[Federal Register Volume 65, Number 6 (Monday, January 10, 2000)]
[Proposed Rules]
[Pages 1484-1527]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-59]



[[Page 1483]]



Part III

Department of Energy
_______________________________________________________________________



Federal Energy Regulatory Commission



_______________________________________________________________________



18 CFR Parts 125, 225, and 356



Preservation of Records of Public Utilities and Licensees, Natural Gas 
Companies, and Oil Pipeline Companies; Proposed Rule

  Federal Register / Vol. 65, No. 6 / Monday, January 10, 2000 / 
Proposed Rules  

[[Page 1484]]


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DEPARTMENT OF ENERGY

FEDERAL ENERGY REGULATORY COMMISSION

18 CFR Parts 125, 225, and 356

[Docket No. RM99-8-000]


Preservation of Records of Public Utilities and Licensees, 
Natural Gas Companies, and Oil Pipeline Companies

December 21, 1999.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of Proposed Rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) proposes 
to amend its records retention regulations for public utilities and 
licensees, natural gas companies, and oil pipeline companies 
(``regulated companies''). The Commission proposes to update its 
regulations and to eliminate unnecessary burdens on regulated companies 
as part of its ongoing program to reduce or eliminate burdensome and 
unnecessary regulatory requirements. If adopted, the burden of 
maintaining records on regulated companies would be significantly 
reduced.

DATES: Comments on the proposed rulemaking are due on or before March 
10, 2000. The Commission will also permit interested persons to submit 
reply comments in response to the initial comments filed in this 
proceeding. Reply comments should not exceed 50 double-spaced pages and 
should include an executive summary. The original and 14 copies of the 
reply comments must be received on or before April 10, 2000.

ADDRESSES: File comments on the notice of proposed rulemaking with the 
Office of the Secretary, Federal Energy Regulatory Commission, 888 
First Street, N.E., Washington, DC 20426. Comments should reference 
Docket No. RM99-8-000.

FOR FURTHER INFORMATION CONTACT:
Marybeth Schumann (Technical Information), Office of Finance, 
Accounting and Operations, 888 First Street, NE Washington, DC 20426 
(202) 208-2332.
Julia A. Lake (Legal Information), Office of the General Counsel, 888 
First Street, NE Washington, DC 20426 (202) 208-2019.

SUPPLEMENTARY INFORMATION: In addition to publishing the full text of 
this document in the Federal Register, the Commission provides all 
interested persons an opportunity to view and/or print the contents of 
this document via the Internet through FERC's Home Page (http://
www.ferc.fed.us) and in FERC's Public Reference Room during normal 
business hours (8:30 a.m. to 5:00 p.m. Eastern time) at 888 First 
Street, NE, Room 2A, Washington, DC 20426.
    From FERC's Home Page on the Internet, this information is 
available in both the Commission Issuance Posting System (CIPS) and the 
Records and Information Management System (RIMS).

--CIPS provides access to the texts of formal documents issued by the 
Commission since November 14, 1994.
--CIPS can be access using the CIPS link or the Energy Information 
Online icon. The full text of this document will be available on CIPS 
in ASCII and WordPerfect 8.0 format for viewing, printing, and/or 
downloading.
--RIMS contains images of documents submitted to and issued by the 
Commission after November 16, 1981. Documents from November 1995 to the 
present can be viewed and printed from FERC's Home Page using the RIMS 
link or the Energy Information Online icon. Descriptions of documents 
back to November 16, 1981, are also available from RIMS-on-the-Web; 
requests for copies of these and other older documents should be 
submitted to the Public Reference Room.

    User assistance is available for RIMS, CIPS, and the Website during 
normal business hours from our Help line at (202) 208-2222 (E-Mail to 
WebM[email protected]) or the Public Reference at (202) 208-1371 (E-
Mail to [email protected]).
    During normal business hours, documents can also be viewed and/or 
printed in FERC's Public Reference Room, where RIMS, CIPS, and the FERC 
Website are available. User assistance is also available.

I. Introduction

    The Federal Energy Regulatory Commission (Commission) proposes to 
amend Parts 125, 225, and 356 1 of its regulations to 
update, reduce, and clarify records retention requirements for 
jurisdictional public utilities and licensees, natural gas companies 
and oil pipeline companies. This proposed rule is part of the 
Commission's ongoing program to update and eliminate burdensome and 
unnecessary requirements and if adopted these changes would 
significantly reduce the burden of maintaining records for regulated 
companies. This process was also initiated to respond to requests made 
by the Office of Management and Budget (OMB) and the industry.
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    \1\ 18 CFR Parts 125, 225, and 356.
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II. Background

    Both the Federal Power Act 2 and the Natural Gas Act 
3 require jurisdictional companies to keep records that the 
Commission may prescribe ``as necessary or appropriate for purposes of 
administration'' of these acts.4 In 1977, the Commission 
assumed jurisdiction over transportation of oil by oil pipeline 
companies from the Interstate Commerce Commission by 705(a) of the 
Department of Energy Organization Act.5 Section 20 of the 
Interstate Commerce Act 6 requires oil pipeline companies to 
keep records that the Commission determines are necessary to 
effectively regulate those companies. In 1983, the Commission last 
amended its records retention regulations applicable to the public 
utilities and licensees, natural gas companies, and oil pipeline 
companies.7
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    \2\ Section 301, 16 U.S.C. 825(a)
    \3\ Section 8, 15 U.S.C. 717g(a)
    \4\ Section 402(a)(2) of the Department of Energy Organization 
Act transfers these Federal Power Act and Natural Gas Act 
responsibilities from the Federal Power Commission to the Federal 
Energy Regulatory Commission. 42 U.S.C. 7172(a)(2).
    \5\ 42 U.S.C. 7295.
    \6\ 49 App. U.S.C. 1 et seq.
    \7\ 48 FR 12722 (1983).
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    In response to the Office of Management and Budget (OMB) request 
during recertification of the information collection requirements of 
FERC Form 555, Preservation of Records of Public Utilities and 
Licensees, Natural Gas Companies, and Oil Pipeline Companies, the 
Commission agreed to review the media and records retention 
requirements for the public utilities and licensees, natural gas 
companies, and oil pipeline companies. OMB also requested that the 
Commission review the possibility of reducing the records retention 
requirements for general ledgers from 50 years to 10 years and plant 
ledgers from 50 years to 25 years. In January, the Commission updated 
the media requirements 8 and this notice of proposed 
rulemaking is the result of a review of the current records retention 
regulations for public utilities and licensees, natural gas companies, 
and oil pipeline companies.
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    \8\ 86 FERC para. 61,005 (1999).
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III. Discussion

    The Commission proposes to make modifications to the current public 
utilities and licensees, natural gas companies, and oil pipeline 
companies

[[Page 1485]]

records retention regulations.9 These proposed changes to 
Parts 125, 225, and 356 include revising the general instructions, 
shortening various records retention periods, increasing retention 
periods for a few categories of records, and removing all but two 
retention reserve items.
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    \9\ See the tables in Appendices A, B, and C depicting the 
differences between the current and proposed records retention 
requirements.
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A. Changes to Public Utilities and Licensees, and Natural Gas Companies 
General Instructions.

    The following proposed changes to the general instructions of Parts 
125 and 225 incorporate the Commission's new regulation on record 
storage media and clarify the Commission's regulations on keeping 
records used to support costs in rate cases and depreciation (see 
proposed schedules 125.2 and 225.2).
    1. 125.2(d) and 225.2(d)--Incorporate the accounting issuance AI99-
2-000 10 on record storage media.
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     10 86 FERC para. 61,005 (1999).
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    2. 125.2(k) and 225.2(k)--Incorporate the need to keep records that 
will be used for ``rate cases'' until the next rate case.
    3. 125.2(l) and 225.2(l)--Incorporate a paragraph on life or 
mortality study data needed to be retained for depreciation purposes.
    The Commission believes that these changes are needed to bring 
clarity to the Commission's records retention instructions and 
regulations.

B. Shortening of Public Utilities and Licensees, and Natural Gas 
Companies Records Retention Periods.

    The Commission proposes to shorten certain retention periods in 18 
CFR 125.3 and 225.3 to reduce the recordkeeping burden on the 
industries. The records retention periods for the following item 
numbers and description of records found in the regulations will be 
reduced for both the public utilities and licensees, and natural gas 
companies except where noted:

Item Number and Description

2. (a) of Organizational documents.
3. (a) of Contracts and agreements (public utilities and licensees 
only).
3. (b) of Contracts and agreements.
4. (a) and (b) of Accountants' and auditors' reports.
6. (a)(1), (a)(2), (b)(1), and (b)(2) of General and subsidiary 
ledgers.
7. Journals.
8. (a) of Journal vouchers and journal entries.
9. Cash books.
10. Voucher registers.
11. (a), (b), (c), (d) of Vouchers.
12.1. (b) of Production-Nuclear (public utilities and licensees only).
15. (a), (b), (c) of Maintenance work orders.
16. (a), (b) of Plant ledgers.
17. (a), (b), (c), (d), (e), (f) of Construction work in progress 
ledgers.
18. (a), (b) of Retirement work in progress ledgers, work orders, and 
supplemental records.
18. (c) of Retirement work in progress ledgers, work orders, and 
supplemental records (public utilities and licensees only).
19. Summary sheets, distribution sheets, reports, and statements.
20. (a) Appraisals and valuations.
33. (a) and (b) of Revenue summaries.
34. (a)(1), (3), (5), (6) and (b), (c) of Tax records.
36. (b) of Records of deposits with banks.
38. (a) of Statistics.
41. Reports to Federal and State regulatory commissions.
42. Advertising.
    In addition, the Commission proposes to make a change to the public 
utilities and licensees and natural gas companies requirements that are 
tied to ``FERC audit reports.'' The Commission no longer audits on a 
three year cycle. Instead it conducts industry wide audits on specific 
Commission accounting issues. The Commissions proposed changes to its 
regulatory requirements regarding audits range between two and six 
years.

Item Number and Description

1. Annual reports or statements to stockholders.
26. Material ledgers.
29. Customers service applications and contracts.
30. Rate Schedules.

