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(ii) When new rates or changes in 17, 1971; Order 415-C, 37 FR 28416, Dec. 23, present rates are proposed or when 1972; Order 474, 38 FR 13479, May 22, 1973; the proposed facilities will result in a Order 514, 39 FR 37975, Oct. 25, 1974) material change in applicant's average cost of service, such statement shall be

$ 157.15 Requirements for applications accompanied by supporting data show

covering acquisitions. ing:

An application for a certificate au(a) System cost of service for the thorizing acquisition of facilities, in first calendar year of operation after addition to complying with the appli. the proposed facilities are placed in cable provisions of 88 157.5 through service.

157.14, shall include a statement (6) An allocation of such costs to showing: each particular service classification, (a) The exact legal name of the with the basis for each allocation vendor, lessor, or other party in interclearly stated.

est (hereinafter referred to as (c) The proposed rate base and rate "vendor") the State or other laws of return.

under which vendor was organized, lo(d) Gas operating expenses, segre cation of vendor's principal place of gated functionally by accounts.

business, and a description of the busi(e) Depletion and depreciation.

ness, operation or property of vendor W Taxes with the basis upon which covered by the application. computed.

(b) Any certificate from the Com(b) Additional exhibits. Applicant mission, held by vendor, relating dishall submit additional exhibits neces- rectly to the facilities which applicant sary to support or clarify its applica- seeks to acquire, citing the order, date tion. Such exhibits shall be identified thereof, docket designation, and title and designated as provided by of the proceeding; reference to and $ 157.6(b)(6).

designation of any companion applica(c) Additional information. Upon re- tions by vendor for permission and apquest by the Secretary, prior to or proval pursuant to section 7(b) of the during hearing upon the application, Natural Gas Act. applicant shall submit such additional (c) The manner in which the facilidata, information, exhibits, or otherties are to be acquired, the consideradetail as may be specified. An originaltion to be paid, the method of arriving and 7 conformed copies of such addi- at the amount thereof, and anticipattional information shall be furnished ed expenses in addition to the considto the Commission and shall conform eration. in all other respects with $$ 1.15, 1.16, (d) The facilities to be acquired, and 1.17 of this chapter unless other their present use, their proposed use wise directed by the Secretary. The after acquisition, and whether they Commission reserves the right to re- constitute all of vendor's facilities. quest additional copies.

(e) Any franchise, license, or permit (d) Availability of Commission staff respecting the facilities involved, for advice prior to formal filing. Prior showing expiration date thereof, and to filing an application, any person the effect of the proposed acquisition may informally confer with the staff thereon. of the Commission to obtain advice on any problem of statement or presenta

(17 FR 7389, Aug. 14, 1952] tion of an application or any part

§ 157.16 Exhibits relating to acquisitions. thereof.

In addition to the exhibits required (Secs. 3(e), 7, 8, 82 Stat. 721, 725; 49 U.S.C.

by 8 157.14, every application involving 1672, 1676, 1677)

acquisition of facilities shall be accom(17 FR 7387, Aug. 14, 1952, as amended by

panied by the exhibits listed below. Order 185, 21 FR 1486, Mar. 8, 1956; Order

Together with each exhibit applicant 196, 22 FR 2882, Apr. 24, 1957; Order 280, 29

shall set forth a full and complete exFR 4877, Apr. 7, 1964; Order 407, 35 FR 11390. July 16, 1970; Order 415, 35 FR planation of the data submitted, the 18961, Dec. 15, 1970; Order 430, 36 FR 7052. manner in which it was obtained, and Apr. 14, 1971; Order 436, 36 FR 15530, Aug. the reasons for the conclusions which

(xii) Conformed copies of all applications and supporting exhibits, registration statements, or other similar submittals, if any, to the Securities and Exchange Commission, including all supplements, changes or modifications of the above.

(xiii) Any additional data and information upon which applicant proposes to rely in showing the adequacy and availability to it of resources for financing its proposed project.

(15) Exhibit M-Construction, operation, and management. A concise statement setting forth arrangements for supervision, management, engineering, accounting, legal, or other similar service to be rendered in connection with the construction or operation of the project, if not to be performed by employees of applicant, including reference to any existing or contemplated agreements therefor, together with:

(i) A statement showing affiliation between applicant and any parties to such agreements or arrangements. See Exhibit D, paragraph (a)(4) of this section.

