Transcript of Record — Federal Power Commission v. East Ohio Gas Co.

Supreme Court brief1950

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INDEX TO JOINT APPENDIX ——~

Petition for Review ALES ENG nr ES ree |

Excerpts from Testimony and Proceedings of Heariig :

on Docket No. G-115 et.al., held March 19-20, 16. . ee

Witness J. French Robinson .......... LEA epee 12

Excerpts from Testimony and. Proceedings of Hearing

on Docket No. G-458, held April 21, 1943. .3....¢..:. _ 64

Witness J. French Robinson ............. Sa was 64

Exhibit No. 1 at Hearing on Docket No. G- 115 et al.. re 69

— Item 1: Order No. 63, Prescribing Form of Finan-

cial and Statistical Report for Natural Gas

‘Companies as Defined in. the Natural Gas.

Act (52 Stat. 821) aes Aa Pepe OL ee ie Pree 69

Item 5: Order No. 69, Prescribing a System’ of be et

>)“ eounts for Natural Gas Sampasies under 3 ;

ol Tete re errr 7

Item 8: Order No. 73, Requiring Submission of Sup-

ees: plemental Data in connection with Gas

Plant Instruction 2-D of the Uniform Sys-

tem of Accounts under the Natural Gas Act 74

' Iteni 11: Order No. 80, Prescribing Form of Finan-

cial and Statistical Report for Natural Gas_

Companies as ‘Defined j in the Natural Gas

Act (52 Stat. 821), (Classes,A, B, C, and

‘D), FPG Form No. 133 (1940)............ sO)

Item 16: Order No. 86, Prescribing Form of Annual

Report for Natural Gas Companies as De-

_—~ fined in the Natural Gas Act (52 Stat. 821),

(Classes A and B), FPC Form No. 133

Pa ae | Ce ee Oe 81

Item 21: Order No. 69-A, Prescribing Maciiatinn

with Respect to Account 100.5, Gas Plant

Acquisition Rajuetiiita es ee 83

eS _ Index Continued.

_ Exhibit No. 2 at Hearing on Docket No. G-115 et al..

Item M Order No. 100, Prescribing Form of Annual

Report for Natural Gas Companies (Classes.

~ Page

» 85

_A and B), FPC Form No. 133.......... re.

Item 2: Order No. 113, Prescribing Form of Annual

Report for Natural Gas Companies, as a

fined in the Natural Gas Act-(52 Stat. 821 ),

3 (Classes A and B), FPC Form No. 2...... 87

Exhibit No. 3 at Hearing on Docket No. G-115 et al. |

(excerpt): Statistics of the East Ohio Gas Com-

pany as to Properties and Gas Handled............ &S

Exhibit No. 4 at Hearing on Docket No. G-115 et al.:

System Map of the East Ohio Gas Company OE eat (3 |

Question 7 from FPC Order No. 51, and answer filed’

_ by East Ohio Gas Company on Aug. 15, 1938. eee b 93

. Excerpt from Application of the East Ohio, Gas Com-—

pany—Docket | 0. =~ pia enaes aces ut Vetta 94

Exce i } . Kast Ohio ;

‘pany for an additional transmission line—Docket No. *

GOI ees e ener never enevesecesseeeceeaeesenss “95

Bias from Exhibit No. 1-2 to Application—Docket :

Be SO ors os hs ak ES WER KiERO RS 96

Excerpts from Exhibit No. ne o Application—Docket 3

No. C-458: Service contracts ..........cce cece ees 99 -

Order Instituting Foch steve Deck No.G-ll5,en- «

Lo POOTOATG 14, 1950 ot vesicc acces iuas ee Seeger 100:

tition of the City of Cleveland for Leave to Inter-

" vene—Docket nee i PEE Ee re OD ear rom 103

. Order Permitting Intervention of the City of Cleveland |

15 a OMNOE, OG, MIG oe ease weaned 108

Complaint of the City of Euclid—Docket No. 399... .. 109

Complaint of the City.of Cleveland—Docket No. G-400. 114

Complaint of the City of Lakewood—Docket No. G-401. 119

Motion of the’East Ohio Gas, Company to Dismiss the

— of the City of oo No. G-399. 125

Index Continued.

iii

3 3 Page |

_ Motion of the East Ohio Gas Company to Disinise the

Complaint of the Ci ‘ity. of Clev eland—Doc ‘ket No.

ee i | eee Se ee ee?) Cerne re 126

~ Motion of the East Ohio Gas Company to hae Te the

_ Complaint of the City of Lakewood—Docket No. |

Ban Sn, ene opera ee PPL ere Tere eae 128

7 Order Denying Motions te Dismiss, Consolidating Pro- —

coodings, Fixing Date of Hearing, and Requiring the

Cast Ohio Gas Company to Show Cause............ 129

| Pieiice Consolidating Proceedings ............ PEP =

Application of the Public Utilities Commission of the

State of Ohio for Leave to Intervene..... ieetehawe 133

Order Permitting Intervention of the Public U tilities

Commission of the State of Ohio ........... eee 139

Order Requiring Compliance with Orders Hareicfore oie

UE ova sn 6 5 bb 4 hoes es baa e Wis eked dewhbat ees 140

Application of the East Ohio Gas Company for a Re-

|. ge EC EEE CT TOE EET ee Ere eee 15)

. Application of the State of Ohio.and the Publie Utili- |

ties Commission of the State of Thio fora | Reheari ing 163

Order Granting Stay ............. tinea as ieee Kade ak 169

Opinion No. 158 on Rehearing, and Onder Entered Nov.

OE Shack Bek rae Saab e ee EES yh ea eee ben 170

_ Application of the East Ohio Gas Cc ompany for a Re-

RES A FN ii abo iis 6's See Rca e RN oks ed 180

Application of the State of Ohio and the Public Utili-

ties Commission of the State of Ohio for # Rehearing 188

Order Modifying Orders on June 25, 1946 and Novem-

ber 7, 1947, and Denying Applications of the East .

Ohio Gas Company for ceicapee and Btay and of —

Intervenors for Rehearing ....... keene cave eens a. 193

\ Proceedings in U. 8. C. A. District of Columbia Cinta 197

WU, CO Fa ewe ge

- Dissenting opinion, Edgerton, Sa as aietiadaibahtcialaciatleaieppidbtaiicabceitckigia 26

Judgment and decree... ttl snieniogsaamsisioshiielintitn 206

Designation of PO ring sinh iusihig' cede acu bases 207

Clerk's certificate... - ESNet eas ss ad nael tahsicsbneccsiace ARO

- Stipwiation as to printed record_ eae Be ESE SR eS Re ee 208

Ordsy allowing. cortiorart..2.:0002 VO suiesaaoiiabie a

i$ 3 ela:

; ty VAL earn i

a: i ene .

(repeat Se?

IN THE

United States Court of —

District OF Couv MBIA

/ No. 9741.

‘THE EAST OHIO GAS COMPANY, Petitioner,

STATE OF QHIO, :

THE PUBLIC UTILITIES COMMISSION OF OHIO,

__Intervening Petitioners,

——

ee : v.

_ FEDERAL POWER COMMISSION, Respondent.

Petition for Review of Order of the Federal Power ~

Commission.

ae JOINT APPENDIX. = = 8 ~

A Petition for Review of Order of the Federal _

Power Commission.

To The Honorable The Judges of the United States Court

of Appeals for the District of Columbia:

Petitioner, The East Ohio Gas Company (hereinafter

sometimes called ‘*Kast Ohiv’’), being aggrieved by an

_order of respondent, the Federal Power Commission (here-

inafter sometimes called the Commission”), made in pro-

ceedings under the Natural (ias Act to which petitioner

was a party, hereby files in this Court its written petition

— to review and set aside said order pursuant to Section 19(b)

of said Act. : ;

Petitioner is an Ohio corporation éngaged in the local

distribution of natural gas solely within Ohio. Respondent

isa commissionergated, and established by act of Congress |

(41 Stat. at L, 1063 (1920) as amended, 16-U. S. C. Sec. 7 @).

By the Natural Ga Act (52.Stat. at L. 821 (1938), 15 |

U. S. C. See. 717) the Commission is vested with certain |

authorities-over persons engaged. in the interstate trans-.’

portation or interstate sale of natural gas.

B Kast Ohio was respondent and defendant.in certain:

proceedings before the Commission commenced in |

1939. and bearing its Docket Nos. G-115, G-399, G-400 and ~

_ G-401. The order of the Commission herein sought to he —

reviewed and set-aside was issued in such proceedings No- ;

vember 7, 1947 as-a part of the Commission’s Opinion No. °

_ 158 and it incorporated and made effective on-that date an —

order previously issued by the Commission in such procs eed- ,

Ings dated June 25,1946. \ .. ‘

Said Commission. order of ‘June 25, 1946, Sp made effec.

tive by the order of November 7, 1947, among other things, ©

found East Ohio to be a “natural- -gas company’’ within the —

meaning of the Natural Gas Act and hence subject to‘ the

Commission's jurisdiction and (1) ordered East Ohio to :

comply with all previous accounting orders (Nos. 69, 69-A —

and 73) made by the Commission and applicable to ~

“nataral- -gas companies” subject to‘its jurisdiction, includ. :

ine those relating to the determinations of original cost of ©

property, (2) ordered East Ohio to comply with all previous 3

orders (Nos. 63, 80, 86, 100 and 113) of the Commission re- ;

quiring such ‘‘natural-gas companies’” to file annual re-

ports on forms prescribed by the Commission, and (3):

ordered East Ohio within 90 days to file with‘the Commis- —

sion the data; statements and reports Pequiréd . by said _

orders i in so far as Kast Ohio could reasonably supply the

ae ane

_Aame within that period and to inform the Commission in -

writing as to when the remainder of the required data,

| statements and reports would be filed. ;

» On July 22, 1946 East Ohio filed an application for a re-

- hearing and for a ‘stay of said order of June 25, 1946, both

_ of which were granted on August 23, 1946, the rehearing

- being limited to oral argument. After the ‘rehearing the .-

' Commission issned its said order of November 7, 1947,

whie *h dissolved the stay; changed the effective date of the

- ordér of June 2 25, 1946 to November 7, 1947 and otherwise

| reaffirmed said order.

Bete On December 3, 1947 East Ohio applied to the Com. z

mission pursuant to Section 19(a) of the Natural Gas

_ for a rehearing and a stay of said order of November

¢,1947. The application for rehearing set forth specifically

ie grounds upon which East Ohio claims that the order of

the Commission and the opinions and findings upon which

it was based are unlawful and prejudicial to East Ohio. -

On December 30, 1947, after modifying said previous

orders in respects not now material, the Commission de-

” nied said application for a rehearing and stay filed Decem-

ber 3, 1947.

| Fast Ohio avers that said order of November 7, 1947,

. as. modified by the order of December 30, 1947, but including

the parts of said order of June 25, 1946 incorporated and—

made effective thereby as above set forth, exceeds the j juris.

diction of the Commiission and is unlawful for each of the

following reasons upon which East Ohio relies:

A. The Commission erred in failing bb make and give

effect to the following findings of fact requested by East —

Ohio and shown by undisputed evidence in the reeord to

wit: . th

1. East Ohio is an Ohio corporation, organized in 1910:

_as a merger of several other Ohio companies. Its ‘business

from the beginning and now is the direct. local distribution

? aes"

of natural gas to 556,000 consumers in 69 Ohio mnie ipali:

ties with an estimated population of more than 2,000,000,

of which the principal are Cleveland, Akron, Canton, Mas.

— and Youngstown. i

2. The total sales of. East Ohio in 1945 were as follows:

: In M.c.f.

Sold. to domestic consumers 46,674,457

Sold to industrial] consumers 30,126,754

Field sales oe | . — 627,196

Total sales oo 77,428;407

D All sales to domestic and industrial consumers were

made’ through East>Oliio’s local distribution systems

in the 69 communities Served. No sales to industrial or

other consumers from pipe lines outside of those communi-

ties wére made. No sales of any kind of out-of-state gas or

_ a mixture of out-of-state and Ohio gas were made to any

other company for resale. Field sales i in their entirety are

' of gas both produced and consumed in Ohio.

3, All of East Ohio’s rates and all of its public utility

obligations are regulated in Ohio. . This local regulation of |

rates consists of municipal ordinances accepted by East

Ohio and constituting contracts under Ohio General Code

- Sections 3982 and 3983 or orders of The Public Utilities

Commission of Ohio made on proceedings initiated by East

Ohio or on appeal from a municipal ordinance fixing an un-

acceptable rate (Ohio General Code Sections 614-20 ef seq. —

and Sections 614-44 ef seq. ). All gas sales made by East.

Ohio are at rates fixed in accordance with Ohio statutes.

4. East Ohio. neyer has and does not now transport

fiataral gas in interstate commerce or otherwise for any

other person, nor has it ever held itself out as willing to do

so. No gas is moved from East Ohio’s lines to points out-

side. the state. |

5. For 35 years East Ohio has been and is now completely

subject to The Public Utilities Commission of Ohio in.re-

spect of all rates not agreed upon with municipalities ahd

in respect of-all other gubtie utility service obligations.

The Publie Utilities Commission of: Ohio has exeretsed its

regulatory power over rates and other-Kast Ohio matters in

5 »no less than 258 separate proceedings during its ex xistence.

That Commission has repeatédly placed a valuation upon,

j and examined and. determined the operating ex venses of, -

é _ the pipe lines running from the Ohio River to Cleveland

city gate and elsewhere. 7

EK _ 6, East Ohio’s gas. supply conies from (1) Ohio

producing fields, (2) gas delivered at the Ohio-West

_ Yirginia line by the Hope Natural Gas C company, and (3)

“gas delivered by the Panhandle Eastern Pi ipe Line Com-

“pany at Maumee, Ohio. Through these lines ‘East Ohio

Rey ee Ne

SAR eis

_ receives gas produc ed'in West Virginia, Louisiana, Texas,~

Kansas and other southwestern fields. During recent a

“from 70% to 85% of East Ohio’s supply is out-of-state gas

and the remainder is Ohio gas: All out-of-state gas deliv:

ered to Kast Ohio i is at prices that have heen fixed by reg-

_ulatory orders of the respondent. ae Ree 3

7. The total number of miles of pipe line awned and op-

_ erated by. East Qhio as of December 31, 1945 was as follows,

using. the accounting classification required by The Public

Utilities Commission of Ohio:

“Miles

istribution. lines : 9,490

Storage lines wt a RO

Field lines | : 1011 7°

Transmission lines _ ee 903 . -

Of the lines elassified inthe accounts as transmission lines

approximately 650 miles serve the purpose of bringing out-

of-state gas from. points of delivery: ‘at or near the state

boundary line to East Ohio’s local distribution sy stems and -

for the most part without further compression. These

lines serve no‘other purpose. If East Ohio’s distribution

business were terminated it would have no use whatever for |

these. lines or any of its property.. East Ohio’ s purchases

_and sales, receipts and deliveries are all‘in Ohio.

™“ fs ‘ bp

: os

| 6

&.. East Ohio for many years has been keeping its books

of account in accordance with the U niform System of Ac-

counts prescribed or permitted by The Public. Utilities

Commission of Ohio and has filed ‘annudlly reports, depre—

ciation rates and similar accounting and other data with

the Ohio Commission. »The cost to East Ohio of

eae attempting to comply with respondent’s Orders Nos,

G9, 69-A and 73, requiring reclassification and a state-

ment of original cout of all of East Qhio’s properties—

‘general, distribution, transmission and production—would

now be betw een $i, 500, 000 and $2, 000,000.

B. The C ‘commission erred in failing to correct its -Find-

. ing (15) in said order of June 2 9, 1946° that East Ohio's

transmission lines Nos. 1, 2, 3, 4, 5 and 6 and its Youngs. |

‘town branch lines ‘‘are not, and at all times mentioned

herein, were not facilities used for the *.* * local distribu-

tion of natural gas,’’ and further erred in its findings in

_ said Opinion No. 158 ‘‘that East Ohio’s 650 miles oN{rans-

mission pipe lines, described herein, are not ‘facilities used

for’ local distribution, * * *,"? -

C. The Commission erred in not finding and holding

that the transmission lines referred to in peragraph B

_ above in their entirety are facilities used by and. useftit

to East Ohio solely for the local distribution of natural

gas in Ohio within the ‘meaning of Section 1 (b) of the

_ Natural Gas Act; that East Ohio is not a ‘“‘natural-gas —

ee ee ey eee eee 4 i eee, "

company’? as defined in the Natural Gas Act; and that the —

Commission is without jurisdiction over East Qhio..

_D. The Commission erred in not finding arid holding that

the transportation by East Ohio of its own gas through

the transmission lines referred to in paragraph B above, |

. Solely for the purpose of meeting its only public utility obli-

gation, namely, local distribution in Ohio, is ‘‘other trans-

portation’’ within the meaning of Section 1 (b) of the ©

Natural Gas Act; that East Ohio is not a ‘‘natural-gas —

company’’ as defined in the Natural Gas Act; and that the

ae, >

‘ - A"

) Commission is without jurisdiction over East Ohio, It fur

~ ther erred in ifs findings in/said Opinion No. 158 “‘that East

> Ohio's transportation of ‘out-of-state natural gas in sued:

a nn eS

NE MOTI COP AD eA ales pile ee

;

- lines is neither ‘other transportation’ nor ‘loeal distribu

tion’ within the meaning of said Section 1(b) .

GH oa 2 II.

The Commission erred in requiring East Ohio to eon

ply with the Commission’s accounting requirements as set

forth in its orders Nos. 69, 69-A and 73 for the reason that

said accounting reanirements apply equally to all classes of

property owned by a ‘‘natural-gas company while the

jurisdiction and authority of the Commission by the pire

‘visions of Seetion 1 (b) of the Natural Gas Act do not ex

tend to the local distribution of natural gas, or to the facili

ties used for such distribution, or to the production and

- gathering of natural gas, of to the facilities used for such

production or gathening. “To the extent that said former.

orders of the Commission, with which East Ohio is directed

— to comply as.a result of the Commission's order of Novem

ber 7, 1947, require East Ohio: to conform to the accounting

requirements of the Commission in respect of any facilities

er business, other than those relating to the transportation

of natural gas in interstate commerce, each of said orders ix

beyond the power of the Commission and invalid. Each of

said orders should be modified so as to apply only to such

transportation property and operations. . :

A. The information required by fhe Commission orders ~

with which East Ohio is directed to comply are solely for _

the purpose of compiling information having no possible

relevancy to any governmental object except the regulation

of East Oltio’s rates for the local distribution of gas in

Ohio. The orders and any provisions of the Natiral Gas

Act construed to authorize their issuance therefore consti

tute an invasion of the powers reserved to the State of Ohio

Af:

‘ a :

: 2 . g : °

- ‘

under the Tenth Amendment to the Constitution of the

United States and an invalid extension of the powers dele-

ti -gated'to the-federal government by Article I, Section VIII

- thereof and are unconstitutional and void.

