# Transcript of Record — Federal Power Commission v. East Ohio Gas Co. > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386406_0218%3A01 ## Record - **Collection:** Supreme Court brief - **Document type:** Transcript of Record - **Published:** January 1, 1950 - **Citation:** 338 U.S. 464 ## Text Pas 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- 2 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 rf ? 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 ae ° 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, - i 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 oa 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: ee “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 i ~ | 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, > 7 ‘ - 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 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 J v 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 \ 10 = 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. qv Wa. A. Dovauerry and Se Toe ea tay. of 80 Rockefeller Plaza, : New York 20, New York, We : Its Attorneys. | : \ 11 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 12 (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. ae at 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 = 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 16 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? “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. e er} 9 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 ee 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— i 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? * 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. —_ 27 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 28 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 - t : i Pe 29 154 ~~ 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, . 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 » 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 : | ie (). 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 42 - 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. 43 ~ ‘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: 3 -— ‘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. 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- 6 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 | a i 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- t | 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? 2. r “ , 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. Bb 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?” 4 ae ot ~ | *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 © facilities te transport it. That would he: 1, .2,-3, -4, | 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 ‘ ot Q. Assuming the sane requirements? A. No, it coul ee bv any different if they were the same requirements. Mr. Purdue: ‘That is all. a . * _ . ” * 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: ° DS counts now existing in the State of Ohio under the Public Utilities Commission? 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 mh 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 : a . 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 q 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): Advances from Keatciated Companies: { Long- Term) © “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 aQ (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- Yo 2 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 s 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 o a ‘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 R3 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, : — 72 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; (c) The Cousdinaion received comments and suggestions | 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 — a 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. (c) Subdivision C of Account 100.5, Gas csi 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 78 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 pa 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. Pd If depleted gas fields are being repressed, the state-. | ments furnished shall reflect the number of acres in-- Oe es Severe 73 - : 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; (C) Said