(ii) Conformed copies of all construction, engineering, management, and other similar service agreements or contracts in any way operative with respect to construction, operation, or financing of facilities which are the subject of the application or will be applicable under system operations.

(16) Exhibit N-Revenues-Expenses-Income. When the estimated revenues and expenses related to a proposed facility will significantly affect the operating revenues or operating expenses of an applicant, there shall be submitted a system-wide statement for the last year preceding the proposed construction or service and pro forma system-wide and incremental statements for each of the first three full years of operation of the proposed facilities, showing:

(i) Gas system annual revenues and volumes of natural gas related thereto, subdivided by classes of service, and further subdivided by sales to direct industrial customers, sales to other gas utilities, and other sales, indicating billing quantities used for computing charges, e. g., actual demands, billing

demands, volumes, heat-content adjustment or other determinants. In addition, if enlargement or extension of facilities is involved, the revenues attributable solely to the proposed facilities shall be stated separately, and the basis and data used in such computation shall be clearly shown.

(ii) Gas system annual operating expenses classified in accordance with the Commission's Uniform System of Accounts for Natural Gas Companies; the annual depreciation, depletion, taxes, utility income, and resulting rate of return on net investment in gas plant including working capital. In addition if enlargement or extension of facilities is involved, the cost of service attributable solely to the proposed facilities shall be stated separately with supporting data.

(iii) When the data required in subdivisions (i) and (ii) of this subparagraph is not submitted, applicant shall provided in lieu thereof a statement in sufficient detail to show clearly the effect on the operating revenues and operating expenses of the estimated revenues and expenses related to the proposed facility.

(17) Exhibit 0-Depreciation and depletion. Depreciation and depletion rates to be established, the method of determination and the justification therefor.

(18) Exhibit P-Tariff. (i) A statement of the rates to be charged for the proposed sales or service, including: (a) Identification of the applicable presently effective rate schedules, when no additional tariff filings will be required, or (b) when changes are required in applicant's presently effective tariff, or if applicant has no tariff, pro forma copies of appropriate changes in or additions to the effective tariff or a pro forma copy of the new gas tariff proposed, or (c) when a new rate is proposed, a statement explaining the basis used in arriving at the proposed rate. Such statement shall clearly show whether such rate results from negotiation, cost-of-service determination, competitive factors or others, and shall give the nature of any studies which have been made in connection therewith.

(ii) When new rates or changes in present rates are proposed or when the proposed facilities will result in a material change in applicant's average cost of service, such statement shall be accompanied by supporting data showing: (a) System cost of service for the first calendar year of operation after the proposed facilities are placed in service. (b) An allocation of such costs to each particular service classification, with the basis for each allocation clearly stated. (c) The proposed rate base and rate of return. (d) Gas operating expenses, Segregated functionally by accounts. (e) Depletion and depreciation. (f) Taxes with the basis upon which computed. (b) Additional eachibits. Applicant shall submit additional exhibits necessary to support or clarify its application. Such exhibits shall be identified and designated as provided by § 157.6(b)(6). (c) Additional information. Upon request by the Secretary, prior to or during hearing upon the application, applicant shall submit such additional data, information, exhibits, or other detail as may be specified. An original and 7 conformed copies of such additional information shall be furnished to the Commission and shall conform in all other respects with $$ 1.15, 1.16, and 1.17 of this chapter unless otherwise directed by the Secretary. The Commission reserves the right to request additional copies. (d) Availability of Commission staff for advice prior to formal filing. Prior to filing an application, any person may informally confer with the staff of the Commission to obtain advice on any problem of statement or presentation of an application or any part thereof.