C. Additions to Public Utilities and Licensees and Natural Gas 
Companies Records Retention Periods.

    To continue to meet its regulatory requirements the Commission 
proposes to add records retention requirements for the following public 
utilities and licensees, and natural gas companies record categories 
(see proposed schedules 125.3 and 225.3):

Item Number and Description

20. (b) Appraisals and valuations.
21. (a) The original or reproduction of engineering records, drawings 
and other supporting data.
35. Statement of funds and deposits.
    Proposed retention item 20(b) is added to include property or 
investments that are written up or down as a result of mergers or 
acquisitions, asset impairments, and other basis. The records retention 
item 20(b) will be 10 years after the event. These added records 
retention requirements will allow the Commission adequate time to 
review these events as necessary.
    Proposed retention item 21(a) maps, diagrams, profiles, 
photographs, field survey notes, plot plan, detail drawings, and 
records of engineering studies and similar records showing the location 
of proposed or as-constructed facilities is changed to include 
retention until retired. These records are needed for our environmental 
reviews, and therefore should be retained until the facilities are 
retired.
    Proposed retention item 35, Statement of funds and deposits, is 
revised in response to FERC policy statement on Post-Employment 
Benefits Other Than Pension 11 (PBOP), to require retention 
of records until the fund is dissolved or terminated. This information 
is necessary to allow the Commission to ensure the proper disposition 
of rate payer contributions for PBOPs.
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    \11\ 61 FERC para. 61,330 (1992).
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D. Removal of Public Utilities and Licensees, and Natural Gas Companies 
Reserve Accounts.

    The Commission proposes to remove all but one reserve item in both 
public utilities and licensees, and natural gas companies (see proposed 
schedule 125.3). The removal of these reserve items allows the records 
retention schedule to reflect only the records the Commission needs to 
fulfill its mission. However, we will keep reserve item 37 as place 
holder in the public utilities and licensees records retention schedule 
in order to align the public utilities and licensees and natural gas 
companies item numbers.

E. Changes to Oil Pipeline Companies General Instructions.

    The Commission proposes to reorganize the oil pipeline companies 
general instructions to better align them to the public utilities and 
licensees, and natural gas companies general instructions (see proposed 
schedule 356.2). This reorganization will make the general instructions 
for all three industries consistent.

F. Shortening of Oil Pipeline Companies Records Retention Periods.

    The Commission proposes to shorten certain oil pipeline companies 
retention periods for seven of the twenty four item to three years for 
Part 356 (see proposed schedule 356.3). These proposed reductions 
represent a significant reduction in reporting

[[Page 1486]]

burden on the oil industry. They are based on the statutory mandate 
that limits oil pipeline company's reparations recovery to three years 
from the time the cause of action accrues.12 We are 
proposing that the following oil pipeline companies records retention 
requirements be reduced to three years:
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    \12\ 49 App. U.S.C. 1 et seq..
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Item Number and Description

2. Minutes of Directors and other corporate meetings.
4. (a) Contracts and related papers.
7. (a) and (b) Ledgers.
8. (a) and (b) Journals.
9. (a) and (b) Vouchers.
11. Records of accounting.
24. (a) Annual financial operating reports.

G. Additions to Oil Pipeline Companies Records Retention Periods.

    The Commission proposes to revise records retentions requirements 
for the following oil pipeline companies record items (see proposed 
schedule 356.3):

Item Number and Description

12. (d)(1) Group method and depreciation rate.
12. (g) Files of detailed authorizations for expenditures.
    Proposed records item 12(d)(1) is revised from 10 years to 3 years 
after disposition of property because the Commission needs to review 
these records at any time during the life of the asset. Proposed 
retention item 12 (g) is also revised to extend the period from 3 years 
from acquisition to 3 years after disposition of property because the 
Commission must be able to review any records related to property or 
equipment at any time during the life of the asset.

H. Miscellaneous

    The Commission notes that OMB specifically requested the Commission 
review the possibility of reducing the records retention requirements 
for general ledgers to 10 years and plant ledgers to 25 years. In this 
proposed rulemaking, the Commission is reducing the records retention 
requirements for public utilities and licensees, and natural gas 
companies general and plant ledgers from 50 years to 25 years. The 
Commission is not currently proposing to further shorten the records 
retention requirements for public utilities and licensees, and natural 
gas companies. However, the Commission will consider whether to further 
shorten the records retention periods consistent with its regulatory 
obligations and public comments on this issue. The Commission is also 
proposing to reduce the records retention requirements for oil pipeline 
companies' general ledgers and plant ledgers from 50 years to 3 years 
respectively.

IV. Environmental Statement

    Commission regulations require that an environmental assessment or 
an environmental impact statement be prepared for any Commission action 
that may have a significant adverse effect on the human 
environment.13 No environmental consideration is necessary 
for the promulgation of a rule that is clarifying, corrective, or 
procedural or that does not substantially changes the effect of 
legislation or regulations being amended,14 and also for 
information gathering, analysis, and dissemination.15 The 
proposed rule changes do not substantially change the effect of the 
underlying legislation or change the forms. Accordingly, no 
environmental assessments are necessary.
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    \13\ Regulations Implementing National Environmental Policy Act, 
52 FR 47897 (Dec. 17, 1987); FERC Stats. and Regs. para. 30,783 
(Dec. 10, 1987).
    \14\ 18 CFR 380.4(a)(2)(ii).
    \15\ 18 CFR 380.4(a)(5).
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V. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) 16 requires 
rulemakings to contain either a description and analysis of the effect 
that the proposed rule will have on small entities or a certification 
that the rule will not have a significant economic impact on a 
substantial number of small entities.
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    \16\ 5 U.S.C. 601-612.
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    In Mid-Tex Elect. Coop. v. FERC, 773 F. 2d 327 (D.C. Cir. 1985), 
the court found that Congress, in passing the RFA, intended agencies to 
limit their consideration ``to small entities that would be directly 
regulated'' by proposed rules. Id. at 342. The court further concluded 
that ``the relevant `economic impact' was the impact of compliance with 
the proposed rule on regulated small entities.'' Id. at 342.
    The Commission does not believe that this proposed rule will have 
an adverse impact on small entities, nor will it impose upon them any 
significant costs of compliance. Rather, we anticipate that this rule 
will significantly reduce the record keeping burden on all 
jurisdictional entities, including small entities. Most entities 
regulated by the Commission do not fall within the RFA's definition of 
a small entity.17 Therefore, the Commission certifies that 
this rule will not have a significant economic impact on a substantial 
number of small entities.
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    \17\ 5 U.S.C. 601(3), citing to 3 of the Small Business Act, 15 
U.S.C. 632. Section 3 of the Small Business Act defines a ``small-
business concern'' as a business which is independently owned and 
operated and which is not dominant in its field of operation.
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VI. Information Collection Statement

    The following collection of information contained in this proposed 
rule is being submitted to the Office of Management and Budget (OMB) 
for review under 3507(d) of the Paperwork Reduction Act of 
1995.18 FERC identifies the information retained under Parts 
125, 225, and 356 as FERC Form 555. The reporting burden to implement 
this proposed rule is as follows:
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    \18\ 44 U.S.C. 3507(d).

----------------------------------------------------------------------------------------------------------------
                                                   No. of           No. of          Hrs. per       Total annual
               Data collection                  respondents       responses         response          hours
----------------------------------------------------------------------------------------------------------------
FERC-555....................................             515                1             1080          556,200
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    Total Annual Hours for Collection (Reporting + Recordkeeping (if 
appropriate) = 556,200). Based on the Commission's experience with 
current recordkeeping requirement practices, it is estimated that about 
1,080 hours 19 are needed to retain records per year, for a 
total annual burden of 556,200 hours. The Commission estimates that if 
the proposed rule is adopted, it will significantly decrease the burden 
of the current regulations by shortening the retention periods for 
certain records.
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    \19\ Previous to this proposed rule, the reporting burden was 
estimated at approximately 2400 hours per response.
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    Information Collection Costs: The Commission seeks comments on the 
costs to comply with these requirements. It has projected the average 
annualized cost for all respondents to be:
Annualized Capital/Startup Costs: $0.00.
Annualized Costs (Operations & maintenance): $29,274,430.

[[Page 1487]]

Total Annualized Costs: $29,274,430.
    The OMB regulations require OMB to approve certain information 
collection requirements imposed by agency rule.20 
Accordingly, pursuant to OMB regulations the Commission is providing 
notice of its proposed information collection to OMB.
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    \20\ 5 CFR 1320.11.
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    Title: FERC Form 555, Preservation of Records of Public Utilities, 
Natural Gas Companies, and Oil Pipeline Companies.
    Action: Proposed Data Collection.
    OMB Control No.: 1902-0098, the respondent shall not be penalized 
for failure to respond to this collection of information unless the 
collection of information displays a valid OMB control number.
    Respondents: Business or other for profit, including small 
businesses.
    Frequency of Responses: On Occasion.
    Necessity of Information: The proposed rule revises the 
requirements contained in 18 CFR parts 125, 225, and 356.
    Internal Review: The Commission has assured itself, by means of 
internal review, that there is specific, objective support for the 
burden estimates associated with the recordkeeping. The official 
records maintained by the regulated companies in accordance with the 
Schedules provided in Parts 125, 225, and 356 are used by the companies 
as the basis of their required rate filings and reports to the 
Commission. The Federal Power Act, the Natural Gas Act, and Interstate 
Commerce Act, require regulated companies to keep such records as the 
Commission may prescribe ``as necessary or appropriate for purposes of 
administration'' of these acts. One of the Commission's most important 
functions under these acts is insuring that rates charged by regulated 
companies for certain transactions are ``just and reasonable.'' Almost 
all the records the Commission requires to be retained are for the 
purpose of providing an adequate base of information to make decisions 
on the ``reasonableness'' of rates. Similarly, the length of retention 
periods have been based on the time that information will be needed to 
make decisions on the impact of rates. The records are necessary as 
they are used by the Commission's staff during compliance reviews and 
special analyses performed as deemed necessary by the Commission. These 
requirements conform to the Commission's plan for efficient information 
collection within the public utilities and licensees, natural gas 
companies, and oil pipeline companies.
    Interested persons may obtain information on the reporting 
requirements by contacting the following: Federal Energy Regulatory 
Commission, 888 First Street, NE, Washington, DC 20426 [Attention: 
Michael Miller, Office of the Chief Information Officer, Phone: (202) 
208-1415, fax: (202) 208-2425, email: [email protected]].
    For submitting comments concerning the collection of information 
and the associated burden estimate, please send your comments to the 
contact listed above and to the Office of Management and Budget, Office 
of Information and Regulatory Affairs, Washington, DC 20503 [Attention: 
Desk Officer for the Federal Energy Regulatory Commission, phone: (202) 
395-3087, fax: (202) 395-7285].

