[HISTORY: Adopted by the Township Board of the Township of
Buchanan 3-1-2018 by Ord. No. 111-2018. Amendments noted where applicable.]
The Township of Buchanan, located in Berrien County, Michigan
(the "Township"), hereby grants to SEMCO Energy Gas Company, a division
of SEMCO Energy, Inc., a Michigan corporation, and its successors
and assigns, (the "Grantee") the right, power and authority to construct,
lay, operate, maintain and replace in the public streets, highways,
alleys, bridges, and other public places in the Township of Buchanan,
Michigan ("Public Ways"), all needful and proper gas pipes, mains,
conductors, service pipes and other apparatus and facilities requisite
for the manufacture, transmission and distribution of gas for all
purposes (collectively, the "Gas System") to the Township of Buchanan,
and the inhabitants thereof, and for conducting gas elsewhere to supply
neighboring cities, villages and other territories supplied with gas
by said Grantee, for a period of 30 years.
In consideration of the rights, power and authority hereby granted,
Grantee shall faithfully perform all things required by the terms
hereof.
Grantee shall not obstruct the Public Ways longer than necessary
during the work of construction or repair, and shall be restored to
as good order and condition as when Grantee commenced the work. All
of Grantee's pipes and mains shall be so placed in the highways
and other public places as not to unnecessarily interfere with the
use thereof for highway purposes. Grantee will use its best efforts
to not unreasonably interfere with or disrupt any public utility apparatus
or facilities operated by the Township and, to the extent Grantee
interferes with or disrupts any such public utility apparatus or facilities,
Grantee shall restore such apparatus or facilities to as good order
and condition as when Grantee commenced work. Grantee shall as soon
as reasonably practicable restore, at Grantee's sole cost and
expense, any portion of the Public Ways that is in any way disturbed,
damaged, or injured by the construction, maintenance, repair, removal
or operation of the Gas System to as good or better condition than
that which existed prior to the disturbance. In the event that the
Grantee fails to make such repair within a reasonable time, the Township
shall be entitled to complete the repair, and the Grantee shall pay
the costs of the repair to the Township.
The Township may require the Grantee to vacate or relocate any
portion of the Gas System at the Grantee's expense if such vacation
or relocation is necessary to secure the public health and welfare
or is otherwise required by the Township in the exercise of a governmental
function.
If eligible to join, Grantee shall subscribe to and be a member
of, or maintain present membership in, "MISS DIG," the association
of utilities formed pursuant to Public Act 53 of 1974, as amended
(MCL 460.701 et seq.). Grantee shall conduct its business in conformance with
the statutory provisions and regulations promulgated thereunder.
Grantee shall comply with all laws, statutes, ordinances, rules
and regulations regarding the installation, construction, ownership
or use of its Gas System, whether federal, state or local, now in
force or which hereafter may be promulgated. Before Grantee commences
any installation, Grantee shall secure all permits, licenses and approvals
that are required by law.
Grantee shall at all times keep and save the Township free and
harmless from all claims, losses, liabilities, causes of action, demands,
judgments, decrees, and costs and expenses of any nature (including
without limitation attorney fees and expert witness fees) resulting
solely from the acts or omissions of Grantee its officers, agents,
employees, contractors, successors, or assigns in connection with
the Gas System or the Grantee's use of the Public Ways. If any
demand is made or any action is commenced against the Township resulting
solely from Grantee's acts or omissions (or the actions of Grantee's
officers, agents, employees, contractors, successors, or assigns)
in connection with the Gas System or the Grantee's use of the
Public Ways, Grantee shall, upon notice, defend and indemnify the
Township and save it free and harmless from all loss, cost and damage
arising out of such negligent construction and maintenance. The Township
and its agents, employees, and contractors shall not be liable to
Grantee or the Grantee's customers for any interference with
or disruption in the operation of the Gas System, or the provision
of service over or through the Gas System, or for any damages arising
out of the Grantee's use of the Public Ways.
Grantee undertakes and assumes for its officers, agents, contractors,
subcontractors, and employees all risk of dangerous conditions, if
any, on or about any Township-owned or controlled property, including
the Public Ways.
The rights, power and authority herein granted, are not exclusive.
Either manufactured or natural gas may be furnished hereunder.
Grantee shall charge for gas furnished the rates, charges and
special taxes as approved from time to time by the Michigan Public
Service Commission, or its successors having authority and jurisdiction
to fix and regulate gas rates and charges, or as otherwise permitted
or required by applicable law or tariff, for the term of this franchise.
Such rates shall be subject to Commission review and change at any
time upon petition therefore being made by either said Township, acting
by its Township Board, or by said Grantee.
The franchise granted by this ordinance is subject to revocation
upon 60 days' written notice by the party desiring such revocation.
Grantee shall, as to all other conditions and elements of service
not herein fixed, be and remain subject to the rules and regulations
of the Michigan Public Service Commission or its successors, applicable
to gas service in said Township and shall provide service in accordance
with the terms and conditions set forth in its applicable tariff as
approved from time to time by the Michigan Public Service Commission
or its successors.
The words "SEMCO Energy Gas Company" and "SEMCO Energy, Inc.,"
wherever used herein, are intended and shall be held and construed
to mean and include SEMCO Energy Gas Company and its parent, subsidiaries,
successors, affiliates, and assigns, whether so expressed or not.
The word "Grantee," wherever used herein, is intended and shall be
held and construed to mean and include SEMCO Energy Gas Company, SEMCO
Energy, Inc., and the successors and assigns of each, whether so expressed
or not. Grantee may assign the rights and obligations under this agreement
as long as the Grantee provides prior written notice to the Township
of any such assignment.
The Grantee shall not be liable for failure to furnish service
as herein provided, or for any breach of the Grantee's obligations
hereunder, if such failure or breach is caused by acts of God, labor
troubles, riot, or any other causes or contingencies not reasonably
within the control of the Grantee.
Upon adoption, the Township Clerk shall deliver to Grantee a
certified copy of this ordinance. Additionally, the Township shall
publish this ordinance within 30 days of its adoption and this ordinance
shall take effect upon the day after the date of publication thereof,
continuing for a term of 30 years from that date; provided, however,
it shall cease and be of no effect after 60 days from its adoption
unless within said period the Grantee shall accept the same in writing
filed with the Township Clerk. Upon acceptance and publication hereof,
the ordinance shall constitute a contract between said Township and
said Grantee.