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purchased from each vendor are readi- incurred in the maintenance of strucly available.

tures, the book cost of which is includ

ible in account 341, Structures and Im781 Variation in products inventory. provements. (See operating expense

This account shall include credits instruction 2.) for increases, and debits for decreases in the inventories of salable products

786 Maintenance of extraction and refinextracted from natural gas or pur

ing equipment. chased for resale. The net debit or This account shall include the cost credit in this account shall equal the of labor, materials used and expenses difference between the inventory at incurred in the maintenance of equipthe beginning of the accounting year ment, the book cost of which is includ. and the end of the accounting month. ible in account 342, Extraction and Re

fining Equipment. (See operating ex782 Extracted products used by the util- pense instruction 2.)

ity-Credit. This account shall include concur

787 Maintenance of pipe lines. rent credits for charges which are This account shall include the cost made of operating expenses or other of labor, materials used and expenses accounts of the gas department for incurred in the maintenance of equipgasoline or other extracted products ment, the book cost of which is includwhich are used from stocks recovered ible in account 343, Pipe Lines. (See in the natural gas extraction process operating expense instruction 2.) or purchased for resale, and for such products used for blending and refin

788 Maintenance of extracted products ing processes, the contra debit for storage equipment. which is account 775, Materials.

This account shall include the cost

of labor, materials used and expenses 783 Rents.

incurred in the maintenance of equipThis account shall include all rents ment, the book cost of which is includfor the property of others used, occu

ible in account 344, Extracted Prodpied, or operated in connection with ucts Storage Equipment. (See operatthe extraction of salable products ing expense instruction 2.) from natural gas, exclusive of tank car rentals and other similar rentals in

789 Maintenance of compressor equip

ment. cludible in account 779, Marketing Expenses. (See operating expense in- This account shall include the cost struction 3.)

of labor, materials used and expenses

incurred in the maintenance of equipMaintenance

ment, the book cost of which is includ

ible in account 345, Compressor Equip784 Maintenance supervision and engi

ment. (See operating expense instrucneering.

tion 2.) This account shall include the cost of labor and expenses incurred in the

790 Maintenance of gas measuring and general supervision and direction of regulating equipment. maintenance of facilities used in the This account shall include the cost extraction and refining of salable of labor, materials used and expenses products from natural gas. Direct field incurred in the maintenance of equipsupervision of specific jobs shall be ment, the book cost of which is includcharged to the appropriate mainte- ible in account 346, Gas Measuring nance account. (See operating expense and Regulating Equipment. (See operinstruction 1.)

ating expense instruction 2.) 785 Maintenance of structures and im- 791 Maintenance of other equipment. provements.

This account shall include the cost This account shall include the cost of lapor, materials used and expenses of labor, materials used and expenses incurred in the maintenance of equip

ment, the book cost of which is includible in account 347, Other Equipment. (See operating expense instruction 2.)

C. EXPLORATION AND DEVELOPMENT

EXPENSES

795 Delay rentals.

A. This account shall be charged with the amount of rents paid periodically on natural gas lands acquired by lease before October 8, 1969, in order to hold natural gas land and land rights for the purpose of obtaining a supply of gas in the future.

B. Include also in this account, the cost of obtaining natural gas leases for a period of 1 year or less when such leases were acquired before October 8, 1969.

C. Records supporting this account shall be so kept that the utility can furnish complete details of the charges made for each natural gas leasehold. (See note to gas plant instruction 7G.)

B. When natural gas leaseholds which were acquired before October 8, 1969, and which have never been productive are abandoned, and the amounts provided in account 111, ACcumulated Provision for Amortization and Depletion of Gas Utility Plant, are not sufficient to cover the cost thereof, the deficiency shall be charged to this account unless otherwise authorized or directed by the Commission. (See account 182.)

NOTE: Losses on abandonment of natural gas leases acquired after October 7, 1969, shall be charged to account 338, Unsuccessful Exploration and Development Costs. 798 Other exploration.

This account shall be charged with the cost of abandoned projects involving natural gas leases acquired before October 8, 1969, on which preliminary expenditures were made for the purpose of determining the feasibility of acquiring acreage to provide a future supply of natural gas (see account 183.1, Preliminary Natural Gas Survey and Investigation Charges).

NOTE: Preliminary expenditures on abandoned projects involving natural gas leases acquired after October 7, 1969, shall be charged to account 338, Unsuccessful Exploration and Development Costs.

NOTE: Rents paid periodically on natural gas lands acquired by lease after October 7, 1969, shall be charged to account 105.1, Production Properties Held for Future Use.

D. OTHER GAS SUPPLY EXPENSES

Operation

796 Nonproductive well drilling.

This account shall include the net cost of drilling wells on natural gas leases acquired before October 8, 1969, which prove to be nonproductive.

NOTE A: Records in support of the charges to this account shall conform, as appropriate, to Note B of General Instruction 12, Records for Each Plant.