VII. Public Comment Procedures

    The Commission invites interested persons to submit written 
comments on the matters and issues proposed in this notice to be 
adopted, including any related matters or alternative proposals that 
commenters may wish to discuss.
    The original and 14 copies of such comments must be received by the 
Commission before 5:00 p.m. on or before March 10, 2000. The Commission 
will also permit interested persons to submit reply comments in 
response to the initial comments filed in this proceeding. Reply 
comments should not exceed 50 double-spaced pages and should include an 
executive summary. The original and 14 copies of the reply comments 
must be received on or before April 10, 2000. Comments should be 
submitted to the Office of the Secretary, Federal Energy Regulatory 
Commission, 888 First Street, NE, Washington, DC 20426, and should 
refer to Docket No. RM99-8-000.
    In addition to filing paper copies, the Commission encourages the 
filing of comments either on computer diskette or via Internet E-mail. 
Comments may be filed in the following formats: WordPerfect 8.0 or 
lower version, MS Word Office 97 or lower version, or ASCII format.
    For diskette filing, include the following information on the 
diskette label: Docket No. RM99-8-000; the name of the filing entity; 
the software and version used to create the file; and the name and 
telephone number of a contact person.
    For Internet E-mail submittal, comments should be submitted to 
``[email protected]'' in the following format. On the subject 
line, specify Docket No. RM99-8-000. In the body of the E-mail message, 
include the name of the filing entity; the software and version used to 
create the file, and the name and telephone number of the contact 
person. Attach the comments to the E-mail in one of the formats 
specified above. The Commission will send an automatic acknowledgment 
to the sender's E-mail address upon receipt. Questions on electronic 
filing should be directed to Brooks Carter at (202) 501-8145, E-mail 
address [email protected]. Commenters should take note that, 
until the Commission amends its rules and regulations, the paper copy 
of the filing remains the official copy of the document submitted. 
Thereafter, any discrepancies between the paper and the electronic 
filing or the diskette will be resolved by reference to the paper 
filing.
    All written comments will be placed in the Commission's public 
files and will be available for inspection in the Commission's Public 
Reference room at 888 First Street, NE, Washington, DC 20426, during 
regular business hours. Additionally, comments may be viewed, printed 
or downloaded remotely via the Internet through FERC's Homepage using 
the RIMS or CIPS link. RIMS contain all comments but only those 
comments submitted in electronic format are available on CIPS. User 
assistance is available on CIPS. User assistance is available at (202) 
208-2222, or by E-mail to [email protected].

List of Subjects

18 CFR Part 125

    Electric power, Electric utilities, Reporting and recordkeeping 
requirements.

18 CFR Part 225

    Natural gas, Reporting and recordkeeping requirements.

18 CFR Part 356

    Pipelines, Reporting and recordkeeping requirements.

    By direction of the Commission.
David P. Boergers,
Secretary.
    In consideration of the foregoing, the Commission proposes to amend 
Parts 125, 225, and 356 Chapter I, Title 18 of the Code of Federal 
Regulations, as follows:

PART 125--PRESERVATION OF RECORDS OF PUBLIC UTILITIES AND 
LICENSEES.

    1. The authority for Part 125 is revised to read as follows:

    Authority: 16 U.S.C. 825, 825c, and 825h; 44 U.S.C. 3501 et seq.


[[Page 1488]]


    2. Section 125.1 is revised to read as follows:


Sec. 125.1  Promulgation.

    This part is prescribed and promulgated as the regulations 
governing the preservation of records by public utilities subject to 
the jurisdiction of the Commission and by licensees holding licenses 
issued by the Commission, to the extent and in the manner set forth 
therein.
    3. In Sec. 125.2, paragraphs (a)(1) through (a)(3), and paragraphs 
(d) through (m) are revised to read as follows:


Sec. 125.2  General instructions.

    (a) Scope of this part. (1) The regulations in this part apply to 
all books of account and other records prepared by or on behalf of the 
public utility or licensee. See item 40 of the schedule (Sec. 125.3) 
for those records that come into possession of the public utility or 
licensee in connection with the acquisition of property, such as 
purchase, consolidation, merger, etc.
    (2) The regulations in this part should not be construed as 
excusing compliance with other lawful requirements of any other 
governmental body, Federal or State, prescribing other record keeping 
requirements or for preservation of records longer than those 
prescribed in this part.
    (3) To the extent that any Commission regulations may provide for a 
different retention period, the records should be retained for the 
longer of the retention periods.
* * * * *
    (d) Record storage media. Each public utility and licensee has the 
flexibility to select its own storage media subject to the following 
conditions.
    (1) The storage media must have a life expectancy at least equal to 
the applicable record retention period provided in Sec. 125.3 unless 
there is a quality transfer from one media to another with no loss of 
data.
    (2) Each public utility and licensee is required to implement 
internal control procedures that assure the reliability of, and ready 
access to, data stored on machine readable media. Internal control 
procedures must be documented by a responsible supervisory official.
    (3) Each transfer of data from one media to another must be 
verified for accuracy and documented. Software and hardware required to 
produce readable records must be retained for the same period the media 
format is used.
    (e) Destruction of records. At the expiration of the retention 
period, public utilities and licensees may use any appropriate method 
to destroy records.
    (f) Premature destruction or loss of records. When records are 
destroyed or lost before the expiration of the prescribed period of 
retention, a certified statement listing, as far as may be determined, 
the records destroyed and describing the circumstances of accidental or 
other premature destruction or loss must be filed with the Commission 
within ninety (90) days from the date of discovery of the destruction.
    (g) Schedule of records and periods of retention. (1) Records 
related to plant in service must be retained until the facilities are 
permanently removed from utility service, all removal and restoration 
activities are completed, and all costs are retired from the accounting 
records unless accounting adjustments resulting from reclassification 
and original costs studies have been approved by the regulatory 
commission having jurisdiction. If the plant is sold, the associated 
records or copies thereof, must be transferred to the new owners.
    (2) Records related to hydroelectric facilities and additions, 
retirements, and betterments thereto must be retained until:
    (i) The Commission has determined the actual legitimate original 
cost of the facilities, or the licenses are surrendered. If the plant 
is sold, the associated records or copies thereof, must be transferred 
to the new owners.
    (ii) Records related to the determination of amortization reserves 
pursuant to Section 10(d) of the Federal Power Act must be retained 
until a final determination and adjudication of the amortization 
reserves are made.
    (h) Retention periods designated ``Destroy at option''. ``Destroy 
at option'' constitutes authorization for destruction of records at 
managements' discretion if it does not conflict with other legal 
retention requirements or usefulness of such records in satisfying 
pending regulatory actions or directives.
    (i) Records of services performed by associated companies. Public 
utilities and licensees must assure the availability of records of 
services performed by and for associated or affiliated companies with 
supporting cost information for the periods indicated in Sec. 125.3 as 
necessary to be able to readily furnish detailed information as to the 
nature of the transaction, the amounts involved, and the accounts used 
to record the transactions.
    (j) Index of records. Public utilities and licensees must arrange, 
file, and index records so records may be readily identified and made 
available to Commission representatives.
    (k) Rate case. Notwithstanding the minimum retention periods 
provided in these regulations, if public utilities or licensee wants to 
reflect costs in a current, future, or pending rate case, or if a 
public utilities or licensees has abandoned or retired a plant 
subsequent to the test period of the utility's rate case, the utility 
must retain the appropriate records to support the costs and 
adjustments proposed in the current or next rate case.
    (l) Pending complaint litigation or governmental proceedings. 
Notwithstanding the minimum requirements, if a public utility or 
licensee is involved in pending litigation, complaint procedures, 
proceedings remanded by the court, or governmental proceedings, it must 
retain all relevant records.
    (m) Life or mortality study data. Life or mortality study data for 
depreciation purposes must be retained for 25 years or for 10 years 
after plant is retired, whichever is longer.
* * * * *
    4. Section 125.3 is revised to read as follows:


Section 125.3  Schedule of records and periods of retention.

Table of Contents

Corporate and General

1. Reports to stockholders.
2. Organizational documents.
3. Contracts and agreements.
4. Accountants' and auditors' reports.

Information Technology Management

5. Automatic data processing records.

General Accounting Records

6. General and subsidiary ledgers.
7. Journals: General and subsidiary.
8. Journal vouchers and entries.
9. Cash books.
10. Voucher registers.
11. Vouchers.

Insurance

12. Insurance records.

Operations and Maintenance

13.1 Production--Public utilities and licensees (less nuclear).
13.2 Production--Nuclear.
14. Transmission and distribution--Public utilities and licensees.
15. Maintenance work and job orders.

Plant and Depreciation

16. Plant ledgers.
17. Construction work in progress ledgers.
18. Retirement work in progress ledgers.
19. Summary sheets.
20. Appraisals and valuations.
21. Engineering records.
22. Contracts.

[[Page 1489]]

23. Reclassification of utility plant account records.
24. Accumulated depreciation and depletion of utility plant account 
records.

Purchase and Stores

25. Procurement.
26. Material ledgers.
27. Materials and supplies received and issued.
28. Records of sales of scrap and materials and supplies.

Revenue Accounting and Collection

29. Customers' service applications and contracts.
30. Rate schedules.
31. Maximum demand and demand meter record cards.
32. Miscellaneous billing data.
33. Revenue summaries.

Tax

34. Tax records.

Treasury

35. Statements of funds and deposits.
36. Records of deposits with banks and others.

Miscellaneous

37. Reserve.
38. Statistics.
39. Budgets and other forecasts.
40. Records of predecessors and former associates.
41. Reports to Federal and State regulatory commissions.
42. Advertising.

                                  Schedule of Records and Periods of Retention
----------------------------------------------------------------------------------------------------------------
    Item No.                        Description                                  Retention period
----------------------------------------------------------------------------------------------------------------
                                              CORPORATE AND GENERAL
----------------------------------------------------------------------------------------------------------------
1...............  Reports to stockholders: Annual reports or      5 years.
                   statements to stockholders.
2...............  Organizational documents:
                     (a) Minute books of stockholders',           5 years or termination of the corporation's
                     directors', and directors' committee          existence, whichever occurs first.
                     meetings.
                     (b) Titles, franchises, and licenses:        6 years after final non-appealable order.
                     Copies of formal orders of regulatory
                     commissions served upon the utility.
3...............  Contracts, including amendments and agreements
                   (except contracts provided for elsewhere):
                     (a) Service contracts, such as for           All contracts, related memoranda, and
                     management, accounting, and financial         revisions should be retained for 3 years
                     services.                                     after expiration or until the conclusion of
                                                                   any contract disputes pertaining to such
                                                                   contracts, whichever is later.
                     (b) Contracts with others for transmission   All contracts, related memoranda, and
                     or the purchase, sale or interchange of       revisions should be retained for 4 years
                     product.                                      after expiration or until the conclusion of
                                                                   any contract disputes or governmental
                                                                   proceedings pertaining to such contracts,
                                                                   whichever is later.
                     (c) Memoranda essential to clarifying or     For the same periods as contracts to which
                     explaining provisions of contracts listed     they relate.
                     above, including requests for discounts.
                     (d) Card or book records of contracts,       For the same periods as contracts to which
                     leases, and agreements made, showing dates    they relate.
                     of expirations and of renewals, memoranda
                     of receipts, and payments under such
                     contracts.
4...............  Accountants' and auditors' reports:
                     (a) Reports of examinations and audits by    5 years after the date of the report.
                     accountants and auditors not in the regular
                     employ of the utility (such as reports of
                     public accounting firms and commission
                     accountants).
                     (b) Internal audit reports and working       5 years after the date of the report.
                     papers.
----------------------------------------------------------------------------------------------------------------
                                        INFORMATION TECHNOLOGY MANAGEMENT
----------------------------------------------------------------------------------------------------------------
5...............  Automatic data processing records (retain       Retain as long as it represents an active
                   original source data used as input for data     viable program or for periods prescribed for
                   processing and data processing report           related output data, whichever is shorter.
                   printouts for the applicable periods
                   prescribed elsewhere in the schedule):
                   Program documentation and revisions thereto.
----------------------------------------------------------------------------------------------------------------
                                           GENERAL ACCOUNTING RECORDS
----------------------------------------------------------------------------------------------------------------
6...............  General and subsidiary ledgers:
                    (a) Ledgers:
                     (1) General ledgers........................  25 years.
                     (2) Ledgers subsidiary or auxiliary to       25 years.
                      general ledgers except ledgers provided
                      for elsewhere.
                    (b) Indexes:
                     (1) Indexes to general ledgers.............  25 years.
                     (2) Indexes to subsidiary ledgers except     25 years.
                      ledgers provided for elsewhere.
                    (c) Trial balance sheets of general and       2 years.
                     subsidiary ledgers.
7...............  Journals: General and subsidiary..............  25 years.
8...............  Journal vouchers and journal entries including  ..............................................
                   supporting detail
                    (a) Journal vouchers and journal entries....  25 years.
                    (b) Analyses, summarization, distributions,
                     and other computations which support
                     journal vouchers and journal entries:
                     (1) Charging plant accounts................  25 years.
                     (2) Charging all other accounts............  6 years.
9...............  Cash books: General and subsidiary or           5 years after close of fiscal year.
                   auxiliary books.

