A.   Indemnification Of City: Company shall indemnify and hold harmless the city from any and all liability on account of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection of, the issuance of permits, or the operation of the gas facilities located in the public ways and public grounds. The city shall not be indemnified or held harmless for liability, losses, claims, proceedings or causes of action caused through its own negligence except for liability, losses, claims, proceedings or actions arising out of or alleging the city's negligence as to the issuance of permits for, or inspection of, the gas facilities or company's plans.
   B.   Defense Of City: In the event a suit, action, claim or proceeding is brought against the city under circumstances where this agreement to indemnify applies, the company shall, at its sole cost and expense, defend the city in such suit, action, claim or proceeding if written notice thereof is promptly given to the company within a period of time wherein the company is not prejudiced by lack of such notice. If the company is required to indemnify and defend the city, the company shall have control of the defense. Company may not settle such suit, action, claim or proceeding without the consent of the city, which consent shall not be unreasonably withheld. This section is not, and shall not be interpreted or shall not constitute as to third parties, a waiver of any defense or immunity available to the city. The company, in defending any suit, action, claim or proceeding on behalf of the city, shall be entitled to assert in such suit, action, claim or proceeding every defense or immunity the city could assert on its own behalf. This franchise agreement shall not be interpreted to constitute a waiver by the city of any of its defenses of immunity or limitations on liability pursuant to Minnesota law or statute.
   C.   Bond: If the city has reasonable cause to believe that MDU Resources Group, Inc., does not have the financial ability to perform its obligations under this chapter, the city may require the company to post a bond for any damages or loss suffered by city as a result of such failure including attorney fees and costs. (Ord. 922, 11-5-2012)