Florida Public Service Commission native order document 00337-2023

OCR transcription for search; preserved printed pages are authoritative

FILED 1/20/2023 DOCUMENT NO. 00337-2023 FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Joint petition for approval of territorial agreement in Santa Rosa County, by the Okaloosa Gas District and the City of Milton.
DOCKET NO. 20220164-GU ORDER NO. PSC-2023-0060-PAA-GU ISSUED: January 20, 2023
The following Commissioners participated in the disposition of this matter:
ANDREW GILES FAY, Chairman ART GRAHAM GARY F. CLARK MIKE LA ROSA GABRIELLA PASSIDOMO
NOTICE OF PROPOSED AGENCY ACTION
ORDER APPROVING JOINT PETITION FOR TERRITORIAL AGREEMENT
BY THE COMMISSION:
NOTICE is hereby given by the Florida Public Service Commission that the action discussed herein is preliminary in nature and will become final unless a person whose interests are substantially affected files a petition for a formal proceeding, pursuant to Rule 25-22.029, Florida Administrative Code (F.A.C.).
BACKGROUND
On September 22, 2022, the City of Milton (Milton) and the Okaloosa Gas District (District), collectively the parties, filed a joint petition seeking approval of a new Territorial Agreement (Agreement) delineating their respective service boundaries in Santa Rosa County. Presently, both Milton and the District provide retail natural gas service to customers in contiguous areas in Santa Rosa County pursuant to service territories established by the Florida Legislature.
The Florida Legislature enacted Chapters 61-2489 and 29334 (1953), Laws of Florida, to establish Milton's and the District's natural gas service areas respectively. Therefore, the parties in this docket currently do not have a Commission-approved territorial agreement. The purpose of the proposed Agreement is to clearly define, by mutual agreement, specific service boundaries of the parties within Santa Rosa County and avoid duplication of services and facilities. No customers will be transferred pursuant to the Agreement. The Agreement, Laws of Florida describing Milton's and the District's current service areas, and map depicting the service boundaries are shown in Attachment A of this order.
1 Response No. 5 in Staff's First Data Request, Document No. 11469-2022.

ORDER NO. PSC-2023-0060-PAA-GU
DOCKET NO. 20220164-GU
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DECISION
Pursuant to Section 366.04(3)(a), Florida Statutes (F.S.), and Rule 25-7.0471, F.A.C., we
have 	jurisdiction 	to 	approve 	territorial 	agreements 	between 	natural 	gas 	utilities. 	Section
366.04(3)(c), F.S., defines natural gas utility to include municipalities and gas districts. Unless
we determine that the Agreement will cause a detriment to the public interest, it will be
approved.2
The Proposed New Territorial Agreement
Milton, the county seat of Santa Rosa County, is serving approximately 4,500 natural gas
customers in a defined area pursuant to Chapter 71-773, Laws of Florida.3 Chapter 71-773, Laws
of Florida, is included as Exhibit A to the petition and page 11 of 27 of Attachment A to the
order.
The Okaloosa Gas District is an independent special district created and established by
the Florida Legislature in 1953 to own and operate natural gas transmission and distribution
systems in Okaloosa County.4 In 2000, the Legislature expanded in Chapter 2000-443, Laws of
Florida, the District’s service area to include portions of Santa Rosa and Walton counties.
Chapter 2000-443, Laws of Florida, is included in Exhibit A to the petition and on pages 12
through 23 of Attachment A to this order. The District provides natural gas service to 50,996
residential, 	commercial, 	and 	industrial 	customers 	within 	its 	entire 	service 	area 	and 	to
approximately 4,800 customers in Santa Rosa County.5 In response to our staff’s first data
request, the parties explained that under the provisions of Chapter 71-773, Laws of Florida, and
Chapter 2021-262, Laws of Florida, both parties were granted the right to serve some of the same
geographic areas, which has resulted in some overlapping service areas.6
In 2021, the Florida Legislature enacted Chapter 2021-262, Laws of Florida, to expand
the service area of the District to include all of Santa Rosa and Walton counties except for
certain areas explicitly excluded.7 Specifically, the City of Milton and its rights to serve natural
gas customers within its territorial grants are excluded from the District’s service area. Chapter
2021-262, Laws of Florida, is shown in Exhibit B to the petition and on pages 24 through 26 of
Attachment A to this order.
Chapter 2021-262, Section 3(1)(a), Laws of Florida, provides the following language:
The area within the corporate limits of the City Town of Milton and the
surrounding territory presently served by the gas distribution system of said city
2 Utilities Commission of the City of New Smyrna Beach v. Florida Public Service Commission, 469 So. 2d 731 (Fla.
1985).
3 Chapter 71-773 amended Chapter 61-2489, Laws of Florida.
4 Chapter 29334, Laws of Florida.
5 Response No. 2 in Staff’s First Data Request, Document No. 11469-2022.
6 Response No. 5 in Staff’s First Data Request, Document No. 11469-2022.
7 Chapter 2021-262 amended Chapter 2000-443, Laws of Florida.

ORDER NO. PSC-2023-0060-PAA-GU
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town; however, nothing in this act shall be construed to restrict or limit the City of
Milton’s right to serve gas customers within its territorial grants and in all areas
where the district territories overlap with territories of the City of Milton
authorized by chapter 61-2489 and chapter 71-773, Laws of Florida;
The underlined language shows the amendment from Chapter 2000-443, Laws of Florida,
and is shown on page 24 of 27 of Attachment A of the order. Through this proposed Agreement,
the parties stated that they desire to clearly define their specific territorial boundaries within
Santa Rosa County, provide efficient service to customers, and avoid duplication of service and
facilities.
There are no customer or infrastructure facility transfers contemplated in this proposed
Agreement. The initial term of the Agreement is for 25 years and unless modified by mutual
agreement, the Agreement will be renewed every five years thereafter.
Conclusion
After review of the joint petition and the petitioners’ joint responses to staff’s data
request, we agree the new Agreement is in the public interest and will enable Milton and the
District to serve their current and future customers efficiently in Santa Rosa County. The
proposed Agreement will clearly define specific service boundaries within Santa Rosa County
between Milton and the District and will avoid duplication of facilities and services. Therefore,
we approve the proposed new Agreement between the City of Milton and the Okaloosa Gas
District in Santa Rosa County.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that the proposed territorial
agreement between the City of Milton and the Okaloosa Gas District in Santa Rosa County shall
be approved. It is further
ORDERED that the provisions of this Order, issued as proposed agency action, shall
become final and effective upon the issuance of a Consummating Order unless an appropriate
petition, in the form provided by Rule 28-106.201, Florida Administrative Code, is received by
the Commission Clerk, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850, by the
close of business on the date set forth in the “Notice of Further Proceedings” attached hereto. It
is further
ORDERED that in the event this Order becomes final, this docket shall be closed.

ORDER NO. PSC-2023-0060-PAA- GU
DOCKET NO. 20220164-GU
PAGE4
By ORDER of the Florida Publi c Service Commi ssion this 20th day of January, 2023.
AAW
Fl orida Publi c Serv ice Comm iss ion
2540 Sh um a rd Oak Bo ul eva rd
Ta ll a ha ssee, Florida 32399
(850) 4 13-6770
www.flo rid apsc.com
Copies furni shed: 	A copy of thi s docu ment is
provided to th e parties of record at t he tim e of
iss uance a nd , if app li cable, interested persons.
NOTICE OF FU RTH ER PROCEE DI NGS OR J UD ICIAL REVIEW
The Florida Pub li c Service Com mi ss ion 	is required by Sec ti on 	120.569( I ), Fl o rid a
Statute s, to notify parties of any adm ini strati ve hea rin g th at is ava il able under Section 120.57,
Flo rid a Statutes, as we ll as th e procedures a nd time limits that a ppl y. Thi s notice shou ld not be
cons tru ed to mean a ll requests fo r an admini strati ve hear in g will be granted or result in the re li ef
soug ht.
Mediation may be ava il ab le on a case-by-case basis. 	If med iati on is conducted, it does
not affect a s ub sta nti a ll y interested person's ri ght to a hea rin g.
The action proposed herein is preliminary in nature. Any person whose s ub stantial
interests are affected by the action proposed by this o rd er may fil e a petition fo r a forma l
proceeding, in the form provided by Rule 28- 106.20 I, Flo rid a Adm ini strative Code. 	Th is
pet iti on mu st be re ceived by th e Office of Co mmi ssion Clerk, 2540 Shumard Oak Bou levard,
Tai lahassee, Florida 323 99 -0850, by the close of bu siness on Fe bruary I0, 2023 .
In th e absence of such a petition, this order shalI become final a nd effective upon th e
issuance of a Consummating O rd e r.
Any o bj ection or protest fil ed in t hi s/ th ese docket(s) before the is suance date of th is order
is cons id ered abandoned unl ess it satis fi es the fo rego in g co ndi tions a nd is renewed within th e
spec ifi ed protest period.

