Tulsa voters head to the polls next Tuesday, August 25, to decide whether Oklahoma Natural Gas keeps its right to run pipelines under city streets for another two decades, under a ballot measure that would also raise the fee the utility pays the city and steer millions of new dollars toward sidewalks, streetlights, and road repairs.
Ordinance No. 25782 would grant Oklahoma Natural Gas a 20-year, non-exclusive franchise to continue using Tulsa's streets, easements, and other public rights-of-way to transport, distribute, and sell natural gas throughout the city, according to News On 6. The vote is required because Oklahoma's constitution mandates that any municipal franchise letting a public utility use city streets and rights-of-way must first win approval from a majority of voters in a general or special election, per Article 18, Section 5(a), as detailed by FindLaw.
Oklahoma Natural Gas is a division of ONE Gas, Inc., the Tulsa-headquartered, NYSE-listed utility company that ranks among the largest fully regulated natural gas providers in the country, serving roughly 931,000 customers across Oklahoma as of this year, according to Oklahoma Natural Gas. The proposed franchise would require the company to pay franchise fees to the city, maintain and repair city infrastructure it disturbs, follow specific engineering and operational standards, and allow Tulsa to inspect and oversee certain company records.
A Fee Hike Aimed at Sidewalks and Streetlights
Beyond the franchise term itself, the ordinance would raise Tulsa's natural gas franchise fee from 3.10% to 4.00% of gross receipts, with the additional 0.90 percentage points earmarked for a special revenue fund dedicated to streetscaping, sidewalk repair, street lighting, and right-of-way maintenance, according to the ordinance language reported by Tulsa World. Earlier franchise agreements deposited all such fees into the city's general revenues rather than a dedicated fund, the outlet notes.
City officials project that the fee increase will generate approximately $1.4 million annually in new revenue for local right-of-way upkeep, according to an April municipal presentation cited by the City of Tulsa. Those funds are slated for uses including ADA sidewalk compliance and corridor beautification projects around the city.
The ordinance also sets new ground rules for how ONG can dig up city streets. It waives municipal permit and lane-closure fees for the utility's work in public rights-of-way, but in exchange requires the company to maintain ADA accessibility standards, give 48 hours' advance notice before non-emergency excavations, and build temporary sidewalks if repairs are delayed, per the ordinance details reported by Tulsa World. The proposed ordinance also includes recordkeeping requirements and indemnification provisions protecting the City of Tulsa.
How This Compares to the Last Tulsa Vote
Tulsans last weighed in on an ONG franchise in August 2011, when voters approved Ordinance No. 22415 for a 15-year term under an agreement that itself replaced a 25-year franchise dating to 1986, according to historical research from BatesLine. This year's proposal extends the term further, to 20 years.
Tulsa isn't the only Oklahoma city putting a gas franchise before voters this cycle. Nearby Bartlesville has placed a 25-year ONG franchise renewal on the same August 25 special election ballot, but chose to keep its franchise fee at 3.0% rather than raising it, an arrangement the city estimates will generate between $365,000 and $410,000 annually, according to the City of Bartlesville.
What the Vote Can and Can't Change
Whatever Tulsa voters decide, the franchise measure only governs local right-of-way usage and local franchise fees. Retail natural gas rates and utility service rules remain under the jurisdiction of the Oklahoma Corporation Commission, per Title 17, Section 152.A of Oklahoma Statutes as outlined by the Oklahoma State Courts Network. In other words, Tulsans cannot use this ballot measure to change what they pay on their monthly gas bills.
During public informational sessions this summer, municipal leaders emphasized that Tulsa has no alternative natural gas distributor and no public capital available to acquire ONG's existing underground pipe network, according to city council statements. That reality frames the vote less as a referendum on competition and more as a decision over construction rules and revenue terms governing a utility that already has an entrenched presence beneath city streets.
The franchise question won't be the only thing on Tulsa ballots on August 25. The special election also includes nonpartisan Tulsa City Council races, primary runoff contests, and two statewide questions covering ad valorem tax reimbursements, known as SQ 844, and voter identification requirements, known as SQ 846, according to the Tulsa Regional Chamber.
