Council to consider Atmos franchise agreement

10-year, non-exclusive deal to continue operating gas distribution system

12:19 p.m. March 10, 2026

DUANE CROSS
MCO Publisher•Editor

The Metro Council is scheduled to consider a 10-year franchise agreement with Atmos Energy Corporation on Monday, March 16, a move that would define how the company can operate, maintain, and expand its natural gas system in public rights-of-way across the county.

The item is listed first under new business on the agenda for the council’s 6:30 p.m. meeting at the American Legion.

The agreement would grant Atmos Energy a non-exclusive franchise to construct, operate, maintain, and repair a gas distribution system in Moore County’s public rights-of-way. The franchise covers natural gas distribution and the installation and upkeep of mains, pipes, regulators, meters, and related equipment in roads, alleys, lanes, and other public grounds.

The franchise would run for 10 years, with two possible five-year renewals unless the county gives written notice of termination.

Because the franchise would be non-exclusive, the county would retain the right to enter into similar agreements with other parties for gas distribution within its boundaries. However, any additional franchise holder would not be allowed to use Atmos Energy’s existing system without the company’s written consent.

Under the agreement, Atmos Energy would be allowed to place and maintain gas infrastructure in public rights-of-way, subject to the county’s police powers and the franchise terms. The company also would be required to keep the system in good working condition, comply with applicable laws and safety standards, and restore public rights-of-way if construction, maintenance or repair work causes damage.

The ordinance also outlines how facilities would be handled when public improvement projects require changes to utility infrastructure. In those cases, Atmos Energy generally would be required to relocate, remove, or adjust its facilities at its own expense. The agreement also calls for both sides to work together to reduce costs, delays, and inconvenience.

Other sections address service to newly annexed areas, remedies for breach of the agreement, indemnification, and transfer restrictions. Atmos Energy could not transfer or assign the franchise without written notice to the county.

If approved, the ordinance would take effect 15 days after final passage and acceptance by the company, whichever occurs later. 

Atmos Energy is one of the nation’s largest natural gas distributors. Atmos says it has grown from 279,000 customers in 1983 to more than 3.3 million today, largely through utility acquisitions. It now serves more than 1,400 communities across eight states – Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, Texas, and Virginia – and claims to be the largest natural gas distributor in Texas, Louisiana, and Mississippi.

The company traces its history to 1906 in the Texas Panhandle. In 1983, Energas – the natural gas distribution division of Pioneer Corporation – was spun off as an independent publicly held company. In October 1988, Energas changed its name to Atmos Energy Corporation and began trading on the New York Stock Exchange under the ticker symbol ATO. Today, Atmos Energy employs about 5,300 people.

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