12-872.   Same; sue and be sued; seal; purposes; contracts; limitations. (a) The authority may sue and be sued in its corporate name butexecution shall not in any case issue against any property of theauthority. It may adopt a common seal and change the same at pleasure.

      (b)   The purpose of the authority shall be to determine the natural gasrequirements of the city and to provide for natural gas sources necessaryto meet such requirements. To carry out said purpose, the authority shallhave the power to negotiate and, subject to approval of the governing bodyof the city, execute contracts for the production, purchase, sale,transmission and distribution of natural gas in Kansas. Such contracts mayprovide for:

      (1)   The purchase of natural gas at any wellhead in Kansas for thewellhead cost of the gas and may contain escalator clauses in the eventthat any order may be made by any authorized federal or state agencyincreasing the wellhead cost of gas;

      (2)   the transmission of natural gas by any existing pipeline corporationor public utility;

      (3)   the sale for resale of natural gas to private distributors locatedin the city and the delivery of the gas to the distribution systems of saidprivate distributors;

      (4)   the direct sale and delivery of natural gas to industrial,institutional and commercial consumers within the city; and

      (5)   the construction and operation of pipelines by pipeline corporationsor public utilities for the use of the authority.

      (6)   The construction of pipelines by the authority when no pipelineexists or when existing pipelines have no available space or are inadequateand when approved by the Kansas corporation commission.

      (7)   Said contracts may be for a period not to exceed twenty (20) years.

      History:   L. 1974, ch. 260, § 3; March 18.