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Indicates Matter Stricken
Indicates New Matter
AS PASSED BY THE SENATE
April 30, 2002
S. 290
L. Printed 4/30/02--S. [SEC 5/1/02 4:29 PM]
Read the first time February 6, 2001.
TO AMEND ACT 789 OF 1952, AS AMENDED, RELATING TO THE CLINTON-NEWBERRY NATURAL GAS AUTHORITY, SO AS TO ALLOW THE AUTHORITY TO ENTER INTO FIRM GAS SALES, MAKE CONSISTENT CHANGES IN PROVISIONS TO ALLOW FIRM GAS SALES, AND CHANGE THE MANNER OF THE DISPOSITION OF NET REVENUES, SO THAT THEY ARE DIVIDED EQUALLY BETWEEN THE CITIES OF CLINTON AND NEWBERRY.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 3 of Act 789 of 1952 is amended to read:
"Section 3. Such The authority shall consist of a board of seven members as follows: (1), the Mayor of Clinton, ex officio, shall serve as a member o f the authority and shall hold office for a terms corresponding to his term as Mayor of Clinton; (2), the Mayor of Newberry, ex-officio, shall serve as a member of the authority and shall hold office for a term corresponding to his term as Mayor of Newberry; (3), the Municipal Council of each of Clinton and Newberry shall elect two members of their respective councils who shall serve. ex officio, as members of the authority and shall hold office for terms corresponding to their respective terms as such councilmen. Immediately following the effective date of this act, the respective Municipal Councils of Clinton and Newberry shall adopt resolutions designating the members of the council chosen for membership on the authority; certified copies of such resolutions shall be filed with the official records of the authority; Similar action shall be taken upon the expiration of the term of any of the members who are designated by the respective Municipal Councils of Clinton and Newberry. In making the foregoing ex officio designations, the General Assembly finds that the successful operation of the natural gas system has a distinct relation to the welfare of Clinton and Newberry. It has, therefore, determined that those responsible for the operation of such municipalities should likewise participate in the operation of the authority. The six members so designated shall, at their first meeting, elect a seventh member, who shall reside in the service area of the authority. Such seventh member, upon his qualification, shall hold office for a term expiring four years from the date of his appointment or when his successor shall have been selected and shall have qualified, whichever shall last occur. At the expiration of the term of the seventh member, a successor shall be elected for a further term of four years. At each expiration of the term of the seventh member, his successor shall be appointed in the same manner for a term of four years who must be appointed by the legislative delegations representing Laurens and Newberry Counties for terms of four years. In order to stagger terms, four members shall be appointed for terms of four years and three members must be appointed for terms of two years. At the expiration of the two-year terms, successors must be appointed for terms of four years. All members must reside in Newberry and Laurens Counties. In the event of a vacancy in the office of the seventh a member, a successor shall be elected for the remainder of the unexpired term. The members shall serve without salary, but shall be compensated for any actual expenses incurred by them on any official business of the authority. As soon as the seventh member shall be all members are elected, all members of the authority shall convene and shall elect one of their number as chairman and another as secretary, each of whom shall hold office for terms corresponding to their terms as members of the authority. The secretary of the authority shall from time to time file in the offices of the clerks of court for Laurens and Newberry Counties appropriate certificates, showing the personnel of the authority and the duration of the terms of the respective members."
SECTION 2. Section 4(10) of Act 789 of 1952 is amended to read:
"(10) To enter into contracts of long duration for the sale of firm and interruptible gas only, but all of such contracts shall contain a provision permitting the authority to increase the price charged its customers for gas if the authority, in turn, shall be required to pay more for its gas than it did on the occasion that such contract was entered into, and no contract of any sort shall be entered into which shall not in all respects be subordinate to any covenant or undertaking which the authority may make in the proceedings taken in connection with the issuance of any bond or other obligation of the authority. And, no contract of any sort shall be made respecting the sale of firm gas, which shall be sold in accordance with such schedule of rates as shall from time to tome be in effect."
SECTION 3. Section 5 of Act 789 of 1952 is amended to read:
"Section 5. All net revenues derived from the system whose disposition the authority shall not have covenanted to otherwise dispose of shall be disposed of as follows:
(a). That sum which reflects the proportion of revenue derived from the sale of firm gas shall be divided between Clinton and Newberry on the basis of firm gas sold within their respective municipal service areas. For the purposes of this section, the Clinton municipal service area is defined as all of the service area of the authority lying in Laurens County, and the Newberry municipal service area is defined as all of the service area of the authority lying in Newberry County. Firm gas sales shall mean gas sold on a non-interruptible basis. Fifty percent to the City of Clinton, irrespective of where the interruptible or firm gas is sold in the service areas of the authority; and
(b). That sum which reflects the proportion of the revenue derived from the sale of interruptible gas shall be divided equally between Clinton and Newberry, irrespective of where such interruptible gas shall be sold. Interruptible gas shall mean gas not sold on a firm basis, but gas sold on an interruptible basis. Fifty percent to the City of Newberry, irrespective of where the interruptible or firm gas is sold in the service areas of the authority.
(c). That portion of the net revenues to which Newberry shall be entitled, hereinafter specified, shall be used by the authority in the manner hereinafter provided to reimburse the authority for the actual cost of constructing that portion of the transmission line which lies between the northwestern municipal limits of Newberry and the line dividing the Counties of Newberry and Laurens. Such cost shall be determined on a per foot basis, in the ratio that the distance between the northwestern municipal limits of Newberry and the line dividing the Counties of Laurens and Newberry bears to the distance between the northwestern municipal limits of Newberry and the point where the said transmission line connects with the transmission line of the Transcontinental Gas Pipe Line Company at or near Fountain Inn. That sum which represents the annual principal and interest requirements on such portion of the construction bond issue as reflects the cost of the portion of the construction bond issue as reflects the cost of the portion of the transmission line between the northwestern municipal limits of Newberry and the line dividing the Counties of Laurens and Newberry shall be deducted from the net revenues due to Newberry for so long a period of time as may be necessary to effect the retirement of such portion of the said construction bond issue. Such payments shall be applied to the effect the earliest possible retirement of the said construction bond issue The provisions of this paragraph shall may not be construed to limit the power of the authority to pledge and apply the gross revenues derived from the system in such the manner as the authority shall determine to the payment of the principal and interest on any bonds, notes, or other obligations which the authority may issue, it being intended that the application of revenues herein provided in this section for shall be is in addition thereto to that application."
SECTION 4. Act 789 of 1952 is amended by adding:
"Section 4A. (A) The authority shall make a monthly full statement to each member of the legislative delegations representing Laurens and Newberry Counties.
(B) The Public Service Commission shall have conducted an annual audit. A copy of the audit must be forwarded to each member of the legislative delegations representing Laurens and Newberry Counties."
SECTION 5. Notwithstanding any other provision of law, the Clinton Newberry Natural Gas Authority shall retain one and one-half percent of annual revenues which must be used directly on the operation of the authority with the remainder of unencumbered revenues returned to its customers on a pro rata basis.
SECTION 6. The terms of members serving on the effective date of this act are terminated on that date. All members shall serve until their successors are appointed and qualify.
SECTION 7. This act takes effect upon approval by the Governor.
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