(Secs. 3(e), 7, 8, 82 Stat. 721, 725; 49 U.S.C. 1672, 1676, 1677)

[17 FR 7387, Aug. 14, 1952, as amended by Order 185, 21 FR 1486, Mar. 8, 1956; Order 196, 22 FR 2882, Apr. 24, 1957; Order 280, 29 FR 4877, Apr. 7, 1964; Order 407, 35 FR 11390, July 16, 1970; Order 415, 35 FR 18961, Dec. 15, 1970; Order 430, 36 FR 7052, Apr. 14, 1971; Order 436, 36 FR 15530, Aug. are derived therefrom. If the CommisSion determines that a formal hearing upon the application is required or that testimony and hearing exhibits should be filed, the Secretary shall promptly notify the applicant that submittal of all the exhibits and testimony of all witnesses to be sponsored by the applicant in support of his casein-chief is required. Submittal of such exhibits and testimony shall be within 20 days from the date of the Secretary's notice, or such longer time as he shall specify. Section 157.6(a) shall govern the number of copies to be furnished to the Commission. Interveners and persons becoming interveners after the date of the Secretary's notice shall be advised by the applicant of the afore-specified exhibits and testimony, and shall be furnished with copies upon request. (a) Eachibit Q—Effect of acquisition on eristing contracts and tariffs. A statement showing the effect of the proposed transaction upon any agreements for the purchase, sale, or interchange of natural gas, and upon any rate schedules or tariffs on file with this Commission, together with pro forma rate Schedule sheets, notices of cancellation, or other tariff filings required to be made with this CommisSion. (b) Eachibit R–Acquisition contracts. A summary statement of all contracts, agreements or undertakings relating to the proposed acquisition, including: (1) A conformed copy of each contract or other agreement covering or relating to the acquisition of the facilities. (2) The names and addresses of all persons employed or to be employed concerning the transaction, including engineering, financial accounting, legal, or other services, and the compensation, fees, or other payments, paid or payable, to such persons. (3) A disclosure of affiliation between applicant and Vendor Or between either of them and any other party in interest in the proposed acquisition. See Exhibit D, $ 157.14(a)(4). (c) Eachibit S-Accounting. A statement showing: (1) The amountS recorded upon the books of the vendor as being applica

17, 1971; Order 415-C, 37 FR 28416, Dec. 23, 1972; Order 474, 38 FR 13479, May 22, 1973; Order 514, 39 FR 37975, Oct. 25, 1974]

§ 157.15 Requirements for covering acquisitions.

An application for a certificate authorizing acquisition of facilities, in addition to complying with the applicable provisions of $$ 157.5 through 157.14, shall include a Statement showing:

(a) The exact legal name of the vendor, lessor, or other party in interest (hereinafter referred to as “vendor”) the State or other laws under Which Vendor was organized, location of Vendor's principal place of business, and a description of the business, operation or property of vendor covered by the application.

(b) Any certificate from the Commission, held by vendor, relating directly to the facilities which applicant seeks to acquire, citing the order, date thereof, docket designation, and title of the proceeding; reference to and designation of any companion applications by vendor for permission and approval pursuant to section 7(b) of the Natural Gas Act.

(c) The manner in Which the facilities are to be acquired, the consideration to be paid, the method of arriving at the amount thereof, and anticipated expenses in addition to the consideration.

(d) The facilities to be acquired, their present use, their proposed use after acquisition, and whether they constitute all of vendor's facilities.

(e) Any franchise, license, or permit respecting the facilities involved, showing expiration date thereof, and the effect of the proposed acquisition thereon.

[17 FR 7389, Aug. 14, 1952]

applications

§ 157.16 Exhibits relating to acquisitions.

In addition to the exhibits required by § 157.14, every application involving acquisition of facilities shall be accompanied by the exhibits listed below. Together with each exhibit applicant shall set forth a full and complete explanation of the data submitted, the manner in which it was obtained, and the reasons for the conclusions which