Be: B. To comply with the Commission's said orders,

inchuding those relating: to original cost, wou'd im-

pose upon East Ohio an expense between $1,500,000 and

$2 000,000," East Ohio’s testimony ‘as to this expense Was.

in no way challenged before the C ommission and ifs state-

| ment’in Opinion No, 158 that. Bast Ohio's estimate is ‘‘un-

” supported’? and “not convineing”’ is arbitrary. aaa ene

~ anee with said orders by East Ohio’ at this very large ex

pense, even if it were held that East Ohio was technically

subject to the jurisdiction of the Commission, will serve 110

" useful regulatory, purposed of the Commission -since Exst

(hio-has neither rates nor, service subject to : regulation by

the Commission and will serve io useful purpose in the

-regulation in the State of Ohio of East Ohio's rates for

tocal distribution since original cost ismot a factor in such

regulation. Said orders of the-Commission constitute an

abuse of its statutory powers and are. arbitrary and invalid

as an unreasonable search and seizure in violation of the..

Fourth Amendment to the Constitution of the United States

and as a deprivation of East Ohio's property without due—

process of law and a. taking of its property for public use

without jufst compensatic n in violation of the Fi ifth Amend-

ment thereto. Pits Sue

IV.

Ww hen the Commission made its original order ‘dated Feb-

rnary 14, 1939 in Docket No. G-115, which was supple-

“mented by its order dated April 14, 1939, East Ohio filed

_ its “applications for rehearing and after denials thereof

promptly filed a/ petition to review such orders in the Cir-

euit Court of ppeals for the Sixth Cireuit. By such ap-

peal East Ohio sought to have it judicially determined

whether ornot it was a eee: -£as company”’ within the

—

9 : 7 . 8 am

meaning of the’Natural Gas Act and whether the Couimis-

‘sion bad jurisdiction over it. It was at-that time prevented

from having this question determined by a snotion

I. of the Commission to dismiss the appeal on the

ground that the orders involving this question. were

not reviewable. The Circuit C ourt of Appeals ‘so held in

East Ohio Gas Co. v. Federal Power Commission, 115 F.

- (2d)-285 (1940).

The ground upon-which the Commission’ s ghotion to dis.

miss was made ‘and sustained was that Fast Ohio could,

set up its defense that it was not subject to the jurisdiction

of the Conmnission if and when an‘ acticn was brought by

the Commission in the United States District Court pur.

suant to Section 20 of the Natural Gas Act to enforce its

orders. .To this date the Commission has made no effort

to enforce its said orders of 1939 or any suheoquent orders

‘by proceeding under Section 20, _

a omey following the making of .said onde? of June

), 1946 by the Commission East Ohio filed its applic: ition

‘Tor a ee and a stay thereof and both were granted

on August 23, 1946 by the Commission, the rehearing be-

ing limited : a reargument. The reargument. was held |

before the full Commission on March 19, 1947 but the ( On

mission did not seca ed of the matter until November 7,

1947.

Thus from 1939 to 1947, a period: of 8 years, *ho’ serions

_attempt'has been made by the Commission to enforce the

orders of 1939 or any, later orders. During all of that

period the Commission could at any time have proceeded in —

the District Court in accordance with Section 20 of thre»

Natural Gas Act. oe

_ Said delay in the enforcement of said orders has not in |

terfered with the Commission's performance of its duties

and no injury appears of record or otherwise to the Com-

mission en account. of this delay. Nor could any such

prejudice result, for the plain fact is that East Qhio’s only

rates subject. to regulation by any one are: ‘local dis tribution

on 3

rates in Ohio and East Ohio’s only public service " ebliza-

tions are local distribution obligations.

- J No harm and no prejudice of any kind will result

to any one from a stay of the Commission's orde}

‘of November 7, 1947 until East Ohio’s status under the

Natural Gas Act i is finally decided by the courts.

| Wurrerone petitioner, East Ohio, respectfully prays the

Court that pending its disposition of this petition for re-

view it forthwith stay the respondent Commission’s

order of November 7, 1947 and as a part thereof its order of

Jane 2 ©, 1946 in said proceedings in said Docket Nos, G-115,

i-399, G-400 and G-401 (as modiitea by the order of De-

abaiias 30, 1947); that a copy of this petition be -served

upon a member of the Commission as prescribed by law and

that the Commission be required io certify and file in this

Court a transcript of the record in said proceedings ;. that

the Commission’s said orders in said proceedings be re-

viewed and set aside; and that petitioner be given such

other and further relief as.may be just and equitable.

- Respectfully nabmitted,

Tre Kast Ortte Gas Company,

By Wituiam B. Cockiey and

Watrer J. Mivpe, |

, 1759 Union Commerce Bldg:,

Cleveland 14, Ohio.

Wa. A. Dovauerry and

Se Toe ea tay.

of 80 Rockefeller Plaza,

: New York 20, New York,

We : Its Attorneys.

| : \

K State oF Onto, :

CuyaHoca Counry, ss.

W. G. Rosers, being first duly sworn, says that he is Vice

President of The East Ohio Gas Company, an Ohio corpo

ration, petitioner herein, that he has read the foregoing

petition for review, and that the statements therein set —

forth are true as he verily believes.

W. G. Rocers.

Sworn To before me and subscribed i in my presence this

January ..., 1948.

Wa. R. Pre vore,

Notary Public,

Excerpts from Testimony and Proceedings of Hearing

on Docket No. G-115 et al. Held March 19-20, 1946.

6S Mr. Purdue: If the Examiner please, I propose a

stipulation as follows:

71 - Mr. Purdue: With respect to Order Number 63,

East Ohio has not filed with the Commission annyal

report FPC Form Number 133 for 1939.

Mr. Cockley: Agreed. :

Mr. Purdue: With respect to Order Number 69, and

Order Number 69-A, East Ohio has not, as of January 1,

1940, and thereafter, kept its books of accounts in accord-

ance with the uniform system of accounts prescribed for

natural gas companies subject to the provisions of the

Natural Gas Act, but has kept them in accordance with the

uniform system of accounts prescribed by the Public U tili-

ties Commission of Ohio, or permitted by the Publie Utili—

ties Commission of Ohio to be used. ” 2

Since January 1, 1942 the Public Utilities Commission

of Ohio has permitted the use of a uniform system of ac-

counts the same in language as that of the Federal Power

(Commission, and sincethat time East Ohio has been using

such permitted system of accounts. 7

Mr. Cockley: Agre °

Mr, Purdue: East Ohio did not comply by oJanu-

72 ary 1, 1942 and has not complied to date with gis.

plant accounts instruction 2-D of the uniform system

of accounts prescribed for natural gas companies subject

to the jurisdiction of the Commission and Order Number 7 3.

Mr. Cockley: Agreed.

Mr. Purdue: With respect to Order Number 80, East —

Ohio did not file annual report FPC Form Number 133 for “:

the year 1940. is

Mr. Cockley: Agreed. = _ ‘

Mr. Purdue: With respect. to Order Number 86, East

Ohio has not filed annual report FPC Form:Number 123 for

the year 1941. , Soy eae

Mr. Cockley:, Agreed. |

Mr. Purdue: East Ohio has not filed annual report FPC

Form Number 133 for the year 1942,

Mr: Cockley: Agreed.

wy Mr. Purdue: East Ohio has not filed annual report FPC

\- Form Number 2 for the year 1943 or annual report FPC

=~ Form Numbet 2 fer the year 1944.

Mr. Cockley: Agreed.

; ry j F % ~ ,

4 ie ~ * ; * * * e * *

85° J. French Robinson called as a witness, and hav-

ing been first duly SWOT Was examined and testi-

) fied yes follows: : ad

\- ¢ . . Psy &

— Direct Examination be

: By. Mr. Cockley :_

Q. Will you state your name, dune and scsohant A.

J, French Robinson, Cleveland, Ouio. President-of the East

_ Olio Gas Company.

Q. How long have you teen president of the Kast Ohio 3

Gas Company? A. Since Nov ember of 1940.

Q. And prior to that what was your business? A. Presi-

dent of the Peoples Natural: Gas Company.

-Q. What is the Peoples Natural Gas Company? A: Peo-

ples Natural Gas Company is a campany owned by Consoli-

dated Natural Gas Company, who also owns East Ohio Gas

Company. | ; és a

Q. And also owns the Hope Natural Gas Company. and

one or two other companies. Is that right? A. That is

correct. : Eat eee |

Q. At the time one of the former applications was heard

the evidence was that the stock of the East Ohio Cas

eon

86 Company and of the Hope Company and some other |

companies was all owned by Standard Oi Company

of New Jersey. What is the fact to date? A. None of that

stock is owned by the Standard Oil Company of New Jersey. ~

Q. And is owned by whom? A. Is owned ‘by the Consoli-

dated Natural Gas Company.

Q. When did that change occur, approximately? A. De,

cember, 1943. | .

Q. Counsel would. like to have you name the other com.

panies owned by i besides Hope, Peoples and

East Ohio? A. The River Gas Company and the New York

State Natural Gas Company | :

* ‘e + ® Toe 2 * . aw “4 *

87 By Mr. Cockley:

es).

Q. Mr. Robinson, I show you the paper marked Exhibit 4

3 for identification, and ask -you if that is prepared frony =<

he books and records of the East Ohio Gas Company under

your direction and supervision? A. Yes.

Q. Directing your attention to page 1 of that exhibit, I

ill ask you where the property shown on that page is

ocated—all of it? A. All of the property sljown on that

vage is located within the State of Ohio. | Pe

Q. Has the company any property, any additional prop-

‘ty of any kind, iocated outside of the State of Ohio? A.

None whatever, sir. :

A |

i a

, {

‘

salt os iansenees ise yee emsetnlsantrentsynmanivun

I EEE GR AE RON Oe, BORNE OLE Tn ea iid

-Q. Directing your attention to the field lines and

88 storage lines, in general what does that item repre-

sent? A. Field lines are lines used in our produetion

system for gathering the gas from the wells and starting it

on its way to local distribution. __

Storage Jines are those lines used in and about our two

storage areas—in one case for the injection of gas into the

-.. Storage area and if the other case withdrawing the gas.

. from the storage area to use in local distribution.

Q. And the storage areas are all in Ohio? AL Storage

areas are all in Ohio.

. © ® St eeakce se eaten, 4 ” eres Se

Q. The next item is miles of transmission line. It shows.

~ 903 miles. Is that figure merely the number of running

measurement of those Hnes? A. Yes, sir. 903 miles repre.

~ sents the total length of the transmission lines so

89 classified on our books, which is ‘used for the move-

-. UaAnent of gas from the state line and from our produc-.

tion and the Maumee Line into_our local distribution imar-

kets. . | , ,

-Q. That is, if I may so state it, moves hth out of State

gas and purely Ohio’gas.. A. That is vorrbet. - e

Q. To your loea) distribution centers. “A. Yes, sir.

Q. Is that right? A. Yes. ’ oe oi

(Question and answer read). ee

_ By Mr. Cockley:

Q. Without taking up each of these items is it true of

your compression stations, and of your gas wells shown

here, your storage wells, and all of them, that all of them ,

are in the State of Ohio? A. That is correct, sir. ye

Mr. Coekley: I call the Examiner’s attention, metely be

way of understanding the extent of this operatic . to the

fact that the total number of consumers here are.jo0,000 at-

tached to the East: Ohio system, and the total population

served is some 2,000,000.

1 Py “re,

| Fears

« Trial Examiner: The exact figures are shown here on

page 1 of your Exhibit 3? ni

Mr. Cockley: I just wanted to direct vour atten-

90 tion to them.

Trial Examiner: Yes.

ee shows the number as of December 31, 1945, and esti-

VA _ classified p

)) case from th

what you hea

-mated population is 2,015,000. ene

Mr. Cockley: Yes.

Trial Examiner: Before you. divans from your desnclis:

tion of the physical property would you be so kind as to

shave the witness explain to me the item of 1,011 miles of

‘field lines?

Mr. Cockley: Yes. —

x By Mr ;

— Q. Will you

1,011 miles of

from, 2-inch u

"prod ucing” well

kley:

ield lines are those lines in varying sizes

\to 8 or 10-inch that are used to connect the

wells under gys purchase contracts of the East Ohio ‘Gas :

yc on pany: into\its general distribution system.

Q. From th Ohio fields? A. All located in the State of

Ohio.

Trial Exanjiney:

Those. are sepkrate and apart f roni

f ignate as transmission lines? ©

The Witness/ Ys, sir.

Trial Exanyfnet}\ These transmission lines, these 903

miles, perform w specific function?

Ptie Witness: |

form the-function of moving gas in one

Ohio River northward, and in the other

o that, Mr. Robifison? A. Yes, sir. The |

e Kast Ohio Gas Company, and the...

he 903 miles ‘of transportation line as.

case > from M umee eastward of out -of-state Kas as .

Sheplers these lines! fo our local istration areas,

‘Trial Examiner: hee that as I understand it, the 903 miles

carry the inters 8, which you say: at some point is in

Is that. orrect? Fis ers

The Witness: [ stated that the lines moved the gas in a

northerly direction from the Ohio River, where it is received

in the East Ohio system, and moves it eastwardly from

Maumee and along the movement of such gas it is com-

mingled with Ohio produced and purchased gas to our com-

- mon market.

aes

*. . Ch e ” _° e a -* .

92 Q. Where would those domestic consumers be lo

_cated—in the 69 communities? A. Yes, sir.

~Q. All of them! A. All of them located in. the State of

Ohio, principally in Cleveland, Akron, Canton, Y oungstow th,

Masillon.

Q. Then you set forth the thirty million—odd Mef of

sold to industrial cousumers, Where do those sales take

place?) A. The industrial saies take place in our distribu

tion systems in these various ,towns and cities located in

the State of Ohio.

Q. Do you have any direct sales of any kind from what

you classify as your trar...nission system to industrial . con.

sumers! A. None whatever, sir. -

-Q. Do you have any direct sales from the transmission

system or any other sales from the transmission system to

other gas companies for resaiet A.-None whatever, sir.

Q). Either of gas received from out-of state or from

9% Ohio gas? A. None whatever, sir.

Q. All right. :

Now, will you explain what thé item of ‘‘ Field sales’’ is

given there, 627 thousand—odd MCF! A. Those are

sales that are made i in the field from tie producing wells,

or from wells under purchase by the East Ohio Gas Com.

' pany to drilling contractors, to land owners who have a free

gas right under their lease for a certain amount of gas,

and the excess is seld to them for their own use, and other

incidental sales made in-the field in the State of Ohio.

Q. Those sales are made from the producing fields in’

Ohio, are they, all of Ohio gas? A. Yes, sir.

‘ 17

(). Is the gas that goes fr om that consumed entirely in

Ohio? - A. -It is, sir.-

. . ae pe - * *° e es *

ts) Mr. Cockley: I offer in evidence exhibit for identi

fication No. 3. 24 we

Trial Examiner: Exhibit marked Ne. 3, for identifica

~ tion, is admitted in evidence, :

_ (Exhibit marked No. 3, for Identiti vation, was + received

in Kv idence). ;

Mr. Cockley: es I have this marked Exhibit 4 for

Identification?

Ct isa paper entitled, “System Map of the East Ohio

Gias Company,-March 1,1946."’ eae

Trial Examiner: The document just referred to. and

designated as System Map of the East Ohio Gas Company,

Mareh 1, 1946, will be marked Exhibit No. 4 for identifica:

tion.

(The Document Referred te Was Marked Exhibit No. 4,

for Identification. ) mt

By Mr. Cockley:

(). Directing your attention to Exhibit No. 4, will vou

state whether that was prepared under your direction

"6 -from the records of the Bast Ohio Gas Co: apes *

A. It-was, sir. * -

Q. Does it correctly set forth the information shown, py

those records, and also shown on the map? <A. Yes, sir.

_Q. Now, Mr. Robinson, will you-with the map explain how

you have itidicated the markets for your. gas and the local

distribution system of your gas? A. The area outlined in

yellow, or the solid area in yellow, represents the distribu-

tion areas of the East Ohio Gas & Company pocated, in the

State of Ohio.

. eis + ee ae aos . .

ors (). Will you tell us where you received out-of-state

~ gas into this system? A. Out-of-state gas is re-

/ -

"18:

cient at the W est Virginia- Ohio State line at a point near

Clarington Station.

Q. That is at the lower right hand ¢ corner of the map,

isn’t it? A. Th og Aen at a point.on the State line in

Monroe County, and at Pipe Creek Station, in Belmont

County, Ohio, and a point on the eastern portion of the map

near Petérsburg in Mahoning County.

Q. Below Youngstown, isn't it? A. South of Youngs-

town; yes, sir. “At these points gas is purchased from the

‘Hope Natural Gas Company. : ae »

-Q. While we are on it tell us what that Petersburg de-

livery is used for?’ A.-The Petersburg delivery is used on

extreme peak days to help.augment the East Ohio Gas Com-

pany acehs of gas, which due to lack of transportation

facilities, sifficient amounts of gas cannot be produced in

Ohio and purehased in Ohio and moved northward through

the pipeline sy stem of Ohio to supply our local distribution.

demands: :

Q). Around Youngstown!, A. Youngstown,’ Niles and so

forth, 2 -

(. Then your main deliveries are those two, down at Pipe

Creek and Clarington Station, are they not? A.

Qn That is correct.

Q. Tell us where the East Ohio line begins, where -

its transmission lines connect withthe Hope lines at that —

point? A. The East Ohio lines begin at the W ext ide irginia-

Ohio state line in all‘three cases,

~Q. That is the low-water mark on the Ohio side, north

shore of the Ohio River? A. Ww est shore of the Unie River, .

or north shore, as it may be.

. * . @ 2. * . . ~ ee Pe >

“Q. Now, up to that point, the gas is carried in Hope pipe-

lines which connect with yours, by- river erossing. Is that

correct? A. Yes.

Q. And it is metered on the Hope side of the River and

delivered. to you into your transmission line on the west

‘side of the river? A. Yes, sir; that is correct.

4 19

Q. Will you tell us, then, from there on in general what,

is the movement of that gas? A. The genera]: movement

: of the gas, after taking it into the-East Ohio Sta-

99 tion at Clarington Station and Pipe Creek Station,

_is a northerly direction. Sometimes it is regulated

or the pressure is cut back at Price Farm, marked on the

2 map, Price Farm, when too. much gas gets into the system.

Q. Do you mean by that that ‘is your first regulation

point? A. Yes, sir, | |

Q. For Hope gas? A. Yes.

Q. At Price Farm? A. Yes, sir. The general regula-

tion point of the entire. East Ohio Gas Company's dis-

tribution system is at Gross Farm, which is about mid-

way between Price Farm and the City of Cleveland.

