Appendix B. GAS FRANCHISE

ORDINANCE NO. 2017-139

AN ORDINANCE GRANTING CENTERPOINT ENERGY RESOURCES CORP., D/B/A CENTERPOINT ENERGY LOUISIANA GAS, THE RIGHT TO CONSTRUCT, INSTALL, OPERATE AND MAINTAIN FACILITIES FOR THE TRANSPORTATION, DISTRIBUTION AND SALE OF GAS IN THE MUNICIPALITY AND, FOR SUCH PURPOSES, TO USE AND EXCAVATE IN THE PUBLIC HIGHWAYS, STREETS, SIDEWALKS, ALLEYS, SQUARES, COMMONS, GROUNDS, AND OTHER PUBLICLY OWNED AREAS AND LEVYING A FRANCHISE (PRIVILEGE) TAX FOR THAT PURPOSE.

BE IT ORDAINED BY THE MAYOR AND COMMISSION COUNCIL OF THE TOWN OF MARKSVILLE, LOUISIANA:

CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Louisiana Gas, its successors and assigns, hereinafter called "Grantee," is hereby granted the right to construct, install, operate and maintain in this municipality, as now and hereafter constituted, pipelines and related facilities for the transportation, distribution and sale of gas and for such purposes to use, and excavate in, the public highways, bridges, streets, sidewalks, alleys, squares, commons, grounds and other publicly owned areas for a period of twenty-five (25) years. The term shall automatically renew for one-year periods unless either party gives notice of termination at least ninety (90) days prior to the expiration of the then-current term; provided, however, that the term shall not exceed a total of sixty (60) years from the effective date of this franchise. Upon its timely acceptance, this ordinance shall continue in effect for a period of sixty (60) years from the date of its passage and approval as indicated below, unless terminated earlier pursuant to this ordinance.

Grantee's facilities shall be installed and operated in a workman like manner, and this Municipality shall be held harmless from any damages caused by the negligence of Grantee's employees in the course of their employment. Grantee shall tunnel beneath paved streets, sidewalks and alleys wherever practical in laying and replacing mains. Grantee shall refill its excavations and restore sidewalks and pavements promptly, and if this is not done within a reasonable time then it may be done by the Municipality at Grantee's expense. Grantee's lines shall be laid so as not to interfere with the present sewer and/or water system, and if a new sewer and/or water line crosses Grantee's pipeline at the same level, then this Municipality may, if Grantee has not done so after reasonable notice, raise or lower Grantee's line at Grantee's expense but only under Grantee's supervision. However, if any relocation of Grantee's pipelines and/or related facilities is required as a result of any project of the United States federal government or any project financed in whole or in part by the United States federal government, then the Municipality shall pay Grantee the costs and expenses incurred by Grantee in relocating Grantee's pipelines and/or related facilities up to but not greater than the amount prescribed or allocated in the grant for the relocation of the Grantee's facilities. The amount paid shall not exceed the actual cost of relocation of Grantee's facilities.

This Municipality may inspect Grantee's construction work at any time, or have said work inspected by a qualified engineer.

The point of delivery of gas to the consumer shall be at the inlet to the consumer's meter, and service pipe and facilities necessary to safely receive and utilize the gas at and beyond that point of delivery shall be furnished and maintained by the consumer, except that Grantee shall furnish and connect the gas meter. Title to all equipment installed by Grantee shall remain in Grantee, and Grantee shall have the unqualified right to use, extend, repair, replace, change, abandon or remove facilities installed under the authority of this grant or any other facilities as it may determine to be necessary or desirable from time to time in the conduct of its business. Grantee will not be obligated to commence, extend or continue any particular gas service by means of facilities installed under the authority of this grant or any other facilities except as Grantee may determine the prudent management and use of its present and future gas supply and facilities to permit and in accordance with Grantee's applicable rates, rules, regulations, policies and procedures, including curtailment procedures, as the same may exist and be changed from time to time. Grantee may promulgate and enforce reasonable rules, regulations and requirements governing the sale, delivery, receipt and use of gas furnished by Grantee and the commencement and discontinuance of gas service.

Grantee's rates currently effective in this Municipality for gas service shall continue in effect until raised or lowered in the manner provided by law.

In consideration of this grant, beginning on the date Grantee files its written acceptance of this ordinance and thereafter for as long as this ordinance remains in effect in accordance with its terms, Grantee shall pay to the Town of Marksville, four and one half percent (4.5%) of Grantee's gross receipts from gas sales to residential and commercial customers located inside the city limits. If the total amount of all such taxes, fees, levies or charges for which Grantee is liable exceeds the 4.5% percent gross proceeds of such revenues, the amount in excess of such 4.5% percent shall be paid to the Town of Marksville by the Grantee. Amounts due hereunder shall be computed annually, and payments shall be made within thirty (30) days after the expiration of the year with respect to which payment is due.

This franchise ordinance will not be effective unless it is accepted by Grantee by written notice delivered or mailed to the Mayor within 90 days after the date of its passage and publication as required by law.

The provisions hereof are intended to be separate and severable, and the holding of any portion hereof to be invalid shall not affect the other portions.

PASSED AND APPROVED THIS 11th day of October 2017.