Mississippi § 77-6-21 - Contracts to buy gas from authority.

§ 77-6-21. Contracts to buy gas from authority.

Any municipality which is a member of the authority may contract to buy from the authority gas required for its present or future requirements, including the capacity and output of one or more specified projects. As the creation of the authority is an alternative method, among other things, whereby a municipality may obtain the benefits and assume the responsibilities of ownership in a project, any such contract may provide that the municipality so contracting shall be obligated to make the payments required by the contract whether or not a project is completed, operable, operating, retired or decommissioned and notwithstanding the suspension, interruption, interference, reduction, curtailment or termination of the output of a project or the gas contracted for, and that such payments under the contract shall not be subject to any reduction whether by offset or otherwise, and shall not be conditioned upon the performance or nonperformance of the authority or any other member of the authority under the contract or any other instrument. Any contract with respect to the sale or purchase of capacity or output of a project entered into between the authority and its member municipalities may also provide that if one or more of such municipalities shall withdraw from the authority or default in the payment of its or their obligations, with respect to the purchase of said capacity or output, then in that event the remaining member municipalities which are purchasing capacity and output under the contract shall be required to accept and pay for and shall be entitled proportionately to and may use or otherwise dispose of the capacity or output which was to be purchased by the defaulting municipality. Notwithstanding the provisions of any other law to the contrary, any such contracts with respect to the sale or purchase of capacity, output or gas from a project may extend for a period not exceeding fifty (50) years from the date a project is estimated to be placed in normal continuous operation; and the execution and effectiveness thereof shall not be subject to any authorizations or approvals by the state or any agency, commission or instrumentality or municipality thereof except as in this chapter specifically required and provided. Payments by a municipality under any contract for the purchase of capacity and output from the authority shall be made solely from the revenues derived from the ownership and operation of the gas system of said municipality, or other revenues when applicable, and any obligation under such contract shall not constitute a legal or equitable pledge, charge, lien or encumbrance upon any property of the municipality or upon any of its income, receipts or revenues, except the revenues of its gas system, and neither the full faith and credit nor the taxing power of the municipality are, or may be, pledged for the payment of any obligation under any such contract. A municipality, when applicable, shall be obligated to fix, charge and collect rents, rates, fees and charges for gas and other services, facilities and commodities, sold, furnished or supplied through its gas system sufficient to provide revenues adequate to meet its obligations under any such contract and to pay any and all other amounts payable from or constituting a charge and lien upon such revenues, including amounts sufficient to pay the principal of and interest on bonds heretofore or hereafter issued by the municipality for purposes related to its gas system. Any municipality which is a member of the authority may furnish the authority with money derived solely from the ownership and operation of its gas system or facilities and may make available for the use of the authority any personnel, equipment and property, both real and personal, which is a part of its gas system or facilities, and any other agency or end-user shall pay from any and all revenues available. Any member of the authority may contract for, advance or contribute funds derived solely from the ownership and operation of its gas system or facilities to the authority as may be agreed upon by the authority and the member, and the authority shall repay such advances or contributions from proceeds of bonds, from operating revenues or from any other funds of the authority, together with interest thereon as may be agreed upon by the member and the authority.