NOTE B: The net cost of drilling wells on natural gas leases acquired after October 7, 1969, which prove to be nonproductive, shall be charged to account 338, Unsuccessful Exploration and Development Costs.

797 Abandoned leases.

A. This account shall be charged with amounts credited to account 111, Accumulated Provision for Amortization and Depletion of Gas Utility Plant, to cover the probable loss on abandonment of natural gas leases acquired before October 8, 1969, included in account 105, Gas Plant Held for Future Use, which has never been productive.

800 Natural gas well head purchases.

A. This account shall include the cost at well head of natural gas purchased from producers in gas fields or production areas where only the utility's facilities are used in bringing the gas from the well head into the utility's natural gas system.

B. The records supporting this account shall be só maintained that there shall be readily available for each vendor and well head the quantity of gas, basis of charges, and amount paid for the gas.

NOTE: If gas purchases are made under one contract covering both well head and field line purchases and such amounts are not readily separable, the utility may classify such purchases according to predominant source or according to a reasonable estimate.

the quantity of gas, basis of charges, and the amount paid for the gas.

801 Natural gas field line purchases.

A. This account shall include the cost, at point of receipt by the utility, of natural gas purchased in gas fields or production areas at points along gathering lines, and at points along the utility's transmission lines within field or production areas, exclusive of purchases at outlets of gasoline plants · includible in account 802, where facilities of the vendor or others are used in bringing the gas from the well head to the point of entry into the utility's natural gas system.

B. The records supporting this account shall be so maintained that there shall be readily available for each vendor and each point of receipt, the quantity of gas, basis of charges, and amount paid for the gas.

NOTE: If gas purchases are made under one contract covering both well head and field line purchases and such amounts are not readily separable, the utility may classify such purchases according to predominant source or according to a reasonable estimate.

804 Natural gas city gate purchases.

A. This account shall include the cost, at point of receipt by the utility, of natural gas purchased which is received at the entrance to the distribution system of the utility.

B. The records supporting this account shall be so maintained that there shall be readily available for each vendor and each point of receipt, the quantity of gas, basis of the charges, and the amount paid for the gas.

NOTE: Do not credit this account for gas used in reforming for which the cost is charged to manufactured gas production expenses. Credits for such gas should be made to account 812, Gas Used for Other Utility Operations-Credit.

802 Natural gas gasoline plant outlet pur

chases. A. This account shall include the cost, at point of receipt by the utility, of natural gas purchased at the outlet side of vendor's natural gas products extraction plants.

B. The records supporting this account shall be so maintained that there shall be readily available for each vendor and for each products extraction plant, the quantity of gas, basis of the charges, and the amount paid for the gas.

805 Other gas purchases.

A. This account shall include the cost, at point of receipt by the utility, of manufactured gas, refinery gas, or any gas other than natural gas, or other than any mixed gas in which the natural gas is an important proportion of the mixture.

B. The records supporting this account shall be so maintained that there shall be readily available for each vendor and each point of receipt, the kind and quantity of gas, Btu content, basis of the charges, and the amount paid for the gas.

805.1 Purchased gas cost adjustments.

A. This account shall be debited or credited with decreases or increases in purchased gas costs related to Commission approved purchased gas adjustment clauses when such costs are not included in the utility's rate schedules on file with the Commission.

B. This account shall be debited or credited with amounts amortized from Account 191, Unrecovered Purchased Gas Costs.

803 Natural gas transmission line pur

chases. A. This account shall include the cost, at point of receipt by the utility, of natural gas purchased at points along the utility's transmission lines not within gas fields or production areas, excluding purchases at the outlets of products extraction plants includible in account 802.

B. The records supporting this account shall be SO maintained that there shall be readily available for each vendor and each point of receipt,

806 Exchange gas.

A. This account shall include debits or credits for the cost of gas in unbalanced exchange transactions whereby gas is received from another party in exchange for delivery of gas to such

other party and receipt and delivery of which are not includible in other acsuch gas is not completed during the counts. accounting period. Contra entries to D. This account shall be subdivided those in this account shall be made to as follows: account 174, Miscellaneous Current

807.1 Well expenses-Purchased gas. and Accrued Assets, for exchange gas

807.2 Operation of purchased gas measur. receivable and to account 242, Miscel ing stations. laneous Current and Accrued Liabil. 807.3 Maintenance of purchased gas measities, for exchange gas deliverable.

uring stations.

