A.(1) Any political subdivision or group of political subdivisions of the state of Louisiana may contract to buy from the authority natural gas required for its or their present or future requirements, including such facility projects or facility arrangements as may be necessary to provide for the purchase, sale, transportation, exchange, storage, transmission, and/or distribution of natural gas.
(2) Any such contract may provide that such political subdivision(s) so contracting shall be obligated to make payments required by such contract whether or not any project designated to provide such natural gas and the transportation, exchange, transmission, distribution, and/or storage thereof is completed, operable or operating and, notwithstanding any suspension, interruption, interference, reduction, or curtailment of the volume of natural gas contracted for, that such payments under such contract shall not be subject to any reduction, whether by offset or otherwise, and shall not be conditioned upon the performance or nonperformance by the authority or any other political subdivision under such contract or any other instrument.
(3) Such contracts with respect to any project may also provide, in the event of default by any political subdivision which is a party to any such contract for such project in the performance of its obligations thereunder, for other political subdivision(s) which are parties to any such contract for such project to succeed to the rights and interests and assume the obligations of the defaulting party, pro rata or otherwise, as may be agreed upon in such contracts.
B. Notwithstanding the provisions of any other law or local charter provision to the contrary, any such contract with respect to the sale or purchase of natural gas from any project, and the transportation, exchange, storage, transmission, and/or distribution thereof may extend for a period not exceeding fifty years from the date such 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 political subdivision thereof except as in this Chapter specifically required and provided.
C.(1) Payments by a political subdivision under any contract for the purchase of natural gas from the authority and the transportation, exchange, storage, transmission, and/or distribution thereof, may be made solely from and may be secured by a pledge of lien upon, the revenues derived by such political subdivision from the ownership and operation of any utility system benefitted thereby or its combined utility systems in the discretion of such political subdivision, and such payments may be made as an operating expense of such benefitted utility system, or combined utility systems, as the case may be.
(2) No obligation under such contract shall constitute an indebtedness of the political subdivision for the purpose of any constitutional or statutory limitation or a legal or equitable pledge, charge, lien, or encumbrance upon any property of the government unit or upon any of its income, receipt, or revenues, except the revenues of its benefitted utility system or its combined utility systems, as the case may be, under the terms of the contracts, and neither the faith and credit nor the taxing power of the political subdivision are, or may be, pledged for the payment of any obligation under any such contract.
(3) Each political subdivision shall be obligated to fix, charge, and collect rents, rates, fees, and charges for natural gas, electricity, and other services, facilities and commodities sold, furnished, or supplied through its benefitted utility system, or its combined utility systems sufficient to provide revenues adequate to meet its obligations under 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 of such political subdivision or of the authority heretofore or hereafter issued for purposes related to such political subdivision's benefitted utility system, or its combined utility systems, as the case may be.
(4) Any pledge made by a political subdivision pursuant to this Paragraph shall be valid and binding from the date the pledge is made. The revenues, securities, and other monies so pledged and then held or thereafter received by such political subdivision or any fiduciary may by resolution be set aside in whole or in part into appropriate separate funds and the political subdivision may enter into such covenants and agreements constituting a contract between the political subdivision and the owner or owners of bonds as may be necessary to preserve the security of said funds. Any such agreements or covenants shall be included in an appropriate resolution of the governing body of said political subdivision, which resolution is to be maintained as part of the official public records of said political subdivision.
(5) Any revenues so pledged shall be payable to the authority to discharge the obligations of a political subdivision under any contract with the authority for the purchase, sale, transportation, exchange, storage, transmission, and/or distribution of natural gas subject only to the prior payment of reasonable and necessary expenses of operating and maintaining the political subdivision's benefitted utility system, or its combined utility systems.
(6) The authority may, either at law or in equity, by suit, action, mandamus, or other proceedings, enforce and compel the performance of the covenants or obligations of the political subdivision under such contract to be performed by the political subdivision or any officer thereof, including the fixing, charging, and collection of rents, rates, fees, and other charges.
D. Any political subdivision may furnish the authority with money derived solely from the ownership and operation of its benefitted utility system, or its combined utility systems, as the case may be, and provide the authority with personnel, equipment, and property, both real and personal. Any political subdivision may also provide any services to the authority. Any political subdivision may contract for, advance, or contribute funds derived solely from the ownership and operation of its benefitted utility system, or its combined utility systems to the authority as may be agreed upon by the authority and the political subdivision 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 political subdivision and the authority.
E. As used in this Section, "project" means any arrangements and/or facilities necessary to allow the authority to carry out its powers and fulfill its purpose of providing natural gas to participating political subdivisions, including but not limited to contracts pertaining to the purchase, sale, exchange, and/or production of natural gas and the transportation, exchange, storage, transmission, and/or distribution thereof; facilities, proposed, existing, or under construction, for the production, transportation, exchange, supply, storage, transmission, and/or distribution of natural gas, or for the development, manufacture, procurement, handling, transportation, exchange, storage, enrichment, processing, or reprocessing of natural gas or any rights or interest therein or securities issued in connection with the financing thereof, or to allow the authority to fulfill its purpose of providing price stability through financing arrangements including hedges and swaps.