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 6G).

NOTE: Rents paid periodically on natural gas lands acquired by lease after October 7, 1969, shall be charged to account 105, Gas Plant Held for Future Use.

721 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 General Instruction 14, Gas Well Records.

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.

722 Abandoned leases.

This account shall be charged with losses on abandonment of natural gas leases acquired before October 8, 1969, included in account 105, Gas Plant Held for Future Use, which have never been productive, unless otherwise authorized by the Commission. (See account 182.) Losses on abandonment of natural gas leases acquired after October 7, 1969, shall be charged to account 338, Unsuccessful Exploration and Development Costs.

723 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, Other Deferred Debits).

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.

4. OTHER GAS SUPPLY EXPENSES

730 Natural gas purchases.

A. This account shall include the cost at point of receipt by the utility of natural gas purchased for resale.

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 the amount paid for the gas.

731 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 portion 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.

731.1 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.

732 Purchased gas expenses.

A. This account shall include expenses incurred directly in connection with the purchase of gas for resale.

B. The utility shall not include as purchased gas expense, segregated or apportioned expenses of operating and maintaining gathering system plant whether such plant is devoted solely or partially to purchases of gas, except that the utility shall include the cost of turning on and off purchase gas wells and operating measuring stations devoted exclusively to measuring purchased gas.

C. In general, it is intended that this account include only the expenses directly related to purchased gas, including the expenses of computing volumes of gas purchased, and special items directly related to gas purchases which are not includible in other accounts.

733 Gas withdrawn from storage-Debit.

A. This account shall include debits for the cost of gas withdrawn from storage during the year. Contra credits for entries to this account shall be made to accounts 164.1, Gas Stored Underground or 164.2, Liquefied Natural Gas Stored, as appropriate.

B. Withdrawal of gas from storage shall not be netted against deliveries to storage. (See account 734.)

NOTE: Adjustments for gas inventory losses due to cumulative inaccuracies in gas measurement, or from other causes, shall be entered in account 741, Gas Losses. If, however, any adjustment is substantial, the utility may, with approval of the Commission, amortize the amount of the adjustment to account 741, Gas Losses over future operating periods.

734 Gas delivered to storage-Credit.

A. This account shall include credits for the cost of gas delivered to storage during the year. Contra debits for entries to this account shall be made to accounts 164.1, Gas Stored Underground or 164.2, Liquefied Natural Gas Stored, as appropriate.

B. Deliveries of gas to storage shall not be netted against withdrawals from storage. (See account 733.)

735 Gas used in utility operations—Credit.

This account shall include concurrent credits for charges which are made to operating expenses or other accounts of the gas department for gas from the common system supply used for compressor station fuel or other purposes. (See account 484, Interdepartmental Sales, for gas supplied to departments other than the gas utility department.)

736 Other gas supply expenses.

This account shall include the cost of labor and materials used and expenses incurred in connection with gas

supply functions not provided for in any of the above accounts.

5. 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.

710 Operation supervision and labor.

This account shall include the cost of supervision and labor in the operation of storage facilities including underground storage gas wells, lines, compressors and other equipment of the underground storage system, and the labor and expense of preparing and maintaining storage maps and land records.

ITEMS

1. Operation of other storage facilities. 2. Operation of underground storage system. (See account 710.)

741 Gas losses.

This account shall include the amounts of inventory adjustments representing the cost of gas lost or unaccounted for in underground storage operations due to cumulative inaccuracies of gas measurements or other causes. If, however, any adjustment is substantial, the utility may, with the approval of the Commission, amortize the amount of the adjustment to this account over future operating periods.

742 Operation supplies and expenses.

This account shall include the cost of supplies used and expense incurred in connection with storage operating functions not provided for in any of the above accounts, including power and fuel for compressor stations used in underground storage operations.

ITEMS

1. Supplies used in operation of other storage facilities.

2. Supplies used in operation of underground storage system. (See account 713.)

743 Storage well royalties.

A. This account shall include royalties, rents, and other payments includible in operating expenses for gas wells and gas land acreage located within and comprising underground storage projects of the utility. (See operating expense instruction 2.)

B. The records supporting this account shall be so maintained that information will be readily available for each storage project, names of the parties to each contract, basis of the charges, and location of wells to which the royalties or rents of each contract relate.