[[Page 1490]]

 
10..............  Voucher registers: Voucher registers or         5 years.
                   similar records when used as a source
                   document.
11..............  Vouchers:
                    (a) Paid and cancelled vouchers (one copy-    5 years.
                     analysis sheets showing detailed
                     distribution of charges on individual
                     vouchers and other supporting papers).
                    (b) Original bills and invoices for           5 years.
                     materials, services, etc., paid by vouchers.
                    (c) Paid checks and receipts for payments of  5 years.
                     specific vouchers.
                    (d) Authorization for the payment of          5 years.
                     specific vouchers.
                    (e) Lists of unaudited bills (accounts        Destroy at option.
                     payable), list of vouchers transmitted, and
                     memoranda regarding changes in audited
                     bills.
                    (f) Voucher indexes.........................  Destroy at option.
----------------------------------------------------------------------------------------------------------------
                                                    INSURANCE
----------------------------------------------------------------------------------------------------------------
12..............  Insurance records:
                    (a) Records of insurance policies in force,   Destroy at option after expiration of such
                     showing coverage, premiums paid, and          policies.
                     expiration dates.
                    (b) Records of amounts recovered from         6 years.
                     insurance companies in connection with
                     losses and of claims against insurance
                     companies, including reports of losses, and
                     supporting papers.
----------------------------------------------------------------------------------------------------------------
                                           OPERATIONS AND MAINTENANCE
----------------------------------------------------------------------------------------------------------------
13.1............  Production--Electric (less Nuclear):
                    (a) Boiler-tube failure report..............  3 years.
                    (b) Generation and output logs with           3 years.
                     supporting data:.
                     (1) Hydro-electric.........................  25 years.
                     (2) Steam and others.......................  6 years.
                    (c) Generating high-tension and low-tension   3 years.
                     load records.
                    (d) Load curves, temperature logs, coal, and  3 years.
                     water logs.
                    (e) Gauge-reading reports...................  2 years, except river flow data collected in
                                                                   connection with hydro operation must be
                                                                   retained for life of corporation.
                    (f) Recording instrumentation charts........  1 year, except where the basic chart
                                                                   information is transferred to another record,
                                                                   the charts need only be retained 6 months
                                                                   provided the record containing the basic data
                                                                   is retained 1 year.
13.2............  Production--Nuclear:
                    For informational purposes, refer to the
                     document retention requirements of the
                     Nuclear Regulatory Commission.
14..............  Transmission and distribution--Electric:......
                    (a) Substation and transmission line logs...  3 years.
                    (b) System operator's daily logs and reports  3 years.
                     of operation.
                    (c) Transformer history records.............  For life of transformer.
                    (d) Records of transformer inspections, oil   Destroy at option.
                     tests, etc.
15..............  Maintenance work orders and job orders:
                    (a) Authorizations for expenditures for       5 years.
                     maintenance work to be covered by work
                     orders, including memoranda showing the
                     estimates of costs to be incurred.
                    (b) Work order sheets to which are posted in  5 years.
                     detail the entries for labor, material, and
                     other charges in connection with
                     maintenance, and other work pertaining to
                     utility operations.
                    (c) Summaries of expenditures on maintenance  5 years.
                     and job orders and clearances to operating
                     other accounts (exclusive of plant
                     accounts).
----------------------------------------------------------------------------------------------------------------
                                             PLANT AND DEPRECIATION
----------------------------------------------------------------------------------------------------------------
16..............  Plant ledgers:
                    (a) Ledgers of utility plant accounts         25 years.
                     including land and other detailed ledgers
                     showing the cost of utility plant by
                     classes.
                    (b) Continuing plant inventory ledger, book   25 years.
                     or card records showing description,
                     location, quantities, cost, etc., of
                     physical units (or items) of utility plant
                     owned.
17..............  Construction work in progress ledgers, work
                   orders, and supplemental records:
                    (a) Construction work in progress ledgers...  5 years after clearance to plant account,
                                                                   provided continuing plant inventory records
                                                                   are maintained; otherwise 5 years after plant
                                                                   is retired.

[[Page 1491]]

 
                    (b) Work orders sheets to which are posted    5 years after clearance to plant account,
                     in summary form or in detail the entries      provided continuing plant inventory records
                     for labor, materials, and other charges for   are maintained; otherwise 5 years after plant
                     utility plant additions and the entries       is retired.
                     closing the work orders to utility plant in
                     service at completion.
                    (c) Authorizations for expenditures for       5 years after clearance to plant account
                     additions to utility plant, including         except where there are ongoing Commission
                     memoranda showing the detailed estimates of   proceedings.
                     cost, and the bases therefor (including
                     original and revised or subsequent
                     authorizations).
                    (d) Requisitions and registers of             5 years after clearance to plant account
                     authorizations for utility plant              except where there are ongoing Commission
                     expenditures.                                 proceedings.
                    (e) Completion or performance reports         5 years after clearance to plant account
                     showing comparison between authorized         except where there are ongoing Commission
                     estimates and actual expenditures for         proceedings.
                     utility plant additions.
                    (f) Analysis or cost reports showing          5 years after clearance to plant account
                     quantities of materials used, unit costs,     except where there are ongoing Commission
                     number of man-hours etc., in connection       proceedings.
                     with completed construction project.
                    (g) Records and reports pertaining to         Destroy at option.
                     progress of construction work, the order in
                     which jobs are to be completed, and similar
                     records which do not form a basis of
                     entries to the accounts.
18..............  Retirement work in progress ledgers, work
                   orders, and supplemental records:
                    (a) Work order sheets to which are posted     5 years after plant is retired.
                     the entries for removal costs, materials
                     recovered, and credits to utility plant
                     accounts for cost of plant retirement.
                     (b) Authorizations for retirement of         5 years after plant is retired.
                     utility plant, including memoranda showing
                     the basis for determination to be retired
                     and estimates of salvage and removal costs..
                    (c) Registers of retirement work............  5 years.
19..............  Summary sheets, distribution sheets, reports,   5 years.
                   statements, and papers directly supporting
                   debits and credits to utility plant accounts
                   not covered by construction or retirement
                   work orders and their supporting records.
20..............  Appraisals and valuations:
                    (a) Appraisals and valuations made by the     3 years after appraisal.
                     company of its properties or investments or
                     of the properties or investments of any
                     associated companies. (Includes all records
                     essential thereto.).
                    (b) Determinations of amounts by which
                     properties or investments of the company or
                     any of its associated companies will be
                     either written up or written down as a
                     result of:
                     (1) Mergers or acquisitions................  10 years after completion of transaction or as
                                                                   ordered by the Commission.
                     (2) Asset impairments......................  10 years after recognition of asset
                                                                   impairment.
                     (3) Other bases............................  10 years after the asset was written up or
                                                                   down.
21..............  The original or reproduction of engineering     Retain until retired.
                   records, drawings, and other supporting data
                   for proposed or as-constructed utility
                   facilities: Maps, diagrams, profiles,
                   photographs, field survey notes, plot plan,
                   detail drawings, records of engineering
                   studies, and similar records showing the
                   location of proposed or as-constructed
                   facilities:
22..............  Contracts relating to utility plant:..........
                    (a) Contracts relating to acquisition or      6 years after plant is retired or sold.
                     sale of plant.
                    (b) Contracts and other agreements relating   6 years after plant is retired or sold.
                     to services performed in connection with
                     construction of utility plant (including
                     contracts for the construction of plant by
                     others for the utility and for supervision
                     and engineering relating to construction
                     work).
23..............  Records pertaining to reclassification of       6 years.
                   utility plant accounts to conform to
                   prescribed systems of accounts including
                   supporting papers showing the basis for such
                   reclassifications.
24..............  Records of accumulated provisions for
                   depreciation and depletion of utility plant
                   and supporting computation of expense:
                    (a) Detailed records or analysis sheets       25 years.
                     segregating the accumulated depreciation
                     according to functional classification of
                     plant.
                    (b) Records reflecting the service life of    25 years.
                     property and the percentage of salvage and
                     cost of removal for property retired from
                     each account for depreciable utility plant.
----------------------------------------------------------------------------------------------------------------

[[Page 1492]]

