Midland Utility Franchise Agreement Terms

Business and Consumer Protection Texas 4 Minutes Read · published February 21, 2026 Flag of Texas

In Midland, Texas, utility franchise agreements set the legal terms for private or public utility providers that use city rights-of-way to deliver services. This guide explains typical contract terms, who enforces franchise obligations, reporting and appeal paths, and practical steps for providers and residents to comply or contest actions. It summarizes applicable provisions in the City of Midland code and local practice, highlights enforcement and common violations, and lists forms and contacts to start an application or file a complaint. Use the steps below to apply, report or appeal under Midland city law.

Overview of Franchise Terms

Franchise agreements typically cover: right-of-way access, term and renewal, compensation to the city, service standards, construction and restoration obligations, insurance and indemnity, and breach remedies. In Midland these provisions are established by ordinance and individual franchise contracts adopted by the City Council; see the city code and franchise ordinances for exact language and adopted agreements City Code - Franchises[1].

Confirm which franchise instrument applies to a given utility before relying on general summaries.

Key Contract Elements

  • Term and renewal - length of the grant and procedures for renewal or extension.
  • Compensation and fees - franchise fees, gross-receipts shares, or other payments due to the city.
  • Construction and restoration - standards for excavation, restoration and traffic control when installing or repairing facilities.
  • Insurance, bonds and indemnity - insurance limits, performance bonds, and indemnity clauses to protect the city and users.
  • Service standards and continuity - obligations to provide reliable service and contingency planning for outages.

Penalties & Enforcement

Enforcement of franchise agreements in Midland is handled through the City’s administrative and contractual processes; remedies may include monetary damages for breach, notice and cure procedures, termination of the franchise, and injunctive or other judicial relief. Specific fines, daily penalties, or civil penalties tied to franchise breaches are not uniformly specified in a single franchise clause and vary by ordinance or by individual franchise agreement; where the code or an adopted ordinance sets a figure it appears in that specific instrument, otherwise amounts may be established by contract or by separate ordinance and are not specified on the cited page City Code - Franchises[1].

  • Fines: specific dollar amounts for franchise violations - not specified on the cited page for general franchise provisions; check the adopted ordinance or the franchise contract.[1]
  • Escalation: first, repeat and continuing offences - typically follow notice, cure period, then escalated remedies; ranges are not specified in the general code citation.[1]
  • Non-monetary sanctions: administrative orders, termination of franchise rights, restoration orders, and civil court actions.
  • Enforcer: primary oversight is through the City Manager and the department designated in each franchise (often Utilities or Public Works), with administrative support from the City Secretary for ordinance adoption.
  • Inspections and complaints: complaints about franchise noncompliance are filed with the city department identified in the franchise; use the city contact pages in the resources section below to submit complaints.
  • Appeal/review: appeal routes include administrative review per the franchise instrument, and judicial review in state court; time limits for appeals are set in the ordinance or contract or the applicable administrative rules and are not specified on the general code page cited here.[1]
  • Defences and discretion: common defenses include permits, emergency repairs, reasonable excuse, or compliance efforts; the city often preserves discretion to grant variances or temporary relief in writing.

Applications & Forms

Standard forms or a single franchise application are not published on the general code page; most franchise grants are enacted by ordinance and negotiated as contracts. For new utility occupations of the right-of-way, use permitting and right-of-way permit applications from the city Public Works or Utilities department; a standard franchise application form is not specified on the cited page.[1]

Always confirm the operative ordinance or franchise contract before acting on compliance or payment obligations.

Common Violations

  • Excavation without required right-of-way permits or failure to restore paved surfaces to city standards.
  • Operating without a valid franchise where one is required, or exceeding the scope of the granted franchise.
  • Failure to pay franchise fees, report gross receipts, or submit required insurance certificates.

Action Steps for Providers and Residents

  • Providers: verify which ordinance and franchise contract apply; secure any required permits before construction or placement of facilities.
  • Residents: report service concerns or possible violations to the city department listed under resources; provide location, photos and any correspondence with the utility.
  • Appeals: follow the review procedure in the franchise ordinance or contract, preserve records, and meet any appeal deadlines stated in the instrument.

FAQ

What is a utility franchise agreement?
A utility franchise agreement is a city-granted contract authorizing a utility to occupy rights-of-way and provide services under specified terms.
Who enforces franchise obligations in Midland?
Enforcement is managed by the city department named in the franchise (commonly the City Manager, Utilities or Public Works) and by the City Secretary for ordinance actions; complaints should be submitted to the city contact listed below.
How do I appeal a franchise enforcement action?
Follow the appeal or review steps in the franchise ordinance or contract; if none are specified, seek administrative review with the enforcing department and consider judicial review within applicable statute timelines.

How-To

  1. Identify the applicable ordinance or franchise contract by checking the City Code or contacting the City Secretary.
  2. Obtain required right-of-way or construction permits from Public Works or Utilities before starting work.
  3. File a written complaint with the enforcing city department with evidence: location, photos, dates and communication records.
  4. If assessed penalties or administrative orders, follow the franchise or ordinance appeal steps promptly and preserve records for review.

Key Takeaways

  • Franchises are city-adopted contracts and ordinances that vary in terms and remedies; check the specific instrument that governs a utility.
  • Monetary fines and deadlines are often set in the individual ordinance or contract and may not appear in the general code text.

Help and Support / Resources

  1. [1] City of Midland Code of Ordinances - Franchises and related provisions

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