Sec. 4.01.Amount and Time. From the effective date of this franchise and in consideration of the rights and privileges herein granted, Grantee agrees to pay to the City, during the term of this franchise, a sum of money equal to two percent (2%) of the gross receipts received by the Grantee from sale of gas utility services within the corporate limits of City. For the purposes hereof, "gross receipts from the sale of gas utility services" shall mean and include all revenues collected by the Grantee from the sale of gas utility services to customers within the City pursuant to Grantee's Schedule of Rates effective within the City. Payments shall be made quarterly and shall be calculated on the basis of gross receipts from the sale of gas utility services from the calendar quarter next preceding that for which the payment is made, and shall be payable to the City on or before the sixtieth (60th) day following the last day of the calendar quarter for which such payment applies. Upon receipt of payments by Grantee, the City Secretary shall deliver to Grantee via U.S. mail receipts for such amounts.

Sec. 4.02.Right of Inspection of Records. Upon request of the City, Grantee shall present to the City within a reasonable period of time, any and all records, accounts and books for inspection relative to the gross receipts of Grantee applicable to the services provided within the corporate limits of the City.

Sec. 4.03.Other Payments. The consideration hereinabove set forth shall be paid by the Grantee and received in lieu of any license, charge, fee, street or alley rental or other character of charge for use and occupancy of the streets, alleys and public places within the corporate limits of the City, and in lieu of any pipe tax or inspection fee or tax, but shall not in anywise increase or diminish Grantee's obligation to pay the City ad valorem taxes or anywise interfere with collection thereof.

Sec. 4.04.Special Charges. Any special taxes, rentals or other charges accruing after the effective date of this franchise, under the terms of any preexisting ordinance or imposed upon Grantee by subsequent action of the City shall, when paid to the City, be applied as a credit to the amount owed to the City under the terms of this franchise agreement.

Sec. 4.05.Time Period for Dispute. Any payment made by Grantee pursuant to this Ordinance shall be deemed final and correct as to both the City and Grantee unless questioned within five (5) years after the date of such payment.

Sec. 4.06.Legislative Amendment Concerning Gross Receipts. If the Legislature of the State of Texas amends the ceiling on utility gross receipts payments to municipalities established by Tex. Tax Code §182.025, or any successor statute thereof, then the City may prospectively change the percentage of Grantee's gross receipts payable to the City under Section 4.01 of this franchise to the level established by such amendment; provided, however, that such change in the percentage of Grantee's gross receipts payable to the City shall not become effective unless and until the City shall have approved and authorized rate schedules acceptable to Grantee which will permit Grantee to fully recover through its rates effective within the corporate limits of the City any increase in amounts payable to the City resulting from such change.