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Attachment A Page 1 of 27
AGREEMENT
Section 0.1 This AGREEMENT is made and entered into this 2 4 day of May 2022, by and between The CITY OF MILTON, a municipal corporation organized and existing under the laws of the State of Florida ("Milton"), and OKALOOSA GAS DISTRICT, a special District of the State of Florida ("OGD"). Milton and OGD are hereinafter sometimes referred to singularly as "Party" and collectively referred to as "Parties".
WITNESSETH:
Section 0.2 WHEREAS, Milton is presently serving the defined area outlined in Chapter 71-773, House Bill No. 2580 (Exhibit A) and providing natural gas service to private individuals, firms, corporations, and governmental entities in Santa Rosa County; and
Section 0.3 WHEREAS, OGD is presently serving the defined areas in Okaloosa, Santa Rosa and Walton Counties as outlined in Chapter 2000-443, House Bill No. 443 (Exhibit B) and providing natural gas service to private individuals, firms, corporations, and governmental entities within the defined areas; and
Section 0.4 WHEREAS, the Parties recognize that the described areas of service as outlined in Chapter 71-773, House Bill No. 2580 and Chapter 2000-443, House Bill No. 443 provide overlapping service areas in regards to providing natural gas service to potential customers that are located in Santa Rosa County; and
Section 0.5 WHEREAS, Milton and OGD desire to clearly define, by mutual agreement, specific territorial boundaries within Santa Rosa County in order that present and future applicants for natural gas service may expeditiously obtain natural gas service from one of the Parties; and Section 0.6 WHEREAS, the respective areas of retail service of the Parties are contiguous with the result that duplication of service facilities may occur in the future unless such duplication is precluded by virtue of this Agreement; and
Exhibit "A"

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Attachment A Page 2 of 27
Section 0.7 WHEREAS, the Parties recognize that any duplication of said service facilities may result in needless and wasteful expenditures that are detrimental to the public interest; and Section 0.8 WHEREAS, the Parties desire to avoid and eliminate the circumstances giving rise to the aforesaid potential duplications and toward that end have established a Territorial Boundary Line to delineate their respective retail territorial areas with Santa Rosa County; and
Section 0.9 WHEREAS, the Parties mutually acknowledge that the jurisdiction of the Public Service Commission is limited by the legislature of the State of Florida, pursuant to section 366.04 (3) (a), Florida Statures, to approve territorial agreements or modifications of them between natural gas entities, and to resolve territorial disputes under such agreements, but does not extend to resolving or approving termination of such agreements in accordance with their terms;
Section 0.10 NOW, THEREFORE, in fulfillment of the purposes and desires aforesaid, and in consideration of the mutual covenants and agreements herein contained, which shall be construed as being interdependent, the Parties, subject to and upon the terms and conditions herein set forth do hereby agree as follows:
ARTICLE I - DEFINITIONS
Section 1.1 Natural Gas As used herein, the term "Natural Gas" shall mean: natural gas, manufactured gas, liquefied gas with air mixture, or a similar gaseous substance furnished to the public by pipeline.
Section 1.2 Milton Territorial Area As used herein, the term "Milton Territorial Area" shall mean the area highlighted in light red depicted on the map of a portion of Santa Rosa County labeled Exhibit C of this agreement.
Section 1.3 OGD Territorial Area As used herein, the term "OGD Territorial Area" shall

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Attachment A Page 3 of 27
mean the area NOT highlighted in light red depicted on the map or a portion of Santa Rosa County labeled Exhibit C of this agreement.
Section 1.4 Adjacent Parcels As used herein, the term "Adjacent Parcels" shall mean the areas highlighted with red cross hashes depicted on the map or a portion of Santa Rosa County labeled Exhibit C of this agreement that fall outside of the Milton Territorial Area that will be served by OGD or Milton as agreed upon by mutual agreement.
Section 1.5 Existing Customers As used herein, the term "Existing Customers" shall mean those natural gas customers of either Party taking service from the Party on the effective date of this Agreement.
Section 1.6 Point of Use As used herein, the term "Point of Use" shall mean the end-use natural gas facilities of a customer, as distinct from the point of connection or point of metering.
Section 1.7 New Customers As used herein, the term "New Customers" shall mean those consumers applying for natural gas service for a Point of Use in the Territorial Area of either Party beginning with the inception of this Agreement.
Section 1.8 Territorial Area As used herein, the term "Territorial Area" shall mean either or both, where appropriate, the Milton Territorial Area or the OGD Territorial Area.
Section 1.9 Territorial Boundary Line As used herein, the term "Territorial Boundary Line" shall mean the boundary line so labeled, designating the dividing line between the areas shown on Exhibit C of this Agreement, which dividing line is further described as below: An area of land situated in Santa Rosa County, Florida, shown herein as Exhibit "A" and being more particularly described as follows:
POINT OF BEGINNING of the area of land herein described, also being the northwest corner of Section 11, Township 2 North, Range 29 West in Santa Rosa County, Florida.
From said POINT OF BEGINNING; Thence, in an easterly direction, along the north line of the of the aforementioned Section 11, Township 2 North, Range 29 West, and extending along the section line to the northeast corner of Section 7, Township 2 North, Range 28, also being within the Right-of-Way of FL SR 89; Thence, running along the center of the Right-of-Way of FL SR