 
                                              PURCHASES AND STORES
----------------------------------------------------------------------------------------------------------------
25..............  Procurement:
                    (a) Agreements entered into for the
                     acquisition of goods or the performance of
                     services. Includes all forms of agreements
                     not specifically set forth in Subsection 7
                     such as but not limited to: Letters of
                     intent, exchange of correspondence, master
                     agreements, term contracts, rental
                     agreements, and the various types of
                     purchase orders:
                     (1) For goods or services relating to plant  6 years.
                      construction.
                     (2) For other goods or services............  6 years.
                    (b) Supporting documents including accepted   6 years.
                     and unaccepted bids or proposals (summaries
                     of unaccepted bids or proposals may be kept
                     in lieu of originals) evidencing all
                     relevant elements of the procurement.
26..............  Material ledgers: Ledger sheets of materials    6 years after the date the records/ledgers
                   and supplies received, issued, and on hand.     were created.
27..............  Materials and supplies received and issued:     6 years.
                   Records showing the detailed distribution of
                   materials and supplies issued during
                   accounting periods.
28..............  Records of sales of scrap and materials and
                   supplies:.
                    (a) Authorization for sale of scrap and       3 years.
                     materials and supplies.
                    (b) Contracts for sale of scrap materials     3 years.
                     and supplies.
----------------------------------------------------------------------------------------------------------------
                                        REVENUE ACCOUNTING AND COLLECTION
----------------------------------------------------------------------------------------------------------------
29..............  Customers' service applications and contracts:  4 years after expiration.
                   Contracts, including amendments for
                   extensions of service, for which
                   contributions are made by customers and
                   others.
30..............  Rate schedules: General files of published      6 years after published rate sheets and
                   rate sheets and schedules of utility service.   schedules are superseded or no longer used to
                   Including schedules suspended or superseded.    charge for utility service.
31..............  Maximum demand, and demand meter record cards.  1 year, except where the basic chart
                                                                   information is transferred to another record
                                                                   the charts need only be retained 6 months,
                                                                   provided the basic data is retained 1 year.
32..............  Miscellaneous billing data: Billing             Destroy at option.
                   department's copies of contracts with
                   customers (other than contracts in general
                   files).
33..............  Revenue summaries: Summaries of monthly         5 years.
                   operating revenues according to classes of
                   service. Including summaries of forfeited
                   discounts and penalties.
----------------------------------------------------------------------------------------------------------------
                                                       TAX
----------------------------------------------------------------------------------------------------------------
34..............      Tax records:..............................
                    (a) Copies of tax returns and supporting
                     schedules filed with taxing authorities,
                     supporting working papers, records of
                     appeals of tax bills, and receipts for
                     payment. See Subsection 11(b) for vouchers
                     evidencing disbursements:
                     (1) Income tax returns.....................  2 years after final tax liability is
                                                                   determined.
                     (2) Property tax returns...................  2 years after final tax liability is
                                                                   determined.
                     (3) Sales and other use taxes..............  2 years.
                     (4) Other taxes............................  2 years after final tax liability is
                                                                   determined.
                     (5) Agreements between associate companies   2 years after final tax liability is
                      as to allocation of consolidated income      determined.
                      taxes.
                     (6) Schedule of allocation of consolidated   2 years after final tax liability is
                      Federal income taxes among associate         determined.
                      companies.
                    (b) Filings with taxing authorities to        5 years after discontinuance of plan.
                     qualify employee benefit plans.
                    (c) Information returns and reports to        3 years after final tax liability is
                     taxing authorities.                           determined.
----------------------------------------------------------------------------------------------------------------
                                                    TREASURY
----------------------------------------------------------------------------------------------------------------
35..............  Statements of funds and deposits:               For nuclear decommissioning funds, retain
                                                                   records for all items listed for a period of
                                                                   3 years after completion of final
                                                                   decommissioning is completed.
                                                                  If amortization reserve funds related to
                                                                   licensed projects are maintained, retain
                                                                   until the Commission makes a final
                                                                   determination of the disposition of
                                                                   amortization reserves.
                    (a) Statements of periodic deposits with      Retain records for the most recent 3 years.
                     fund administrators or trustees.
                    (b) Statements of periodic withdrawals from   Retain records for the most recent 3 years.
                     fund.
                    (c) Statements prepared by fund               Retain records until the fund is dissolved or
                     administrator or trustees of fund activity    terminated.
                     including:

[[Page 1493]]

 
                     (1) Beginning of the year balance of fund;
                     (2) Deposits with the fund;
                     (3) Acquisition of investments held by the
                      fund;
                     (4) Disposition of investments held by the
                      fund;
                     (5) Disbursements from the fund, including
                      party to whom disbursement was made;
                     (6) End of year balance of fund.
36..............                                                  Records of deposits with banks and others:
                    (a) Statements from depositories showing the  Destroy at option after completion of audit by
                     details of funds received, disbursed,         independent accountants.
                     transferred, and balances on deposit.
                    (b) Check stubs, registers, or other records  3 years.
                     of checks issued.
----------------------------------------------------------------------------------------------------------------
                                                  MISCELLANEOUS
----------------------------------------------------------------------------------------------------------------
37..............  Reserve
38..............  Statistics: Financial, operating and            5 years.
                   statistical reports used for internal
                   administrative or operating purposes.
39..............  Budgets and other forecasts (prepared for       3 years.
                   internal administrative or operating
                   purposes) of estimated future income,
                   receipts and expenditures in connection with
                   financing, construction and operations,
                   including acquisitions and disposals of
                   properties or investments.
40..............  Records of predecessor companies..............  Retain consistent with the requirements for
                                                                   the same types of records of the utility.
41..............  Reports to Federal and State regulatory         5 years.
                   commissions including annual financial,
                   operating and statistical reports.
42..............  Advertising: Copies of advertisements by or     2 years.
                   for the company on behalf of itself or any
                   associate company in newspapers, magazines,
                   and other publications, including costs and
                   other records relevant thereto (excluding
                   advertising of appliances, employment
                   opportunities, routine notices, and
                   invitations for bids all of which may be
                   destroyed at option).
----------------------------------------------------------------------------------------------------------------

PART 225--PRESERVATION OF RECORDS OF NATURAL GAS COMPANIES

    5. The authority for Part 225 is revised to read as follows:

    Authority: 15 U.S.C. 717-717w, 3301-3432; 16 U.S.C. 792-828c; 42 
U.S.C. 7101-7352; E. O. 12009, 3 CFR 1978 Comp. p. 142.

    6. Section 225.1 is revised to read as follows:


Sec. 225.1  Promulgation.

    This part is prescribed and promulgated as the regulations 
governing the preservation of records by natural gas companies subject 
to the jurisdiction of the Commission, to the extent and in the manner 
set forth therein.
    7. In Sec. 225.2, paragraphs (a)(1) through (a)(3) and paragraphs 
(d) through (m) are revised to read as follows:


Sec. 225.2  General instructions.

    (a) Scope of this part. (1) The regulations in this part must apply 
to all books of account and other records prepared by or on behalf of 
the natural gas company. See item 40 of the schedule for those records 
that come into possession of the natural gas company in connection with 
the acquisition of property, such as purchases, consolidation, merger, 
etc.
    (2) The regulations in this part should not be construed as 
excusing compliance with other lawful requirements of any other 
governmental body, Federal or State, prescribing other record keeping 
requirements, or for preservation of records for periods longer than 
those prescribed in this part.
    (3) To the extent that any Commission regulations may provide for a 
different retention period, the records should be retained for the 
longer of the retention periods.
* * * * *
    (d) Record storage media. Each natural gas company has the 
flexibility to select its own storage media subject to the following 
conditions.
    (1) The storage media must have a life expectancy at least equal to 
the applicable record retention period provided in Sec. 225.3 unless 
there is a quality transfer from one media to another with no loss of 
data.
    (2) Each natural gas company is required to implement internal 
control procedures that assure the reliability of and ready access to 
data stored on machine readable media. Internal control procedures must 
be documented by a responsible supervisory official.
    (3) Each transfer of data from one media to another must be 
verified for accuracy and documented. Software and hardware required to 
produce readable records must be retained for the same period the media 
format is used.
    (e) Destruction of records. At the expiration of the records 
retention period, natural gas companies may use any appropriate method 
to destroy records.
    (f) Premature destruction or loss of records. When records are 
destroyed or lost before the expiration of the prescribed period of 
retention, a certified statement listing, as far as may be determined, 
the records destroyed and describing the circumstances of accidental or 
other premature destruction or loss must be filed with the Commission 
within ninety (90) days from the date of discovery of the destruction.
    (g) Schedule of records and periods of retention. (1) Records 
related to plant in service must be retained until the facilities are 
permanently removed from service, all removal and restoration 
activities are completed, and all costs are retired from the accounting 
records unless accounting adjustments resulting from reclassification 
and original costs studies have been approved by the

[[Page 1494]]

regulatory commission having jurisdiction. If the plant is sold, the 
associated records or copies thereof, must be transferred to the new 
owners.
    (2) Records related to additions, retirements, and betterments 
thereto must be retained until the Commission has determined the actual 
legitimate original cost of the facilities.
    (h) Retention periods designated ``Destroy at option''. ``Destroy 
at option'' constitutes authorization for destruction of records at 
managements' discretion if it does not conflict with other legal 
retention requirements or usefulness of such records in satisfying 
pending regulatory actions or directives.
    (i) Records of services performed by associated companies. The 
natural gas companies must assure the availability of records of 
services performed by associated or affiliated companies with 
supporting cost information for the periods indicated in Sec. 225.3 as 
necessary to be able to readily furnish detailed information as to the 
nature of the transaction, the amounts involved, and the accounts used 
to record the transactions.
    (j) Index of records. Natural gas companies must arrange, file, and 
index records so they may be readily identified and made available to 
Commission representatives.
    (k) Rate case. Notwithstanding the minimum retention periods 
provided in these regulations, if a natural gas company intends to 
reflect costs in a current, pending, or future rate case, or if a 
natural gas company has abandoned or retired a plant subsequent to the 
test period of its last rate case, it must retain all relevant records.
    (l) Pending complaint litigation or governmental proceeding. 
Notwithstanding the minimum requirements, if a natural gas company is 
involved in pending litigation, complaint procedures, proceedings 
remanded by the court, or governmental proceedings, it must retain all 
relevant records.
    (m) Life or mortality study data. Life or mortality study data for 
depreciation purposes must be retained for 25 years or for 10 years 
after plant is retired whichever is longer.
* * * * *
    8. Section 225.3 is revised to read as follows:


Sec. 225.3  Schedule of records and periods of retention.

Table of Contents

Corporate and General

1. Reports to stockholders.
2. Organizational documents.
3. Contracts and agreements.
4. Accountants' and auditors' reports.

Information Technology Management

5. Automatic data processing records.

General Accounting Records

6. General and subsidiary ledgers.
7. Journals: General and subsidiary.
8. Journal vouchers and entries.
9. Cash books.
10. Voucher registers.
11. Vouchers.

Insurance

12. Insurance records.

Operations and Maintenance

13. Production--Gas.
14. Transmission and distribution--Gas.
14.1 Underground storage of natural gas.
15. Maintenance work and job orders.

Plant and Depreciation

16. Plant ledgers.
17. Construction work in progress ledgers.
18. Retirement work in progress ledgers.
19. Summary sheets.
20. Appraisals and valuations.
21. Engineering records.
22. Contracts.
23. Reclassification of natural gas plant account records.
24. Accumulated depreciation and depletion of natural gas plant 
account records.

Purchase and Stores

25. Procurement.
26. Material ledgers.
27. Materials and supplies received and issued.
28. Records of sales of scrap and materials and supplies.