(. And that, I note from the map, is also right in the

. heart of your storage area and right in the heart of your

producing area, A. That is correct, sir. :

(). Tell us where Ohio Gas is first introduced into ‘those

_ lines. “A. Ohio gas is first: introduced to those lines at-a __

point in Franklin Township, Harrison County, just north

of the point. marked on the map ‘‘Smith Farm’’.

Q. From then on north Ohio gas comes in at various

points. Is that right? A. That is correct, all along

100 the lines clear into the City of Cleveland. ar

Q. Does gas ever. flow from the East Ohio pipe

lines, any ‘of these that you have mentioned, back to the

~Hope Company? A. It does not, sir. The movement is

‘always northward.

-Q. And always has been? A. Yes, sir.

101 Q. Will you explain in general to the Examiner

and for the record how this system of yours operates,

at what point the flow of gas is generally controlled in —

order to take care of the local distribution in this area that

is north of Gréas Farm Station, north and east of Gross

Farm Station. \&, Gas is regulated at Gross Farm so that

certain quantitiexof gas move northward into Akron and

the Cleveland area,\as well as on peak.days southwestward

through a line extending down towards Knox ( ounty.

ry ’ ) 1

* The flow in that 7 is sometimes northward and some-

times southward. es |

Going east from Gross Farm.the gas is controlled so that.

certain amonnt of the gas passes-through a 14-ineh. and a

16-ineh line going eastward to Austintown Junction, where, -

again, the gas is controlled so that a certain amount goes to

‘Warren, Niles, Youngstown, Middletown, Petersburg, and °

Kast Palestine. Some gas is brought into the system

, through East Ohio Gas Company’s pipeline number 6;

which extends from Maumee, ‘Ohio eastward to V alley,

City, Station, and on eastward to where it connects with our

main trunk pipefnes. :

The gas enteripg our system in this line moves in an east-

erly direction to’ Valley City, thence, northward into the

Western part of the City of Cleveland. After some gas has

been received. at the Junction of the main lines at

102. Bresh Farm, the movement at some times is north-

ward into Cleveland and other times, partiewlarly in

the summertime, Southward and put into our storage areas,

which are shown 1 in and atound the Gross Farm, outlined

in blue. 3

Q). You referred to gas coming into the line froni-Mtat -

mee, did you not?. A. Yes.

Q. From whom is that gas purchased ! A. Panhandic.

Eastern Pipeline Company. * \

Q. And they deliver to-you,where! A. Ata station jest”

south of Maumee, known as our Maumee Station.

' ‘al Examiner: Where is that on the map?

“he Witness: In the extreme northwestern portion of:

‘the map. oe

Mr. Cockley: Laeas County ?~ 7

The Witness: Yes, on the west bank, or a little west of |

the west bank of the Maumee River,

By Mr. Cockley :

Q. All the gas you get from Panhandle comes at that de-”

_livery point. Is that correct? A. That is correct.

er}

Q. Does gas ever move from your system into the Pan

handle System at that point? A. It does not. -

103 Q. Or any other? A. It does not. Jee

. Q. And that gas comes to you at ‘what’ pressure!

A. About 320. pounds at’ Maumee. Our contract provides

up to 350 pounds. : 2

- Q. Where do. you regulate that pressure? A. First reg-

ulation is at Valley City. |

(). Shown on the- map south of C leveland? A. Soutli of

Cleveland, yes. . ag |

Q. From that point I think you have already said you

aa put it into Cleveland or you can send it on down. to

Akron or put it into storage. A. That is.correct. 3

(). In any direction you may demand or Je anil A.. That

is right.

- Q. And that gas thewine 3 is all sold iseusk your local

distribution plants? A. It is. ~ =

Trial Examiner: What is the distance from Maumee

point where Panhandle deliv ers the gas to V Aner City Sta:

tion?

The Witness: 98 miles, ar .

_ ‘Trial. Examiner: How far is Valley Station from Cleve

-land City Gate? : |

The Witness: About 12 to 15 miles.

en . Mr. Gorman’: Pipeline miles or as the crow flies?

104 The Witness: Pipeline miles.

‘Trial Examiner: -From Maumee to Valley City

Station if moves under the original pressure of Panhandle.

Is that correct? | : :

The Witness; - It moves under its original pressure, yes.

That i is correct. , | : ce

By Mr. Cockley : Zs

Q. The gas you purchase from Panhandle is all subject—

you purchase under Schedule 61 of the Federal Power Com-

mission, do | you nat? “A. Yes—

Q. And there since has been a recent order of the Fed-

eral Power Commission roguiating Panhandle rates. Is

that so? A. Yes

(). And.schedule§ filed pursuant to that order! A. Yes.

(). How has the Rrice-at which you purchase Hope gas

heen fixed? A. The Federal Power Commission has set a

price, and “same is so listed in the schedule sétting forth

that price at whieh East Ohio pays Hope for the ‘gas it

receives.

Q. So the price of all of this out-of-state gas you pur-

. chase has been regulated and set by the Federal Power Com-

mission, Is that correct? A. That is correct.

* * - e . ° e . ‘of

106 Trial Examiner: What is the distance from Pipe =

Creek Station to Cleveland? :

The Witness: From Pipe Creek Station to Cleveland!

Trial Examiner: What is the transmission pipeline mile-_

age there. ,

The Witness: 118% miles. |

Trial Examiner: What size pipe is that?

107 The Witness: 18 and 26 inch mostly. :

Mr. Gorman: What do you niean by mostly?

The Witness: Some gas moves through a 12-inch line.

The majority of the pipeline is either 18-inch or 20-inch,

with the exception of a little bit of T. P. L. Number 1 which

is 10-inch.

Mr. Gorman: - Wherevis that section of 10-inch?

The Witness: Section of 10-inch goes from Gross Farm

‘northward. , Se RE eee: |

Trial Examiner: Ie that: gas transported through that

line at the same pressure at which it was received at Pipe

Creek Station from Hope Natural Gas Company!

_ The Witness: The gas moves northward through these

transmission lines losing pressure as it moves northward, |

necessary for the friction loss, and for the most part, en-

ters local distribution at its own pressure. However, in

some cases it is necessary to repump the gas at . Salen

vga PF i

Station at. the (iross Farm for distribution to the Youngs.

town-Warren-Nifles area.

It is also necessary to repump this | gas ‘when it goes into.

our storage areas,

.* . ° -® a ; a e 6 ° kt, eaeee .

108 By Mr. Cockley:

Q. At Gross Farm, Mr. Robinson, state the fact as to

whether or not you can control the direction of the flow

from all of these present lines frony the Ohio River north

to connect with Hope lines? A. Yes, that flow can be di

verted in many directions in and around Gross Far.

-108- A- Q. And is in aceordance with the demands of the

various parts of your system? A. That is correct.

Q. If you have a nerve center to your whole distribution

picture here, where is it? ‘A. Grogs Farm i is the center of

all of our local distribution operations. ae nce

Q. Do-you ever in these pipelines transport gas for other

persons? A. No, sir, we have not done that. |

Q. Or held yourself out as being willing to transport gas

for other persons? A. No, sir, we have not.

- Q. Have you ever carried anything in this transmission

_ system here except gas ow ned by the East Ohio Gas Com.

pany by purchase from Hope or other persons? A. No, we

have not. | :

Mr. Cockley: I offer in evidence Exhibit Number 4 for

identification. es : | ee

Trial Examiner: The document marked Exhibit 4 for

identification, and designated as system map of the East

Ohio Gas Company, March 1, 1946, is admitted in evidence..

(Exhibit Number 4-for Identification Ww as Then Admitted

in Evidence. ) :

Mr. Cockley: I ask to ki ea as Exhibit 4

109 for identification a paper entitled ‘The East Okio

Gas Company, names of sellers of gas purcYased tiv

eres | o4

the rompany and the points of delivery of such gas, Febru-

ary, 1946." —

” ae * be eet e ° .- . -e- .

131 Q. Have you any public utilities service of any

-. kind—does East Ohio Gas C ompany render any pub-

ine utilities service of any kind, that has not been regulated

hy the Public Utilities Commission of Ohio? A. We have.

not, sir.

(J. In rate proceedings in Ohio, Mr. Robinson, I will ask

vou toalook at that Exhibit No. 4, which is the map of East

(Mio system, in the rate proceedings involving the City of -

Cleveland, for instance, will: you indicate on that map what

of your properties the Publie Utilities € ommission of Ohio

inventoried, examined for depreciation, and included in a

rate base in determining the rates for Cleveland?’ A. They

included a complete study of all the property shown on this

nap in determining the rate for the C ity of Cleveland ex-

cept the distribution property colored yellow elsew here on

the map than Cleveland. ,

Q. How about the Maumee’ iinet A. Yes, sir; that was

ine luded- eee

~ Q. Inthe last case. A, En the last case.

But not in the 1937 case. A. That is right.

132 Q. It was not constructed? Is that right? A,

That is night It was included in the last Cleveland

. Case, ; rae 2

“Q. Did ‘they examine and value all these transmission

lines from the Ohio River through Gross Farms North? ite

Yes. ,

Q. And all the other transmission lines you have i in your

system! A. Yes. 2

(). And your complete production system property? A..

Yes.

QQ. And your general property? <A. Yeu: sir.

Q. All of it? A. All of-it; yes. |

(. And then allocated part of it?’ A. Yes.

(. And the storage property? A. Yes, sir.

res

Q. And all the local distribution property 3 in ¢ ‘leveland

area? A, That is right. \

—Q. Does East Ohio Gas Company own any lines that cross

state boundaries?’ A. They do not.

133 Q. If your local distribution business as you have

described it were terminated, what se would you

have for any of the properties shown on that map? A.

None whatever, sir, All of our business i is local distribu

tion. |

Q). And your. aia and sales and receipts and de-

liveries are allin Ohio?’ A. Yes, sir.

* ee er “ 7 e e Pome et ° we

137s Q. Order No. 69 and Order 69-A, and Order 73,

of the Federal Power Commission in general direct

natural gas. companies to reclassify fy and state the cost, ort

inal cost_of—all their properties. - You are familiar with

that? A. That is corréet; that is my understanding.

~-Q. Did you make any estimate, general estimate, of the

_ cost of attenipting to comply with that order of the»

138.2 Commission? A. Y es, sir.

Q. What is that answe*, please? A. At te. pres-

ent time, with the increased -cost cf labor, it is our best esti-

mate that the reclassification will cost between three-quar-

ters of a million and a million dollars, and that the original

cost will cost a like amount.

Q. So far as statement. of original cost is concerned—

withdraw that. |

You are including i in that estimate, I take it, your distri-

bution property and your general property and your -pro-

duction property as well as your eames Is

that correct? A.-That is correct. |

Q. The order makes no distinction between Sanus. does it?

A. None whatever}

Q. Will you tell us what part of your property is used

for. purposes of local distribution? <A. Al) of our prop

erty is used for local distribution. om

bat

%G a

Q. But 3 you do classify for accounting purposes, do you

not? A. Yes, Our property is classified for accounting

purposes as distribution, tiansmission-— |

(). About how ‘much of it is for distribution?

-Mr. Gorman: May I have the previous question

139. and answer read back, please?

(Question and answer read).. :

Mr. Gorman: Mr. Examiner, I ask to have stricken from

the record the-answer of this witness to the previous.ques-

tion on the basis that it expresses an opinion as to the very

matter which is the subject of investigation here; a state-

ment which this witness is not prepiared to make.

° poy * e~ + o> * s ia +

"142 Mr. Gormas: May we have the question and’

answer read *Maybe we can understand it better.

(Question and answer read).

Mr. Gorman: 1 think that statement stands by itself,

Trial Examiner: I would like to ask this witness a clari-

fying question there.

Mr. Witness, when you use the term ‘Ail of the prop-

erty’’, do you mean the transmission line, production, ss all

part of your distribution line?

~The Witness: What I intend to convey is that our sols

purpose in business is to distribute gas. Therefore, any

part oi our system is used for that purpose.

Triai Examiner: That is the purpose of every line that

engages in that line of business, to distribute gas. That is

why it is taken out of $e round That is what you are

alluding to, to distribrte gas as your ultimate objective.

The Witness: That i is all of the business East Ohio Gas _

Companty has, sir. sues

Trial Examiner: I will sustain the objection to that.—

Mr. Gorman: There was originally-a motion to strike, j

the Examiner please.

—_

Trial Examiner: Yes, Are you testifying here as

(143° an expert for the purpose of designating what the

ea system is, or are you just detailing what four con.

‘ception is of operations of any gas?

The Witness: I think I am testifying from a lifetime

} experience in the gas. business as to the function of the

various phases and steps of the gus business.

‘Tria' Examiner; What do you consider that part of the

system that transmits the gas to the distribution lines or

- distribution system?

‘The Witness: As classified on the books of the company

we have classifications of distribution; we have classifica-

tion of production; we have classification of transmission,

and storage. re

‘Trial Examiner: And storage?

The Witness: And each of those-classifications, the fune-

tion of them in the East Ohio Gas Company, is to distribute

gas locally. I have no idea as to what the scientifie deter

mination may be, That is the practical operating standpoint

of the company. _ :

Trial Examiner: I see. In other words, the system con-

sists of transmission system, production system, storace

. system, and a distribution system.

The Witness: The purpose of which is all to market eas;

yes, sir. |

Trial Examiner: To market gas.

144 The Witness: Yes, sir.

Trial Examiner: That is our understanding. I do

not see there is any serious difference of opinion:

I think the question as asked, with that explanation of the |.

witness as to what he meant, cannot mislead anybody. |

would sustain the objection, and have sustained the objec-

tion, to the answer as. then standing.~But in view of the

witness’ explanation as to what he meant by it I think there .

cannot be any misunderstanding as to what he meant.

I do not think he is attempting to pass any legal opinion

us to what all of that constitutes. What he says is true as

to the citimate use of gas, no. matter how far it is ‘trans.

mitted or carried intrastate —it is all intended for the’ pur-

“ad pose of consumption by means of distribution,

Mr_Gotinan : We will agree with that. ; \"

Erial Kxaminer: Yes. I think that is what his testimony

purports to be.

The Witness: That is correct, sir, 3

Trial Examiner: That is what you mean. pe

THe Witness: That is right. = , ee

Trial Examiner: I will just-reverse that ruling aid

admit the evidence. Let the answer stand to which the

objection has been made. ;

You may proceed, pemeemen.

By Mr. Cockley :

Q. How much of your property do you classify oe

145° a matter of accounting, percentagewise as distribu-

tion property? A. 52.7 per céit.

Q. And production and storage? ~ eAbT per cent.

Q. Transmission? A. 27.7 per cept.

Mr. Gorman:. May I inquire at This point wisther these

percentages are based upon book valuation, or how are they

computed! :

The Witness: Taken direc tly from the books of the com-

" pany. ; Te =

; Mr. Gorman: In othe: words, .book value «percentage.

The W ittiess: Yes, sir.

By Mr. Cockiey : ~ . so eg ae eee

Q. Do you have addition to that some general property?

‘A. Yes, sir; 3.3 per cent.

* e * s * e * e e e

153" Q.-Now it also has been shown and referred to

| here that the company did not seek a review of the

( ‘ommfssion’ s order,in Docket G-266, and in Docket G-458.

: eee yo u seek and obtain advice of cotinsel in those cases

~ to w hether or no tthe. order there made was: re-

t : i

154 ~~ viewable? A. We did, and were informed they were

not- reviewable. : |

: @ aot SCE * gg Sage . * °

Q. Was any petition for rehearing filed in behalf of. the

- East Ohio Gas Company i in Docket No, G-266 or Docket

| G-4581 A. No. “

Q. Was any-appeal ever ae from the final order. in

_ either of those Docket numbers to any Circuit Court: of

- Appeals in the United States? A. No, sir.-

| —Q. And that failure to take any action on your part was

after seeking and obtaining advice of courisel that. the

155 orders were. not appealable. Is that correct? A.

te . Ae . * e.-- * e° « °

157 Q.\ Mr. Rebinson, I am calling your attention to

x pages 98 and 99 of. the’Fecord to the question, ‘‘ Will

you tell nie gore there on in- general what is the—

movement of that gas?’’ Read your answer and see if

_ there is anything you wafit to add to it to clarify it. A. The

_ sentence beginning ‘‘Sometimes)it is at Price Farm’’, and

- so. forth, should read, ‘‘Sometimes it is. regulated or eat

back, or the pressure is cut back at Price Farm”’,

* : @ o ° ® * Qe P) *

158 Cross Examination e

By Mr. Purdue: 3 ry

Q: Mr. Robinson, as I understand your r tostiiony: your

company has, does it not, an 18-inch pipe line’ extending —

_ from the Pipe Creek Station on the Ohio ity er to Cleve-

land? A. That is correct.

Q. Is that pipe line designated by 3 your company, T. ib

No. 2f. A, <i is.

Ss What t does T. P. L. stand for, Mr. Robinson? A. Des.

ignation we have at Trunk pipe line systems.

Q. I see. In other words, T. P. L. stands for trank bine |

line, does it? A. sens — |

159 Q. Does your company have another line desig-

nated as T. P. L. No. 3, extending from Clarington

' Station at the Onio’ River to Philadelphia—to Cleveland?

A. Yes, sits it has. |

fy Q. When was! T. P. L. No. 2 constructed? i. 1903.

S “GQ. Ww hencwits T. P. L. No. 3 constructed? A. 1907.

>. Tria} Examiner : Referring to what Exhibit, now, Mr

* Purduet

~ Mr: Purdue: If the Examiner oa I was not ‘refer ring -

"To any exhibit in particular. ~ However, the numbers that

the witness has just testified to “appear upon the system

map, Exhibit No. 4. °

Trial Examiner: All right. Thank: you.

By Mr. Purdue: :.

~“Q. Mr. Robinson, is it true that prior is 1909, the Kast

Ohio Gas Company and its predecessor of the aalie-tnins

did not purchase or distribute Ohio gas? A. I am not sure,

] think that is correct, although I am not positive.

Q. Now, Mr. Robinson, to refresh your recollection I

hand you the application of respondent, that is the Kast.

Ohio Gas Company, for a rehearing— 3 ,

Mr. Cockley: We will admit that. You do not

160 need to waste time on it. We did not distribute Ohio

~. gas until it was discovered at about the date you

mentioned, or subsequent to it.

By Mr. Purdue: _

Q. Then it is true that prior ‘to 1909, ‘the gntire supply

of East Ohio Gas Company was procured at the Ohio River

fromthe Hope Natural Gas Company of West V irginia:

Is that right? A..Yes, sir.

