A. In consideration for the rights and privileges enjoyed under this Franchise, Grantee agrees to pay Grantor as follows:
1. Grantee shall pay Grantor a franchise fee the sum of which is equal to Four Percent (4%) of the Gross Receipts received by Grantee, per billing period, from the transportation, distribution, and sale of natural gas for domestic, commercial or industrial consumption within the municipal corporate limits of the City. All sums due from Grantee shall be in lieu of all other franchise, license, or occupational taxes or fees, which may be levied or attempted to be levied on Grantee by the City; however,
a. Beginning January 1, 2016 and continuing through and including the remaining term of the Franchise, Grantee shall pay Grantor a franchise fee the sum of which is equal to Four point Two Five Percent (4.25%) of the Gross Receipts received by Grantee, per billing period, from the transportation, distribution, and sale of natural gas for domestic, commercial or industrial consumption within the municipal corporate limits of the City. All sums due from Grantee shall be in lieu of all other franchise, license, or occupational taxes or fees, which may be levied or attempted to be levied on Grantee by the City.
2. Grantee shall pay Grantor a sum equal to the then-current Volumetric Rate multiplied by the number of Dth of Transport Gas transported or distributed through Grantee's system within the corporate limits of the City by Grantee or by any third-party to Transport Gas Consumers for consumption within the City.
B. Should Grantee accept any franchise from any other municipality in Oklahoma in which Grantee provides consumers with natural gas service, and should such other franchise provide for a franchise fee, exaction fee or other similar assessment greater than the applicable rate specified above in Subsection 8-7-11(A)(1) of this chapter, then the rate provided for herein shall be automatically increased as of the date of Grantee's acceptance of the other franchise to such higher rate.
C. In the event a Consumer or a Transport Gas Consumer does not pay a monthly bill from Grantee in full, Grantee shall prorate its payments of remissions to the City for sums due on that particular bill so that the amount actually paid by the Consumer or Transport Gas Consumer to Grantee on the bill is distributed to Grantee for the natural gas commodity and transportation or distribution service and to the City for sums due on the bill in proportion to the percentage of the total bill actually paid by the Consumer or Transport Gas Consumer. In the event Grantee actually collects any outstanding amounts due on a past due, unpaid or partially paid monthly bill to a Consumer or Transport Gas Consumer, then Grantee shall pay Grantor its proportionate share of sums due to the City on such bill.
D. Grantee's franchise fee based upon a percentage of gross cash receipts or a volumetric rate shall be payable monthly on or before the 25th day of each month, on its gross cash receipts of the preceding calendar month.
E. All sums due from Grantee under this Section shall be payable monthly on or before the 25 th day of each month for the preceding calendar month, which sums shall be in lieu of all other franchise, license, or occupation taxes or fees, which may be levied or attempted to be levied on Grantee by the City.
F. The City's chief administrative officer or his designee may waive the Volumetric Rate Fee or any part thereof due from a Transport Gas Consumer, but such waiver shall only be granted if:
1. The Transport Gas Consumer could otherwise obtain its energy needs from another source that would not be subject to the fees imposed in Subsection 8-7-11(A)(2) above and sufficient evidence is produced by the Transport Gas Consumer so as to substantiate such alternative source; and
2. Such alternative source, including all other fees, would be less than the cost of utilizing Grantee to furnish and transport the gas or transport alone, as the case may be.
G. Grantee shall update its records for the purpose of franchise fee payments as soon as reasonably practicable after receiving such notice.
H. In the event the accounting rendered to Grantor by Grantee is found to be incorrect, then payment shall be made on the corrected amount, it being agreed that Grantor may accept amount offered by Grantee, but the acceptance thereof by Grantor shall not be deemed a settlement of such item if the amount is in dispute or later found to be incorrect. Grantee shall have no obligation, however, to make payment upon Transport Gas for which Grantee has not been paid. Grantee shall provide notice to Grantor of such delinquent accounts within ninety days and Grantor shall hold Grantee harmless from the cost or liability for the collection of franchise fees on such delinquent accounts. (Ord. 2014-29, 8-19-2014)