MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Local and Private Legislation

By: Representative McCoy

AN ACT TO AUTHORIZE THE CITY OF BOONEVILLE AND THE TOWN OF RIENZI TO ENTER INTO AN AGREEMENT PROVIDING FOR THE SALE OF NATURAL GAS AND RELATED SERVICES BY BOONEVILLE TO RIENZI; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) In order to promote the public convenience and welfare of the citizens of the City of Booneville, Mississippi, and the Town of Rienzi, Mississippi, the governing authorities of the City of Booneville and the Town of Rienzi, in their discretion, may enter into an agreement providing for the sale of natural gas by the City of Booneville to the Town of Rienzi and for the performance of main line system maintenance services by the City of Booneville for the Town of Rienzi for any area for which a certificate of public convenience and necessity for such gas service has been issued to the Town of Rienzi by the Public Service Commission. However, before an agreement executed pursuant to this act may become effective, a joint resolution of the governing authorities of the City of Booneville and the Town of Rienzi setting forth the agreement in its entirety must be adopted by and entered into the minutes of the governing authorities of both the City of Booneville and the Town of Rienzi.

(2) Any agreement executed by the City of Booneville and the Town of Rienzi pursuant to this act must include provisions addressing the following:

(a) The City of Booneville must agree to allow a metered connection by the Town of Rienzi to Booneville's natural gas system main line at a mutually agreed upon location, as specified in the agreement, for the purpose of the sale of natural gas by the City of Booneville to the Town of Rienzi.

(b) The City of Booneville must agree to sell, and the Town of Rienzi must agree to buy, all natural gas flowing through the meter at the location specified in the agreement for such residential and commercial use as may be necessary to service the natural gas certificated area, as granted unto the Town of Rienzi by the Public Service Commission. The rate to be charged by the City of Booneville to the Town of Rienzi for such natural gas must be specified in the agreement.

(c) The City of Booneville must agree to provide, to the extent of its abilities to do so, all reasonable and necessary gas main line maintenance and line location within the certificated area held by the Town of Rienzi. The City of Booneville must agree to construct service lines within the Town of Rienzi's certificated area, for such charge or charges specified in the agreement, and the Town of Rienzi must agree to provide the gas meters for service connections. The Town of Rienzi must agree to be solely responsible for all other costs, liabilities and obligations in connection with the operation of its natural gas system, including, but not limited to, providing for necessary road bores and obtaining and recording all necessary easements. The Town of Rienzi must agree to fully indemnify and hold harmless the City of Booneville, its employees, agents, successors and assigns from any such costs, liabilities or obligations of whatever nature or form.

(d) The agreement must be for a term of one (1) year after becoming effective and may include a clause providing for the automatic renewal of the agreement each year, unless cancelled by either party, for successive periods of one (1) year each, under the same terms and conditions set forth in the agreement. The agreement shall require notice of cancellation to be given to the opposite party no less than ninety (90) days before the expiration of the current term. The agreement must specify the manner by which such notice of cancellation must be tendered to the opposite party.

(e) Any other matters deemed necessary or desirable by both the City of Booneville and the Town of Rienzi.

(3) This act shall be full and complete authority for the City of Booneville and the Town of Rienzi to render performance pursuant to the terms and conditions of an agreement executed under the authority granted by the act. While the authority conferred by this act may not be construed as an exemption from the provisions of Chapter 3, Title 77, Mississippi Code of 1972, relating to the requirements of obtaining a certificate of public convenience and necessity, the jurisdiction of the Public Service Commission to regulate rates or any other provisions of that chapter, all powers necessary to be exercised in order to carry out the intent of this act are conferred on the governing authorities of the City of Booneville and the Town of Rienzi.

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