Q. So, then, T. P. L. No. 2, and T. P. L. No. 3 were con-

structed, were they not, for the sole purpose of carrying

out of State gas? A. No, that is not so.

Q. What other gas'were they coustructed for the purpose

of carrying? A. There was certainly in the minds of the

loffiedrs at ‘that tin /that gas would be dev shined along the

pines and it would he so. put in.

Q. Well, now, why was it then that it was not until the

‘year M09, bec ds began to purchase or distribute Ohio

gas? A. | anrSure I could not tell you, sir. I was not

there. I have seen more records that would explain it. in the

files of the company. °—

ee Q. Mr. Robinson,’so far as you know, the sole pur-

‘161. pose of T. P. L. No. 2 and T. P. L. No. 3 was to carry

ic > out of State gas, was it not? =~ ae

| mrs I J object sal it. He pready has answered

‘Mr. Purtlue: He has not aoewered it, Mr. Examiner.

_ Mr. Coekley: He said that was not the sole purpose of

it. You arg trying to put those words in his mouth.

| Mr. Purdue: I object to this interruption, if the Exam-

iner- ‘please. I think this is a proper question.

Trial Examiner: All right. He may answer the question.

The Witness: I stated before that certainly the officers

of the company: had in mind developing gas along these

tines and would use it for that purpose,

By. Mr. Purdue:

Q. Mr. Robinson, how did you know that when you say

you.were not there? A. I don’t know it. I say, I assumed

that, Being an operator that certainly would. be my inten-

‘tion now and is my intention of laying T. P.L. No. 7. [| ex-

‘pect to develop some gas along it and expect to ™” it into

that line.

Trial Examiner: As I gather frets your testimony, it is

ithat that is what you would have done had you constructed

the line. :

The Witness : That is correct, sir.

| Trial Examiner: But what it was constructed for

162. ~=you do not know.

The Witness: No; sir ; I do not.

Trial Examiner: I see. :

is correct.

3 32 , |

By Mr. Purdue:

Q. Mr. Robinson, does your company have a line desig-

nated T. P. L. No. 4, which extends from Clarington Sta-

tion to Gross Farm, and which from Clarington to Price —

Farm is 20 inches in diameter, and from there on to Gross

Farin 18 inches? A. That is correct. i

Q. Does your company have still another line extending |

from Clarington Station to Cleveland, called T. P. L. No. 5,

and which has a diameter of 20 inches? A. That is correct.

-Q. Mr. Robinson, 1 hand you the application in Docket |

No. G-695, and direct your attention to’Exhibit ‘‘C’* there. -

to. Iwill ask’ you what the black dot surrounded by a circle _

in Wetzel county represents? A. Hastings compressing —

_ station, Wetzel-county, West Virginia, the location there.

Q. Is that a compressor station of the Hope’ Company’

A. It is. av

Q. Mr. Robinson, do you note, that Exhibit ay Bhs shows |

an 18-inch line and two 20-inch lmes extending from Hast-

-- ings Station to the Ohio ‘River in the vicinity of |

163 Clarington? A. Yes, sir.

Q. Are those figures correct so far as you know?

A. So far, as I know, yes, sir. i <4

Q. Is it ‘also true that exhibit bia ‘thews another line —

18 inches in diameter extending frdm Hastings “Station to

the Ohio River in the vicinity of Reund Botton’? A. Yes,

‘sir; that.is correct. | oF

Q. Allright. So that the fact i is, | is it not, Mr. Robinson,

that we have one 18-inch line and two 20-inch lines ap-

proaching the Ohio River in West Virginia, and one 18-inch.

line and two 20-inch lines of the East Ohio Conypany ex-

tending away from the River in Ohio?’ A. That is correct.

Q. Now, also, there is an 18-inch line of the Hope Com-

pany which approaches the river in the vicinity of Round.

Bottom and an 18-inch line of the East Ohio Company ex-

tending way from the river in the — of Ohio? A. That

beng

(). What difference, if any, is there Mr. Robinson, be-

tween the lines of the Hope Company in West Virginia

that approach the river aad the lines of your company in

_ Ohio that extend away from the river? A. Will you read

that for me. :

(Question read).

Nee.

The Witness: From “the Hope lines in West ‘Vir-

164 ginia there are headers constructed, and from these

headers smaller lines are run across the river, and

on the west bank of the fiver, again, a header is constructed:

These headers then are connected to the lines of the Kast

Ohio Gas Company.

I am not sure that is what you mean, but those are the—

facts of the matter. ;

By Mr. Purdue:

Q. The headers and ms small lines j in the river, to which

you have testified, are an ordinary river crossing,.are they

not, Mr. Robinson, ordinary submerged river crossing? A.

There are various kinds, Some use multiple lines, various

sizes from. eight to twelve inches, oF whatever it may be.

This is a perticular method the Hope Natural Gas Com-

pany used in getting the gas to the East Ohio system.

165 Well, it is an ordinary kind of. river crossing, isn't

it? A. I just said, management has different ideas.

Qn my last Maumee Line I used an entirely different

method. Theirs is as good as mine, no doubt.

-Q. The headers and the small lines are a river crossing,

at any rate, is that right? A. Yes. They constitute a river

crossing. Headers are not.

Q. Constitute a river crossing? A. Yes.

Q. Going back to my question, my question was not shout

the facilities in the river but about the lines approaching

the river and receding from the river. I will repeat the

question. What difference, if any, is there, Mr. Robinson,

in-the lines of the Hope Company approaching the Ohio —

River in the vicinity of Clarington and Round Bottom and

RRO

_ E . By Mr. Purdue:

the lines of your company icavi ing the river at those points?

_ A. I know of no difference in the texture of the pipe that

is in the lines at all. T assume it is all the same pipe.

(). Do you know of any difference in any other paapectt

A. No, they are all. pipelines. |

Q. The gas ilows as freely in the lines of the Hope Com-

‘pany as it does in the lines of your company, does it not?

_ A. Probably a little more 0, because it has lost al

166 . little pressure as it progresses.

Q. Is the pressure the same on the two sides of the

river? A. No.

Q. How much difference is there? A. Very small.

Q). Is it substantially the same? AS Yes, I would ‘say

substantially the same. .

‘Q. Is the movement of ges stopped at tlie Ohio River?

A. It isnot. |

_ Trial Examiner: Mr. Purdue, pardon me, please Poe fo

, ahead. ?

aaa

Q. The gas that moves in the lines of the Hope C omipany

which vou have testified to is destined for markets in Ohio,

is it not? A. tee,” ‘sir, in the particular lines’we just -‘men-

tioned. .

Q. Yes, And is the gas that moves in the lines of your

company to which you have testified going away from the

river destined for markets in Ohio? A. Y es, sir.

Q. Does the gas flow from the Hope lines into your lines

24 hours a day? A. Hope delivers us gas 24 hours a day.

_ Q. Day in and day out? A. Yes, sir. 7

OV ke

SS aed OR RN ald pA ORDA YL INT AnH aad ay

}

167. Q. Mr. Robinson, I hand you the instrument which

has been incorpurated by reference in this proceed-

ing and which is designated ‘Hope Natural Gas C ompany

Rate Schedule, FPC No, 1."° 1 call your attention to the

following. language in paragraph 4 of that agreement:

‘The Hope Company undertakes and agrees, subject to

the provisions of Paragraph 7 hereof, that at all times dur-

ces — 35)

ing the continuance of this contract it will maintain in good

order and condition all its compressing stations, pipelines,

connections, and other facilities in the Staite of West Vir-_

ginia in order to enable it to carry out its obligations under

this contract and to deliver gas hereunder in such volumes

as to maintain pressure equivalent to 225 pounds at the

; - junetion point of its lines with the lines of the Ohio Com.

pany a: as at present constructed and operated at the Ohio

River.’

| will ask you if the purpose of that provision was not to

“obligate the Hope Company to deliver gas to your company

at such pressures as would enable the gas to be carried to

points of distribution on your system? A. At that time I 4

think that is-correct, the time of that contract. But the mar-

‘kets have so developed that that would be an impossibility

at the present. time. :

Mr. Cockley: What was the date of that contract, Mr.

~ Purdue? 5

Mr. Purdue: The date of that original contract was

Mareh 1, 1940. :

168 By Mr. Purdue: |

Q. Mr. Robinson, that contract. continued in effect be-

tween your company and-Hope until what date? | A. I'll

have to get it. I can’t remember those. I will have to

ook it up. Pee cue ey eae

Mr. Cockley: It is all in that rate schedule which you:

have before you. | ae ase

By Mr. Purdue:

Q. The contract to whieh I have reterted-did it con:

tinue in effect until it was superseded by the contract he- |

tween your company and Hope dated April 27, 1944, and

which is on file with the Commission as Hope "Rate Sched.

ule FPC No. 82. A. Yes, sir, that. is correct,

Mr. Cockley: There Were other—

The Witness: There also has been a supplement now to

FPC No. 82)

i le

36.

Mr: Cockley: And there were modifications of that con-

tract from time t time. There are main contracts, but

here were modific ations and rate modifications.

By Mr. Purdue:

). The. provision ‘IT just read you ‘continned. in effect

until April of 1944, did it not, Mr. Robinson? —,

Mr. Cockley: Does not the file you have show the fact

_ about it? ee

Mr. Purdue: It does. |

169 The Witness: From my data here it would ap-

3 pear that that clause would be effective ups until

Apmnil 22, 1944. -

By Mr. Purdue:

Q. 1 now hand you Hope /Natural Gas Company Rate

Schedule FPC No.8 and call your attention to Article 6

thereof at pig 6, which reads as follows:

“Pressuré: as delivered hereunder at the points of

deliverysxhall be delivered by Hope at such pressures as _

East Ohio may from time to time reasonably request, but

Hope shall not be required to deliver at pressures in excess

of 300 pounds per square inch gauge.”’

I will ask vou if the purpose of that provision was not to

assure the. delivery of gas Mo points of distribution: on

your system? A. The purpose of that pressure is pri-

marily to get volume of gas through our System, and—

Q. To points— :

Mr. Cockley: Let him finish, please.

The Witness: —-volumes in our system to our Siteibe-

tion areas, The pressure and volume, for the most part,

does: go to our matket without additional compression.

; -- Some of the gas that is delivered from the lines which re-.

ceive the pressure at 300 pounds is compressed by the East

Ohio Gas Company and transportated to our Youngstown.

Ww oo iles area.

By Mr. Purdue:

170 Q. I hand you Panhandle Eastern Pipeline Coni

pany, FPC No. 61, being the contract between the

Panhandle Company and yours, dated February 4, 1245,

-and call your attention to the language of Article 12 there-

of as follows: ~ | ‘

“Pressure: Eastern agrees to use dae care and dili

gence to furnish gas hereunder at such uniform pressure

TIRE ee ee oh!

beeen to the square,inch gauge pressure at the point

-of delivery. In the event Eastern ‘is. unable to maintain

siiets uniform pressure so that East Ohio is not able to take

substantially uniform hourly deliveries througliout a day,

: Kast Ohio, in such event, shall not be obligated under Ar

‘ticle 2, Paragraph 4:(a) above, to purchase and receive

from Eastern gas at a higher hourly rate from 7 p.m, to

‘7 a.m. than the average hourly rate of delivery during the

preceding 7 a. m. to 7 p,m."

What was the purpos the provision which I have just

read to you respecting pressures? A. The purpose of: the

_ provision was in order to secure a volume of gas from Pan-

handle as specified in the contract ; : ngnend 50: million cubie

feet per day. 3 :

QQ. And for the further purpose, was it not, of-the ga

being delivered through your system ‘to distribution sbeta

and storage? A. Naturally. We do not pump any of

; ‘the gas on the Panhandle line except that part that

171 goes to Gross Farm, and then it is pumpet Kast:

f ward to Y ougstow n, or Niles, as I previ iousiy stated,

or into. storage. 2 :

| .Q. There is a detail in ‘ eoanecioon with your testimony

in Docket No. G-458 given by you on April 21, 1943, that

J would like to clear up. I have. reference to your testi.

money at page 112 as follows:

“Question. Is there any interruption of the movement of

the gas from a time a 9 ae at the —e Sta-

ds Kast Ohio may require up,to, but not exeeeding, 350,

oh)

PSC. (38

tion in West Virginia until it reaches the city gates in ara

“Answer. Yes, [ would say that there is some slowing

down of the movément from the very beginning: when it.

‘leaves Hastings, due to the friction in the pipelines. That

is, the gas which moves from the Ohio River northward i+

sometimes cut back at our Gross Farm station and is reg

ulated again at our distribution centers, and finally reduced ;

down fe a 4- or 6-ounce basis before it goes to the con

sumer,’ 7 y,

Now, I will ask you whan you say the gas is sometinid?

cut back at your Gross Farm Station, you meant, did voi |

not, that the movement northward of a portion ef the gas is

sometimes stopped and not that the movement of ant gas °.

is stopped? ‘Is that right? A... Either way you want AN

the gas can't he stopped. Some of its goes through, What

part-of it is stepped T have | no idea. We just. cut down

‘volume by that method. Ss

Q.. Asa matter of fact, in the siteation’ to. whie h

172s you testified, at Gross’ Farm. all of the gas is not _

‘stopped, is it? A. No, sir. I don’ t think I testified

that-it was,

Q. I don’t think you did, dikes Mr. Rebisoon. -~ I

understood you wanted it cleared up.

Q. I don't think you testified that way, but I antes it!

cleared up, The language was not quite clear to me.

Mr. Robinson, I hand you Exhibit Ne. 4 and call vour

attention to the shaded area on the right-hand side of the

of. I believe you testified thet was a distribution area. \ A.

Yes, we distribtite the gas'in the Youngstown area. , \

map, a square including Youngstown and the vieinity there-

Q..Do you have pipelines in thé area shaded in yellow ty :

which you have testified?” A? Naturally.

Q. Are those pipelines included within the 5,400 ‘ole = of

distribution: line shown on page 1 of your Exhibit No, 3?

(Question read.) _ ea ue / :

The Witness: They are. | se ee he

counts the same in language as that of the Federal. Pow er

Comission, and since that time, "East Ohio’ has heenwnsing :

osneh permitted aystem of accounts.” .

Now, do you agree with that stipulation, Mr. Robinson?

Pease a No ‘doubt it is correct, yes. |

Le ae - Gas plant accounts listruction 16, transmis-

ston and distribvation plant of that system of ac-

cCOMnts hich appears at page 51 of item 6 6f Exhibit No. 1,

provides as follows, does-it not: ‘For the purpose of this

~ysten of acegunts **A‘’ Transmission system means the

dand, structures, mains valves meters, boosters, regula-

tors, tanks, compressors, and their driving units and ap-

purterinees and other equipment used primarily for trans-

sottitig gas toa particular municipality or distribution sys-

terns, The transinission s¥Stem begins at the outlet side of

the vadve at the conpéction between the gathering lines or

other source of supply and inlet to the trausmission com-

pressor station or other gathering terminals, and includes

‘le equipment at such connection that is used to bring the

gus fo tratstiission pressure and’ ends at the inlet side of

the eouipment which meters or regulates the supply of gas

(.'\ te the distribution svstem. . It ‘does not include ‘storage

mee hand or sstrietures, ;

“PB. Distribution sy stem means the mainy which aie pro-

— Sided primarily for distributing gas within a distribution

area op. for connecting twovor more districts within a dis-

hutioh area, together. nis land, structurege other than

storage land and structures, valves, regujators services,

ated measuring devices, The distribution 4 eystem begins at~ ~

the infet' side of the equipment which] meters or regn-

iv lates the entry of gas into the distribution | ‘system,

, and. ends with, and includes, (property on the eus-

omer’s premises, : ;

Now, that ‘sa correct statement of those, instructions,

is it net, Mr. Robinson? A. Yes, sir.\ - -\

() In the light of these inbteuctions q will again ask you

why vou classified the Youngstown lines as distribution

4] : > » pO ~

lines and not as transmission lines? A. Por the same rea-

_son I gave before.

Trial Examiner: May I ask a question here?

Mr. Cockley : It seems to me the confusion arises from

the start when he said **Do you hav e pipe lines in the eity-

of Youngstown? Ce

Of course we have pipe lines. We have pipe lines in dis

tribution plant, pipe line in transmission plant and pipe

lines in gathering plant. They are all pipe lines, unless

he is using ‘‘Pipe lines’’ in some technical sense,

From that original, confusing term he then proceeds to

ask about these figures here. I don’t see what we are get-

ting at. : :

Trial Examiner: I was going to inquire. of Cotmunission

counsel to please illustrate what pipe Jines he was refer-

ring to. You mentioned Youngstown pipe line, In the City

of Youngstown? |

li Mr. Purdue: Yes, Mr. greene Pipe lines in

the yellow-shaded srea.

Trial Examiner: Just what is that’ vine: shaded area?

In that yellow-shaded area I have noticed what appears to

me to be a small dot and with the name ‘*Youngstown’’

over it. : is

Mr. Purdue: I am. referring to the square, Mr. Ex

aminer, , . |

Trial Exam iner: How large is that square?> What does

it embrace? ‘Is that a township? Is that a County? Wiat

= does it cover, or is that simply the City. of Youngs-_

Tm atone, although Youngstown seems to be shown by Sa

cecal circle, a

By Mr. pastas: ss : |

(). Mr. Robinson, what area is embraced within the yel-

low square to which I referred? A.-That is Youngstown ~

proper and the colored area covers the township. That,

also covers surrounding territory. :

~ Q. To what use are sour lines put? A. It moves the gas

into the homes of the individual customers within the area

- and moves it about the city. Some of it goes south to

other areas. Some goes north into Gerard. | .

(). Was the fact that it does move the gas to the con-

-sumers’ premises, and the other particulars to which you

-have testified, the reason you Classified the lines as

Wi distribution lines? -A, No, 1 think not.

(). What was the basis of your classification of

those lines? A. Those lines were classified way -back many

vears ago under the basis of thic- Ohio Publie Commission

code, | imagine, because Afey have been carried that ‘way

on the books for a long time. The original basis was pre-

scribed by the Ohio Commission, or it might eVen have

heen hefore the Ohio Public Utilities Commission. | don’t

know. IT will have to look it up.

Trial Examiner: You don't know? e

The. Witness: No.

By Mr. Putdue: .

Q. Do they comply with the present uniform system of

uccounts? A, Yes, as far as 1 know,

_ Mr. Cockley: You mean the Ohio system.

Trial Examiner: Was that a question you were asking

this witness, Mr. Cockley?

Mr. Cockley: I wanted te clarify this. He saul, ‘*Com-

ply with the present uniform. classifications’ ". You mean

the FPC classifieation? i 2 t 3

Mr. Purdue: The classification | just read the witness.