Attachment A Page 4 of 27
ORDER NO. PSC-2023-0060-PAA-GU DOCKET NO. 20220164-GU
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89 in a southeasterly direction to the intersection of the eastern boundary of Section 8, Township 2 North, Range 28 West; Thence, running in a southerly direction along said eastern boundary of Section 8, Township 2 North, Range 28 West to the northwest corner of Section 16, Township 2 North, Range 28 West; Thence running in a easterly direction along said northern boundary of Section 16, Township 2 North, Range 28 West to the northwest corner of Section 14, Township 2 North, Range 28 West, said point also being along the southern boundary of NAS Whiting Field; Thence running in a easterly direction along said southern boundary of NAS Whiting field boundary in an easterly and northerly direction until said boundary of NAS Whiting Field intersects with Section 1, Township 2 North, Range 28 West; Thence running in an easterly direction, along the north line of the of the aforementioned Section 1, Township 2 North, Range 28 West, and extending along the section line to the northeast corner of Section 4, Township 2 North, Range 27 West; Thence in an southerly direction, along the eastern boundary line of the of the aforementioned Section 4, Township 2 North, Range 27 West, and extending along the section line to the intersection of the centerline of Right-of-Way for US 90; Thence, running along the center of the Right-of-Way of US 90 in a southwesterly direction to the intersection of the centerline of the Right-of-Way for FL 87 S; Thence, running along the center of the Right-of-Way of FL 87 S in a southeasterly direction to the intersection of main branch of Yellow River; Thence, running along the center of the main branch of Yellow River in a westerly direction to the intersection with eastern shoreline of Blackwater Bay; Thence, running along the eastern shoreline of Blackwater Bay in a northerly direction to the intersection with the southern Right-of-Way of Interstate I-
10; Thence, running along the southern Right-of-Way of Interstate I-10 to the western shoreline of Blackwater Bay; Thence, running along the western shoreline of Blackwater Bay from the aforementioned southern Right-of-Way of Interstate I-10 in a southerly direction to where Blackwater Bay meets East Bay; Thence, running along the shoreline in a southerly direction to where East Bay meets Pensacola Bay also known as White Point; Thence, leaving White Point and running along the shoreline in a westerly direction to where Pensacola Bay meets Escambia Bay also known as Hernandez Point; Thence, running along the shoreline of Escambia Bay in a northerly direction to southern most point of Section 22, Township 1 North, Range 29 West; Thence, in an northwesterly direction, along the western line of the of the aforementioned Section 22, Township 1 North, Range 29 West to the southwest corner of Section 18, Township 1 North, Range 29 West; Thence, in an southeasterly direction, along the southern line of the of the aforementioned Section 18, Township 1 North, Range 29 West to intersection of the center of the Right-of-Way of Woodbine Rd .; Thence, running along the center of the Right-of-Way of Woodbine Rd. in a northerly direction to the Northwestern corner of Section 32, Township 2 North, Range 29 West including the following adjacent Parcels on the western side of the Right- of-Way of Woodbine Rd.,
Parcel Identification Numbers
071N290000005000000 312N29008700A000340 312N29008700C000470 312N29008700C000030 071N290000006000000 312N29008700A000360 312N29008700C000520 312N29008700C000040 071N290000010000000 312N29008700A000450 312N29008700A000050 312N29008700C000120 071N290000004000000 312N29008700A000480 312N29008700A000150 312N29008700C000420 071N290000009000000 312N29008700A000510 312N29008700A000160 312N29008700C000440 071N290000009020000 312N29008700A000520 312N29008700A000210 312N29008700C000500 071N290000015000000 312N29008700A000540 312N29008700A000220 312N29008700C000530 071N290000016120000 312N29008700A000560 312N29008700A000230 312N29008700C000540 071N290000005010000 312N29008700A000600 312N29008700A000250 312N29008700A000010 071N290000016020000 312N29008700A000650 312N29008700A000260 312N29008700A000020 071N290000016030000 312N29008700A000660 312N29008700A000370 312N29008700A000030

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071N290000016050000 312N29008700A000040 312N29008700A000380 312N29008700A000060 071N290000016070000 312N29008700A000070 312N29008700A000420 312N29008700A000080 071N290000016090000 312N29008700A000120 312N29008700A000460 312N29008700A000170 071N290000016010000 312N29008700A000140 312N29008700A000470 312N29008700A000290 071N290000016040000 312N29008700A000180 312N29008700A000500 312N29008700A000350 071N290000003020000 312N29008700A000190 312N29008700A000530 312N29008700A000400 312N29008700A000240 312N29008700A000630 312N29008700A000410
071N290000004010000 071N290000009010000 312N29008700A000270 312N29008700A000640 312N29008700A000550 071N290000012000000 312N29008700A000280 312N29008700B000010 312N29008700A000570 071N290000013000000 312N29008700A000331 312N29008700B000020 312N29008700A000680 312N29008700A000440 312N29008700B000050 312N29008700B000080 312N29008700A000580 312N29008700B000200 312N29008700B000170 312N29008700A000590 312N29008700B000210 312N29008700B000190 312N29008700A000610 312N29008700B000290 312N29008700B000250 071N290000016060000 071N290000016110000 071N290000016130000 061N290000002000000 061N290000005030000 061N290000006010000 061N290000006020000 061N290000006030000 061N290000006070000 061N290000006060000
312N29008700A000620 312N29008700C000010 312N29008700B000300 312N29008700B000060 312N29008700C000070 312N29008700B000320 312N29008700B000070 312N29008700C000100 312N29008700C000050 312N29008700B000090 312N29008700C000340 312N29008700C000080 312N29008700B000180 312N29008700C000370 312N29008700C000090 312N29008700B000220 312N29008700C000380 312N29008700C000110 061N290000006000000 312N29008700B000230 312N29008700C000430 312N29008700C000130 312N29008700A000090 312N29008700B000260 312N29008700C000450 312N29008700C000140 312N29008700A000100 312N29008700B000270 312N29008700C000460 312N29008700C000350 312N29008700A000110 312N29008700B000280 312N29008700A000670 312N29008700C000390 312N29008700A000130 312N29008700C000020 312N29008700B000030 312N29008700C000400 312N29008700A000200 312N29008700C000060 312N29008700B000040 312N29008700C000410 312N29008700A000300 312N29008700C000150 312N29008700B000160 312N29008700C000480 312N29008700A000310 312N29008700C000330 312N29008700B000240 312N29008700C000490 312N29008700A000330 312N29008700C000360 312N29008700B000310 312N29008700C000510
Thence, running in an easterly direction, along the northern line of the of the aforementioned Section 32, Township 2 North, Range 29 West and extending to the southeast corner of Section 26, Township 2 North, Range 29 West; Thence, running in an northerly direction, along the western line of the of the aforementioned Section 26, Township 2 North, Range 29 West and extending to the northeast corner of Section 11, Township 2 North, Range 29 West otherwise known as the POINT OF BEGINNING of the area of land herein described; Containing approximately 96,820 Acres of land more or less.
Section 1.10 Through Pipelines As used herein, the term "Through Pipelines" shall mean pipelines traversing the Territorial Area of the other Party but not serving customers within that Territorial Area.
ARTICLE II - RETAIL NATURAL GAS SERVICE
Section 2.1 In General Except as otherwise specifically provided herein, Milton shall have the authority to furnish natural gas service to all New Customers within the Milton Territorial Area,

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and OGD shall have the authority to furnish natural gas to all New Customers within all its Existing Customers and all New Customers in the OGD Territorial Area.
Section 2.2 Service to New Customers The Parties agree that neither of them will serve or attempt to serve any New Customer whose Point of Use is located within the Territorial Area of the other Party except as provided in Section 2.4.
If a New Customer or prospective New Customer requests or applies for service from either Party, but such Customer's Point of Use is located in the Territorial Area of the other Party, the Party receiving such a request or application shall refer such New Customer or prospective New Customer to the other Party with citation to this Agreement as approved by the Public Service Commission.
Section 2.3 The Parties recognize that, in specific instances, good engineering and safety practices or economic constraints on one of the Parties may from time-to-time indicate that small service areas and/or New Customers should not be served by the Party whose territory such areas or Customers are then located under Section 2.2. In such instances, the Parties agree to jointly and expeditiously seek approval of the Public Service Commission for modification of this Agreement in order to permit the appropriate Party to provide service to such small service areas and/or New Customers.
Section 2.4 To help facilitate the provisions of natural gas service to Customers and to minimize costs and delays in providing such service, a Party which has a gas main installed on its side of the Territorial Boundary Line may temporarily serve Customers located on the other side of such Territory Boundary Line in territory herein reserved to the other Party only (a) if requested by such other Party or (b) if such other Party is unable to provide such service within a reasonable time; provided, however, that when such temporary service is contemplated by a Party, it shall give written notice, setting forth the details of such contemplated service, to the Party in whose

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territory the Customer is located under Section 2.1 of the Agreement, and to the Public Service Commission, before installing any additional facilities needed for the provision of such temporary service. At such time as the Party in who's such Customers are located under Section 2.1 has a gas main available for providing or is otherwise able to provide natural gas service to such Customers, the Party providing temporary service pursuant to this section shall surrender any such Customers any such upon request of the Party in whose territory such Customers are located, and shall convey to such other Party, at replacement cost less depreciation, such gas mains, service lines, and appurtenances thereto previously used by the Party in providing temporary service whether or not such facilities are necessary for the provision of service by the acquiring Party and located in the territory of the Party which will provide service thereafter. Any Customer who receives the temporary natural gas service under the provisions of this section shall be notified in advance that when service becomes available from the Party whose territory such Customer is located, the Customer will be required to receive service from such Party at such Party's then- current rates, and that such temporary service is provided only as a temporary convenience to the Customer.
ARTICLE III - OPERATION, MAINTENANCE AND TRANSMISSION LINE CUSTOMERS
Section 3.1 Facilities to Remain Nothing in this Agreement is intended to affect the gate stations, regulators or gas mains of either Party which are now or which in the future be located in the service area of the other Party; provided, however, that each Party shall operate and maintain said lines and facilities in such a manner as to minimize any interferences with the operations of the other Party. No such facilities shall be used by either Party to provide retail natural gas service to Customer located in the Territorial Area of the other Party except as may be necessary to implement the provisions of Section 2.3 or 2.4 hereof. Henceforth, by mutual agreement, Okaloosa Gas may provide service to future main line industrial and institutional customers not presently