ble to the facilities to be acquired, and the related depreciation, depletion, and amortization reserves. (2) The original cost of the facilities to be acquired, segregated by accounts prescribed in the Commission's Uniform System of Accounts for Natural Gas Companies; the method by which the-original cost was determined; and whether such statement of original cost has been approved by any regulatory body. (3) If the original cost has not been determined, an estimate thereof, based upon records or data of vendor or its predecessors, together with an explanation of the manner in which such estimate was made and the name and address of the present custodian of all existing pertinent records and data. (4) The depreciation, depletion, and amortization reserve requirements applicable to the Original cost of the facilities to be acquired, estimated Service lives, the approximate average age of the facilities to which the depreciation reserve applies, the amortization period, and the depletion rates and estimated gas reserves upon which accruals to the depletion reserve are based. (5) The amount at which applicant proposes to record the facilities upon its books; the amount of the original cost to be recorded, the depreciation, depletion, and amortization reserves; and the acquisition adjustments, if any, together with applicant's proposed disposition of all adjustments. (6) Duplicate facilities to be acquired and retired, property which must be extensively rehabilitated, including a clear description of such property, the additional costs to be incurred, and the accounting therefor proposed. (7) A balance sheet of the company to be acquired as of the most recent date available, if the acquisition inVolved is by purchase of capital stock and liquidation of the acquired company. (8) A pro forma consolidating balance sheet, as of the date of the merger if the acquisition is by merger, showing the merging of the accounts and the adjustments relating thereto.

[17 FR 7389, Aug. 14, 1952, as amended by Order 280, 29 FR 4879, Apr. 7, 1964]

§ 157.17 Applications for temporary certificates in cases of emergency.

In cases of emergency and pending the determination of any application on file with the Commission for a certificate of public convenience and necessity pursuant to section 7 of the Natural Gas Act, application may be made for a temporary certificate authorizing the construction and Operation of such extensions of existing facilities, such interconnections of pipeline systems, or such sales of natural gas as may be required to assure maintenance of adequate service, or to serve particular customers. Such application shall be submitted in writing, shall be subscribed and verified by a responsible officer of applicant having knowledge of the facts, and shall State clearly and specifically the exact character of the emergency, the proposed method of meeting it, and the facts claimed to warrant issuance of a temporary certificate.

[Order 280, 29 FR 4879, Apr. 7, 1964]

§ 157.18 Applications to abandon facilities or service; exhibits.

Applications for an order authorizing abandonment of facilities or Service pursuant to section 7(b) of the Natural Gas Act shall contain a statement setting forth in detail the reasons for the abandonment and shall contain the exhibits listed below. Together with each exhibit, applicant shall set forth a full and complete explanation of the data submitted, the manner in which it was obtained, and the reasons for the conclusions which are derived therefrom. The Secretary may, in addition, require that the testimony of all witnesses to be presented by the applicant be filed together with all exhibits upon which applicant will base its case-in-chief. (a) Eachibit T-Related applications. A statement showing: (1) The docket numbers of the prior proceedings in which the facilities or services sought to be abandoned were certificated. (2) The docket numbers of related applications pending before or which have been authorized by the Commission with an explanation of the inter

relationship of those applications with the instant application. (b) Eachibit U–Contracts and other agreements. A conformed copy of each contract or other agreement pertaining directly or indirectly to the abandonment of facilities or service, including all agreements which influenced applicant to seek the abandonment and all agreements which are dependent upon the approval of the proposed abandonment. (c) Eachibit V–Flow diagram showing daily design capacity and reflecting operation of applicant’s system after abandonment. A flow diagram showing daily design capacity and reflecting operating conditions of applicant's system after abandonment of facilities on that segment of the system affected by the abandonment, including the following: (1) Diameter, wall thickness, length of pipe remaining. (2) For each remaining compressor station, the size, type and number of compressor units, horsepower required, horsepower installed, volume of gas to be used as fuel, suction and discharge pressures, and compression ratio. (3) Pressures and volumes of gas at the main line inlet and outlet connections at each compressor station. (4) Pressures and volumes of gas at each intake and takeoff point and at the beginning and terminus of all remaining facilities. (d) Eachibit W-Impact on customers whose service will be terminated. A statement indicating the availability of natural gas from other sources to applicant's customers whose service will be terminated by the abandonment and a statement showing the economic effect of the abandonment on applicant's customers. If no other natural gas is available, indicate the availability of other fuels to those customers and explain why the abandonment of service to each customer is permitted by the public convenience and necessity. (e) Eachibit X-Effect of the abandonment on eristing tariffs. A statement showing the effect of the proposed abandonment upon any rate schedules or tariffs on file with this Commission,

and

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