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ST9302-CS010821 August 21, 1998 VIA FACSIMILE AND MAIL Ken Griffin City of Coppell 255 Parkway Boulevard P.O. Box 478 Coppell, Texas 75019 RE: Lone Star Gas Transmission Line Dear Ken: Pursuant to your request, the undersigned provides the following opinion relating to whether TU Services/Lone Star Gas is obligated to lower a 16-inch gas transmission line required for the improvement of Sandy Lake Road. Section 4 of the Lone Star Gas Franchise Agreement, Ordinance No. 96743 provides that when the grantee is required by the City to remove or relocate its mains, laterals, and other facilities to accommodate the construction of streets, that the cost is to be borne by the grantee. Accordingly, TU Services/Lone Star Gas is obligated to lower the subject gas transmission line without cost to the City, unless the subject gas transmission line is not located within City right- of-way or is located by virtue of a private easement which predates the dedication of the roadway. The terms of the Franchise Ordinance apply to all of TU Services/Lone Star Oas facilities located within City right-of-way. If the subject gas transmission line is located within the City fight-of-way, and its present configuration interferes with the improvement of Sandy Lake Road, TU Services/Lone Star Gas should relocate the facility without cost to the City. The intent of Section 4 of the Franchise Agreement is to require the grantee to relocate to accommodate the expansion of the City facilities if the grantee's facilities are placed in City right-of-way. If the facilities of TU Services/Lone Star Gas were located by virtue of a private easement prior to the dedication of fight-of-way and construction of Sandy Lake Road, Section 4 of the Franchise Agreement would not apply. 2032O Ken Griffin August 21, 1998 Page 2 Notwithstanding the above, TU Services/Lone Star Gas may be willing to compromise its position in this matter and share the cost of relocation. Thank you for your attention to this matter. Very truly yours, NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P. PGS/pr cc: Clay Phillips