O57-05LONE STAR GAS COMPANY
APPLICATION TO CITY OF KENNEDALE, TEXAS
FOR APPROVAL OF COMPANYtS PROPOSED
RESIDENTIAL AND COMMERCIAL RATE SCHEDULE
FOR NATURAL GAS SERVICE
TO THE HONORABLE MAYOR AND CITY COUNCILMEN
Gentlemen:
On February 15, 1960, the Railroad Commission of Texas
issued an order revising the city gate charge to be paid to the
Transmission Division of Lone Star Gas Company by the Distribu-
tion Division for the gas the Distribution Division sells in
Texas cities and towns for use by residential and commercial
customers. This order increased the city gate charge to the
Distribution Division by 5.4
1960.
cents per MCF effective February 15,
The Railroad Commission's order was issued only after a
very thorough study had been made by the Commission of all the
facts developed during extended public hearings, which clearly
established that the city gate charge of 30 cents per MCF that
was fixed in 1942 is now wholly insufficient to compensate Lone
Star Transmission Division for the increases in its operating
expenses since that time.
These increased expenses have resulted primarily from the
increased cost of purchasing gas in the fields. Within recent
years, numerous large gas pipe lines have been constructed
from the gas producing areas of Texas, Louisiana, and Oklahoma
to virtually every section of the United States; and these new
lines have vigorously competed for all available supplies of
gas. Progressively higher wellhead prices have been offered
by these new buyers, and Lone Star has, of necessity, had to
meet these higher competitive prices for both existing gas sup-
plies and for the new reserves required to protect the present
and future requirements of our customers. Additional operating
expenses have also resulted from higher wages, taxes, costs of
materials and supplies, and from the necessity of constructing
transportation and gathering lines into more remote areas.
The Transmission Division gathers gas in the field and
transports it to the various city gates. The Distribution
Division receives and pays for the gas at the city gate and dis-
tributes it to the customerst premises. The last change in the
Distribution Division rate charged for residential and commer-
cial service was based on cost of service for the year 1951
with a city gate charge of 30 cents per MCF in effect. Since
that time the cost of serving these customers has continuously
increased, due to the higher wages, taxes, and costs of materials
and supplies. As an example,for the same pipe that in 1951
cost $100.00, the 1959 cost was $157.30. Likewise, for each
$100.00 spent in 1951 for meters, the 1959 cost was $126.70;
for trucks $140.29; and payroll cost per employee $151.60. The
cost of residential and commercial gas has now increased 5.4 cents
per MCF.
-2-
It would certainly be reasonable for Lone Star Gas Company
to request that you gentlemen authorize an adjustment in the
residential and commercial rate that would include all of the
increases in operating costs since 1951 including the 5,4 cents
per MCF in the city gate charge. However, Lone Star Distribution
Division is willing at this time to forego requesting the full
adjustment to which it is entitled if you will approve an imme-
diate adjustment in the existing rate for residential and com-
mercial service by increasing each step of the rate by 5.4 cents
per MCF. Since this is the exact amount of the increase in the
city gate charge approved by the Railroad Commission, it will
not increase the net income of the Distribution Division but
would only offset the increase in cost of gas at the city gate,
For the average residential customer on our system this
will amount to slightly more than one cent per day.
We therefore respectfully request your prompt approval of
the proposed rate schedule by the enactment of the attached
ordinance.
Sincerely yours,
LONE STAR GAS COMPANY
Vic: 'resident
Date Filed
AN ORDINANCE FIXING AND DETERMINING THE GENERAL
SERVICE RATE TO BE CHARGED FOR SALES OF NATURAL
GAS TO RESIDENTIAL AND COMMERCIAL CONSUMERS
WITHIN THE CITY LIHITS OF ,z
COUNTY, TEXS, PROVIDING
FOR THE MANNER IN WHICH SUCH RATE MAY BE CHANGED,
ADJUSTED AND AMENDED AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE CM
SECTION 1. Effecte
after the / k day of
for sales of natural gas ren
within the city limits of
a Texas corporation, its successors
termined as follows:
ith the first gas bills rendered on or
, 1960, the general service rate
o residential and commercial consumers
by Lone Star Gas Company,
and assigns, is hereby fixed and de -
Net rate shall apply to all bills paid within ten days from
monthly billing date.
In addition to the aforesaid rates, Company shall have the right
to collect such reasonable charges as are necessary to conduct its busi-
ness and to carry out its reasonable rules and regulations in effect.
The above rate is applicable to each residential and commercial
consumer per month or :for any part of a month for which gas is used at
the same location.