Revenue Accounting and Collection

29. Customers' service applications and contracts.
30. Rate schedules.
31. Maximum demand and demand meter record cards.
32. Miscellaneous billing data.
    33. Revenue summaries.

Tax

34. Tax records.

Treasury

35. Statements of funds and deposits.
36. Records of deposits with banks and others.
37. Records of receipts and disbursements.

Miscellaneous

38. Statistics.
39. Budgets and other forecasts.
40. Records of predecessors and former associates.
41. Reports to Federal and State regulatory commissions.
42. Advertising.

                                  Schedule of Records and Periods of Retention
----------------------------------------------------------------------------------------------------------------
          Item No.                           Description                            Retention period
----------------------------------------------------------------------------------------------------------------
                                              CORPORATE AND GENERAL
----------------------------------------------------------------------------------------------------------------
1...........................  Reports to stockholders: Annual reports   5 years.
                               or statements to stockholders.
2...........................  Organizational documents:
                                (a) Minute books of stockholders',      5 years or termination of the
                                 directors', and directors' committee    corporation's existence, whichever
                                 meetings.                               occurs first.
                                (b) Titles, franchises, and licenses:   6 years after final non-appealable
                                 Copies of formal orders of regulatory   order.
                                 commissions served upon the natural
                                 gas company.
3...........................  Contracts including amendments and        ........................................
                               agreements (except contracts provided
                               for elsewhere):
                                (a) Service contracts, such as for      6 years.
                                 management, accounting, and financial
                                 services.
                                (b) Contracts with others for           All contracts, related memoranda, and
                                 transportation or for the purchase,     revisions should be retained for 4
                                 sale or interchange of product.         years after expiration or until the
                                                                         conclusion of any contract disputes or
                                                                         governmental proceedings pertaining to
                                                                         such contracts, whichever is later.
                                (c) Memoranda essential to clarifying   For the same periods as contracts to
                                 or explaining provisions of contracts   which they relate.
                                 listed above, including requests for
                                 discounts.

[[Page 1495]]

 
                                (d) Card or book records of contracts,  For the same periods as contracts to
                                 leases, and agreements made that show   which they relate.
                                 dates of expirations, renewals,
                                 memoranda of receipts, and payments
                                 under such contracts.
4...........................  Accountants' and auditors' reports:       ........................................
                                (a) Reports of examinations and audits  5 years after the date of the report.
                                 by accountants and auditors not in
                                 the regular employ of the natural gas
                                 company (such as reports of public
                                 accounting firms and Commission
                                 accountants).
                                (b) Internal audit reports and working  5 years after the date of the report.
                                 papers.
----------------------------------------------------------------------------------------------------------------
                                        INFORMATION TECHNOLOGY MANAGEMENT
----------------------------------------------------------------------------------------------------------------
5...........................  Automatic data processing records         Retain as long as it represents an
                               (retain original source data used as      active viable program or for periods
                               input for data processing and data        prescribed for related output data,
                               processing report printouts for the       whichever is shorter.
                               applicable periods prescribed elsewhere
                               in the schedule): Program documentation
                               and revisions thereto.
----------------------------------------------------------------------------------------------------------------
                                           GENERAL ACCOUNTING RECORDS
----------------------------------------------------------------------------------------------------------------
6...........................  General and subsidiary ledgers:
                                (a) Ledgers:
                                 (1) General ledgers..................  25 years.
                                 (2) Ledgers subsidiary or auxiliary    25 years.
                                  to general ledgers except ledgers
                                  provided for elsewhere.
                                (b) Indexes:
                                 (1) Indexes to general ledgers.......  25 years.
                                 (2) Indexes to subsidiary ledgers      25 years.
                                  except ledgers provided for
                                  elsewhere.
                                (c) Trial balance sheets of general     2 years.
                                 and subsidiary ledgers.
7...........................  Journals: General and subsidiary........  25 years.
8...........................  Journal vouchers and journal entries
                               including supporting detail:
                                (a) Journal vouchers and journal        25 years.
                                 entries.
                                (b) Analyses, summarizations,
                                 distributions, and other computations
                                 which support journal vouchers and
                                 journal entries:
                                 (1) Charging plant accounts..........  25 years.
                                 (2) Charging all other accounts......  6 years.
9...........................  Cash books: General and subsidiary or     5 years after close of fiscal year.
                               auxiliary books.
10..........................  Voucher registers: Voucher registers or   5 years.
                               similar records when used as a source
                               document.
11..........................  Vouchers:...............................
                                (a) Paid and cancelled vouchers (1      5 years.
                                 copy-analysis sheets showing detailed
                                 distribution of charges on individual
                                 vouchers and other supporting papers).
                                (b) Original bills and invoices for     5 years.
                                 materials, services, etc., paid by
                                 vouchers.
                                (c) Paid checks and receipts for        5 years.
                                 payments of specific vouchers.
                                (d) Authorization for the payment of    5 years.
                                 specific vouchers.
                                (e) Lists of unaudited bills (accounts  Destroy at option.
                                 payable), list of vouchers
                                 transmitted, and memoranda regarding
                                 changes in audited bills.
                                (f) Voucher indexes...................  Destroy at option.
----------------------------------------------------------------------------------------------------------------
                                                    INSURANCE
----------------------------------------------------------------------------------------------------------------
12..........................  Insurance records:
                                (a) Records of insurance policies in    Destroy at option after expiration.
                                 force, showing coverage, premiums
                                 paid, and expiration dates.
                                (b) Records of amounts recovered from   6 years.
                                 insurance companies in connection
                                 with losses and of claims against
                                 insurance companies, including
                                 reports of losses, and supporting
                                 papers.
----------------------------------------------------------------------------------------------------------------
                                           OPERATIONS AND MAINTENANCE
----------------------------------------------------------------------------------------------------------------
13..........................  Production--Gas:
                                (a) Recording instrument charts such    If the measurement data have not been
                                 as pressure (static and/or              disputed or adjusted, destroy after 7
                                 differential), temperature, specific    months.
                                 gravity, heating value, etc.
                                (b) Test of heating value at stations   If the measurement data have not been
                                 and outlying points.                    disputed or adjusted, destroy after 7
                                                                         months.

[[Page 1496]]

 
                                (c) Records of gas produced, out, and   If the measurement data have not been
                                 holder stock.                           disputed or adjusted, destroy after 7
                                                                         months.
                                (d) Analysis of (gas produced) B.T.U.   If the measurement data have not been
                                 and sulphur content..                   disputed or adjusted, destroy after 7
                                                                         months.
                                (e) Well records, including clearing,   If the measurement data have not been
                                 bailing, shooting etc., records; rock   disputed or adjusted, destroy after 7
                                 pressure; open flow; production, gas    months.
                                 analysts' reports etc..
                                (f) Gas measuring records.............  If the measurement data have not been
                                                                         disputed or adjusted, destroy after 7
                                                                         months.
14..........................  Transmission and distribution--Gas:.....
                                (a) Substation and transmission line    If the measurement data have not been
                                 logs.                                   disputed or adjusted, destroy after 7
                                                                         months.
                                (b) System operator's daily logs and    If the measurement data have not been
                                 reports of operation.                   disputed or adjusted, destroy after 7
                                                                         months.
                                (c) Gas measuring records.............  If the measurement data have not been
                                                                         disputed or adjusted, destroy after 7
                                                                         months.
                                (d) Transmission line operating         If the measurement data have not been
                                 reports.                                disputed or adjusted, destroy after 7
                                                                         months.
                                (e) Compression operation and reports.  If the measurement data have not been
                                                                         disputed or adjusted, destroy after 7
                                                                         months.
                                (f) Recording instrument charts such    If the measurement data have not been
                                 as pressure (static and/or              disputed or adjusted, destroy after 7
                                 differential), temperature, specific    months.
                                 heating value, etc.
14.1........................  Underground storage of natural gas:
                                (a) Well records, reports, and logs     1 year after reservoir, field, or
                                 which include data relating to          relevant storage area is abandoned.
                                 pressures, injected volumes,
                                 withdrawn volumes, core analysis,
                                 daily volumes of gas injected into
                                 and withdrawn from reservoir,
                                 cushion, and working gas volumes for
                                 each reservoir.
                                (b) Records containing information      1 year after reservoir, field, or
                                 relating to reservoir gas leakage,      relevant storage area is abandoned.
                                 showing the total gas leakage, and
                                 recycled gas.
                                (c) Records on back pressure tests      1 year or until superseded.
                                 field data.
                                (d) Records on back pressure test       1 year or until superseded.
                                 results, gas analysis.
15..........................  Maintenance work orders and job orders:
                                (a) Authorizations for expenditures     5 years.
                                 for maintenance work to be covered by
                                 work orders, including memoranda
                                 showing the estimates of costs to be
                                 incurred.
                                (b) Work order sheets to which are      5 years.
                                 posted in detail the entries for
                                 labor, material, and other charges in
                                 connection with maintenance, and
                                 other work pertaining to natural gas
                                 company operations.
                                (c) Summaries of expenditures on        5 years.
                                 maintenance and job orders and
                                 clearances to operating other
                                 accounts (exclusive of plant
                                 accounts).
----------------------------------------------------------------------------------------------------------------
                                             PLANT AND DEPRECIATION
----------------------------------------------------------------------------------------------------------------
16..........................  Plant ledgers:
                                (a) Ledgers of natural gas company's    25 years.
                                 plant accounts including land and
                                 other detailed ledgers showing the
                                 cost of plant by class.
                                (b) Continuing plant inventory ledger,  25 years.
                                 book or card records showing
                                 description, location, quantities,
                                 cost, etc., of physical units (or
                                 items) of natural gas plant owned.
17..........................  Construction work in progress ledgers:
                                (a) Construction work in progress       5 years after clearance to the plant
                                 ledgers.                                account, provided continuing plant
                                                                         inventory records are maintained;
                                                                         otherwise 5 years after plant is
                                                                         retired.
                                (b) Work order sheets to which are      5 years after clearance to the plant
                                 posted in summary form or in detail     account, provided continuing plant
                                 the entries for labor, materials, and   inventory records are maintained;
                                 other charges for natural gas           otherwise 5 years after plant is
                                 company's plant additions and the       retired.
                                 entries closing the work orders to
                                 plant in service at completion.
                                 (c) Authorizations for expenditures    5 years after clearance to the plant
                                 for additions to natural gas company    account, provided continuing plant
                                 plant, including memoranda showing      inventory records are maintained;
                                 the detailed estimates of cost, and     otherwise 5 years after plant is
                                 the bases therefor (including           retired.
                                 original and revised or subsequent
                                 authorizations).
                                (d) Requisitions and registers of       5 years after clearance to the plant
                                 authorizations for natural gas          account, provided continuing plant
                                 company plant expenditures.             inventory records are maintained;
                                                                         otherwise 5 years after plant is
                                                                         retired.
                                (e) Completion or performance reports   5 years after clearance to the plant
                                 showing comparison between authorized   account, provided continuing plant
                                 estimates and actual expenditures for   inventory records are maintained;
                                 natural gas company plant additions.    otherwise 5 years after plant is
                                                                         retired.