Trial Examiner: Are you referring to the Ohio

179 ~~ Publie: Service” Commission's classification sor the

~ Federal Power Commission's classification? —

Mr. Purdue: 1 am referring to the Fcderal Power Com-

mission’s Classification. As the eVidence shows it was

*. adopted by the Ohio C ommission and made effective as to

this company. : !

Trial Examiner: : Then it includes both Federal Power

and Ohio. Is that it? cs

Mr. Purdue: Yes, Mr. Examiner.

~ ‘Trial Examiner: All right.

Mr. Cockley; I think, maybe I can clarify this thing so

the record will not ge‘ confused, and save tiie.

The company is in the process of making a re-classifica-

‘tion. That has not progressed very far. These statistics,

- being annual statisties—

Mr. Purdue: If your’ Henor please, I object to the testi.

mony on the part of counsel.

Mr. Cocklev: I thought. we had explained all this to you

yesterday when we made this stipulation, explaining that

that code. of the Ohio Commission—-the Ohio Cormmission

gave us permission to use the Federal Power Connnission

code of accounts and we proceeded to do it.

Trial Examiner:. When was that permission granted,

sir?

Mr. Cockley : Api, 15, 1942. ge.

Trial Examiner: It has taken this length of time,

180 over four years, to reclassify them?!

Mr. Cockley: Mr. Examiner, during the war

period labor-to do this was just not obtainable at any price.

lt is a job that will require scores of accountants in order

to do it. It means the expenditure of probably $750,000 to

complete it., It will take in normal] times, when you ean get

all the help 3 you need, two or three years to do it.

This Commission recognized thal when they put it into

effect by authorizing the conipanies two yeurs time to do

it. I don’t believe any large company was able to get their

reclassification in within two years.

Trial Examiner: I think inquiry was direc ‘ted to the pur

pose of getting that information. |

Mr. Cockley: What is that? |

Trial Examiner: My inquiry was directed to you for the

purpose of getting that information.

By Mr. Purdue:

Q. Exhibit No. 3 shows, does it. not, 903 miles of trans

mission lines? A. Yes, sir; it does.

$ = =

Q. Is'T: P. L. No. 2 inatuded within that we ppaaineaiionac of

transmission lines? A. Yes, sir. :

Q. What was the basis of that classification ?. A The

“same basis as I gave before. It was following the

Is] . Ohio Public Utilities C omission prescribed method

oe 7 ee

Q., Var you produce the. definition of the Ohio Public

( omniission to which you referred which was in effect prior

to the Federal Power ‘Commission system? A. Yes. I

don’t have a copy of the code with me but I will get-one.

(). Will you do so, please? -

Mr. Cockley: I will hand hhé-copy of the code,

‘The Witness :" T have had ‘handed. ‘me a copy of uniforn

classification af) accounts, of natural gas utilities, Public

Utilities ¢ omptission of Ohio, effective January 1, 1921.) 1

note referehe e to transmission measuring station equipment

under 225, On page 53, transmission line equipment under

226, of page 53, and another transmission equipment on

page 227, fc |

Mr. Cockley: ‘Item 227.

The Witness: Yes. Shall T read that?

Item 225, page 53, is as follows:

-— ‘harge to this account the cost of equipment owned by

— oe

wie utility and used by it in measuring natural gas before it

is transmitted to the distribution system. In the charges to

this aecount include the cost of meters, gauges, and other

equipinent used. in the transmission sy stem measuring sta-

on". | | : Soe pone

Heading 226, ** Transmission Line Equipment: ‘Charge

to this account the cost of pipe line equipment owned

182. by ‘the utility and used by it in transmitting natural

vas from the compressing or boosting stations, or

other points where the transmission system begins.*?

‘In the charges to this account include the cost of trans-

mission fine pipe, collars, couplings, other fittings, gates,

valves, and other équipment accessory to the transmission

pipe lines, the cost of hauling, dite ‘hing, constructing sup

ports, conduits, and so forth, laying pipe, refilling, repaving,

damage to crops, fences, and so forth; also the cost of =

consumed, other supplies used, and pope en: encurted 3

the construction.of transmission lines.”’

‘“The records supporting the entries

be so kept that the utility can furpi¢h information -—a< to

the diameter, length, weight, miateriill, price, and date: of

-instaliation of each transmission_line; also the cost and date

of installation of collars, couplings, and other fittings.”’

Account No, 227. ‘Other transmission system equip

ment, Charge to this account the-cost of ejuipment not

provided for elsewhere, owned by the utility, and used hy

it exclusively in the transmission system.’?

; *

~Trial Examiner: Are those provisions of the Public

Utilities Commission of Ohio accounts which correspond in

their numbers to the numbering of the Federal Power Cow)

mission’s uniform system of accounts?

183 The Witness; No, sir; they do not.

~ Trial Examiner: But the language is the same?

The Witness: No.

Mr: Purdue:. No, your Honor. It is not the sane.

Trial Examiner: | All right. sean

. . i ae . | . aa e ’ .

By Mr. Purdue:

eas

——Q. Do you have transmission: line equipment ino the

Youngstown area colored in yellow, which you have testified

to? A. No, sir. ees

Q. Is your Maumee to Brush Farm line designated by

yeu as TPL No. 6 in ‘our Exhibit No. 4, included by you

within the 903 miles 6f transmission line? A. If is.

. Q. On what basis did you classify that linet os

184 ‘Same as the other trunk pipe line.

Q. How matiy town border regulator stations do

you have in the Cleveland area?) A. Three major ones.

6 this account shall :

Q Ave diey the Hummel Road, Willow Station: and, Dun.

cham station regulator stations? A. That is correct.

Q.| Are they shown by the rectangle opposite the names

‘*Hulnmel. Road, Willow Station, and Dunham Station’’ on

| Exhybit ‘*N" to your application in G-695! A. I don’t hap-

pen to have oné of those with me at the moment. Yes, that

is diagramimatical representation of them.

Q. North of those stations do you have any transmission |

pipe lines? A. We have pipe linés that carry gas classi- :

fied on our books as distribution lines. . |

Q. To what use are those lines put, Mr. Robinson } A.

_¢Movement of gas.

~Q. To where? A. All over the city of Clev hia:

_Q. To low pressure zegulatorst. A. Yes, sir.

Q. Then to what use are the lines put beyond the low pres

sure regulators? A. Moving the gas from the low

185. pressure regulator to the individual consumers,

Q. Willow station is located at the terminus of

TPL No. 1, TPL No. 2, and PL No. 3, according to this

exhibit. Is that a correct representation? A. Yes, sir.

Q. Is the Dunham ‘station located at the terminus of TPL

No, 5, as indicated by Exhibit “N’"?) A. That is correct.

Q. I want to ask you a question of another nature rela-

tive to Exhibit ‘‘N’’.. : ‘

_— I take it that the rectangle at the bottom of the page ad.

jacent to which is the name Hastings, refers to the Hastings

compressor siation. A. That is correct. °°

Q. Do the figures in red which appear to be firu res desig-

nating number of pounds as illustrated by the figure 330 at

Hastings, indicate the normal and usual operating pres. |

sures of the Hope system at that point and of your system? q

A, It is somewhat of a normal i in the winter time when the q

demand js heavy. ce fl

Q. ¥ ou say ‘somewhat of a normal’. You mean, gen-

erally speaking.it is normal winter time operating condition.

Is that right? A. No, I said—Yes, T will agree with

186 that. It ds just different wording.

* , e * * * . * *

ec crease cs, |

Ris ati ae antes ei eee

het

SE oY Sein B Sea. 2

SEO con :

Q. How many town border regulator stations do you have

at Akron! I wouldn’t know offhand.

187 ~Q. About how many? A. About two or three.

* ae ” . . ° oe Nt SS *

Q. Mr. abides what is -the function of the lines at

| Akron- beyond the regulator stations, beyond the town

i border regulator stations? A. Which lines are we talking

/ about? The one shown on the map?

— Q. No, sir, the lines in the City beyond the town border

stations you have testified to. A. Their function is to inove

gus into the low pressure areas, low pressure system, and

then distribute it to consumers.

188 er words, to low pressure regulators. A.

Yes, sir.

Q. Are the operations similar to those described by you

at Cleveland? ‘A. Identical.

Q. Is the situation the’ same at Youngstown? A. The

generaj situation is carried out throughout our entire syb

tem,

Q. Do you have town border regulator stations which

‘move the gas to the low pressure lines? A. Regulators do

not nove gas anywhere. © i

Y. Do you have town border regulator stations at

Youngstown? A. Yes, sir.

Q. Beyond that point where does the gas go? A. It i

distributed in the general Youngstown area. and. the of

jacent territory.

QQ. Does it go to low pressure regulators? A: Yes, sir.

(). The same operations as at Akron and Cleveland!

“A. Same general operations; yes, sir.

Q. Do you have town border regulator stations at. the

other communities which you serve? A. Yes, sir.

Q. All of them? A. As far as I know; ves, sir.

189 Q. Do you have town border meter stations at all

these towns? A. Yes, sir. .

Trial Examiner: Could you clarify this information for :

ne, Mr. Robinson: Where does your transmission end, and.

phy

_ where does distribution begin? At your town border jneter

. stations? Is that where your transmission ends and vour

distribution begins? |

The Witness: That is where our classification of ee

divided the situation; yes, sir. -

Trial Examiner: So that there coud be transwission

lines up to the point of metering at each city gate station,

Is that eorrect? <A. Yes.

By Mr. Purdue: i ‘

Q. What is the purpose of the town border meter sta-

tions? A. Measures gas.

Q. To measure the gas delivered from the tranamission

pipe lines tothe various local distribution areas? AL Mea.

sure the gas that moves in that area; yes, sir.

().. In other words, the bulk volumes of gas transmitted jn

the transmission lines, Is that right? A. I don't. know

what you mean by ‘‘bulk’’.- All gas that passes that

190 station is metered at our “metering” station in each

» community..

Q. In other words, it meters all gas that is deliv oa toa

particular community from the transwission pipe lines? A.

That is correct.

| . Mr. Robinson, you have testified that the gas which

‘your company receives in its Maumee line is delivered by

the Panhandle Company. Is that — A. That is cor-

rect. | Cake ee

(Q. Do the Panhandle facilities inelude a 22-inch line ex-

tending from the State of Indiana into the State of Ohio?

A. It includes a large pipe line. I would not say right now

whether tWs a 20 or 22-inch line.

Q. Do the Panhandle facilities also include a 16-inch Pan.

handle line extending from a point of connection with the

; (

— coe

Pe Te ee a ae a ae ee Fe ee

_ larger Panhandle line to. Maumee? A. It iseither a 16 or

_A8&. I don’t reeall which, ‘sir. 3

Q. In your gas contract with the Panhandle Company

dated February 4, 1943, which I believe is Panhandle FPC

eer

649

No. 61 rate icheduie! it is | wated as’ follows ait page 1, com:

mencing in the middle of the third paragraph:

‘Michigan Gas Transmission ( orporation owns a

191 16-inch transtnission line extending from a point on-

the main line near the Ohio- Michigan state line to a

point near the city limits of Maumee, Ohio.’’. A. That

would satisfy me as to the size of the line.

Q. Do you happen to know this: Was the Michigan G ias

‘Transmission Corporation an affiliate of the Panhandle

Kastern Pipe Line. Company, which was later absorbed by

Panhandle! I believe that is the fact, but I am not sure.

Do you know? A. That is my niderstanding: yes, sir.

Q, Continuing to read from the paragraph; ‘*It,’’-

Michigan Gas Transmission Corporation,—** proposes. to

reinforce and increase the capacity of said transmission fa-

cilities, and that from and through such combined facilities,

Eastern can assure delivery of natur al gas to East Ohio at_

a point near Maumee, Ohio, in sufficient quantities to fulfill

the requirements of this agreement.’? » :

Can you tell us in a brief way.if the 16-inch line, if the

capacity of the 16-inch line, was reinforced and increased at

the place specified, and, if 80, what was done? A. I don't’

think the 16-inch ever was increased or never was proposed.

to be increased. I think there have been some -improve-

ments, and looping has been done on their other system, on

their 22 and 24-inch lines to make more gas available.

192. To my recollection I don’t reeall anything ever be-

ing done to the 16-inch iine. However, it could be

done without my knowledge. _

(). Would the effect of the main line looping he to per-

mit increased deliveries at the Maumee connection? A.’I

don’t know what we would have to do with it. We have a

definite contract with Panhandle to farnteh fifty million

enbie feet per day.

Q. Well, T will read you the following language i again,

and I will ask yon what was the purpose of the provision :

“That is’’;—Michigan Transmission Corporation,—

‘‘proposes to reinforce. and increase the capacity of said

transmission facilities, and that froin and through such—

combined facilities Kastern can: assure delivery of natural

gas to East Ohio at a point near Maumee, Ohio, in suffie tent |

quantities to fulfill the requirements of this agreement.’

A. That was just an assurance that there Ww ould be suffic: ent

gas there for our use.

Q. Particularly on peak days? A. No. We have never

been able to get from Panhandle any additional gas on peak

days more than the fitty million eubic feet.

Q. Welk, the effect of the looping was to insure delivery

of increased quantities on peak days, was it not? A. I

think not, sir.

| Q. Of the contract ‘quantity? A. No; I don t think

198 so.

iQ. Me. Robineén, is the main Penkandia line as to

which you testified, being a 20 or 22 inch line—is there ‘any

difference between that line on the Indiana side of the state

bounda ry and on. the Ohio side of the state boundary? A. J

did not see it constructed, but I would think it would be

identical.

—Q. Does the gas tow along the main line at that point

without interruption? A. As far as 1 know it does.

Q. Is there ariy interruption of the natural gas at Mau-

mee where it is delivered to you by Panhandle? A. Yes,

sir.

Q. What. does that consist off A. Regulation.

Q. What is the nature of the regulation. A. The gas we

receive from Panhandle is so regulated that we get a con-

stant volume of gas throughout the day. Therefore, as our

_ demands build up on an hourly basis it automatically picks

that up. In order to do that ‘here must be pressure held

back of the regulator where we get our gas.

Q. The gas which you receive from Panhandle moves

without stopping, does it not, from the Panhandle facilities

into your Maumee line? A. Well, there is some pres-

ee ee Tee ee ee ey

_—

4) Se

194 sure built back-of the regulator. Something has to

build up that pressuge—Practically all of the gas

moves continuously through there. There is a build-up of

pressure in order’to take care of the flow which has to hold

some gas back. | 3 se

_ Q. And does that gas move into your Maumee line con

- tinuousiy 24 hours a day, day in and day out?) A. Yes, sir.

* * . ° ‘*. | ° * ' ¢@ me « * *

195 Q. Your company has no compressor station along

the route of your Maumee line, does it? A. No, sir;

it has not.

QQ. Is any gas received into that line other than the gas.

which you get from Panhandle? A. I believe not, sir.

_ Q. On page 3. of your application in Docket No. G-458,.

paragraph ‘*D”’, the following’statement is made:

‘‘As shown on Exhibit ‘‘(’’, said pipe line’’—that is the

Maumee line—‘‘is to be used solely for the purpose of

bringing in an addi tional supply of gas to applicant's

Medina line extending to Cleveland and to. applicant's

Brush Farm station.”’ Then it continues—Is the line as

operated by ‘you used solely for that purpose, amely the

‘purpose of bringing in an additional supply of gas to your

Medina line extending to Cleveland, and to your Brush —

Farm station?) A. It does. )

Q. It ist A. Is and does.

Q. What are the functions of the Valley City regulator

- station? A. The function of the Valley City regulator sta. .

tion is to control the flow of gas that goes north through ine ;

Medina line into the City of Cleveland. |

196 Q. It does not regulate the gas flowing through to

Brush Farms? <A. Yes, sir; we pineti it back in

order to force more through that line.

Q. Those are the only operations performed by that reg-

/ulator station? A. Yes.

_ Q. You testified on direct examination, Mr. Robinson, to

a number of respects in which your company is subject to _

regulation by the Ohid Public Utilities Commission. Does

the Ohio Public Utilities Commission require your company

'o file either a reclassification of accounts or original cost

studies? A. At the present time we are working on the —

reclassification of accounts in aceordance with permission

from the Ohio Commission. They have not required the —

filing of original vost.

. ee . * + * . “ ¢ ea .

197 Q. Were you required to file an application for a |

ae certificate of public convenience and necessity for the >.

Maumee line with the State Commission, either f

or for the line for which you applied in G-695? A.

Before construction I went down and explained -in Wetail

to the ee our plans and our schedule of construe-

tion, ree ye eee a ea }

Q. But you Were not required to do that, were you, Mr.

Robinson? A. No, sir, except I only thought it-was good

businesy to do it... ge ree

Trial) Examiner: May I ask for an explanation of that

statement? 2 | Shee Oey

- The Witness: They are always anxious to know what we

are doing, and inf great many cases we have conf erred with

them ou aair nos before they develop. On many of them

we go totheln to/eet flefinite approval, and some we do not.

But we ndeavor to ie closely in touch with them and ad-

vise thei as to/our/majof, operations. They have always

oP be¢n very much appreciative of it. 3

198s‘ Trial Examiner: In other words, they appreciite

one -the-voluntary information which you ers em.

The Witness: Yes, sir. ie 3 |

Trial Examiner: You do not believe it is a matter of

obligation on your part to do so. SS

Mr. Cockley: It is a matter of obligation on our part to

furnish them any information they may request, Mr. Ex-

aminer, and they have quite wide authority under the stat-

utes whith I shall inquire about. And they do that fre-

quently, © Oe. ee |

53 ‘

Uereaha ee :

Trial Examiner: In any event, a“ formal application, is

necessary and you did not file any?

The Witness: That is cor reet, sir.

Trial Examiner: _All right.

By Mr. Purdue:

(. Mr. Robinson, you testified on ‘direct examination that

the gas at the Maumee connection with the Panhandle was

received ordinarily at a certain pressure. ‘What was that

figure? A, Maximum pressure we have received gas at that

connection is 320 pounds. Our contract obligation of Pan-

handle is.to furnish it up to 350 pounds,

Q. At what, pressure do -you ordinarily receive it, ap-

ee As St: depends on the demands on our sys-

| n-at the other end. Because as we get a terriftic

199 ~ ptll in our line going from Brush Farm nerth, that

~ pressure becomes. somewhat lower. Consequently,

Panhandle. has to regulate their pressure in order to give

us fifty million a day. So that i isa variable is yuaracen tia the

day. Se en ETT |

I would-siiy the normal operating pressure would be in

the neighborhood of 300 pounds..

Q. When the pressure at the Hast Ohio connection with

Panhandle at Maumee is 300 pounds, what is the pressure in

the Panhandle 22-inch line at the point of connection with

the 16-inch line? A. I would not know, sir. It is somewhat

in excess of 320 pounds. tetas

Q. What is the pressure at the Valley City? re That

varies, of course, as the operations—the normal pressure at.

