas System

a. If the Gas Company decommissions part of its gas system affixed to a bridge,

viaduct or structure, the Gas Company shall, at its sole expense, remove the part

of its gas system affixed to the bridge, viaduct or structure.

b. If the Gas Company decommissions any other part of its gas system, it shall have

the right, but is not required, to remove that part of its gas system. It may exercise

its right to remove the decommissioned parts of its gas system by giving notice of

its intention to do so by filing a Plan as required by Paragraph 5 of this Agreement

for approval by the Engineer/Road Superintendent. If the Gas Company does not

remove the part of the gas system it has decommissioned and the Corporation

requires the removal of all or any part of the decommissioned gas system for the

purpose of altering or improving a highway or in order to facilitate the

construction of utility or other works in any highway, the Corporation may

remove and dispose of so much of the decommissioned gas system as the

Corporation may require for such purposes and neither party shall have recourse

against the other for any loss, cost, expense or damage occasioned thereby. If the

Gas Company has not removed the part of the gas system it has decommissioned

and the Corporation requires the removal of all or any part of the decommissioned

gas system for the purpose of altering or improving a highway or in order to

facilitate the construction of utility or other works in a highway, the Gas

Company may elect to relocate the decommissioned gas system and in that event

Model Franchise Agreement Page 7