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receiving natural gas services within the Milton Territorial Area and which Milton is unable to provide the services requested. Such agreement will be documented with both parties with citation to this agreement as approved by the Public Service Commission, as outlined in Section 2.2.
ARTICLE IV - PREREQUISITE APPROVAL
Section 4.1 Public Service Commission Approval The provisions and the Parties performance of the Agreement are subject to the statutory authority of the Public Service Commission, and appropriate approval by that body of the provisions of this Agreement, or any later modification of it shall be an absolute condition precedent to the validity, enforceability and applicability of the Agreement. This Agreement shall have no effect whatsoever until that approval has been obtained, and the date of expiration of the appeal period following issuance of the Order granting Public Service Commission approval of this Agreement shall be deemed to be the effective date of this Agreement. Any proposed modification to this Agreement shall be submitted to the Public Service Commission for approval. In addition, the Parties agree to jointly petition the Public Service Commission to resolve any dispute concerning the provisions of the Agreement or the Parties' performance of this agreement.
Section 4.2 Liability in the Event of Disapproval In the event approval pursuant to Section 4.1 is not obtained, neither Party will have any claim against the other arising under this agreement.
ARTICLE V - DURATION & TERMINATION
Section 5.1 The initial term of this agreement shall be for twenty-five (25) years, and unless modified by mutual agreement, shall be renewed every five (5) years thereafter. Prior to the termination date of this Agreement the Parties may meet to review the status of this Agreement and shall submit a joint status report to the Commission.

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After this Agreement becomes effective pursuant to Section 4.1 hereof, it shall continue in effect in accordance with its stated duration and term until modification shall be mutually agreed upon and approved by the Public Service Commission or until termination shall occur or otherwise be mandated by a governmental entity or court having jurisdiction to mandate such termination or modification.
ARTICLE VI - MISCELLANEOUS
Section 6.1 Negotiations Whatever terms or conditions may have been discussed during the negotiations leading up to the execution of this Agreement, the only ones agreed upon are those set forth herein, and no alteration, modification, enlargement or supplement to this Agreement shall be binding upon either of the Parties hereto unless the same shall be writing, attached hereto, signed by both Parties, and approved by the Public Service Commission.
Section 6.2 Successors and Assigns Nothing in this Agreement, expressed or implied, is intended or shall be construed to confer upon or give to any person or corporation, other than the Parties hereto, any right, remedy or claim under or by the reason of this Agreement or any provision or conditions hereof; and all of the provisions representations, covenants and conditions herein contained shall inure to the sole benefit of, and shall be binding only upon, the Parties hereto and their respective representatives, successors and assigns.
Section 6.3 Notices Notices given hereunder shall be deemed to have been given to Milton if mailed by certified mail to: City Manager, City of Milton, 6738 Dixon Street, Milton, FL 32572 and OGD if mailed by certified mail to: Chief Executive Officer, Okaloosa Gas District, 364 Valparaiso Parkway, Valparaiso, FL 32580. Such address to which such notice shall be mailed may be, at any time changed by designating such new address and giving notice thereof in writing in the manner as herein provided.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed

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in duplicate in their respective corporate names and their corporate seals affixed by their duly authorized officer on the day and year first written above.
City of Milton
Okaloosa Gaş District
By:
By:
City Manager
Chief Executive Officer
Countersigned
Countersigned
By: Quarken thenday
By DaySumo
Mayor, City of Milton
Chairman Board of Directors, Okaloosa Gas District
Approved as to-Legality of Form
By:
City Attorney, City of Milton
Approved as to Legality of Form
By:
Attorney, Okaloosa Gas District