Valley City ranges between 175 and 200 pounds.

Q. Is that coming in to Valley City? A. That is right.

(). Now, when pressure is 300 pounds at the Panhandle.

Fast Ohio connection, what is the pressure at the Brush

Farm connection? A. That varies quite materially. The

average would be around 160 to 185 pounds.

Q. In other words, there is very little regulation at Valley

City of the gas going through to Brush Farm?

“ , Be

Mr. Cockley: 4 abject. to it. He stated’ exactl

200

| what is done at Valley City. There is no necessity

for gyneral comment about it. |

Tryal Examiner: I will overrule the objection.

The Witness: Just such-regulation as is necessary to

foree through our Medina line the amount of Yas that ‘we

desire to locate in the western part of Cleveland.

By Mr. Purdue:

Q. Mr. Robinson, do the trares on statement No. 7 of

- exhibit [-2, to your application i in G-458, as to the estimated

pressures of the proposed pipe line from Maumee to Brush

Farm—are those figures, generally speaking, the same as in

the operation of the line after its installation? A. I have not

looked at that report for a couple of years. ‘I am sure I

could not tell you without seeing what they are.

().. Would you look at statement No. 7, and see if von ean

answer the question? A. T would say those are snbstan-

tially alittle lower than the actual. operation. The present

operations are the correct ones.

(). At the time of filing of G-458, a statement was made in

that application, or in one or more of. the exhibits that

there were some 773 miles, as I recall it, of transmission

? lines in the East. Ohio system. As you testified

201 earlier today, there are at present 908 miles. Is the

difference in figures occasioned by reason of the con-

vtrnetion af the Maumee line? A. To the extent of 111.7

miles, : : 3

* « ” ee * a . * « * .

20S. By Mr. Purdue:

Q. I believe it appears somewhere in the record, Mr.

Robinson, that a portion of the natural gas which the Hope

Company delivers to your company is gas which is supplyed

to Hope by Tennessee Gas and Transmission Company.

‘Can you tell me if the gas supplied by Tennessee Gas and

Tri ansmission ompany is gas which-originates in Texas?

A. Yes, sir.

ra is ) ‘ oe i ic :

Q. That is true, is it?) A. Yessir, near Corpus Chris

(). Yesterday you testified at the very bettors ef pau

144, and at the very top of I40, / ce :

“Question: How much of your property le vou clissita

; tsa imattercef a accomnting percent age wise + a> distri

120 bution property, productionand Storage?’ “Pher

: = next eee: ‘Trans hilssion? "| “Ans Lie ye

cent.’ 3

Ate

Is’ your property\(o classified | in your plant Ae ount, ‘t!

is between production and storage ant tratistiission vie

distribution? A. Yes, sir; itis. | i ne

Q. Ci. you tell me in dollars as of the prese nt tint e, Or as

of some recent time, the total aniount of your pl: ant wecomnt

A. Yes. As of December 31, 1945, the total au oun Wiis

$85, 066,881.01, 3 :

Q. What was the total ainount in. transinission,. ) ae 4

Take that percentage of that and it will give it to vor ;

Q. T see. Now, does your company recognize fhe sa

breakdown between, transmission, —. wind eistrilen

tion in your operating expense i accounts? A. To saniie ©

tent wherever it is applicable, we have a pipe line supe:

intendent who looks after the trunk pipe lines. -We has

‘arious managers wi superintendents, in enr varion-

plants. A vood deal of our work is done by one and Hs

“another. What I mean by that is that if there is a big jolt

to be done in a hurry in our Ystribution end of it we tise

any men available for it. If there is a big job to he done in

transmission we do the same. . iad

210 Q. ~But youdo have operating © xpense alecounts for

transmission, for distribution, and for pradietion ?

A. Yes. ne SGD ok os ae ree |

«). At page 97 of your testimony on veste day, COMADE RE

ing with line 15, you testified as follows:

“Question: While we are on it, tell us what that Pate

“burg delivery is used for?”

~ |

*ANpewer: The Petersburg delivery is used on extreme ;

peak day to help augment the East Ohio Gas Companys

supply of gas; due to lack of transportation facilitres suf.

ficient arionnts of gas cannot: hie produced in Ohio and pur-

Hased inc Ohio and moved northward through the pipe

tine eysten, of Oia to supply our loc itl distribution de

mianmeds,* “

What trans ortation facilities did you have in iaind, Mr.

Robinson, as hei ine in idequi ite? A. TE wouldn't sav inade-

quate. Theyare just not sufficient.. In other words, we can

only vet a certain amount of gas through our transnitssion:

limes Towing in a northerly direction from the Tope whic h

woenkd meet our niece requirements. 3

-€) Yon bad in mind, then TPL No. ..2, No. 3,5 and so.

Torti I had ali of them In mind. et we cannot

othe gas We have available to us. We don’t have the

| x 3, anid 6, we eannoga@et tigy inore. gas from Panhandle.

: So that is practically in the same condition. |

(. At the bottom Sf page OO, commencing with line 21,

: r to the top of page 91, vou testified

vesterday as follows: ) Nie

and continning ov,

ia So Bxac iner: These transmission lings, these 903

miles, perform what speeifie funetion?”’ 7

a Tie. Witness: "Phe 903 miles of transmission line as

Inssified, perform the function of moving gas In ONC CHAE

fro \ the Ohio River northward, and j mn the other ¢ Case frou,

Mau heer 4 astward of out-of- state gas as well as of was

orodnend: and purchased im the State of Ohio, through these

DH pes\to our local distribution area

| the function of those lines, ae Robinson, whieh

von ther de —~ be changed if you were delivering eas

at the fowh border stations to other distributing companies —

r" vw he own distribution facilities? A. TI don't

‘ear requirement Could be. If it were a requite-

roent for mere or less it naturally would be changed.

; kn i whyaat ‘

Q. Assuming the sane requirements? A. No, it coul ee

bv any different if they were the same requirements.

Mr. Purdue: ‘That is all.

. * _ . ” * te - ee: .

St2 - Mr. Fitzgerald: TI would like to cross exaitine this

_ Witness, Mr. Trial Examiner. However, | believe

Judge, Morgan would have the privilege of cross exatnuina-

tion before me if he so desires. ,

Mr. Morgan: W e have no cross examination,

By Mr. Fitzgerald:

Q. Calling your attention to some of your testimony this

morning, Mr. Robinson, with reference to the special per

nission granted to Fast Ohio to change their accounting

system to a system of accounts similar to the Mederal

I? ewer ommission, is it Your understanding that your sys-

tem of accounts, as it now exists or would exist after new

accounts would, if they were put into effect, are still under

the jurisdiction of the Ohio Public, L tilities Comission?

A. Yes, ee

(). Is it your understanding that in the making of that

appheation that that was % special permission to Hast Ohio,

and not a general provision yoverning the other. utilities

in the State of Ohio! —~A. I didn’t quite follow yeu. You

luean, Special permission frem the Ohio Commission !

Q. From the Ohie Commission; yes. A. Yes, sir. As I

stated this morning, we confer with them and

213 deavor to keep theni informed on our major points.

(). In the asking for this special permission, that

permission was confined to your company alone in the order

of the Public Utilities er x A. That is correct.

It ix all we ever discussed. ae |

; Q. Now. in the event thdt for some reason the Publie

Utilities Commission should withdraw their speeial per-

mission, is it your unde rstanding that vour company would 1

have to conform its accounts to the uniform sVsteni nf AC:

counts now existing in the State of Ohio under the Public

Utilities Commission? <A. Yes, sir.

(). Calling your attention to Exhibit 4, a map ‘of the East

Ohio, operation,.is’ it your understanding that all the se

transmission lines, including all the other property owned

and operated by East Ohio, areat the present time under

the jurisdiction of the Public Utilities. Commission? AS

Yes, sir.

Q: ( ‘ulliny vour attention to a recent rate case involving

the City of Cleveland and Kast Ohio’ Gas Company, which

was before the Publie Utilities C oOmmission, in the course

of that litigation was the East Ohio Company required to

value and inventory all wf the transmission properties

shown on this map at the request of the Publie Utilities

Commission? A. Yes, sir, and inspection was: done in co-

operation with the engineers of the Public U tilities

214. Commission,

(). In other words, at all times the East Ohio Gas

( ompany has understood that these transinission lines are

under not only the control but the supervision of the Public

2 Utilities Commission? A, Yes, sir, . |

Q. Calling your attention to the transmission lines that

run up to Gross Farms, am I correct-in understanding that

vou mentioned yesterday that in some instances on. those,

transmission lines in that area, leading into that -one -cen-

tral point, -that gas at certain times of the vear goes in

both directions, both north and sonth? A. The gas np as

far as Gross Farm for the most part goes north; at Gross

harm our system is so flexible that we ean deliver the vas

from one liné to another, or in most any direction we need

the gas to supply a market in our general distribution area,

ind it is so oper that way in winter and in particular

i peak days. | | 7

—Q. Well, is it true that in the Gross Farm areas, I under-

stand from the legend here, ete certain underground ~

storage faci! ities? A. That is correct; outlined in- dark

blue.

ry)

215

a9 :

(). During certain portions of the year is’it not true that

rroduced gas as well as out of ile state gas is stored

Ni those storages? A, That is correct.

. And therefore transmission lines north of

Grods Farm could at some time during the course of

the year be carrying gas which formerly had been inter

stute gus as well as intrastate gas? A. As a matter of fact,

ithe operation is that where gas comes in from the Maunice

line at Brush Farm some of that gas in summertime is

brought south and actually stored in the storage pool.

(). Now, Mr. Robison, calling your attention to some of

the practical applications of the inventories, and what not,

in connection with these lines, | understood you te say

yesterday, 1 believe, that there oftentimes are great ex

penses involved in the valuation and inventories of these

lines for the purposes of submitting that information to

the Publie Utilities Commission, A. Yes, sir. It all costs —

money. =

. How do you handle that expense on your accounts!

A. That is expense, a regular charge to expense. That is

the normal work. When we have an unusually large job

such as a rate case preparation or a general valuation, the

Commission usually authorizes that to be amortized ever a

)

definite period of time, varying from five years for the

most part.

Q. Is it your understanding that that expense is one of

the items that goes into consideration of a rate for

“16 municipalities in this vieinity? A. Yes, sir.-

: Q. In other words, that is a direct item that might

materially. affect the ultimate consumer -rate on your

system, A. Yes, sir. ;

(. Is it-your understanding, since these lines are under

the jurisdiction of the Public Utilities Commission, that

any expense in connection with any inventory, changing of

accounts, and so on and so forth, regardless of where that

information may be desired from, that ‘that would be an

allowable expense in a rate matter before the Publie Utili

: ties C OMISSION in W hich East Ohio | is involv ed? A. Yes,

; it would have to be,

6 And generally, from your own knowledge the ten-

dency. of the additional expense in reference to the ultimate

consumer rate, would it tend to lower or increase it? A. It

would increase it, sir. :

Mr, Fitzgerald: ‘That is all.

* a Bae * — .. » ‘os *

255 Trial Examiner: Mr, Fitzgerald, Assistant Attor-.

ney General for the Public U tilities: Commission of

Ohio, has requested leave to make a statement with refer-

ence to the four docket numbers on w hich we have just con-

cluded taking testiniony,

Mr. *Fitzgerald, you may proceed. to. make your state-

ment, . J )

Mr. Fitzgerald: If it please the Examiner ‘I would like

to have the priyilege of readmg the-statement. If T may,

L would like to sit down and read it-so IT may expedite the

ve hearing and not take too niuch tine! :

( SOG Trial Examiner: You may. :

Mr. Fitzgerald: If the: Examiner please, | in order

to elaborate on the position of the Public Utilities Commiis-

sion of the State of Ohio, previously stated, I would like to

cay that the Ohio. ¢ ‘onunission have found the activities of

the Federal Power ¢ ‘omission in taking over the problems -

of setting interstate gas rates, particularly in the instance

uf affihated companies, most helpful.

In former years atid in former rate cases the interstate

gas. rate between’ affiliated kas companies—where inter-

state gas rates: between affiliated gas. companies were con-

cerned the determination of the reasonableness of the rates

proved to be a great burden-on the Ohio Commission.

By the enaefment of the Natural Gas Act the State Com- .

missions were relieved of this burden, and rightly so. Zz

iz also the opinion.of the Ohio Commission that the intér-

“stateg@as rate between a non-affiliated company, which ‘it

could not review, should le properly subject to regulation.

be : eee, = sae

Since the constitution limited such review by any State

agency the Ohio Commission -welcomed the Natural Gas

_ Act and the authority of the Federal Power Conimission in’

filling the gap in the exating essential | regulatory

(procedure, +. =. ee : :

A cooperative jurisdictional fie ld wherein, the Federal.

agency regulates interstate rates and the-State Commis.

sious regulate local rates and activities present a

257 complete and harmonious regulatory system,

However, I do not believe that duplication of regu.

dations was desired or intended by Congress’ in the enaet-

meut of the Natural Gas Act. In reading the Mzyislative

history as to the purpose of the Natural Gas Act it would

seem to ine that the intention of Congress was to avoid

dup liestion of regulation, and likewise in no way disturb

tite States in the exercise of their jurisdiction,

Regulation i in the utility field has proven to be an expen.

sive enterprise, and in the long run all regulatory expense

must be borne by the consumers, Any duplication of revti

lation would double the burden imposed upon the gus user.

; As I stated at the opening of the hearing, the State of

Ohio and the Publie Utilities Commission of Ohie appeared °

before the Circuit Court of Appeals when the matter of

the Federal Power. Commission's jurisdiction as to Kast

Ohio Gas Company came before the Courts,

It appeared then that the information and data whieh

the Federal Power Commission sought weuldinvolve a

substantia! expense, and such information could. not be

helpful to the Ohio Commission in its determination of

local rates under the Ohio law, which requires the rate base

to be fixed at present value.

| In this particular instance duplication of regula.

258 — tory-jurisdictiou.would have been generally harmful

to the Northern Ohio Gas users. :

‘As the testimony has developed-at-the present hearing

‘the practical situation is the same now as in the former.

hearing, except that the cost to the East Ohio Gas-C on

v i ‘ rf

pany to comply with the various accounting and other

- orders of the Federal Power Commission is much vreater

‘than in the original situation.

‘The Ohio Commission has from the inception of the Kast

Ohio Gag Company regulated all of the rates, securities

seid, peo onnuiag and valuation, and all other

activities. im-connection with the procuring, transmission

and distribution of gas in the State of Ohio. -

@ The Ohio, law specifically directs the Ohio Commission

to — regulatory jurisdiction over all of the util-

ity property located in the State, and has empowered the

/Ohio. Commission with authority-to securé all of the in-

formation required for such regulatory purposes,

In this instance the Ohio Commission does not need the

assistance of ‘the Federal Power Commission or any Fed-

eral agency to discharge their statutory duties to ‘the citi.

zens of the State with reference to the East Ohio Gas Coni-

pany property. :

‘Tt is undisputed that the spitition of Kast Ohio i ix wholly

intrastate, and is confined to the production and dis-

2o9 tribution of natural gas in some 69 Ohio cities. and

adjoining communities.

For the Federal Power Commission to compel securing

of additional information, and to insist upon compliance

with additional future requirements as to accounting and.

the securing of certificates of public convenience and neces-

‘sity, all at great expense, is in this instance a.great. dis-

service and burden to Ohio Gas users. It adds a substan-

tial item to the operating expenses which to our minds is

-unnecesasry. Ss

. This undesirable situation could be avoided by our prac.

tical iuteypretation of the Natural Gas Act, which would |

limit thé jurisdiction of the Federal Power Commission to.

the filling in of the gaps in State regulation, as I believe

Congress clearly intended. | Bye

I am confident that Congress did not intend that the

jurisdiction. of the Federal ageney should become dua, in

connection with a purely intrastate local distribution com-

pany, such as: East Ohio, and to subject such a company to

dual regulation involving the same properties—-once by the

Vhio Public Utilities Commission ander Obio law, and

again, by the Federal Power Cominission, 3

_ Therefore, in view of what has. just been said, the State

vf Ohio and the Public Utilities Commission of Ohio oppdse —

the assumption of jurisdiction of the Federal Power

260 Commission in this instance as unwarranted and un-

necessary, and no doubt illegal invasion of the! pow-

ers of the State of Ohio to regulate loval gas distribution -

utilities which powers were. clearly preserved to the States

under the Congressional intent amd the provisions of th A

NaturalGas Act, Z 1N 4 hl spy

That is all I have to say on that subject. v iN vi

I wish to thank you very much for /the opportunity of |

participatifig in this bearing. © /

Trial Examiner: You are entirely welcome, Mr. Fitz-

gerald, I assure you. | oe | 5 ee

Y our statement, of course, is tantamount to an argument

ou the issues and the evidence in n this hearing we have held

so far. “ es

I wish to give counsel for the parties an opportunity to

likewise express their views in oral argument on the evi-

dence and issues in the docket numbers we have just. con-

cluded hearing. - as :

Mr. Dougherty? — eee Dap te :

Mr. Dougherty : If the Examiner please, I think in the

interest of conserving time that any extended ‘argu-

ment by counsel on this particular section of these proceed.

ings would not be particularly helpful. It would seem to

me that at -theclose of the four dockets if it is desired to

file briefs that matter. may be considered then, or oral _

argument as might seem best to the Examiner or

261 \ counsel.

‘e ° o « s fe / te . .

Excerpts from Testimony and | \ stidiaie of Hearing on

Docket No. @-458, Held April 24,4943.

3153 -J. French Robinson, a witness called jn bebaif of

thes Applicant, having been first any sworn, Was

. examined and testified as follows .

~ Sa eo: ® e-} : o:\" [gt re *

3186 Cross-examination 96 5 ,

; ae \f Ne ; j

By Mr. Reeder: — _ Meu AA Rath

3192 Y. Do you have load dispatchers int The East Objé

Gas Conipany? A. We have a gas dispatcher, ps

Q.. Where does he operate? A. His office is in/our maid :

building, Cleveland, Ohio.

Q. Will you describe his operations! A. The dui ei the

gas dispatcher is to supply aWof our markets withieas us

nearly all of the time as wé can. He is in ‘constant ‘touch

with our field superintendents in‘(relation to turn-

O193 ing off wells of our’ ar ‘atid gas purchase bontracts

- in the State of Ohio.’ ‘He is in constant tduch with

the dispatcher of the Hope Natural Gas Company in re-

gard to pressures, and we operate mainly by, pressure,

which in turwontrols volumes, as required, and gs can be

had. Pos ‘are the principal duties of our gas dispatcher.

sok = Wil! vou state how Far nore of those line

station carry nothing but Hope ae e The,

mingled Ohio gas oceurs in the westerp portioi

xon County, which would be- ‘roughly forty tnileb

Fe ‘larington station.