807.4 Purchased gas calculations expenses. Such entries shall be reversed and appropriate contra entries made to this

807.5 Other purchased gas expenses. account when gas is received or deliv

808 Gas withdrawn from storage-Debit. ered in satisfaction of the amounts receivable or deliverable. This ac

A. This account shall include debits counting is not required for minor

for the cost of gas withdrawn from transactions.

storage during the year. Contra credits

for entries to this account shall be B. If revenue is earned or amounts

made to accounts 117, Gas Stored Unare payable in consideration of the

derground-Noncurrent or 164.2, Liqperformance of exchange services, uefied Natural Gas Stored, as approsuch revenue or expense should be re

priate. corded in account 495, Other Gas Rev

B. Withdrawal of gas from storage enues, or account 813, Other Gas

shall not be netted against deliveries Supply Expenses, as appropriate. See, to storage. (See account 809.) however, accounts 489, Revenues from Transportation of Gas of Others, and

NOTE: Adjustments for gas inventory

losses due to cumulative inaccuracies in gas 858, Transmission and Compression of

measurement, or from other causes, shall be Gas by Others, for transactions which,

entered in account 823, Gas Losses. If, howin fact, are for transportation of gas ever, any adjustment is substantial, the utilrather than exchange of gas.

ity may, with approval of the Commission, C. Records shall be maintained so amortize the amount of the adjustment to that there is readily available for each

account 823 over future operating periods. gas exchange the volume of gas re

809 Gas delivered to storage-Credit. ceived and delivered whether or not entries of dollar amounts to this ac

A. This account shall include credits count are required.

for the cost of gas delivered to storage

during the year. Contra debits for en807 Purchased gas expenses.

tries to this account shall be made to

accounts 117, Gas Stored UnderA. This account shall include ex

ground-Noncurrent or 164.2, Liquepenses incurred directly in connection

fied Natural Gas Stored, as appropriwith the purchase of gas for resale.

ate. B. The utility shall not include as

B. Deliveries of gas to storage shall purchased gas expense, segregated or not be netted against withdrawals apportioned expenses of operating and from storage. (See account 808.) maintaining gathering system plant whether such plant is devoted solely 810 Gas used for compressor station or partially to purchases of gas, except

fuel-Credit. that the utility shall include the cost This account shall include concurof turning on and off purchase gas rent credits for charges which are wells and operating measuring stations made to operating expenses for gas devoted exclusively to measuring pur consumed for compressor station fuel chased gas.

from the common system gas supply. C. In general, it is intended that this account include only the expenses di

811 Gas used for products extractionrectly related to purchased gas, includ

Credit. ing the expenses of computing vol This account shall include concurumes of gas purchased, and special rent credits for charges which are items directly related to gas purchases made to products extraction expenses

for gas shrinkage and gas used for fuel in products extraction operations of the utility and for similar uses of gas of the utility by others processing gas of the utility for extraction of salable products.

815 Maps and records.

This account shall include the cost of labor, materials used and expenses incurred in the preparation and maintenance of storage maps and land records.

ITEMS

812 Gas used for other utility oper

ations—Credit. This account shall include concurrent credits for charges which are made to operating expenses or other accounts of the gas department for gas consumed from the common system supply for operating and utility purposes other than uses for which credits are includible in any of the foregoing accounts. (See account 484, Interdepartmental Sales, for gas supplied to departments other than the gas utility department.)

813 Other gas supply expenses.

This account shall include the cost of labor, materials used and expenses incurred in connection with gas supply functions not provided for in any of the above accounts, including research and development expenses.

Labor:
With respect to land records:

1. Supervising.

2. Abstracting titles to date for extension and renewal of leases.

3. Adjusting land and well rentals.

4. Renewing and extending leases or replacing leases not involving additional consideration.

5. Transferring, assigning, pooling, and merging leases.

6. Delivering rental checks.

7. Clerical work in maintaining storage land and lease records.

8. Preparing and maintaining lease expiration calendars. With respect to maps:

9. Supervising. 10. Preparing maps, well location plats, etc.

11. Reproducing maps (blueprints or photostats).

12. Posting and revising maps.

13. Surveying deeds, leases, rights-of-way, well locations, etc., for map revisions.

14. Maintaining files of maps and tracings.

15. Field checking boundaries, markers, etc. in connection with preparation of maps. Materials and expenses (general):

16. Reproduction of land and lease records and maps (blueprints, photostats, etc.).

17. Drafting materials and supplies. 18. Surveying materials and supplies.

19. Employees' transportation and travel expenses.

2. NATURAL GAS STORAGE EXPENSES These accounts are to be used by both transmission and distribution companies to account for natural gas storage expenses. If the utility operates both transmission and distribution systems, subaccounts shall be maintained classifying the expenses to the transmission or distribution function.

A. UNDERGROUND STORAGE EXPENSES

816 Wells expenses.

This account shall include the cost of labor, materials used and expenses incurred in operating storage gas wells.

814 Operation supervision and engineer

ing. This account shall include the cost of labor and expenses incurred in the general supervision and direction of underground storage operations. Direct supervision of specific activities such as turning on and shutting off storage wells, compressor station operations, etc., shall be charged to the appropriate account. (See operating expense instruction 1.)

ITEMS Labor:

1. Supervising.

2. Testing, bailing, swabbing, blowing, and gauging storage wells.

3. Painting signs, etc. 4. Minor upkeep of well roads, fences, etc. 5. Turning storage wells on and off. 6. Moving cleaning out tools between locations.

7. Criving trucks. Materials and expenses:

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