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EXHIBIT A
CHAPTER 71-773 House Bill No. 2580
AN ACT relating to the City of Milton, Santa Rosa County; amending section 2, chapter 61-2489, Laws of Florida; de- scribing new boundaries for the natural gas service area; providing an effective date.
Be It Enacted by the Legislature of the State of Florida:
Section 1. Section 2 of chapter 61-2489, Laws of Florida, is amended to read:
Section 2. The area of the natural gas service area created in section 1 shall be as follows:
All that part of Santa Rosa County lying East of Escambia River, South of a line parallel to and two miles north of the township line between township three north and township four north, west of the east boundary of Santa Rosa County, and north of a line beginning at the intersection of the east bound- ary of Santa Rosa County, and center of Yellow River, thence down Yellow River to the mouth of Yellow River where it enters Blackwater Bay, thence down the center of Blackwater Bay to East Bay and Pensacola Bay to the West boundary of Santa Rosa County in Pensacola Bay.
Section 2. This act shall take effect upon becoming a law.
Became a law without the Governor's approval.
Filed in Office Secretary of State June 30, 1971.
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CHAPTER 2000-443
House Bill No. 1637
An act relating to the Okaloosa Gas District; codifying the District's charter, chapter 29334, Laws of Florida, 1953, as amended; reestab- lishing and recreating the Okaloosa Gas District for purposes of acquiring, constructing, owning, operating, managing, maintaining, extending, improving, and financing one or more gas distribution systems or one or more gas transmission systems or gas transmis- sion and gas distribution systems for its member municipalities of Crestview, Niceville, Valparaiso, and Fort Walton Beach and such other municipalities as may become members of said District; pro- viding such services for the benefit of the public and other users of gas in Okaloosa County and areas in Santa Rosa County and areas in Walton County and other areas of service; providing and prescrib- ing the territorial limits and areas of service of the District; granting powers to the District, including the power of eminent domain; pro- viding the means of exercising such powers; declaring the purposes of the District to constitute a public purpose; defining the powers of the District; providing for a Board of Directors as the governing body of the District to exercise the powers of the District and direct Dis- trict affairs; providing officers for the District; authorizing the Dis- trict to issue and sell bonds or revenue certificates payable solely from the revenues of a gas system or systems; authorizing judicial validation of such bonds or certificates; providing for execution and delivery by the District of mortgages, deeds of trust, and other in- struments of security for the benefit of the holders of such bonds or revenue certificates; providing for remedies and rights available to the holders of the bonds or revenue certificates; prohibiting distribu- tion of net profits to member municipalities; prohibiting the District from exercising any power of taxation; exempting property and in- come of the District from taxation; exempting District bonds or reve- nue certificates and interest thereon from taxation; exempting deeds, mortgages, trust indentures, and other instruments of, by, or to the District from taxation; providing for the use and distribution of the revenues of the gas systems of the District; exempting the District, its activities and functions, and the exercise of its powers from the jurisdiction and control of all state regulatory bodies and agencies; regulating the use of the proceeds from the sale of any such bonds or revenue certificates; providing such bonds or revenue cer- tificates as legal investments for banks, trust companies, fiduciaries, and public agencies and bodies; providing for use of public roads by the District; providing for a covenant by the state not to alter the provisions of the act to the detriment of the holders of bonds or revenue certificates of the District; providing for acquisition, con- struction, maintenance, operation, financing, and refinancing of a gas system or systems by the District; providing for discontinuance of customer service for nonpayment; repealing all prior special acts of the Legislature relating to the Okaloosa County Gas District; providing for protection against impairment of contracts and obliga- tions of the District; providing that the act takes precedence over
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any conflicting law to the extent of the conflict; providing severabil- ity; providing an effective date.
Be It Enacted by the Legislature of the State of Florida:
Section 1. Chapters 29334, 1953, 31051, 1955, 63-1697, and 86-468, Laws of Florida, are codified, reenacted, amended, and repealed as provided in this act.
Section 2. The Okaloosa Gas District is reestablished and re-created as an independent special district and the charter for such District is re-created and reenacted to read:
Section 1. Definitions .- Whenever used in this charter, unless a differ- ent meaning clearly appears from the context:
(1) "Gas transmission system" means a supply of natural gas, whether acquired from wells or deposits or from a pipeline or other source of supply and a pipeline or lines, plant and system for the acquisition and the trans- portation, transmission, and delivery of natural gas, or a plant for the manu- facture of gas and the transportation, transmission, and delivery thereof. together with all appurtenances thereto and all property, real, personal, or mixed, used or useful in connection therewith, including franchises, rights- of-way, and easements. A gas transmission system may include facilities for making deliveries of gas to industrial and institutional users and to line tap residential and commercial users as well as to gas distribution systems.
(2) "Gas distribution system" means a plant and system for the distribu- tion and sale of gas and gas services in a municipality and the surrounding territory, including the sale and distribution of gas to residential, commer- cial, industrial, institutional, and other users, together with all appurte- nances thereto and all property, real, personal, or mixed, used, or useful in connection therewith, including franchises, rights-of-way, and easements.
(3) "System" means a gas transmission system or systems and a gas distribution system or systems, or any one or more of such systems.
(4) "District" means the Okaloosa Gas District, created and established by this charter.
(5) "Board of Directors" and "board" means the Board of Directors herein- after provided for and constituting the governing body of the District.
(6) "Municipality" means incorporated cities, towns, and villages and other municipal corporations of this state.
(7) "Member municipalities" means the municipalities of Crestview, Val- paraiso, Niceville, and Fort Walton Beach and such other municipalities as may become members of the District in the manner provided in this charter.
(8) "Bonds" means bonds or revenue certificates or other financial obliga- tions of the District maturing over 3 years from date of issue, issued pursu- ant to this charter.
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Section 2. Creation and establishment of the Okaloosa Gas District .- The Okaloosa Gas District is hereby created and established as an independ- ent special district. The public and governmental purposes of the District are to acquire by purchase or construction, one or both, and to own, finance, operate, maintain, extend, and improve one or more gas systems described as follows:
(1) A gas transmission system or systems to connect each of the member municipalities and such other municipalities in the District's area of service as the District may determine to serve, with an adequate supply of natural gas, at such point or points, as the District may determine.
(2) A gas transmission line or lines for the purpose of supplying gas to any gas system even though located outside of the area of service of the District.
(3) A gas manufacturing plant and system.
(4) Such gas distribution system or systems serving such member munic- ipalities and other municipalities as the District may determine.
(5) Such other facilities and lines as may be necessary or desirable to serve such other customers along the District's supply lines as the District may determine to serve or as the District as a public agency deriving income from a public utility, may be obligated to furnish service under the laws of this state or the United States.
(6) Such gas transmission lines, laterals, gas distribution systems, and facilities to serve such customers in the District's area of service as the District or the District's Board of Directors may determine.
(7) The District may itself own and operate gas distribution systems in the District's area of service, whether in the municipality which is a member of the District or in some other municipality or in unincorporated territory.
Section 3. Area of service .- The territorial limits and area of service of the District shall be Okaloosa County, Florida, and the following described areas in Santa Rosa County, Florida, and Walton County, Florida, to-wit:
(1) In Santa Rosa County, an area 20 miles wide, extending from the eastern boundary of Santa Rosa County, to the western boundary of said county, the center line of which shall be the presently existing transmission line of the District, excepting, however, from the above described area of Santa Rosa County:
(a) The area within the corporate limits of the Town of Milton and the surrounding territory presently served by the gas distribution system of said town;
(b) The area adjacent to State Highway 87 (Brewton Highway) from the intersection of said highway and the transmission line of the District north- erly along said highway for a distance of 2 miles;
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(c) The area adjacent to the New Chumuckla Highway from the intersec- tion of said highway and State Highway 87 (Brewton Highway) westerly along said New Chumuckla Highway for a distance of 2 miles; and
(d) The area adjacent to said Highway and the transmission line of the District east of Milton, in a westerly direction along said Highway 90 to the corporate limits of the Town of Milton.
(2) In Walton County, the area shall be all of that portion of Walton County lying south of Highway 20 and 10 miles north of Highway 20.
The District may acquire a supply of gas either within or without the Dis- trict's territorial limits and area of service and may transport and transmit gas from the point of such acquisition to the system or systems of the District. The District may also sell and transport gas for delivery beyond the territorial limits and area of service of the District and acquire, finance, operate, maintain, extend, and improve gas transmission lines, laterals, and facilities beyond the territorial limits and area of service of the District for such purposes and also for the purpose of making direct sales to industrial and institutional users and to line tap commercial and residential users, but the District shall not acquire, construct, own, or operate any gas distribution system in any area other than within the territorial limits and area of service of the District as provided in this section, unless authorized by special act of the Legislature to do so.