BC tes 1} 8 * * 7 oS 2) 845

-7 ;

. 206 Q. Now, Mr. Robineda, is some ‘gas sent to the

/ S. easttard out of Gross Farm station to Marion, Niles

‘and Y oungstow n? A. Yes, sir.

Q. And is: that all Hope gas, with the exception

3207 of a small amount of Ohio gas that is mingled with

. it south of Gros Farm. station -as vou have de-

setibed? A. Yes, sir. |

rst tater:

of Harri-

ngrth of

Q. And hint: is the usual pressure in “that W4ineh and.

that 16- inch.Y oungstown branch? A. The operating pres-

sure of those lines varies between about 150 pounds and

185 pounds at the Gross Farm. : ying tae 3

; 2 * ee Rs oe * a oe * _*

8210 Q. Mr. Robinson, will you state what pressures

are maintained in the Kast Ohio transmission lines

mes Gross Farms Station north to the Cleveland city Zate,

if a matter of the usual and ordinary course of. business?

Ag That varies from between 150 pounds at Gross Farm,

iA si) 100, possibly a little above 200 pounds, reaching an aver:

ae pressure in the border stations, varying “between 60

‘ Vand 100 pounds, at. Cleveland, nN

, - Q. What are these border stations? A. Border stations

\ are the puints where the gas from the transmissian

S211 line is passed over into the high pressure distribut-

ing lines.

Q. Are these border stations measuring stations? A.

Not necessarily.” 1 am speaking of border stations, as regu-

lating stations. We do have measuring ‘stations at our

border stations, too,

-Q. And I believe you'testified that tiecs is a Cleveland

Division high pressure distribution system. Will you de.

scribe what that is? A. That is nothing more than a sys-

tem of pipe lines, running around the’ outskirts of Greater

Cleveland, and. through the city which carries the high-

pressure distribution gas to points throughout the area

where it is converted to low pressure distribution.

2 ; + f eo. + a “* .. - . bad

Q. And will you state what pressure is maintained after

the ¢ gas gets into the high pressure distribution system?

Av varivs between 30 and 50 pounds, normally, _ :

Mr. Cocklev: Are you now talking about metely the

Cleveland area, or the whole system? ;

The Witness: The Cleve land area, | understood that is

what we were discussing,

“<i PT rap aad rhe

not teas

66 : 3 | .

3212. Q. Mr. Robinson, what is the pressure in the low-

pressure distribution main? A, — 6

ounces between, 4 and. 6 ounces

: J understood you to testify that in the high pressure

Soe ei systems, the pressure was about 90 or 60

- pounds. 3

Did I misunderstand! A. That is correct. 30 to 60 pounds,

Q. And then, when you get into the low pressurg dis-

tribution system, what-is the pressure? A. + to 6 ounces.

Q. There is 2 substantial reduction-in pressure then, be-

tween the high -pressure distribution system, and

3213 the consumers burners, is there not? <A, That is

where it goes, that is wheré the major eut is made

down to w here it goes into the low pressure distribution

system. |

Q. And will you describe. the equipment or facilities

which reduce the pressure from 30 to 60 pounds, in the

high presgure distributior systems, to 6 ounces. in the low

pressure distribution systems? A. That is done by a de-

vice, known in the industry as regulator, or regulators, as

theeease may be. Sometimes it takes more than one regu-_

lator to cut the pressure down. Yon see, they are set auto-

inatically, the regulator receives the gas on one side of it,

at various pressures, and it lets it out on the other side, |

at whatever is set for, 4 to 6 ounces, and it’ is purely me>

chariéal, or automatic,

2 sees 6 - Oy e * * 2 _ ter

3214 Q. What is the pressure maintained in #he 14-and

. 16 ineh Youngstown branchdines, running northeast-

ward from Gross Farm to the Youngstown area? A. That.

varies. I think I stated a little while ago that that pres-

‘sure was around 150 to 175 pounds.

Q. And when— A. (Interposing) At the Gross Farm.

Q. Yes, and when that gas purchased from the Hope

Company and moving eastward out of Gross Farm reaches.

the Youngstown area, is there a Youngstown high pressure.

“distribution system similar to that which you have de.

scribed for the Cleveland area? A. Yes, sir.

Q. And that pressure is maintained in that system? — A.

: Approximately the same as in the Cleveland system.

S215 -Q. And is there a low-pressure Youngstown dis-

tribution system similar to that in the Cleveland

area! A. Yes, sir. —

Q. And now will vou describe the ihovement of gas pur-

chased from the Hope Natural Gas Company, northward

from Gross Farms Station to the border of the city of

Akron, for the Akron area? A. It is similar to the move-

ment not only of Hope gas, but ef commingled gas from

Gross farms north-to the border stations in and around

yay just the same as for Cleveland. |

And there is a high pressure Akron distribution SVs.

fem is.there? A, That is correct. ; fo

And then, a low pressure Akron distributi#n evstemy

“aatac to those in the Cleveland and Youngstown area?

A. Yes, sir; that is our standard practice of operation,

° -

. ~ _ e. a cy .. . 2 4

3219 Q. Now, what is the volume of gas purchased from

Hope which is transmitted through trunk pipe lines

2.3, 4, and 5, on a peak day! A. Approxim: itely 200,000,

N00 feet of gas pass through these lines.

. ° . * « +? ae oe .

$220. Q. Mr. Robinson, will you desc ribe the flow of gas

from the Hastings station to the city gate of ‘leve

land on a typieal peak day? : s

* . - « * ° er we = . ae

3221 The Wituess: I don’t know what you mean by

_. *tdeseribe it’’, Mr. Reeder.

As I have previously stated, Hastings aisallrges nx at

about 330 pounds pressure. The gas then moves/in a west-

erly direction through the Hope. Lines, and the Kast Ohio

Lines from the: Ohio River,—moves that gas northward

from the Gross Farm, where, on a peak day, it normally

We ..

is not restricted at all, because we need all the capacity we

have, and it goesson past Gross Farm, portions of it com-

mingled with Ohio gas, to the distribution centers in Cleve-

land, as previously deseribed, by going through. the high .

pressure systems first, and then from the high pressure —

systenis into the low pressure systems and then on to the

Eas Ses,

various consumers.

By Mr. Reeder:*

. Well, Mr. Robinson, is.it a faet that the movement is

continnéis from the place s of production or gathering in

West Virginia to the Cleveland City Gate, where the pres-

‘sure of the gas is. reduced for distribution? A. Yes, sir;

cus moves ina continuous process. It is not stopped dead

atcany point that LT know of. *

. ; « + * s : J : . * * *

av20 Cross Examination

By Mr. Spohn: - 3 7 pet 3 :

. Ber ene, oe * + . * * * -

3235 Q). L believe you referred the other day to your

putin transmission lines, as ‘‘trunk lines’’? A. Yes,

ner are quite often called ** trunk pipe lines"’.

And those are the statements, 1 be liev e, You made in

your testimony from certain lines you referred to as high

goes distribution lines? A. That is correct,

(). And a third eategory I believe you mentioned is, low

pressure lines? A. That is corréet._ Those_arein-aceor-

dance with the metheds of bookkeeping and. so desinated

as transmission lines or trunk pipe lines and high pressure

distribution systems and low pressure distribution system.

(. You keep your accounts according fo those

3286 funetions? A. Yes, sir.

(). Are vour operating personnel so grouped atso?

\.-To some extent. The East Ohio Gas (¢ ‘orhpany trunk

pipe Une svsten: ts manned, by npeene groups of men..

_ Exhibit No. 1: Item 1, at Hearing on Docket No. G 115 etal.

; - x / TT

p / -

i #

69 . pa

Thedow pressure distribution, and the high pressnre di~

tribution is} for the: miost parts handied by the sare poet

sonnel, . : ae 3

There is, at times, ovedlapiping. We get inte trout

the taaimine and the personnel at the? distyibatties: aeyateyy

will assint, and if seberie thing biadgoprenes lon clistuiieaytien

tem near the main line, that foree will assist, so that while

they are more oP less sepuirate “rouyes, there is. ti overt

appre there. : : |

Tn time ofNemergeney need, von eall yn all. ver reed

Beis A. Not only cnmergeney, henever auvthiate fan

pens whichever isthe most econenieal or convenient te)

we use them. oon : :

Mr. Spolin : In the ordinary conrse af events, vow have

permanent crews and othe Yr per ~On ret foot the Tru ‘ks rt

and others for the high pressure distribution oF low pres-

ure distribution sv stems? )

The Witness: That is fandametitally correct. °

+ ”“VSSapee Oe eS: ae e . * (eT .

513.—- - NITED STATES HP AMERICA

; FEDEICAL. QAWF RR COM MISSION

Commissioners: Clyde L. Seavey, Chairman; Clande T.

Draper, Basil Manly, Leland Olds, John W. Seott,

y Se ptember h, 1S,

ORDER NO

Order Prescribing Form of Financial and Statistical Report

‘For Natural-Gas Companies a as Defined in the Natural

| Gas Act (52 Stat. 821)

The Fede ral Power Commission, acting pursugnt to

authority granted by the -Naturak Gas Act, particularly

Sections. 1 (a) and -16 thereof? and finding such agfion.

necessary and appropria ite for carrying out the provisions

of said Act, , ,

: xef-

a ei

(1) Hereby aioe, promulgates and preséribes for. use of”

naturel-gas companies as defined in the Natural Gas — -

Act (52 Stat. 821) the accompanying form.of Financial

and Statistical Report, designated ; as F. og C. Form No.

133 and comprising aoe

‘ General Instructions

. -Excerpts' from the Natural Gas Act

‘Corporations Controlled by Respondent

Corporate Controlled Over Respondent -

Officers and Directors - |

Security Holders and Voting Powers.

‘Comparative Balance Sheet 2

Investments in Associated —

Capital Stock

Long-Term Debt ‘Outstanding (Bonds and Long:

Term Notes):

“S Utility Plant.

Income and Earned Surplus, Account

. 1514 Gas Operating Revenues - | x

~ Gas Operating Expenses SIME ee

Sales of Gas—By Communities ean

- Sales to Other Gas Utilities

Gas Purchased

Gas ‘Transported for. ‘Others

, Gas Produced, Purchased, and Disposed of

’ Natural Gas Land Acreage vei ae 2

’ - A. Natural Gas Land Acreage

-B. Estimated Reserves by Fields

. Number-of Gas and Oil Wells -

Compressor and Booster Stations

¢ Gathering Mains

Transmission Mains |

Natural Gas Production Statistics |

Verification ; and a

oo ewe L

(2) Hereby orders that’ each: nétutal- -Zas company as de-

fined in the Natural Gas Act (52 Stat. 821) shall file

1717

a. . stietet

shall be subdivided-so as. to show the amounts appli-

cable to (a) gas plant in service, (b) gas plant leased

to others, and (¢) gas plant held for future use.

The procedure followed in determining the origi-

nal cost of the gas plant acquired as operating units

or systems shall be described in sufficient detail so as

to permit a clear understanding of the nature of the

investigations and analyses’which were made for that

purpose. Piece poe

_ Where estimates are used in arriving aft original

‘eost or the amount to be ineluded in Account 100:5, a

full diselosuré of the method and underlying facets

shall be given. The proportion of the original eost of

each acquisition which has been determined froniae-

tual recorded costs and the proportion estimated shall

be shown for each functional class of plant. In addi-

tion there shall be furnished in respe et to each prede-

cessor or vendor company for which complete con-

struction costs are not available, a deseription of such

plant records as are available, including the -yeaks cev-

ered thereby.

Statement C showing any amounts arrived at by _

appraisals, recorded prior to January 1, 1940, in the

gas plant accounts (and not eliminated) in lieu. of

- cost to the reporting company. This statement should

describe the appraisal and give the complete journal

entry at the time the appraisal was originally recorded.

If the entry had the effect of appreciating or writing.

up the gas plant account, the amount of the apprecia-

tion or write-up should be traced, by proper deserip-_

tion and explanation of changes, from the date recorded

to January 1, 1940. :

_ Statement D showing in det ai as of December ai.

"1939, gas plant as classified in the books of account

immediately prior to reclassification, including under

appropriate’ descriptive headings, any | unclassified

amounts applicable jointly to the gas department and

other departments of the utility.

ee eatin

.. 82

Gad Act (52 Stat. 821) which are aahad A in C iihies

A and B as defined in the Commission's v niform

System of Aceonnts Pr ‘escribed | for Natural Gas

Companies subject to the provisions of the Natural

Gas Act, for the’year 1941, the accompanying form

of Annual Report designated as FPC Form No. 133

(1941).

Hereby orders that each natural-gas company, as de-

fined in the Natural Gas Act (52 Stat. 821) which is

ineluded in Classes A and B as defined in the Com-

mission’s Uniform System of Accounts Preseribed

for Natural Gas Companies subject to the provisions

of the Natural Gas Act, shall file with the Commis-—

sion an original and two conformed copies, duly .

executed, of such Annual Report on the. aforesaid

form FPC Form No. 133 (1941), for the year 1941,

sail Annual Report to be filed on or before the last.

day of the third month following’ the close of the

calendar year or other established fiseal year.

(3) The Secretary of the Commission shall cause prompt

pablication of this order: to be made in the Federal

- Register. . ) ;

-By the Commission.

Leon M: Fvevay,

Secretary

_ See * * + ~ *

8 te.

with the Commission three executed copies of: such -

Financial and Statistical Report on the aforesaid form

(F.P.C. Form No. 133) for the year 1939, said report

‘to be filed on or before F ebruary 29, 1940.

By the C ‘onmission.

fae nox M. ‘Fvevay, -

} Loy Secretary.

a * * * * + * *

Exhibit No. 1: aes 5, at Hearing 0 on Docket No. G- 115 et al.

1539 “UNITED STATES OF AMERICA -

| FEDERAL POWER COMMISSION — =

Commissioners: Clyde L. Seavey, Chairman ; Claude L.

Draper, Basil Manly, Leland Olds, John. W. Scott.

| November 3, 1939.

“ORDER NO. 69

In thie Matter. ‘of:

~ Uniform System of Accounts to he Prescribed for Natural-

Gas Companies Subject to the Provisions of the

Natural Gas: Act °

Docket No. G- 137

Order Prescribing a System of Accounts for Natural. Gas

Companies Under the Natural Gas Act

ee appearing to-the Commission that:

(a) Section 8(a) of the Natural Gas Act authorizes the

Commission to prescribe a system of accounts to be

kept by natural-gas companies and to classify such

natural- -gas companies and preser ibe a system of ac-

eounts for each class; :

(b) Copies’o: of a tentative. draft, dated May 15, 1939, of a

uniform system. of accounts to be prescribed for

natural-gas companies subject to thé provisions of

the Natural Gas Act, were, on June 20, 1939, sent by

the Commission to State commissions, natural-gas

‘é

Statement E showing the adiustments necessary to

state, as of January 1, 1940, Account 100, Gas Plant,

including its subacoounte, Account 107, Gas Plant Ad.

justments, and amount of common utility plant. imelud-

- ible in Account 108, Other Utility Plant, as preseribed

in the Uniform System of Accounts.

Statement F showing gas plant (balance sheet Ae-

count 100) as-of January 1, 1940, classified according

to the subaccounts and the detailed accounts thereunder

prescribed in the Uniform System of Accounts, effee-

tive on that date, and showing also the amount inelud-

ible in Account 107 Gas Plant Adjustments, and the

amount of common utility plant includible in Account

108, Other Utility Plant. |

Statement G showing a comparative aa

as of January 1, 1940, reflecting the accounts and °

amounts appearing in the books before the adjusting

entries have been made. and after such entries shall

have been made. The balance sheet shall be classified

by the accounts set forth. in the Uniform System of

Accounts Preseribed for Natural Gas Companies. f

~ Statement Higiving a suggested plan for depreciat-

‘ing, amortizing, or otherwise disposing of, in whole

‘or in part, the amounts, as of January 1, 1940, inelacd-

ible in Account 100.5, Gas Plant Asquisition Adjust-

ments, and Accouit 107, Gas Plant Adjustments.

Statement [ furnishing the following statistical in-

formation relative to gas plant:

ee SBI Production Plant

Manufactured Gas |

Show separately for each producing plant the name

and location of plant, date of original construction,

type of plant (whether coal gas, coke ovens water gas,

etc.), rated 24-hr. capacity in in.c.f. of each unit and of

the total plant, and date of installation of each unit

installed after original construction. Show also the

Exhibit No. 1: Item 21, at Hearing on Docket No. G-115 et al.

1841 ~ UNITED STATES OF AMERICA -

FEDERAL POWER COM MISSION

Commissioners: Leland Olds, Chairman; Claude L. Draper,

Basil Manly, John W. Scott-and Clyde L. Seavey.

ce : | Mareh 3, 1942

ORDER NO. 69-A

7 Prescribing Accounting With Respect to Account 100. 5,*

Gas Plant Acquisition Adjustments

The Commission, having ander consideration the matter

of uniform systems of accounts, particularly the text of

Account 100.5,* Gas Plant Acquisition Adjustments, of the

Commission's Uniform System of Accounts Preseribed for

Natural Gas C ompanies by order of the Commission adop-

ted November 3, 1959; and |

It appearing to the Commission that :

(a) Gas Plant Accounts Instruction. 2-A of the said

Uniform System of Accounts provides that each

utility®” shall classify its gas plant in accordance

with the Gas-Plant Accounts as prese ribed in said

Uniform System of Accounts;

(b) Instruction 2 2-C of said Gas Plant Accounts provides

that the detailed,Gas Plant Accounts of each utility

shall be stated on the basis of cost.to the utility of gas

plant construction by it and on the basis of original

~ cost, estimated if not known, of gas plant acquired

, by it as an operating unit or system; and further,

that the difference between the original cost as above,

and the cost to the utility of gas plant includible in

" re ount 100.5 for Classes A and B Natural (ras Companies as hereinafter

used refers also to Accounts 1100.5 and 2100.5 for Classes C and 1D) Natural

Gas Compani¢s, Likewise other account references ‘for Classes A and B

Natural Gas Companies appiy also to comparable accounts for Classes C and

1) Natural Gas Companies.

