MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Local and Private Legislation; Ways and Means

By: Representatives Reynolds, Ryals

House Bill 1708

(As Passed the House)

AN ACT TO AMEND CHAPTER 910, LOCAL AND PRIVATE LAWS OF 1988, TO REVISE THE AREA THAT THE OAKLAND/YALOBUSHA NATURAL GAS DISTRICT MAY SERVE; TO INCREASE FROM $1,500,000.00 TO $7,500,000.00, THE AMOUNT OF REVENUE BONDS THE DISTRICT MAY ISSUE TO FINANCE THE CONSTRUCTION OF A NATURAL GAS TRANSMISSION AND DISTRIBUTION SYSTEM; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Chapter 910, Local and Private Laws of 1988, is amended as follows:

Section 1. The Town of Oakland or Yalobusha County, or both jointly, are hereby authorized and empowered to create a natural gas district to be known as the Oakland/Yalobusha Natural Gas District to provide natural gas service for the district. The physical limits of such district may include any of the area located within the following described area:

An area 5 miles on either side of the centerline of U.S.

Highway 51 beginning at the intersection of said highway

with the Panola-Yalobusha County line and running

southward along the centerline of said U.S. Highway 51

to the south corporate limits of the Town of Oakland,

Mississippi, and an area 5 miles on either side of the

centerline of the Yalobusha County highway referred to

as Old State Highway 330 and beginning at the point

where Old State Highway 330 intersects U.S. Highway 51

and extending east along said Old Highway 330 to the

western line of the area certificated to Entex, Inc.,

for service to the Town of Coffeeville, Mississippi, on

May 16, 1988;

and

Township 24 North, Range 4 East; Township 25 North, Range 4 East; Township 24 North, Range 5 East; Township 25 North, Range 5 East; and that portion of Yalobusha County, Mississippi, in Township 23 North, Range 5 East; and an area of land located in Yalobusha County, Mississippi, six miles on the other side of Mississippi State Highway 32, beginning at the intersection of Mississippi Highway 32 with U.S. Highway 51 and running thence East along the center line of said Mississippi Highway 32 to the point on the East line of Township 11 South, Range 5 West in Yalobusha County, where the center line of Mississippi Highway 32 intersects with the East line of Township 11 South, Range 5 West, less and except Sections 1, 2, 11, 12, 13, 14, 23, 24 and 25 of Township 11 South, Range 5 West and all sections in Township 10 South, Range 5 West.

It is not the intent of this act to infringe upon the certificated area of any current operating gas utility as said certificated areas exist on the effective date of this act.

In order to form the natural gas district the Mayor and Board of Aldermen of the Town of Oakland and the Board of Supervisors of Yalobusha County shall adopt a resolution which shall state that the gas district shall be formed on the date a certified copy of each resolution shall be filed with the Secretary of State's office. Such resolution shall contain a description of the area included within such district and a statement that such district is being formed pursuant to this act.

Section 2. Upon formation of the district as provided in Section 1 of this act, the Oakland/Yalobusha Natural Gas District shall be a valid political subdivision of the State of Mississippi, with the power to sue and be sued and to contract and be contracted with.

Section 3. It is hereby found and declared that the object and purpose of creating said district is to provide natural gas service to the residents of the aforesaid areas and to provide ways and means to carry out and accomplish said purpose, thereby benefiting and making more valuable the lands in said district and preserving and promoting the health, safety and convenience of the residents thereof. In order to carry out and render effective said object and purpose the courts of this state shall construe this act as an exercise by the Legislature of all the power appertaining to it, necessary for the benefit of the health, safety and convenience of the residents of the district; and the necessity in the public interest of the state at large for the provision herein enacted is hereby declared as a matter of legislative determination. All the terms and provisions of this act are to be liberally construed to effectuate the purposes herein set forth and all powers required to accomplish the purposes of this act are hereby granted and conferred, including the power to employ engineers and attorneys at such reasonable compensation as the board of commissioners shall determine. The district shall have the authority to construct and own a transmission pipeline to obtain natural gas from an interstate natural gas pipeline whether the land over which such transmission line is located is within or without the district.

Section 4. From and after the effective date of this act, the powers of the Oakland/Yalobusha Natural Gas District shall be vested in and exercised by a board of commissioners, hereinafter in this act referred to as "commission," consisting of three (3) residents of the district appointed by the Board of Aldermen of the Town of Oakland and two (2) residents of the district appointed by the Board of Supervisors of Yalobusha County. The commissioners shall serve for a term of five (5) years, and at the end of such terms the above-mentioned county and municipal governing authorities shall appoint successors for the board of commissioners.

Section 5. The commission shall have the power to make such rules and regulations as it deems necessary to the operation of the district and the subsequent appointment of commissioners and shall possess, and is hereby granted, all necessary power and authority to construct and acquire a natural gas transmission and distribution system and to issue revenue bonds to finance the construction thereof. The amount of revenue bonds authorized to be issued shall not exceed an aggregate of Seven Million Five Hundred Thousand Dollars ($7,500,000.00). Except as herein provided, all powers with respect to natural gas transmission and distribution systems granted to municipalities of this state by Sections 21-27-11 through 21-27-69, Mississippi Code of 1972, including the issuance of revenue bonds, are hereby conferred upon and may be exercised within the district by the commission as if the system and financing thereof as provided herein were pursuant to said sections.

Section 6. The commission shall have full power and authority to issue all bonds of the district; but before issuing any bonds, the commission shall adopt a resolution declaring its intention so to do, stating the amount of the bonds proposed to be issued, and the date upon which the commission proposes to direct the issuance of such bonds. Such resolution shall be published once a week for at least three (3) consecutive weeks in at least one (1) newspaper qualified under the provisions of Section 13-3-31, Mississippi Code of 1972, in each county in which part of the district lies and having a general circulation in the portion of the district which lies in such county. The first publication of such resolution shall be made not less than twenty-one (21) days prior to the date fixed in such resolution for the issuance of the bonds, and the last publication shall be made not more than seven (7) days prior to such date. If ten percent (10%) of the users of the district shall file a written protest against the issuance of such bonds on or before the date specified in such resolution, then an election on the question of the issuance of such bonds shall be called and held in the manner to be provided by the commission by rules and regulations promulgated prior to the adoption of the resolution declaring the commission's intention to issue such bonds.

Section 7. For the purposes of Section 77-3-1, Mississippi Code of 1972, the gas transmission and distribution system of the district shall be deemed to be a municipal gas system not subject to the jurisdiction of the Mississippi Public Service Commission, except as provided by Section 77-3-1, Mississippi Code of 1972, and in this act. Notwithstanding any provision to the contrary, this act shall not be interpreted to extend authority to serve areas outside the service area described in Section 1 of this act and said gas district shall have no authority to serve areas outside the service area described in Section 1 of this act.

Section 8. Any revenue bonds issued under the provisions of this act may be submitted to validation under the provisions of Sections 31-13-1 through 31-13-11, Mississippi Code of 1972.

Section 9. If any provisions of this act shall be held to be invalid by any court of competent jurisdiction, the remainder of this act shall not be affected thereby.

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Section 10. No member of the Legislature, elected official or appointed official, or any partner or associate of any member of the Legislature, elected official or appointed official shall derive any income from the issuance of any bonds under this act.

SECTION 2. This act shall take effect and be in force from and after its passage.