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the Company by its acceptance of this Franchise agrees that, except as otherwise provided in this <br />Franchise, all lawful powers and rights, whether regulatory or otherwise, as are or as may be from time to <br />time vested in or reserved to the City, shall be in full force and effect and subject to the exercise thereof <br />by the City at any time and from time to time. <br />SECTION 13. INDEMNITY. THE COMPANY, ITS SUCCESSORS AND ASSIGNS, <br />SHALL PROTECT AND HOLD THE CITY AND ITS OFFICERS, AGENTS, AND EMPLOYEES <br />(COLLECTIVELY REFERRED TO IN THIS SECTION AS "THE CITY ") HARMLESS <br />AGAINST ANY AND ALL CLAIMS OR DEMANDS FOR DAMAGES TO ANY PERSON OR <br />PROPERTY BY REASON OF THE CONSTRUCTION AND MAINTENANCE OF THE <br />COMPANY'S NATURAL GAS DISTRIBUTION SYSTEM, OR IN ANY WAY GROWING OUT <br />OF THE RIGHTS GRANTED BY THIS FRANCHISE, EITHER DIRECTLY OR INDIRECTLY, <br />OR BY REASON OF ANY ACT, NEGLIGENCE OR NONFEASANCE OF THE COMPANY OR <br />THE CONTRACTORS, AGENTS OR EMPLOYEES OF THE COMPANY OR ITS <br />SUCCESSORS AND ASSIGNS, AND SHALL REFUND TO THE CITY ALL SUMS WHICH THE <br />CITY MAY BE ADJUDGED TO PAY ON ANY SUCH CLAIM, OR WHICH MAY ARISE OR <br />GROW OUT OF THE EXERCISE OF THE RIGHTS AND PRIVILEGES HEREBY GRANTED <br />OR BY THE ABUSE THEREOF, AND THE COMPANY OR ITS SUCCESSORS AND ASSIGNS <br />SHALL INDEMNIFY AND HOLD THE CITY HARMLESS FROM AND ON ACCOUNT OF <br />ALL DAMAGES, COSTS, EXPENSES, ACTIONS, AND CAUSES OF ACTION THAT MAY <br />ACCRUE TO OR BE BROUGHT BY, A PERSON, PERSONS, COMPANY OR COMPANIES AT <br />ANY TIME HEREAFTER BY REASON OF THE EXERCISE OF THE RIGHTS AND <br />PRIVILEGES HEREBY GRANTED, OR OF THE ABUSE THEREOF. <br />Section 14. RELOCATION OF FACILITIES. The Company shall, upon written request of the <br />City, relocate its Facilities within Public Rights -of -Way at Company's own expense, exclusive of <br />Facilities installed for service directly to City, whenever such shall be reasonably necessary on account of <br />the widening, change of grade, or relocation by City of Streets or Public Rights -of -Way, or construction <br />or relocation by City of City utility infrastructure or drainage facilities. City shall bear the costs of all <br />relocations of Facilities installed for service directly to City and of any relocation of other Facilities <br />requested by City for reasons other than the widening, change of grade, or relocation by City of Streets or <br />Public Rights -of -Way, or construction or relocation by the City of City utility lines or drainage facilities. <br />Section 15. GOVERNMENTAL FUNCTION. All of the regulations and activities required by <br />this Franchise are hereby declared to be governmental and for the health, safety and welfare of the general <br />public. <br />Section 16. RECORDS AND REPORTS. (a) Books of Account. The Company shall keep <br />complete and accurate books of accounts and records of its business and operations under and in <br />connection with this Franchise. All such books of accounts and records shall be kept at the company's <br />principal office in Houston, Texas. <br />(b) Access by City. The City may conduct an audit or other inquiry or may pursue a cause of action <br />in relation to the payment of the franchise fee only if such audit, inquiry, or pursuit of a cause of action <br />concerns a payment made less than three (3) years before the commencement of such audit, inquiry, or <br />pursuit of a cause of action. Each party shall bear its own costs of any such audit or inquiry. Upon receipt <br />