Section 4. Declaration of policy .- That the undertakings enumerated in section 2 constitute a proper public purpose for the benefit and welfare of the inhabitants of the District and it is hereby found and declared that in the construction, acquisition, improvement, maintenance, operation, exten- sion, and improvement of any or all of said gas systems, the District will be exercising a proper governmental function.
Section 5. Members of the District. The members of the District shall be the municipalities of Crestview, Niceville, Valparaiso, and Fort Walton Beach. Other municipalities in Okaloosa County may become members of the District by filing with the Secretary of State a resolution, duly adopted by such municipality's governing body, declaring the desire and intention of such municipality to become a member of the District and the municipality's willingness to be bound in all respects by the obligations of the District and the by-laws, resolutions, and acts of the Board of Directors relating to the business and affairs of the District; provided, that the filing of such resolu- tion with the Secretary of State shall not be effectual to make such munici- pality a member of the District unless and until the Board of Directors of the District shall first have adopted and filed with the Secretary of State a resolution signifying their willingness and desire to accept said municipality as a member of the District. Other municipalities in other counties adjoining Okaloosa County may, if authorized by special act of the Legislature, become members of the District in the same manner.
Section 6. Powers of the District .- The District shall have each and all of the following powers, together with all powers incidental to such powers or necessary to the discharge of such powers:
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(1) To sue and be sued and to defend suits against the District.
(2) To have and use an official seal for attesting bonds and other official acts and deeds and to alter the same at the District's pleasure.
(3) To receive, acquire, take, and hold, whether by purchase, gift, or lease, devise, or otherwise, real, personal, and mixed property of any nature whatsoever that the Board of Directors may deem a necessary or convenient part of, or useful in connection with, any system or systems authorized in this charter.
(4) To make contracts extending over a period not exceeding 40 years for a supply or supplies of natural gas and for the sale and delivery of natural or manufactured gas.
(5) To contract with any person, firm, or corporation for the entire super- vision, operation, and management of any one or more of the systems of the District, including the collection and distribution of the revenues from such system or systems, for such period of time as the board may deem advisable not exceeding 10 years and at such compensation and upon such terms as may be agreed upon and approved by the Board of Directors.
(6) To borrow money for any authorized purpose and to issue in evidence of the borrowing interest bearing bonds payable solely from the revenues derived from the operation of any one or more of the District's systems.
(7) To pledge to the payment of the District's bonds any revenues from which said bonds are made payable and to mortgage, pledge, or otherwise convey as security for such bonds the system or systems the revenues from which are so pledged.
(8) To make such covenants in connection with the issuance of bonds, or in order to secure the payment of bonds, as are needful to secure and protect the rights of the holders of such bonds, notwithstanding that such covenants may operate as limitations on the exercise of other powers granted by this charter.
(9) To establish, by resolution, rates and charges for the District's gas and gas services and to alter such rates and charges.
(10) To collect and enforce collection of such charges.
(11) To lease, exchange, sell, convey, and otherwise dispose of the Dis- trict's real, personal, or mixed property by any form of conveyance or trans- fer, provided that the District does not sell and convey a gas system or systems to private ownership.
(12) To appoint and employ officers, agents, and employees, including attorneys, as the District's business may require, and to fix the compensa- tion of such persons.
(13) To provide for such insurance as the District's Board of Directors may deem advisable.
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(14) To exercise all powers of eminent domain now or hereafter conferred on counties in this state.
Section 7. Eminent domain. The powers of eminent domain granted in this charter and conferred upon Districts incorporated under this charter shall be exercised in the same manner and subject to the same limitations as in the case of counties in this state.
Section 8. The Board of Directors .- The District shall have a Board of Directors, consisting of one member of each member municipality and one member appointed by the Board of County Commissioners of Okaloosa County, to represent the interest of the unincorporated areas and the inter- est of the nonmember cities. The member for each member municipality shall be appointed by the governing body of such member municipality and the Board of County Commissioners of Okaloosa County shall appoint one member. The member shall serve for a term of 4 years and until his or her successor is appointed in like manner and qualified. Appointments to fill a vacancy shall be for the unexpired term. The representative of each munici- pality may, but need not be, the mayor or chief executive officer of such municipality and the member appointed by the Board of County Commis- sioners of Okaloosa County may, but need not be, an elected official, except and provided that no member of the Board of County Commissioners of Okaloosa County shall serve in such capacity. The members of the Board of Directors shall serve without compensation, except that they shall be reim- bursed for actual expenses incurred in and about the performance of their duties thereunder and, at the discretion of the Board of Directors, they may be paid a director's fee of not exceeding $25 for each directors' meeting attended by them, not exceeding one meeting during each calendar month. The appointing authority may remove any member of the Board of Directors within the term for which such member shall have been appointed for mal- feasance or misfeasance in office or other just cause after giving to such member a copy of the charges against him or her and an opportunity to be heard in his or her defense.
Section 9. Organization of the board; officers .- After appointment of the members, the members of the Board of Directors of the District shall meet and organize. At such meeting, the members of the board shall choose from their number a president. They shall also choose a secretary and a treasurer, who may but need not be members of the board, and such other officers, agents, and employees as may appear to be desirable. One person may serve as both secretary and treasurer.
Section 10. Authority of the board .- The Board of Directors shall consti- tute the governing body of the District. The board shall exercise all the powers of the District and the board shall do all things necessary or conve- nient in acquiring, owning, operating, developing, extending, improving, financing, and refinancing the gas system or systems owned or to be owned by the District, including, but not limited to: the adoption and amendment of by-laws for the management and regulation of the District's affairs and the enterprises in which the District is engaged; to use, with the consent of any of the District's member municipalities, the agent, employees, or facili- ties or property of such municipalities and to provide for the payment of the
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agreed proportion of the costs therefor; and to appoint officers, agents, and employees, including attorneys, and to fix their compensation to provide for the execution of deeds, mortgages, indentures of trust, bonds, gas supply contracts, gas service contracts, supervision contracts, and other instru- ments and contracts of the District. Action of the directors shall be taken by resolution. Such resolution shall be effective without posting or publication.
Section 11. Bonds of the District .- The bonds of the District shall be authorized by resolution of the Board of Directors of the District and may be issued in one or more series, may bear such date or dates, mature at such time or times, bear interest at such rate or rates, be in such denominations, be in such form, either coupon or registered, or both, be executed in such manner, be payable in such medium of payment, at such place or places, either within or without this state, be nonredeemable or subject to such terms of redemption, with or without premium, be subject to being declared or becoming due before the maturity date of such bonds, as such resolution or resolutions may provide. Said bonds may be issued for money, property, labor, or services, either at public or private sale, for such price or prices, including interest costs, as determined by the Board of Directors, the deter- mination of which shall be conclusive. Such authorizing resolution shall provide for the execution and delivery of bonds of the District by officers of the District designated in such resolution. Coupons may be executed with the facsimile signature of any officer designated by the Board of Directors. Any bonds issued by the District may thereafter at any time, whether before, at, or after the maturity of such bonds, and from time to time be refunded by the issuance of refunding bonds, which may be sold by the District at public or private sale, at such price or prices as may be determined by its Board of Directors, or which may be exchanged for the bonds to be refunded. The District may pay all expenses, premiums, and commissions which the District's Board of Directors may deem necessary or desirable in connection with any financing done by the District. All bonds issued by the District shall be construed to be negotiable instruments, although payable solely from a specified source, and bona fide holders of such bonds for value shall be entitled to all benefits provided by the negotiable instruments law of this state. Pending the preparation or execution of definitive bonds, interim receipts, or certificates or temporary bonds may be delivered to the pur- chaser or purchasers of said bonds. Any bonds issued by the District may be purchased by the District out of any funds available for such purposes but such right of purchase may be limited in the authorizing resolution. All bonds so purchased shall be canceled. Bonds of the District and all matters connected with such bonds may be validated pursuant to the provisions of chapter 75, Florida Statutes, and any other applicable provisions of the Florida Statutes.
Section 12. Liability on bonds and other obligations .- Neither the bonds nor any other obligations of the District shall be a debt or obligation of the State of Florida, or a debt or obligation of Okaloosa County, or a debt or obligation of any municipality which is a member of the District. Neither the state nor Okaloosa County nor any such municipality shall be liable in any way whatsoever on such bonds or obligations, nor may the holder of any such bonds or obligations compel the levy of any taxes for the payment of such bonds or obligations. Such bonds shall not be payable out of any funds other
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than the revenues of the gas system or systems of the District. Such bonds are not subject to any statutory or other limitations upon indebtedness. Neither the members of the Board of Directors nor any person executing such bonds shall be liable personally on such bonds by reason of the issuance of such bonds. No referendum or election shall be required for the issuance of bonds of the District, except in such cases as such referendum or election may be required by the Constitution of the State of Florida.