744 Rents.

This account shall include rents for property of others used in connection with the storage of gas, other than rents and royalties paid with respect to storage wells and gas lands utilized for the holding of gas in underground storage. (See operating expense instruction 2.)

745 Maintenance of reservoirs and wells.

This account shall include the cost of labor, materials used and expenses incurred in maintenance of gas wells and equipment the book cost of which is includible in account 352, Wells, and the maintenance of reservoirs, the book cost of which is included in account 352.2, Reservoirs. (See operating expense instruction 1.)

746 Maintenance of other underground storage plant.

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of plant the book cost of which is includible in accounts 351 to 357, inclusive, except account 352. (See operating expense instruction 1.)

747 Maintenance of other storage plant.

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of plant the book cost of which is includible in accounts 361 to 363, inclusive. (See operating expense instruction 2.)

6. TRANSMISSION EXPENSES

750 Operation supervision and labor.

This account shall include the cost of supervision and labor in the operation of lines, compressor stations, and other equipment of the transmission system.

ITEMS

1. Load dispatching labor.

2. Transmission communication system labor.

3. Compressor station labor.

4. Mains labor.

5. Measuring and regulating station labor. 6. Miscellaneous labor.

751 Compressor station fuel and power.

A. This account shall include the cost of gas, or other fuel or electricity, used for the operation of transmission compressor stations.

B. Records shall be maintained to show the Mcf of gas or quantity of each other type of fuel consumed or electricity used at each compressor station, and the cost of such fuel or power.

752 Operation supplies and expenses.

This account shall include the cost of supplies used and expenses incurred in connection with transmission system operating functions not provided for in any of the above accounts. ITEMS

1. Consultants' fees and expenses.

2. Payments to others for transmission communications services.

3. Telephone batteries, radio tubes, radio crystals, etc.

4. Scrubber oil.

5. Charts and printed forms.

6. Gauge glasses.

7. Water treatment chemicals.

8. Water tests and treatment other than by employees.

9. Line markers and warning signs.

10. Lumber, nails, etc., used in building and repairing gate boxes, foot bridges, stiles, etc.

11. Lubricants, wiping rags, waste, etc. 12. Hand tools.

13. Freight, express, parcel post, trucking and other transportation.

14. Employees' transportation and travel expenses.

15. Janitor and washroom supplies, first aid supplies, etc.

16. Utility services; light, water, telephone.

753 Transmission and compression of gas by others.

A. This account shall include amounts paid to others for the transmission and compression of gas of the utility.

B. Records supporting this account shall be so maintained that there shall be readily available for each agreement, name of other party, Mcf of gas delivered to the other party for transmission or compression and the Mcf of gas received back by the utility after transmission or compression, points of delivery to and receipt of gas from other party, amount and basis of charges for the transmission or compression service.

NOTE: If in connection with any gas delivered to another for transmission or compression such other party also processes the gas for extraction of gasoline or other salable products, credits attributable to the products so extracted shall be made to account 491, Revenues from Natural Gas Processed by Others, to the end that amounts recorded in this account shall only be charges for transportation or compression service.

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4. Lamping and watching while making repairs.

5. Lowering and changing location of lines, when the same pipe is used.

6. Protecting lines from fires, floods, land slides, etc.

7. Rocking creek crossings.

756 Maintenance of compressor station equipment.

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of equipment, the book cost of which is includible in account 368, Compressor Station Equipment. (See operating expense instruction 1.)

757 Maintenance of other plant.

This account shall include the cost of labor, materials used and expenses incurred in the maintenance of structures and equipment, the book cost of which is includible in accounts 366, 369, 370, and 371. (See operating expense instruction 2.)

7. DISTRIBUTION EXPENSES

760 Supervision.

This account shall include the cost of labor and expenses incurred in the general supervision and direction of distribution system operations. Direct supervision of specific activities such as main operations, removing and resetting meters, etc., shall be charged to the appropriate account.

761 Mains and services labor.

This account shall include the cost of labor incurred in operating distribution system mains and services and related equipment.

ITEMS

1. Mains and services labor. 2. Pumping station labor.

3. Measuring and regulating station labor.

762 Mains and services supplies and expenses.

This account shall include the cost of supplies used and expenses incurred in operating distribution system mains and services and related equipment.

ITEMS

1. Line markers and warning signs.

2. Lumber, nails, etc., used in building and repairing gate boxes, etc.