SECTION 2. The rate set forth in Section 1 may be changed and
amended by either the City or Company furnishing gas in the manner pro-
vided by law. Service hereunder is subject to the orders of regulatory
bodies having jurisdiction, and to the Company's Rules and Regulations
currently on file in the Company's office.
SECTION 3> The fact that there is an imperative public need
for an immediate change and adjustment in the rate for gas and gas service
furnished to residential and commercial consumers creates an emergency and
the reading and passage of this ordinance
hereby suspended and this ordinance shall
from and after the date of its passage at
thereof by the mayor.
A.D. 1960.
ATTEST;
at three separate meetings is
take effect and be in full force
a single meeting and the approval
PASSED AND APPROVED on this the ' day of
City Secretary
STATE OF TEXAS
COUNTY OF
I,
rp
that the above and foregoing
passed and approved by the
at a
Mayor
Secretary of the City of
County,. Texas, hereby certify
true and correct copy of an ordinance
of the City of
_,J , 1960, as
, in
appears
ession held on the
ay of
of record in the Minut-s of said
Book page
WIT,, ESS MY HAND AND SEAL OF SAID CITY, this the
, A.D. 1960.
--S''LL°''>%j""a
City Secretary
City of
, Texas
-2-
CERTIFICATE
3TATE OP TEXAS
COUNTY OF TARRANT 1
I,,SUS/E A. LANGFORD,'Seoretary of the Town of
Kennedale, Texas, do hereby certify that on the 20th
Day of Mayo, 1957, a SPECIAL, meeting of the Town
Council of the Town ,of Xennedale, Texas, was held,
that No C •ldres Mayor of said Town, was
present an presided at said meeting, that the follow-
ing aldermen were _present W.W. T.A. Bulin Steve Radakavich
J.R. Cunningham and Mrs. R.W. Ward
That a quorum was present.
X further certify that at said meeting a motion was
made byC9xd;peri B141.1x ancl seconded by Kr -A, Ward
that Ordinance No. 57-5 , an ordinance grant/TIE
to Lone Star Gas Company, a corporation, its successors
and assign, a franchise to furnish and supply gas to
the general public in the Town of Kennedale, Tarrant
County, Texas, be adopted by said Council of Aldermen.
I further certify that said motion was voted en and was
passed unanimouoly, all aldermen present voting in favor
of said motion,.
Witness my official signature and the seal of said
Town on this the 3,9th day of J113;7 , 1957.
ity Secretary
Town of Kennedale, Texas
(snAL)
STATE OF TEXAS 4
COUNTY OF TARRA T
S, Susie A. Langford, Secretory of the Town of Kennedaale, Tarrant
County, Texas, do hereby certify that the above and foregoing is a true
and correct copy of a formal acceptance of a franchise ordinance finally
passed and approved by said Town on May 20, 1957, and of record in Book
1, page, ,, of the Minutes of the Town; and I do further certify that
said acceptance has been duly presented to the Town Council and filed in
connection with and as a part of said,franchise ordinance.
OF WHICH, witness my official signature and the seal of said Town on
'this the s day of , 1957►
Secretary
Town of Kennedals, Texas
STATE OF Q
4
COUNTY OF .DALLAS D
WHEREAS, there was finally paaaed and approved on May 20, 1957, an
ordinance granting to Lone Star Gas Company, a corporation, its successors
aad assigns, a franchise to furnish and supply gas to the. general public
in the Town of 1{c leda1e:, Tarrant County Texan, and the environs thereof,
which'is recorded in Book 1 page 1' of the Minutes or the Town Council
.of said Townp and
i '
W' 4 ; S, Section 12 or said, ordinance provides as follows:
"SECTION 12. Company shall file its written acceptance= of
this franchise ordinance within sixty (6o) days after its final
passage and approval by said Town."
AND, W.3W , it is the desire of Lone Star Gas Company, the holder of
the rights, privileges and grants under the aforesaid franchise ordinance,-
to comply with the above -quoted provisions of Section 12 thereof.
NOW, Ti REFORE, premises considered, Lone Star Gas Company, acting by
and through its duly authorized officers, and within the time prescribed
by Section 12 quoted above, does hereby agree to and accept the franchise
granted to it by the above -described ordinance; in accordance with its
terns, provisions, conditions and,requirements, and Subject to the €:tipula-
tions and agreements therein contained.
WITNESS THE EXECUTION HEREOF, on this the ic d of June, 1957.
ATTEST:
LONE STAR GAS C ANY
Vice President