**The term ‘‘iitility’’ as used herein means any natural gas company to

whieh the Commission's Uniform System of Accounts is applicable,

—

companies and other interested persons and organi- :

zations, and comments.and suggestions with respect. -

thereto were requested to be filed with the Commis-

sion on or before July 10, 1939;

with respect to said tentative draft from certain

et State commissions, natural-gas companies and

“7 others;. : |

(a) On September 6, 1939, the Commission adopted an

_ order in Docket No. G-137 fixing September 27, 1939, |

as a date for seers for the- Purpose of = ite

—

uniform system of accounts for natura)- -gas com- |

paniés from any State commission, natural-gas com-

pany, or person, corporation or eaeeetce having

an interest in the matter; ae

(e} Said order. of September 6, 1939, was pent by the

Commission to State commissions, persons engaged

in. the natural-gas business and other persons and

organizations, and a copy thereof was duly published

in the Federal Register in the issue of September

12, 1939; = |

1540 (f) A public hearing in this matter was held on Sep- -

tember 27 and 28, 1939, before the Commission sitting

en banc, and oral and docuinentary evidence was |

duly received from the Comimssion’s staff, State

commissions, a Committee representing the Ameri-

can Gas Association, representatives of the natural-

gas industry and others; and memorandum briefs

were subsequently filed by 0 poruslaifatfranted

.natural-gas industry pursuant to permission granted

at said hearing;

_ ‘

The Commission, having considered the record tande in °

this proceeding by oral and documentary evidence and

briefs filed, and acting pursuant to authority granted by |

the Natural Gas Act (52 —e pasticularly Sections

eas

‘Accounts 100.1 ‘to 100.4, inclusive, after giving

1842

effect to the depreciation, depletion or amortization

recorded by the accounting utility at the time of

acquisition, shall be recorded in Account 100.5, Gas

Plant Acquisition Adjustments.

Acquisition Adjustments, provides as follows:

The amounts recorded in this account with nis

- to each property acquisition shall be depreciated,

amortized, or otherwise disposed of, as the Com- -

mission may approve or direct.

The Commission finds that:

(1)

Studies of original cost, as provided for in para-

—graph (a) above, are being completed by utilities

(2)

and amounts entered in the appropriate primary Gas

Plant Accounts in accordance with Instruction 2-

above referred to, or will be so entered in said ac-

counts in the near future ;

It is appropriate to consider the matter of disposi-

tion of Such amounts as may be lodged in said Ac-

count 100.5, Gas Plant Acquisition Adjustments; and

The Commission orders that:

(A) Debit amounts in Account 100.5, Gas Plant Aequisi-

(B)

(C)

tion Adjustments, may be charged to Account 414,

Miscellaneous Debits to Surplus, in whole or in

part, or may be amortized over a reasonable period

by charges to Account 537, Miscellaneous Amorti-

zation, without further order of the Commission ;

Should a- tility desire to account for debit amounts

in Account 100.5, Gas Plant Acquisition Adjust-

ments, in any manner different from that indicated

in (A) above, it shall petition the Commission for

authority to do so,

Debit balances shall not be determined by applica-_

tion of credit amounts thereto; ee

original cost according to the System of Aécounts for

each plant, by Accounts 311 to 325, inclusive.

Natural Gas : :

For each ‘‘field’’ includible in Account 100.1, Gas

. Plant in Service, furnish the number of acres nati of.

gas producing lands owned, of gas producing. lands

leased by the company, and of land on which gas

rights only are owned, as included in Accounts 330.1,

1718 330.2, “330.3, respectively. The samme information,

classified: by subaccounts, shall be furnished for

producing and nonproducing acreage includible in

Account 100.2, Gas Plant Leased to Others, and in

Account 100.4 Gas Plant Held for Future Use.

For each ‘‘field’’ state number of feet of each size

pipe used in Field Gathering Lines. _

Kor each ‘‘field’’ state number of wells included in ~’

Accounts 332.1 and 332.2, segregating to show the -

number of wells on eacli type of producing lands class- |

ified under Accounts 330.1, 330.2, 330.3.

When pumping or compressing plants exist within

the Production Plant, include the same information as

that requested for Compressor Stations under Trans-

mission Plant.

State type and character of Purification Equipment _

and. Residual -Refining Equipment included in Ac-

counts 335 and 336; respectively. _

Show the original cost according to the System of

Accounts for natural gas production plant by each

‘*field’’ and by Accounts 330.1 to 337.

Storage Plant

Show separately for each location the name of plant,

date of construction, type and total capacity (m.c.f.)

of each gas holder. State also the original cost ac-

cording to the System of Accounts for each location,

by Accounts 341. and 342.

If depleted gas fields are being repressed, the state-. |

ments furnished shall reflect the number of acres in--

Oe es

Severe

- : 9

-*- , 8(a), 10(a) and 16 thereof, and finding such action neces-

sary.and appropriate for carrying out the. provisions of

said Act, orders that: — ?

(A) The accompanying system of accounts, entitled.

- “Uniform System of Accounts Prescribed for Nat-

~ural-Gas Companies Subject to the Provisions of

the Natural Gas Act,’’ and the rules and regulations

contained therein, be and they are hereby. adopted ;

(B) Said system of accounts and said rules and regula-

tions contained therein be and the same are hereby —

prescribed and promulgated as the system_ofae-————~

~“; counts and rules and regulations of the Commission .

to be kept and observed by natural-gas companies

subject to the jurisdiction of the Commission, to the

extent and in the manner set forth therein;

therein contained shall; as fo all natural-gas com-

panies now subject to the jurisdiction of the Commis-

sion, become effective on January 1, 1940, and as :

to any natural-gas company which may hereafter

_ become subject to the jurisdictjon of the Commission,

they shall become effective as of the date when such

natural-gas company becomes subject to the juris-

diction of the Commission; = = = =-—-——~———

-(D) A copy of said system of accounts and rules and

regulations ‘contained therein be forthwith served.

upon each person which may be subject to the juris-

diction of the Commission under the Natural Gas >

cay ie aS , |

(E) The Secretary of the Commission shall cause this .

order and the system of accounts prescribed thereby

to be forthwith published in the Federal Register.

see the Commission. . ae

, Leon, M. Fugqvay,

Secretary.

e NSS reeee. » * 2 ot * "aaa?

‘

volved and the original cost according to the System

of Accounts (Accounts 341 and. 342).

| Transmission Plant

State the number of feet of each size of main. ,

State separately for eac’: compressor boosting sta-.

tion the name of plant, location, date of original con«

struction, rated capacity, type and character of power

unit and rated capacity and type of compressor units.

Also state the capacity, type and date of installation of

each additional power or compressor unit. Show for

each station the original cost according to the System of

Accounts by Accounts 351, 352 and 354 and: by pre-

scribed subaecounts. -

Distribution Plant

State number of feet of each size of main and the

number of active meters, house regulators and serv-

ices. Give a general description of- the district regu-

lators and the number, by sizes.

Where pumping or. compressor stations exist within

the distribution plant, include the same information re-

quested for reseuie stations under: transmission plant.

- General Plant

Describe the principal structures and improvements..

State the number and type of transportation vehicles

and appurtenant equipment.

Give a description of store, shop and laboratory

equipment and miscellaneous equipment.

Furnish maps, drawn to scale, upon which. indicate

Poa

transmission mains, location of production plants (ar- |

tificial and natural), producing and nonproducing lease-

holds (indicating thereon producifig wells, dry holes

and depleted wells), gathering systems, booster and

compressor stations, communities served (noting as

to wholesale or retail) and large industrial consumers.

Where gas: is purchased from or sold to other gas

—(D) Credit amounts in ‘Account 100.5, Gas Plant Acquisi-

tion Adjustments, shall be accounted for as directed

; by the Commission ;

(E) Where a utility, subject to both Federal and-State

regulations, petitions the Commission in accordance *

with paragraph (B) above, the cooperative proce-

dure heretofore adopted between Federal and State:

Commissioners shall be invoked ; 7

KF) Disposition of amounts in Account 100.5 Dy Gas RI ant

Acquisition Adjustments, as above directed, is for

accounting purposes ouly and such disposition shall

not be construed as determining or controlling the

1843 consideration to be accorded these items in rate or__

other proceedings, nor shall anything “contained

herein prevent the Commission from subsequently

ordering the amounts to be charged direetly to, Ac- 7

_“ eount 414, Miscellaneous Debits to Surplus, or from

modifying the adopted amortization period.

By the Commission.

——Lros M. Fvev Seah

- Sec sini d

7 * * » * * a

Exhibit No. 2: Item 1, at Hearing on Docket No. lb et al.

1965, UNITED STATES OF AMERICA

FEDERAL POWER COMMISSION

Commissioners: Leland Olds, Chairman; Claude L. Draper,

Basil Manly, John W. Scott and Clyde 1. Seavey.

November 24, 1942

ORDER XO. 100

Order Prescribing Form of Annual Report for Natural. Gas

Companies (Classes A and B), FPC Form No. 133

The Federal Power Commission, acting pursuant to au-

thority granted by the Natural Gas Act (52 Stat. $21), par-

: (i

Exhibit No. 1: Item 8, at Hearing on Docket No. G-115 et al.

— 1716 -—s W NITED: STATES OF AMERICA

| FEDERAL POWER COMMISSION

Commissioners: Leland Olds, Chairman; Claude L. Draper,

John W. Scott, Clyde L. Seavey. Basil Manly, not

participating. ?

April 9, 1940 —

ORDER NO. | : Eee

“Onde Begutetar Selentanion of ae Data in Con-

nection With Gas Plant Instruction 2-D of the Uniform

| System of Accounts Under the Natural Gas Act

‘Tt appearing to the Commission: va

(1) That Gas Plant Instruction 2-D of the Uniform Sys- |

tem of Accounts Prescribed for Natural Uae Companies,

provides. as follows:

“D. Not later than two years after the effective date

of this system of accounts, each utility shall have com-

pleted the studies necessary forclassifying its gas

plant as of the effective date of’ this system of ac-

counts in accordance with the accounts prescribed

herein and it shall submit to the Commission the en-

tries it proposes to make.to carry out the provisions

of this instruction. It shall submit, also, a compara-

tive balance sheet showing the accounts and amounts

appearing in its books as of the effective date of this

system of accounts and the accounts and respective

amounts as of the same date after the proposed en-—

tries shall have been made.’’ :

(2) That it is necessary in the publie interest in carry-

‘ing out the provisions of the Natural Gas Act and desir. { -

able in order to corisider adequately the adjusting entries

specified in the above-named instruction that data can be °

furnished relative to the history of each natural gas com-

pany, its acquisitions of gas oper ating units or systems, the

————$—$——

Es ah sti Ee

ticularly Sections 10(a) and 16 thereof, and finding such

action necessary and appropriate for carrying ont the pro-

visions of said Act, orders that:

(1) The accompanying FPC Form No: 133, Annual Re-

port for natural-gas companies, as defined in the

Natural Gas Act, which are in Classes .A and B, as

defined in the Commjsston’s Uniform System of Ac-

counts. Prescribed for Natural Gas Companies, sub-

ject to the provisions of the Natural Gas Act, be and

the same hereby is approved;

(2) Each natural-gas company which is in Class A or

B shall file with the Commission an original and

5 . two conformed copies, duly executed, of such Annual

Report, FPC Form No. 133, for the year 1942 and

each year thereafter; said Annial Report is to be

filed on-or before the last. day of the third month

following the close of the calendar year, or other

established fiscal year ;

(3) The Secretary of the Commission shall cause prompt

! publication of this order to be made in the Federal

' Register.

By the Commission. | |

| une: - FEDERAL POWER COMMISSION

| Cus 399, 400, 401, 695, 696

‘Leon M. Fvuevay, —

é Secretar, ry

= + soe *. -— ot aT * . +

utilities, indicate’ location of measuring stations or —

gates. If scale maps ar¢; not available, furnish sketch -

maps upon which shouid be indicated approximate dis- |

tances between the locations above specified.

~ By the aici ea emasciat

Leon M. Fvevay,

Secretary

Exhibit No. 1: Item 11, at Hearing on Docket No. G-115 ot al.

1721 UNITED STATES OF AMERICA

FEDERAL POWER COMMISSION

' Cotamiasioners : Leland Olds, Chairman : Claude L. Draper,

Basil Manly, John W. Scott and Clyde L. Seavey.

January 14, 1941

ORDER NO. 80

Order Prescribing Form of Financial and Statistical Ite-

port for Natural-Gas Companies as Defined in the Nat-

ural Gas Act (52 Stat. 821), (Classes A, B, C, and D), a

_ PPC Form No. 133 (1940) a

‘ithe Federal Power Commission, acting pursuant to an-

thority granted by the Natural Gas Act, particulafly ‘Sec-

tions 10(a) and 16 thereof, and finding such action neces-

sary and appropriate for carrying out. the provisions of

said Act, ° Be

(1) Hereby adopts, promalgates and prescribes for use

of natural-gas companies as defined in the Natural

Gas Act (52 Stat. 821) which are included in Class

A, B, C, or D as defined in the Commission’s.Uriform

System of Accounts prescribed for natural-gas com-

panies subject to the provisions of the Natural Gas

, Act, for the year 1940 the form of Financial and

Statistical Report, designated as FPC Form No.

"133, adopted and prescribed for the year 1939 by

Commission Order No. 63, dated September 6, 1939.

“Tot

or teiual cost thereof, the amounts entered in 1 the books in

respect thereto, the method of determining original cost,

and other related information.

—

It is ordered:

That in submitting the information called for in Gas _

Plant Instruction 2-D of the Uniform System of Accounts

for Natural Gas Companies each company shall furnish,

insofar as applicable, the following statements, in tripli-

__eate, on paper cut or folded to 814 inehes-wide by 11 inclies —

long, and properly sworn to by the officer in responsible

charge of their compilation: :

Statement A showing the origin and development

of the company, including, particularly, a deseription

(giving names of parties and dates) of each consoli-

dation and merger to which the-eompany, or a prede-

~ cessor, was a party and each acquisition of a gas oper-

ating unit or system. Any affiliation existing between

. the parties shall be stated.

Statement B showing for each ackuisition of a gas

operating unit or system by, the reporting company or

any of its predecessors: (1) the original eost (esti-

mated only if not determinable from existing records),

(2) the cost to the acquiring company, (3) the amount

entered in the books as of the date of acquisition, (4)

the difference between the original cost and the amount

entered in the books, (5) a summary of all transactions

affecting such difference, including retirements, be-

tween the date of each acquisition and January 1, 1940,

and (6) the amount of such difference remaining at

January 1, 1940. i

‘If the jeneneiakions, retirement or amortization re-

serve was adjusted as of the date of acquisition and

in connection therewith, a full disclosure of the perti-

‘nent facts shall be made. :

The amount to be included in Account 100.5, Gas

Plant Acquisition Adjustments, as of January 1, 1940,

Exhibit No. 2: Item 2, at Hearing on Docket No. G-115 et al.

1966

UNITED STATES OF AMERICA -

FEDERAL POWER COM MISSION

Comnissioners: Leland Olds, Chairman; Claude L. Draper,

Basil Manly, John W. Scott and Nelson Lee Smith.

December 21, 19438

ORDER NO. 1138

Order Prescribing Form of Annual Report for Natural- Gas

- Companies, as Defined in the Natural Gas Act (52

Stat. 821), (Classes A and B), FPC Form No. 2

The Federal Power ommission, acting pursuant to

authority granted by the Natural Gas Act, particularly See-

tions 10(a) and 16 thereof, and finding such action necessary

and appropriate for carrying out the provisions of said

Act, orders that: |

(1) The form of Annual Report for natural-gas com-

(2)

panies as defined in the Natural Gas Act (92 Stat.

821) which are included in Classes A and B as de-

fined in the Commission’s Uniform, System of Ac-

counts Prescribed for Natural Gas Companies sub-

ject to the provisions of the Natural Gas Act, here-

tofore adopted and designated as FPC Form No. 133,

by Commission Order No. 100, dated November 24,

1942, including the instructions and schedules therein

contained, be and the same is hereby readopted and

redesignated as FPC Form No. 2;

Each natural-gas Company as defined in the National

Gas Act (52 Stat. 821) which is included in Classes

A and B as defined in the Commission’s Uniform

System of -Accounts Prescribed for Natural Gas

Companies subject to the provisions of the Natural

Gas Act, shall hereafter, file with the Commission

annually for.each year beginning January 1, 1943, or

next thereafter (if the established fiscal year is other

(2) Hereby orders that each natural-gas company as

defined in the Natural Gas Act (52 Stat. 821) which

_ is included in Class A, B, C, or D as defined in the

Commission’ s Uniform Sy stem of Accounts pre-

~ seribed for natural-gas | companies subject to the

provisions of the Natural Gas Act, shall file with the

Commission three executed eopies of such Financial

and S Statistical Report on the aforesaid form (FPC

Form No. 133) for the year 1940, said report to be

filed on or before March 31, 1941. .

(3) The Secretary of the ¢ ‘ommission shall cause prompt

publication of this order to be made in the. Federal

_ By the Commission. Ca

Leon M: Fuquay,

Secretary

Exhibit No. 1: Item 16, at Hearing on Docket No. G-115 et al.

1836. UNITED STATES OF AMERICA

: FEDERAL POWER COM MISSION

« . : oh ees

Commissioners : Leland Olds, Chairman; Claude L. Draper,

Basil Manly, John W. Seott and Clyde L. Seavey. ese

November 12, 1941.

: ORDER NO. 86

Order Preciine Form of Annual Report for Natural-Gas

: Companies as Defined in the Natural Gas Act (52 Stat.

821), (Classes A and B), FPC Form No. 133 (1941)

The Federal Power Commission, acting pursuant to

Sections 10(a) and 16 thereof, and finding such action

necessary and appropriate for carrying out the provisions

' of said Act: : : :

- (1) Hereby adopts, promulgates and prescribes for use

of natural-gas cgmpanies as defined in the Natural

‘

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COMMEC TON

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NAMES OF COMMUNITIES INDICATEO

BY NUMBER IN CUYAHOGA COUNTY

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& $ - , €

NORTH RANDALL

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} CONNECTION WITH Tt PEOPLES — '

MATUGAL GAS COMPANY AND POINT

OF OCLIVERY OF GAS PURC HADES

NOPE NATURAL GAS COMMPANTY

— eee oe

-———

\. eae ,

crm rere ts *8 $ see, "¢€ e : ‘ett wg ad :. +?

~~ BENE ee an ES /

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JEFFERSON

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MOPE NATURAL GAS COMPANY

: |

| | ~ p moan 1 . CONNECTION WITH AND POINTS OF

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——e NS OO

Sa BE SRR ODER ne tS

athe ROL I AES RO MNES em

THE EAST OHIO GAS COMPANY _

MAP

MARCH |, 1946

\\. SCALE OF MILES

Poh Srey %

PRINCIPAL PIPE LINES

PROPOSED PIPE LINE

“TOWNSHIPS FROM WHICH EAST OM

SYSTEM PROCUPES OHIO GAS

POINTS OF DELIVERY OF GAS INTO

~ EAST OHIOS SYSTEM [OTHER THAN

PROOUCE

- GAS

D OR PURCHASED IN O10)

POINTS OF DELIVERY OF GAS

This text is long and has been trimmed here. Open the source document for the complete record.

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