[[Page 1497]]

 
                                (f) Analysis or cost reports showing    5 years after clearance to the plant
                                 quantities of materials used, unit      account, provided continuing plant
                                 costs, number of man-hours etc., in     inventory records are maintained;
                                 connection with completed               otherwise 5 years after plant is
                                 construction project.                   retired.
                                (g) Records and reports pertaining to   Destroy at option.
                                 progress of construction work, the
                                 order in which jobs are to be
                                 completed, and similar records which
                                 do not form a basis of entries to the
                                 accounts.
                                (h) Well-drilling logs and well         1 year after field or well is abandoned.
                                 construction records.
18..........................  Retirement work in progress ledgers,      ........................................
                               work orders, and supplemental records:
                                (a) Work order sheets to which are      5 years after plant is retired.
                                 posted the entries for removal costs,
                                 materials recovered, and credits to
                                 natural gas company plant accounts
                                 for cost of plant retirement.
                                (b) Authorizations for retirement of    5 years after plant is retired.
                                 natural gas company plant, including
                                 memoranda showing the basis for
                                 determination of cost of plant to be
                                 retired, and estimates of salvage and
                                 removal costs.
                                (c) Registers of retirement work......  5 years.
19..........................  Summary sheets, distribution sheets,      5 years.
                               reports, statements, and papers
                               directly supporting debits and credits
                               to natural gas company plant accounts
                               not covered by construction or
                               retirement work orders and their
                               supporting records.
20..........................  Appraisals and valuations:
                                (a) Appraisals and valuations made by   3 years after appraisal.
                                 the company of its properties or
                                 investments or of the properties or
                                 investments of any associated
                                 companies. Includes all records
                                 essential thereto.
                                (b) Determinations of amounts by which
                                 properties or investments of the
                                 company or any of its associated
                                 companies will be either written up
                                 or written down as a result of:
                                 (1) Mergers or acquisitions..........  10 years after completion of transaction
                                                                         or as ordered by the Commission.
                                 (2) Asset impairments................  10 years after recognition of asset
                                                                         impairment.
                                 (3) Other bases......................  10 years after the asset was written up
                                                                         or down.
21..........................  The original or reproduction of           Retained until retired or abandoned.
                               engineering records, drawings, and
                               other supporting data for proposed or
                               as-constructed gas facilities: Maps,
                               diagrams, profiles, photographs, field
                               survey notes, plot plan, detail
                               drawings, records of engineering
                               studies, and similar records showing
                               the location of proposed or as-
                               constructed facilities.
22..........................  Contracts relating to natural gas plant:
                                (a) Contracts relating to acquisition   6 years after plant is retired or sold.
                                 or sale of plant.
                                (b) The primary records of gas acreage  6 years after plant is retired or sold.
                                 owned, leased or optioned excluding
                                 deeds and leases but including such
                                 records as lease sheets, leasehold
                                 cards, and option agreements.
23..........................  Records pertaining to reclassification    6 years.
                               of natural gas plant accounts to
                               conform to prescribed systems of
                               accounts including supporting papers
                               showing the bases for such
                               reclassifications.
24..........................  Records of accumulated provisions for
                               depreciation and depletion of gas plant
                               and supporting computation of expense:
                                (a) Detailed records or analysis        25 years.
                                 sheets segregating the accumulated
                                 depreciation according to functional
                                 classification of plant.
                                (b) Records reflecting the service      25 years.
                                 life of property and the percentage
                                 of salvage and cost of removal for
                                 property retired from each account
                                 for depreciable natural gas plant.
----------------------------------------------------------------------------------------------------------------
                                              PURCHASES AND STORES
----------------------------------------------------------------------------------------------------------------
25..........................  Procurement:
                                (a) Agreements entered into for the
                                 acquisition of goods or the
                                 performance of services. Includes all
                                 forms of agreements not specifically
                                 set forth in Subsection 7 such as but
                                 not limited to: letters of intent,
                                 exchange of correspondence, master
                                 agreements, term contracts, rental
                                 agreements, and the various types of
                                 purchase orders:
                                 (1)For goods or services relating to   6 years.
                                  plant construction.
                                 (2) For other goods or services......  6 years.

[[Page 1498]]

 
                                (b) Supporting documents including      6 years.
                                 accepted and unaccepted bids or
                                 proposals (summaries of unaccepted
                                 bids or proposals may be kept in lieu
                                 of originals) evidencing all relevant
                                 elements of the procurement.
26..........................  Material ledgers: ledger sheets of        6 years after the date records/ledgers
                               materials and supplies received,          were created.
                               issued, and on hand.
27..........................  Materials and supplies received and       6 years.
                               issued: Records showing the detailed
                               distribution of materials and supplies
                               issued during accounting periods.
28..........................  Records of sales of scrap and materials
                               and supplies:
                                (a) Authorization for sale of scrap     3 years.
                                 and materials and supplies...
                                (b) Contracts for sale of scrap a       3 years.
                                 materials and supplies.
----------------------------------------------------------------------------------------------------------------
                                        REVENUE ACCOUNTING AND COLLECTION
----------------------------------------------------------------------------------------------------------------
29..........................  Customers' service applications and       4 years after expiration.
                               contracts: Contracts, including
                               amendments for extensions of service,
                               for which contributions are made by
                               customers and others.
30..........................  Rate schedules: General files of          6 years after published rate sheets and
                               published rate sheets and schedules of    schedules are superseded or no longer
                               natural gas company service (including    used to charge for services.
                               schedules suspended or superseded).
31..........................  Maximum demand, pressure, temperature,    If the measurement data have not been
                               and specific gravity charts and demand    disputed or adjusted, destroy after 7
                               meter record card.                        months.
32..........................  Miscellaneous billing data: Billing       Destroy at option.
                               department's copies of contracts with
                               customers (other than contracts in
                               general files).
33..........................  Revenue summaries: Summaries of monthly   5 years.
                               operating revenues according to classes
                               of service. Including summaries of
                               forfeited discounts and penalties.
----------------------------------------------------------------------------------------------------------------
                                                       TAX
----------------------------------------------------------------------------------------------------------------
34..........................  Tax records:
                                (a) Copies of tax returns and
                                 supporting schedules filed with
                                 taxing authorities, supporting
                                 working papers, records of appeals of
                                 tax bills, and receipts for payment.
                                 See Subsection 11(b) for vouchers
                                 evidencing disbursements:
                                 (1) Income tax returns...............  2 years after final tax liability is
                                                                         determined.
                                 (2) Property tax returns.............  2 years after final tax liability is
                                                                         determined.
                                 (3) Sales and other use taxes........  2 years.
                                 (4) Other taxes......................  2 years after final tax liability is
                                                                         determined.
                                 (5) Agreements between associate       2 years after final tax liability is
                                  companies as to allocation of          determined.
                                  consolidated income taxes.
                                 (6) Schedule of allocation of          2 years after final tax liability is
                                  consolidated Federal income taxes      determined.
                                  among associate companies.
                                (b) Filings with taxing authorities to  5 years after discontinuance of plan.
                                 qualify employee benefit plans.
                                (c) Information returns and reports to  3 years after final tax liability is
                                 taxing authorities.                     determined.
----------------------------------------------------------------------------------------------------------------
                                                    TREASURY
----------------------------------------------------------------------------------------------------------------
35..........................  Statements of funds and deposits:
                                (a) Statements of periodic deposits     Retain records for the most recent 3
                                 with fund administrators or trustees.   years.
                                (b) Statements of periodic withdrawals  Retain records for the most recent 3
                                 from fund.                              years.
                                (c) Statements prepared by fund         Retain records until the fund is
                                 administrator or trustees of fund       dissolved or terminated.
                                 activity including:
                                 (1) Beginning of the year fund
                                  balance;
                                 (2) Deposits with the fund;
                                 (3) Acquisition of investments held
                                  by the fund;
                                 (4) Disposition of investments held
                                  by the fund;
                                 (5) Disbursements from the fund,
                                  including party to whom disbursement
                                  was made; and,
                                 (6) End of year fund balance
36..........................  Records of deposits with banks and
                               others:
                                (a) Statements from depositories        Destroy at option after completion of
                                 showing the details of funds            audit by independent accountants.
                                 received, disbursed, transferred, and
                                 balances on deposit.
                                (b) Check stubs, registers, or other    3 years.
                                 records of checks issued.
37..........................  Records of receipts and disbursements:    ........................................
                                (a) Daily or other periodic statements  Destroy at option after completion of
                                 of fund receipts or disbursements.      annual audit by independent
                                                                         accountants.
                                (b) Records or periodic statements of   Destroy at option after completion of
                                 outstanding vouchers, checks, drafts,   annual audit by independent
                                 etc., issued and not presented.         accountants.

[[Page 1499]]

 
                                (c) Reports of associates showing       Destroy at option after completion of
                                 working fund transactions and           annual audit by independent
                                 summaries thereof.                      accountants.
                                (d) Reports of revenue collections by   Destroy at option after completion of
                                 field cashiers, pay stations, etc.      annual audit by independent
                                                                         accountants.
----------------------------------------------------------------------------------------------------------------
                                                  MISCELLANEOUS
----------------------------------------------------------------------------------------------------------------
38..........................  Statistics: Financial, operating, and     5 years.
                               statistical reports used for internal
                               administrative or operating purposes.
39..........................  Budgets and other forecasts (prepared     3 years.
                               for internal administrative or
                               operating purposes) of estimated future
                               income, receipts, and expenditures in
                               connection with financing, construction
                               and operations, including acquisitions
                               and disposals of properties or
                               investments.
40..........................  Records of predecessor companies........  Retain consistent with the requirements
                                                                         for the same types of records of the
                                                                         natural gas company.
41..........................  Reports to Federal and State regulatory   5 years.
                               commissions including annual financial,
                               operating, and statistical reports.
42..........................  Advertising: Copies of advertisements by  2 years.
                               or for the company on behalf of itself
                               or any associate company in newspapers,
                               magazines, and other publications,
                               including costs and other records
                               relevant thereto (excluding advertising
                               of appliances, employment
                               opportunities, routine notices, and
                               invitations for bids all of which may
                               be destroyed at option).
----------------------------------------------------------------------------------------------------------------

    9. Part 356 is revised to read as follows:

PART 356--PRESERVATION OF RECORDS FOR OIL PIPELINE COMPANIES

Sec.
356.1 Promulgation
356.2 General instructions.
356.3 Preservation of records for oil pipeline companies.