Section 13. No power to tax or assess .- The District shall have no power or authority to levy or collect any tax, assessment, or charge other than the rates, fees, and charges for selling gas and furnishing gas services as pro- vided in this charter, and any such tax or assessment levy is hereby specifi- cally prohibited.
Section 14. Mortgage; deed of trust; security agreements .- Any mort- gage, deed of trust, or pledge agreement made by the District for the security of any of the District's bonds or to define the rights, remedies, and privileges of the holders of such bonds and the duties of the District to such holders, may contain such agreements, obligations, covenants, and provisions as the Board of Directors may deem advisable respecting the operation and main- tenance of the gas system or systems and the collection and application of the revenues subject to such mortgage, deed of trust, or pledge agreement, and respecting the rights and duties of the parties to such instrument or the parties for the benefit of whom such instrument is made; provided, that no such mortgage or deed of trust shall be subject to the sale of the system or systems at foreclosure to private ownership. To further secure the repay- ment of any money borrowed by the District, the District may enter into a contract or contracts binding the District for the proper application of the money borrowed, for the continued operation and maintenance of any gas system or systems owned or to be acquired or constructed by the District, or any part of parts of such system or systems, for the imposition and collection of reasonable rates for, and the promulgation of reasonable regula- tions respecting any service furnished from the District's gas system or systems, for the disposition and application of the District's gross revenues or any part of such revenues, and for any other act or series of acts not inconsistent with the provisions of this charter for the protection of the loan and the assurance that the revenues from the District's gas system or sys- tems will be sufficient to operate such system or systems, maintain the same in good repair and in good operating condition, pay all reasonable insurance on such system or systems, pay the principal of and interest on any bonds payable from such revenues, and maintain such reserves and funds as may be deemed appropriate for the protection of the loan and the efficient opera- tion of such system or systems.
Section 15. Mortgage or pledge of property or revenue not in existence; recording notice of mortgage and pledge liens .- Any mortgage or convey- ance of property and any pledge of revenues to secure the bonds of the District shall be valid and binding from the time when such mortgage or conveyance is delivered or such pledge made, and the system, properties, revenue, income, and moneys so mortgaged, conveyed, or pledged and there- after received by such District shall immediately be subject to the lien of such mortgage, conveyance, or pledge without any physical delivery of such
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mortgage, conveyance, or pledge or further act, and the lien of any such mortgage, conveyance, or pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the District, irrespective of whether such parties have notice of such claims, from the time when a statement thereof is filed in the county court of Okaloosa County or other office where deeds and mortgages of real property are recorded and in the proper public office in any other county or counties where any part of the system or systems or properties of the District are located. Such notice shall be sufficient if the notice states the date of the resolution authorizing the issuance of the bonds, the date of the bonds, the principal amount of such bonds, the maturity dates of such bonds, and whether the system is one or more gas transmission systems or one or more gas distribution systems or both. The county judge or other officer in charge of the recording office shall file and index such notice in the record of mort- gages in their offices.
Section 16. Rights and remedies of bondholders .- In addition to all other rights and all other remedies, any holder or holders of any bond or bonds of the District, including a trustee for a bondholder, shall have the right, subject to any contractual limitation binding upon such bondholder or bond- holders or trustee, and subject to the prior or superior rights of others:
(1) To sue on the bonds.
(2) By mandamus or other suit, action or proceeding, at law or in equity, to enforce the bondholder's rights against the District and the Board of Directors, including the right to require the District and such board to fix and collect rates and charges adequate to carry out any agreement as to, or pledge of, the revenues produced by such rates or charges, and to require such District and such board to carry out the other covenants and agree- ments with such bondholder and to perform the District's and the board's duties under this charter and under any mortgage, indenture of trust, or contract.
(3) By action or suit in equity, to require such District to account as if the District were the trustee of an express trust for such bondholder.
(4) By action or suit in equity, to enjoin any act or things which may be unlawful or a violation of the rights of such bondholder.
(5) By suit, action, or proceeding in any court of competent jurisdiction, to obtain in the event of the default by the District in the payment when due of the bondholder's bond or bonds or interest thereon, which default shall have continued for a period in excess of 60 days, or default in the perform- ance of any other covenants or obligations of the District, which default shall have continued for a period of 60 days after notice to cure such default, the appointment of a receiver for the gas system or systems of the District, which receiver may enter and take possession of such system or systems or any part or parts thereof, including all property, land, property rights, ease- ments, franchises, books, records, papers, accounts, and other adjuncts of the gas system or systems of the District, and such receiver may operate and maintain such gas system or systems, fix and collect all rates and charges, and receive all revenues thereafter arising therefrom in the same manner
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as the District itself might do, and shall deposit all moneys in a separate account or accounts and apply the same in accordance with the obligations of such District and as the court shall direct.
Section 17. Proceeds from the sale of bonds .- All moneys derived from the sale of any bonds issued by the District shall be used solely for the purpose or purposes for which such bonds are authorized, including any engineering, legal, or other expenses incident to such purposes, and, in the case of bonds issued in whole or in part for the construction of a gas system or systems or any part of such system or systems, interest on such bonds, or, if only a part of the bonds are issued for the purpose of such construction, on the part of such bonds issued for that purpose, prior to and during such construction and for not exceeding 2 years after completion of such construc- tion and, in the case of bonds issued by the District for the purpose of refunding outstanding bonds of such District, any premium which the Dis- trict may deem necessary to pay in order to redeem or retire the bonds to be refunded. The treasurer or other officer designated by the Board of Direc- tors shall give a receipt for the purchase price to the purchaser of any such bonds, which receipt shall be full acquittal to such purchaser and the pur- chaser shall not be under any duty to inquire as to the application of the proceeds of such bonds.
Section 18. Disposition of net profits of District .- No distribution of net profits shall be made to the member municipalities.
Section 19. Bonds; legal investments .- Notwithstanding any provision of any other law or laws to the contrary, all bonds, including refunding bonds, issued pursuant to this charter, shall constitute legal investments for sav- ings banks, banks, trust companies, executors, administrators, trustees, guardians, and other fiduciaries, and for any board, body, agency, or instru- mentality of the State of Florida, or of any county, municipality, or other political subdivision of the state, and shall be and constitute securities which may be deposited by banks of trust companies as security for deposits of state, county, municipal, and other public funds.
Section 20. Tax exemption .- All property and all income of the District shall be exempt from all state, county, municipal and other taxation in the State of Florida. All bonds of such District and the interest on such bonds shall be exempt from all state, county, municipal, and other taxation in the State of Florida. All deeds, mortgages, indentures of trust and other docu- ments executed by or delivered to any such District shall be exempt from all state, county, and municipal and other taxation in the State of Florida.
Section 21. Consent of state agencies .- It shall not be necessary for the District, in proceeding under this charter, to obtain any certificates of convenience or necessity, franchise, license, permit, or other authorization from any bureau, board, commission, or other like instrumentality of the State of Florida or Okaloosa County, in order to construct, acquire, or im- prove such system or systems or to exercise any of the powers granted in this charter.
Section 22. Regulation by state agencies. Neither the rates, fees, rent- als, or other charges to be established and collected for gas and services of
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Ch. 2000-443 LAWS OF FLORIDA Ch. 2000-443
such system or systems, when constructed, acquired, or improved as pro- vided in this charter, nor bonds which may be issued under this charter, shall be subject to approval, supervision, regulation, or control of any bu- reau, board, commission, or other like instrumentality of the state.
Section 23. Covenants of the state .- That the State of Florida hereby covenants with the holders of any bonds or other obligations issued pursuant to this charter, and the coupons appertaining to such bonds or obligations, that the state will not in any manner limit or alter the power and obligation vested by this charter in the District to fix, establish, and collect, in the matter provided in this charter, such fees, rentals, or other charges for the facilities and services of such system or systems, and to revise such fees, rentals or other charges from time to time whenever necessary, as will always be sufficient, together with any other pledged funds, to pay the expenses of operation, maintenance, and repair of such system or systems. the principal of and interest on all bonds or other obligations issued pursu- ant to this charter for such system or systems, and to comply fully with and fulfill the terms of all agreements and covenants made by the District with holders of such bonds or other obligations, until all such bonds or other obligations, together with all interest accrued or to accrue on such bonds, and all costs or expenses in connection with any action or proceedings by or on behalf of the holders of such bonds or other obligations are fully paid and discharged, or adequate provision made for the payment of discharge of such bonds.