system of accounts and rules and regulations» 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? ~~ ‘ 79 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 - am 8) —(D) Credit amounts in ‘Account 100.5, Gas Plant Acquisi- tion Adjustments, shall be accounted for as directed ; by the Commission ; NS (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 * . + 80 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, ue 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 b (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 79 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, 7 « 87 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- ae (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 81 (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 Register. - oe o / _ 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 -@uthority granted by the Natural Gas Act, particularly © 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 ‘ ad 4 tole RRS BK UD JN ) q pence COMMEC TON O€Liveky or “| CO mPany Wits AND PONT GAS PURCHASED FROM MOLE fAstzAN ‘PIPE Lime or SOUTH MEADER ¥ MEIGS-RO. VALVE t ENEGA jes | eae as - *@ -= 5% 2+ 9¢@ e ri "or Oe 2° eh eee ee eee ee | ee et Lt ee * 3 =ZBeeaeW~+ eve uw ~ . > , . * tv.e ee e 2 , eee fee ee bEo6 ff Boe ene See R - cme i | | { ee eae a | | HURON fo. | | Cd i ae : 7 | pf. | HURON Pek | a i | : oa | | oy « eo il ot | : 1 ~ bo oS Ge) oe RICHLAND i: ASHLAND vBVRR Neen ae ee » Ar nner sen lies: oo CaVata”, SOS a4 NAMES OF COMMUNITIES INDICATEO BY NUMBER IN CUYAHOGA COUNTY +1 -~8faCHwOooO 2-S8t0F ORD 3 -SRATENAm 4 - BROOM PARK S-BROOKRLYN HEIGHTS @-OROOK.L YN VL LAGE 7 - CLEVELAND O-CLEVELANO ME'CHTS B-CUVANOGA HEIGHTS -CAST CLEVELAND © -@ucio - J@-*maviaw B-GARFIELD HEIGHTS 4 -INOE PENDENCE S-LAnewooo i ¢ | ‘ \ : ‘ ss Sab haan \» if i hy We vw- LIMMDALE LYNOMURST @B-MARLE HEIGHTS @-MAVPIELO HEIGHTS 20 - NE WOURGH HEIGHTS 21-nORTn C.msTEo m@- ZB -PARnvIEW HEIGHTS : 2 2 & ; , : afte ; a-. + ‘ . 2, 2- kus : a- : ZF -UMIVERSITY HEIGHTS BO-WAPRENSVULE . 2O-WARRENMSVNLE HEIGHTS — SBP te . : 2 Fs - Lee 4 - ° 6 22s SS > 2 Ek 3 to i * & $ - , € NORTH RANDALL ROCKY RIVER SHAKER HEIGHTS SOUTH €uc. 0 . -@ sowe apee | = en Seemann se i : . | | | siaelliie . sadile > i i 1 MEDINA “te | eras | MVE Areal \ : a? ss hy, ¥ x ~ ee é fi x . ee corr 5 = % y > 2 . a ‘Se : te Py . a . ot ee r , 4. 4 oY GK — —_ ax. a oy } CONNECTION WITH Tt PEOPLES — ' MATUGAL GAS COMPANY AND POINT OF OCLIVERY OF GAS PURC HADES NOPE NATURAL GAS COMMPANTY — eee oe t -——— \. eae , crm rere ts *8 $ see, "¢€ e : ‘ett wg ad :. +? ~~ BENE ee an ES / — JEFFERSON “| Res JEFFERSON f saad tied 7 oo " re PRICE \ \ cee \ \* \ \ MOPE NATURAL GAS COMPANY : | . | | ~ p moan 1 . CONNECTION WITH AND POINTS OF | : -s OCLIVERY OF GAS PURCHASEO PROM fi ——e NS OO Sa BE SRR ODER ne tS X athe ROL I AES RO MNES em & THE EAST OHIO GAS COMPANY _ MAP MARCH |, 1946 \\. SCALE OF MILES Poh Srey % oe 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 FROM EAST OHIOS SYSTEM- COMMUNITIES SERVED . (ALL AT RETAIL) VALVE STATIONS \ COMPRESSOR STATIONS GASOLINE AND PURIFICATION PLANTS UNDERGROUND STORAGE AREAS ne v. 88 3 - than a calendar year) an original and two conformed copies, duly executed, of such Annual Report on the’ aforesaid FPC Form No. 2,-on or before the last day of: the third month followin the close of the ‘alenda ryea ror other established fiseal year; (3) Order No. 100, dated” November 24, 1942, and FPC form No. 135 thereby prescribed, are accordingly su- ~perseded by this order ; vcs - This order and the form herein prescribed shall become effec ‘tive on Ji inyar ¥ 3, "1944: and the Secretary of the Com- mission shall -estuse prompt publication of this order to be made in the Pederal Register. By the Commission. ; Leon M. Fu@vay, . peureta ry. ms haeeS \e + * * . * * eee * . > Exhibit No. 3, at _ Hearing on Docket No. G- 115 et al. ape BS (Excerpt) at THE EAST OHIO GAS COMPANY \: —-+ as to the Company’ s Properties i: oN =) A: of | x fee nim es) ’ Dece Sind $i, 1945 ia ee aes Vitek ooo ode oc ck 672 Miles of Field Lines........... Peers 1,011 Miles of Transmission Lines....,....... cee ewe 903 Miles of_Distribution Lines. Per eePee eer Ree! -: Number of Compressing Stations.......... PRS eo 4 y Horsepow er of Compressing Stations.......... ‘ 103°... ‘ Gasoline and Purification Plants............ Laka e hein Underground Storage pS Ea a earaiay Cr eer pe Gas Wells Owned and Operated (Net). a ee ae 266. - Ohio Gas Wells Owned by Others Whose | on “Production is Purchased. (Net). a a ie ae 446 Storage Wells—Chippewa A rea. Ceti a cc ens ance ‘Storage Wells—Stark-Summit te Wee ae an 296 Operated Gas Acreage....... pag etn Geel peeraee 82,401 Unoperated Gas Acreage. ...... (pbiice saw bees 635,739 Number of Communities Served (All at Retail) :.. .69 Total Number of Consumers Served FAS Deen Bi, 1080) 6 oe is icc see ces .: 951,175 Matimated Pomnlation.. 2... 0.0 ..6.. 6. eias: 2,015,000 1970 - THE EAST OHIO GAS COMPANY Statistics as to Gas Handled by the Company Natural Gas Produced and Purchased by Year 1945 fe (M.c. f.) Prodeted in Ohio. 2.505. 6... GPL a 2,794,537 Purehased in Ohio...... ae an 8,847,468 Purchased from Hope Natural Gas Company. .48,906,683 Purchased from: Panhandle astern. ....... 18,477,858 Total BeOS pee fae re ree ee Wages sec te S26, O46 Z ‘ - 4 pf an Natural Gas Sold, Stored and-Use dan Ow n Operations Sold to Domestic CHBUINOUR, fi js ccs cass e 46,674,457 Sold to Industrial Consumers.......... ; 7. .80,126,754 _ Field Sales.....i: Gactee le Wik i 4a eee 8 5 Total nee ie aie ae eas 77,428,407 Gas Stored (Net)..... os 4 Cente stg Gas Used for Own Operations.......... ere Unaccounted for Gas: ..,. erie! ~ Excerpts from Application of East Ohio Gas Company— Docket No. G-458 (Incorporated by — at page _, 81 of the record). : 2935 At the connection with the Panhandle Eastern line | gas will be received by Applicant at pressure-which: O° are expected to be sufficent to deliver in excess of a maximum __ of 50: million cubie feet per day. The gas will be transmitted without any further compression to the consumers’ burner tips. Some gas will be taken via the Medina line to the: western side of Cleveland, as shown on Exhibit C, and the balance will be delivered into Brush Farm station for intro- duction into the Applicant’s pine line system. The maxi- mum delivery of firm gas will be 50 million cubie feet per day in the winter, but in the summer months Applicant ex- _ pects to take additional quantities of gas which, together with, the firm gas, will make a maximum of 81 million cubic feet.” ? The minimum will be not less than approximately 20 million eubie feet per day. .A line pressure at Maumee of ae. PORE OF PO Te ae E PETE ue , oe 95 Pr approximately 285 3 per square inch will be adequate to make the minimum delivery and a pressure of approxi- mately 400 # per square inch the. maximum deliver y under | _ the contract. (F) The natural gas’ which Applicant proposes to pur- chase from Panhandle Eastern is produced or purchased by Panhandle Eastern in the Panhandle Field in Texas and in the Hugoton Field in Kansas. In Opinion No. 81 deciding the matters in Docket No. G-410 the Commission has found that Panhandle Eastern has gas reser ves sufficient to meet | its presently estimated demands for more than*twenty-five years and that it has negotiations: pending for additional - reserves. © ; i ° e * _ * * ~ : 7. 7” _* . * * Excerpts from Application of East Ohio Gas Company for an Additional Transmission Line—Docket No. G-695 (Incorporated by reference at page.84 of record). 3264 Applicant purchases 50,000,000 | . ' \ a AG \ tig . ' ) . . F ] 6 . ax-{ , - es i ' ‘ hr L . es » ’ 2 : 7 os ‘ he . t . “! | i be : . . ™ t o 6 ‘ 5 « : : : é j “ . . et b P : 4 : \ . ; 3 af } Beek . : x > ; m . : | 3 . ; . | * ‘ . 7 : - | ‘ | ‘ / oh 4 ‘ - . i | it : Aa clan ae * . : q . . x . é ‘ Z Leon ' ‘ is . “4. ‘ ie 2 = & ‘ b ‘ 4 2 ° - \ z ——., ? af . , or a ¥ . | ape ia ‘ : . . s 8 4 s \ 4] a>, . . + a | ? j : > : Ys . . : , 3 s ‘ ani ‘ ‘ + 3 2 ‘ eee | te e . : . . os 4 « ae E ; : Py ‘ , ; * ' e ‘ : 5 ‘ ‘ ° bd a ‘7 - . i é ‘ + N ‘ j ak Oe ~ . i : : Mg . > 5 pie hd 4 ’ , = 1 ag SS ta. ’ nS . Ca x 51 3 - ! ¢ 2 fs . 2 2 Ss F a t - i ‘ | Ses - 3 . « ° 2 5 ‘ 5 3 > ‘ . e i 3 > tok - w 3 ‘ . \ | 4 2 = oe “ $ as P : / . 5 4 . . 2 see ie s 3312 Done the date above written. ‘ THE EAST OHIO GAS COMPANY, By (Signed) J. Frexcu Rosinsox, President. (Signed) PF. Levaca, Seerflary. GAS COMPANIES INCORPORATED, ‘s By (Signed) F. TE. Leren, Jn., -- President. (Signed) Jam ES: Comerrorp, Asst.’ Secretary. s = * . . . * _ £ _¢« . 3325 | UNITED STATES OF AMERICA _ FEDERAL POWER COMMISSION @é ‘Commissioners : Clande L. Draper, Acting ( Yhairman; Beall Manly, John W. Seou. ‘Clyde L. Seavey, not partici- ‘ pating. February 14, 1939. In the Matter of : The FE: vast Ohio Gas C ompany. eeu Docket No, G15, or Order Instituting Investigation It ¢ appearing to the’ Commission that: (a) The East Ohio Gas C ‘ompany is ieiied i in the trans- portation of natural gas in interstate commerce and ° is, therefore, a natural-gas company within the mean- ing of the Natural Gas Act; noe , {b) On October 26, 1938, the City of Cleyéland filed with the Commission a petition praying that an investiga- tion be instituted by the Commission, pursuant to - Section 5(b) of the Natural Gas _Act_to determine the cost of transportation of natural gas by The East Ohio Gas Company from the Ohio River to the city - gate of Cleveland, and that the Commission pursu- ant to Section 6(b) of the Natural Gas Act, order | The East Ohio Gas Company to file with the Com-—--~_ Sinise 101 2. mission instanter an inventory of its property de- 4 voted in whole. or in part to the ‘transportation of = : interstate natural gas and a statement of the original cost of such property. (¢) On November 17, 1938, thie City of (Meveldad filed _ with the Commission an amendment to its said peti- tion, in which the City tenders to the Commission its fullest cooperation and any facilities which it may have available in aid of the requested investigation ; ND TS ay ae eT ee ee eal 4. (d) In a communication to the Commission, dated No- vember 10, 1938, an attorney ok Phe East Ohio Gas Compsiny submitted. the company’s objections to the. instifution of the requested investigation; in a com- ~ munication to the Commission, dated November 25, 1938, attorneys for the City of Cleveland responded , to the said objections of the company; in a commu} eation to the Commission, dated December 5, 1938, 7 . - said attorney = the so es rer onded t iq: __ = =-eommmunication of November 25, 1938, submitted by 4 attorneys for the City of C eel su yaaa abs ae Pee ; 3326 Wherefore, upon consideration of the said petition fe of the City of Cleveland, as amended and the com- ‘munications relating thereto received from attorneys for the City of Cleveland and The East Ohio Gas C ompany, the Commission finds that: ? nS piPiecee a . - ~~ (2) ita advisable, necessary, and proper, in the public interest, for the Commission to institute an investi- gation, on its own motion, into and concerning the cost of transportation of natural gas by The Bast | Ohio Gas Company from the Ohio River to the city gate of Cleveland, Ohio, and to order. the Kast; Ohio tas Company to file an inventory and a statement of the original cost of its property used or useful in the transportation of natural gas from the Ohio River to the city gate of Cleveland, Ohio; a ° ae ici Bead be 5 eee ak MF Bis 2 5. eee BS oe a Bile Sth ga ; 4 - Fifth: Defendant East Ohio has failed and refused to comply with said regulations and orders. Sixth: The interest of the Complainant in the enforce- ment of orders of the Commission requiring East Ohio to ‘ascertain and_file its original cost is substantial. There are thousands of consumers of natural gas furnished by East Ohio within the corporate limits of the petitioner, East Ohio having a monopoly en the sale of such natural 123 gas. The consumeks include indusicial plants now engaged in production Dconfection with the war effort. The S822 petitioner now has a franchise with East Ohio. The Cominission has recently ruled that ‘‘original cost studies are an essential aid to the prosecution of the war effort in that they provide a sound basis for the most effective control of the prices of utility services entering. into practically every important essential war activity, as well as into the general cost of living.’’ A knowledge of the original cost of the natural gas plant of East Ohio would be helpful to Lakewood with respect to its contract with Kast Vhio as to the natural gas rates. The current contract of petitioner with East Ohio contains a provision, under the conditions provided .therein, for an adjustment of the - Lakewood rates ‘‘to the same rate schedule as is finally. fixed for domestic and commercial consumers in the City of Cleveland. __ : : : The Public Utilities Commission of Ohio on April 15, 1942, ordered the Classification of Accounts prescribed by — the Federal Power Commission for companies subject to the provisions of the Natural Gas Act adopted for natural gas companies operating within the State of Ohio, effective. as of January 1, 1942. : Seventh: The Charter of the City of Lakewood provides . that the Mayor shall be Ex-Officio Director of Public Works and further provides that as Director of Pab!’: orks ‘He * ® * shall manage. and control all public © as es of the City supported in part or in whole by taxation and shall enforce all the obligations of privately owned or operated, public utilities enforceable by the City.’’ | Kighth: The filing of this petition has been authorized by the Mayor-Ex-Offi¢io Director of Public Works of the | City of Lakewood, Ohio. tee we Wuenrerore, Complainant City of Lakewood prays that the Federal Power Commission order, defendant The East Ohio Gas Company to show’ cause why it should not eouaply with said orders of the Commission requiring it to ascertain fa s : —., ——_ * > A Municipal Corporation, oe Complainant, Vs. THE EAST OHIO GAS COMPANY, A Corporation, Defendant. _ Motion of the East Ohio Gas Sompany to Dismiss the 3 Complaint. . : 7 15 c ; To the Wewseubis Members of the Federal Power Com- mission: — : | The East Ohio Gas Company, denying now as heretofore that it is a ‘‘natural-gas eompany”’ subject to the jurisdic- tion of this Cofnimission within the meaning of the Natural Gias Act moves that the complaint of the City of Lakewood —s be dismissed upon each of the following grounds: The: complaint’ asks this Commission to énforee its ne iously formulated orders claimed to be applicable to “The East Ohio Gas Company by means of a new order, whereas the Natural Gas Act confers no author} ity upon the Commission to enforce its directions save by application toa Federal Court. : 2. The Natural Gas Act does not authorize a municipality to complain of either alleged violations of or failures to. comply with orders of this Commission pursuant to the Natural Gas Act, but only authorizes a municipality to complain ‘tof anything done or omitted to be done by any natural: gas company in contravention of the provisions ce 129 the Nitural GasctAct. The complaint alleges no Violation of the Natural Gas Act itself. Pur Kast Onto. be COMPANY, \ * °. By. Wausau B: -Cockuey, Aarne ie Water J. Mivpg, Stee Turopore R. Cousonn, : ; | 1759 Union Commerce Building, _ Cleveland, Ohio, Its Attorneys. * . * . + i. . . * . 3838 ian UNITED STATES UF AMERICA FEDERAL, POWER COMMISSION ' Belore Commissioners Leland Olds, Chairman; Claude L.. Draper, Richard Sachse and Harrington W imberly, February 16, 1946. In the Matters of Docket No. G 115, Tue Kast Onto Gas Company Docket No. G-399, CITY oF. Evcup, Coamplainant y. Tue East Onto Gas Company, Defendant Doe ket No. G 400. | Crry OF CLEVELAND, Complainant, | e ; os Tue East Onto Gas Company, Defendant | Docket. No. G-401. _ Crry or Lakewoop, Complainant, 5 oe 8 Tue Kast Onto Gas Company, Defendant Order Denying Motions to Dismiss, Consolidating Proceed- ings, Fixing Date of Hearing, and Requiring the East Ohio Gas Company to Show Cause It appears to the Commission that : a (a) On October 26, 1938, In the Matter of The East Chio Gas Company, Docket No. G-115, the City of Cleve- lanc, Ohio, filed with the Commission a petition pray- 2 ing for an investigation and a determination by the Commission of the cost of transportation in inter- state commerce of natural gas by The East Ohio Gas - Company (‘East Ohie’’) from the Ohio River to the city gate of Cleveland, and-an order requiring Kast Qhio to file with the Commission an inventory of its property devoted in whole or in part to the trans- portation of interstate gas and ‘a statement of the original cost of such property. . ° (b) By anorder 1 said matter dated February 14, 1939, the Commission, pursuant to Sections 5(b) and 6(b) of the Natura Gas Act, instituted an investigation to determine the cost of transportation of natural vas by East Ohio from fhe Ohio River to the city gate of 3839 Cleveland, and directing East Ohio to furnish to th [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386406_0218%3A01. Public record. Not legal advice.