Section 24. Use of public roads .- The District is hereby authorized to use the right of way of all public roads, whether state or county, without secur- ing the prior approval of the state or any agency or department of the state or the governing body of any county.
Section 25. Discontinuance of customer services .- If any rates, fees, or charges for the services and facilities furnished by any gas system or sys- tems constructed or reconstructed by the District under the provisions of this charter shall not be paid when due, the District may discontinue and shut off the supply of the services and facilities of the system to the customer so supplied with such services or facilities until such fees, rentals, or other charges, including the interest, penalties, and charges for the shutting off and discontinuance or the restoration of such services or facilities are fully paid, and for such purposes may enter on any lands, waters, and premises of such delinquent customers, within or without the boundaries of the Dis- trict. Such delinquent fees, rentals, or other charges, together with interest, penalties, and charges for the shutting off and discontinuance or the restora- tion of such services or facilities, and reasonable attorney's fees and other expenses, may be recovered by the District by suit in any court of competent jurisdiction. The District may also enforce payment of such delinquent fees, rentals, or other charges by any other lawful means of enforcement.
Section 3. Chapter 29334, Laws of Florida, 1953, chapter 31051, Laws of Florida, 1955, chapter 63-1697, Laws of Florida, and chapter 86-468, Laws of Florida, are repealed.
Section 4. The contracts and obligations heretofore made and incurred and other actions heretofore taken by the Okaloosa Gas District shall not
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ORDER NO. PSC-2023-0060-PAA-GU DOCKET NO. 20220164-GU PAGE 27
Attachment A Page 23 of 27
Ch. 2000-443
LAWS OF FLORIDA Ch. 2000-443
be impaired or otherwise affected by enactment of this codification of the special acts referred to in sections 1 and 3 or by the repeal of such special acts provided for in such sections.
Section 5. In the event of a conflict of the provisions of this act with the provisions of any other act the provisions of this act shall control to the extent of such conflict.
Section 6. In the event any section or provision of this act is determined to be invalid or unenforceable, such determination shall not affect the valid- ity of or enforceability of each other section and provision of this act.
Section 7. This act shall take effect upon becoming a law.
Approved by the Governor June 5, 2000.
Filed in Office Secretary of State June 5, 2000.
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ORDER NO. PSC-2023-0060-PAA-GU DOCKET NO. 20220164-GU PAGE 28
Attachment A Page 24 of 27
EXHIBIT B
CHAPTER 2021-262
Committee Substitute for House Bill No. 1633
An act relating to Okaloosa Gas District, Okaloosa, Santa Rosa, and Walton Counties; amending ch. 2000-443, Laws of Florida; revising the territorial limits and area of service of the district to include all of Santa Rosa County and all of Walton County; providing exceptions; revising the membership of the Board of Directors to include one member appointed by each of the Board of County Commissioners of Santa Rosa and Walton Counties; revising the director's fee for each meeting attended by a member of the Board of Directors; providing an effective date.
Be It Enacted by the Legislature of the State of Florida:
Section 1. Sections 3 and 8 of section 2 of chapter 2000-443, Laws of Florida, are amended to read:
Section 3. Area of service .- The territorial limits and area of service of the District shall be Okaloosa County, Florida, and the following described areas in Santa Rosa County, Florida, and Walton County, Florida, to-wit:
(1) In Santa Rosa County, all of Santa Rosa County an area 20 miles wide, extending from the eastern boundary of Santa Rosa County, to the western boundary of said county, the center line of which shall be the presently existing transmission line of the District, excepting, however, from the above described area of Santa Rosa County:
(a) The area within the corporate limits of the City Town of Milton and the surrounding territory presently served by the gas distribution system of said city town; however, nothing in this act shall be construed to restrict or limit the City of Milton's right to serve gas customers within its territorial grants and in all areas where the district territories overlap with territories of the City of Milton authorized by chapter 61-2489 and chapter 71-773. Laws of Florida;
(b) The area adjacent to State Highway 87 (Brewton Highway) from the intersection of said highway and the transmission line of the District northerly along said highway for a distance of 2 miles;
(c) The area adjacent to the New Chumuckla Highway from the intersection of said highway and State Highway 87 (Brewton Highway) westerly along said New Chumuckla Highway for a distance of 2 miles; and
(d) The area adjacent to said Highway and the transmission line of the District east of Milton, in a westerly direction along said Highway 90 to the corporate limits of the City Town of Milton ;-
(e) The area within the corporate limits of the City of Gulf Breeze and the area from the eastern boundary of the corporate limits of the City of Gulf
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ORDER NO. PSC-2023-0060-PAA-GU DOCKET NO. 20220164-GU PAGE 29
Attachment A Page 25 of 27
EXHIBIT B (continued)
Ch. 2021-262
LAWS OF FLORIDA Ch. 2021-262
Breeze extending easterly approximately 11 miles to the line defined as the eastern boundary of Sections 4, 9, 16, 21 and 28 of Township 2 South, Range 27 West. which extends north and south from Santa Rosa Sound to East Bay:
(f) The area from the line defined as the eastern boundary of Sections 4. 9, 16, 21 and 28 of Township 2 South, Range 27 West, which extends north and south from Santa Rosa Sound to East Bay, and extending easterly to the line starting at the intersection US Highway 98 and Shannon Drive, going due south to Santa Rosa Sound, thence turning due north continuing to Manatee Road; thence turning west until the intersection of Basswood Drive; thence turning north until intersecting the Tom King Bayou tributary south of Cove Road; thence following this branch northwest to Tom King Bayou, thence north to East Bay is presently claimed as a service area by the District and by the City of Gulf Breeze and shall not be deemed to be included or excluded as a service area for the District. The service rights for this area shall be determined by a final nonappealable order of the Florida Public Service Commission or any successor agency; and
(g) The area within the corporate limits of the Town of Jay and the existing customers presently served by the gas distribution system of said town.
(2) In Walton County, all of Walton County extending from the eastern boundary of Walton County to the western boundary of said county. excepting, however, from the above described area of Walton County, that area lying south of the section lines commencing at the Western Boundary of Walton County at the Northwest corner of Section 31, Township 4 North. Range 21 West and running easterly along the northern section lines of Sections 31, 32, 33, 34, 35, and 36 of Township 4 North, Range 21 West. Sections 31. 32, 33, 34, 35. and 36 of Township 4 North, Range 20 West. Sections 31, 32, 33, 34, 35, and 36 of Township 4 North, Range 19 West, and Section 31, 32, and 33 of Township 4 North, Range 18 West, ending at the Eastern Boundary of Walton County located at the Northeast corner of Section 33, Township 4 North, Range 18, south to the current gas distribution system of the City of DeFuniak Springs, the area within the corporate limits of the City of DeFuniak Springs and the customers served by the gas distribution system of said city. However, should the District request in writing to the city and the city agrees through written agreement. the District is authorized to serve any mutually agreed portion of the excepted area above the area shall be all of that portion of Walton County lying south of Highway 20 and 10 miles north of Highway-20.
The District may acquire a supply of gas either within or without the District's territorial limits and area of service and may transport and transmit gas from the point of such acquisition to the system or systems of the District. The District may also sell and transport gas for delivery beyond the territorial limits and area of service of the District and acquire, finance, operate, maintain, extend, and improve gas transmission lines, laterals, and facilities beyond the territorial limits and area of service of the District for such purposes and also for the purpose of making direct sales to industrial
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ORDER NO. PSC-2023-0060-PAA-GU DOCKET NO. 20220164-GU PAGE 30
Attachment A Page 26 of 27
EXHIBIT B (continued)
Ch. 2021-262
LAWS OF FLORIDA Ch. 2021-262
and institutional users and to line tap commercial and residential users, but the District shall not acquire, construct, own, or operate any gas distribution system in any area other than within Santa Rosa, Okaloosa, or Walton Counties the territorial limits and area of service of the District as provided in this section, unless authorized by special act of the Legislature to do so.
Section 8. The Board of Directors .- The District shall have a Board of Directors, consisting of one member of each member municipality and one member appointed by the Board of County Commissioners of Okaloosa, Santa Rosa, and Walton Counties County, to represent the interest of the unincorporated areas and the interest of the nonmember cities. The member for each member municipality shall be appointed by the governing body of such member municipality and the Board of County Commissioners of the respective counties Okaloosa County shall appoint one member from each county. The member shall serve for a term of 4 years and until his or her successor is appointed in like manner and qualified. Appointments to fill a vacancy shall be for the unexpired term. The representative of each municipality may, but need not be, the mayor or chief executive officer of such municipality and the member appointed by the Board of County Commissioners of Okaloosa County may, but need not be, an elected official, except and provided that no member of the Board of County Commissioners of Okaloosa County shall serve in such capacity. The members of the Board of Directors shall serve without compensation, except that they shall be reimbursed for actual expenses incurred in and about the performance of their duties thereunder and, at the discretion of the Board of Directors, they may be paid a director's fee of not exceeding $244 $25 for each directors' meeting attended by them, not exceeding one meeting during each calendar month. The appointing authority may remove any member of the Board of Directors within the term for which such member shall have been appointed for malfeasance or misfeasance in office or other just cause after giving to such member a copy of the charges against him or her and an opportunity to be heard in his or her defense.
Section 2. This act shall take effect upon becoming a law.
Approved by the Governor June 29, 2021. Filed in Office Secretary of State June 29, 2021.
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EXHIBIT C
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PAGE 31
DOCKET NO. 20220164-GU
ORDER NO. PSC-2023-0060-PAA-GU
Attachment A Page 27 of 27
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