    Authority: 42 U.S.C. 7101-7352; 49 U.S.C. 1-27; E.O. 12009, 3 
CFR 1978 Comp. p. 142.


Sec. 356.1  Promulgation.

    This part is prescribed and promulgated as the regulations 
governing the preservation of records by oil pipeline companies subject 
to the jurisdiction of the Commission, to the extent and in the manner 
set forth therein. This part is applicable as of the date the oil 
pipeline company becomes subject to the jurisdiction of the Commission.


Sec. 356.2  General instructions.

    (a) Scope of this part. (1) The regulations in this part apply to 
all books of account and other records prepared by or on behalf of the 
oil pipeline companies.
    (2) The regulations in this part must not be construed as excusing 
compliance with other lawful requirements of any other governmental 
body, Federal or State, prescribing other record keeping requirements 
or for preservation of records longer than those prescribed in this 
part.
    (3) To the extent that any Commission regulations may provide for a 
different retention period, the records should be retained for the 
longer of the retention periods.
    (4) Unless otherwise specified in the schedule in Sec. 356.3, 
duplicate copies of records may be destroyed at any time. Provided, 
however, that such duplicate copies must not contain significant 
information not shown on the originals.
    (5) Records other than those listed in the schedule may be 
destroyed at the option of the oil pipeline company. Provided, however, 
that records which are used in lieu of those listed must be preserved 
for the periods prescribed for the records used for substantially 
similar purposes and that retention of records pertaining to added 
services, functions, plant, etc., the establishment of which cannot be 
presently foreseen, must conform to the principles embodied herein.
    (6) Notwithstanding the provision of the records retention 
schedule, the Commission may, upon request of the oil pipeline company, 
authorize shorter retention periods for any records listed in 
Sec. 356.3. The oil pipeline companies must show that the longer 
retention periods are no longer necessary or appropriate to protect the 
public interest, investors, or consumers. A waiver from any provision 
of these regulations may be made by the Commission upon its own 
initiative or upon submission of a written request by the company. Each 
request for waiver must demonstrate that unusual circumstances warrant 
a departure from prescribed retention periods, procedures, or 
techniques, or that compliance with such prescribed requirements would 
impose an unreasonable burden on the company.
    (b) Designation of supervisory official. Each oil pipeline company 
subject to the provision of this Part must designate one or more 
persons to supervise the oil pipeline company's program for 
preservation and authorized destruction of records.
    (c) Protection and storage of records. Each oil pipeline company 
subject to these regulations must provide reasonable protection for 
records. The records must have protections from fire, floods, and other 
hazards. Storage spaces, will also prevent unnecessary exposure to 
deterioration from excessive humidity, dryness, or lack of proper 
ventilation.
    (d) Record storage media. (1) Each oil pipeline company has the 
flexibility to select its own storage media.
    (2) The storage media must have a life expectancy at least equal to 
the applicable record retention period provided in Sec. 356.3 unless 
there is a quality transfer from one media to another with no loss of 
data.
    (3) Each oil pipeline company is required to implement internal 
control procedures that assure the reliability of and ready access to 
data stored on machine readable media. Internal control procedures must 
be documented by a responsible supervisory official.
    (e) Destruction of records. Oil pipeline companies may use any 
appropriate method to destroy permitted records.
    (f) Premature destruction or loss of records. When records are 
destroyed or lost before the expiration of the

[[Page 1500]]

prescribed period of retention, a certified statement listing, as far 
as may be determined, the records destroyed, and describing the 
circumstances of accidental or other premature destruction or loss must 
be filed with the Commission within ninety (90) days from the date of 
discovery of such destruction.
    (g) Retention periods designated ``Destroy at option''. ``Destroy 
at option'' constitutes authorization for destruction of records at 
managements' discretion if it does not conflict with other legal 
retention requirements or usefulness of such records in satisfying 
pending regulatory action or directives.
    (h) Records of services performed by associated companies. Oil 
pipeline companies must assure the availability of records of services 
performed by associated companies for the periods indicated in 
Sec. 356.3 as necessary to be able to readily furnish detailed 
information as to the nature of transaction, the involved, and the 
accounts used to record the transactions.
    (i) Index of records. Oil pipeline companies must arrange, file, 
and index records so they may be readily identified and made available 
to Commission representatives.
    (j) Rate case. The schedule of records in Sec. 356.3 shows the 
periods of time that designated records must be preserved. However, not 
withstanding the minimum retention periods provided in this regulation, 
if an oil pipeline company intends to reflect costs in a current, 
pending, or future rate case, or if an oil pipeline company has 
abandoned or retired plant subsequent to the test period of its last 
rate case, it must retain the appropriate records to support the costs, 
and adjustments proposed in the next or current rate case.
    (k) Pending complaint litigation or governmental proceeding. 
Notwithstanding the minimum requirements, if an oil pipeline company is 
involved in pending litigation, complaint proceedings, proceedings 
remanded by the court, or governmental proceedings, it must retain all 
relevant records.
    (l) Companies going out of business. The records referred to in 
these regulations may be destroyed after business is discontinued and 
the company is completely liquidated. The records may not be destroyed 
until dissolution is final and all transactions are completed. When a 
company is merged with another company under jurisdiction of the 
Commission, the successor company must preserve records of the merged 
company in accordance with this part.
    (m) Life or mortality study data. Life or mortality study data for 
depreciation purposes must be retained for 25 years or for 10 years 
after plant is retired.


Sec. 356.3  Preservation of records for oil pipeline companies.

Table of Contents

Corporate and General

1. Incorporation and reorganization
2. Minutes to directors'
3. Titles, franchises, and authorities.
4. Contracts and agreements.
5. Accountant's, auditor's, and inspector's reports.

Treasury

6. Long-term debt records.

Financial Accounting

7. Ledgers.
8. Journals.
9. Vouchers.
10. Accounts receivable.
11. Records of accounting codes and instructions.

Property and Equipment

12. Property records.
13. Engineering records.

Personnel and Payroll

14. Payroll records.
15. Copies of returns and schedules.
16. Information returns.

Purchase and Stores

17. Material ledger.
18. Inventories.

Transportation

19. Oil and other products stocks.

Tariffs and Rates

20. Official file copies of tariffs.
21. Authorities and supporting papers for transportation.
22. Copies of concurrences and powers of attorney.
23. Correspondence and working papers in connection with the making 
of rates.

Reports and Statistics

24. Reports to Federal Energy Regulatory Commission and other 
regulatory bodies.

                                  Schedule of Records and Periods of Retention
----------------------------------------------------------------------------------------------------------------
    Item No.                        Description                                  Retention period
----------------------------------------------------------------------------------------------------------------
                                              CORPORATE AND GENERAL
----------------------------------------------------------------------------------------------------------------
1...............  Incorporation and reorganization:
                    (a) Charter of certificate of incorporation   Permanently or at termination of the
                     and amendments.                               corporation's existence.
                    (b) Legal documents related to mergers,       Permanently or at termination of the
                     consolidations, reorganizations,              corporation's existence
                     receiverships, and similar actions which
                     effect the identity or organization of the
                     company.
2...............  Minutes to Directors', Executive Committees',   5 years.
                   Stockholders', and other corporate meetings.
3...............  Titles, franchises, and authorities:
                    (a) Certificates of public convenience and    Until expiration or cancellation.
                     necessity issued by regulating bodies.
                    (b) Operating authorizations and exemptions   Until expiration or cancellation.
                     to operate issued by regulating bodies.
                    (c) Copies of formal orders of regulatory     1 year after expiration or cancellation.
                     bodies served upon the company.
                    (d) Deeds, charters, and other title papers.  3 years after disposition of property.
4...............  Contracts and agreements:
                    (a) Contracts and related papers for          4 years after expiration, provided there is no
                     transactions which are subject to the         pending litigation or governmental inquiry or
                     provisions of the Clayton Antitrust Act (15   proceeding involved.
                     USC 20).
                    (b) Service contracts, such as for            3 years after expiration or termination.
                     operational management, accounting,
                     financial or legal service, and agreements
                     with agents.

[[Page 1501]]

 
                    (c) Contracts and other agreements relating   3 years after expiration or termination.
                     to the construction, acquisition or sale of
                     real property and equipment except as
                     otherwise provided in (a) above.
5...............  Accountant's, auditor's, and inspector's
                   reports:
                    (a) Certifications and reports of             3 years.
                     examinations and audits conducted by public
                     and certified public accountants.
                    (b) Reports of examinations and audits        3 years.
                     conducted by internal auditors, time
                     inspectors, weight inspectors, and others.
----------------------------------------------------------------------------------------------------------------
                                                    TREASURY
----------------------------------------------------------------------------------------------------------------
6...............  Long-term debt records:
                    (a) Bond indentures, underwriting, mortgage,  6 years after redemption.
                     and other long-term credit agreements.
----------------------------------------------------------------------------------------------------------------
                                              FINANCIAL ACCOUNTING
----------------------------------------------------------------------------------------------------------------
7...............  Ledgers:
                    (a) General and subsidiary ledgers with       3 years.
                     indexes thereto.
                    (b) Balance sheets and trial balance sheets   3 years.
                     of general and subsidiary ledgers.
8...............  Journals:
                    (a) General journals........................  3 years.
                    (b) Subsidiary journals and any supporting    3 years.
                     data, except as otherwise provided for,
                     necessary to explain journal entries.
                    (c) Schedules of recurring or standard        Until superseded.
                     journal entries with entry identifications.
9...............  Vouchers:
                  (a) Voucher registers or equivalent...........  5 years.
                    (b) Paid and cancelled vouchers, expenditure  5 years.
                     authorizations, detailed distribution
                     sheets, and other supporting data including
                     original bills and invoices, except as
                     otherwise provided herein.
10..............  Accounts receivable, record, or register of     3 years after settlement.
                   accounts receivable.
11..............  Records of accounting codes and instructions..  3 years after discontinuance.
----------------------------------------------------------------------------------------------------------------
                                             PROPERTY AND EQUIPMENT
----------------------------------------------------------------------------------------------------------------
12..............  Property records:
                    (a) Records which maintain complete           3 years after disposition of property.
                     information on cost or other value of all
                     real property or equipment.
                    (b) Records and additions and betterments     3 years after disposition of property.
                     made to property and equipment.
                    (c) Records pertaining to retirements and     3 years after disposition of property.
                     replacements of property and equipment.
                    (d) Records pertaining to depreciation:.....
                     (1) When group method and depreciation       3 years after disposition of property.
                      rates are prescribed by the Commission.
                     (2) Other..................................  3 years after disposition of property.
                    (e) Records of equipment number changes.....  3 years after disposition of property.
                    (f) Records of motor and engine changes.....  Destroy at option.
                    (g) Files of detailed authorizations for      3 years after disposition of property.
                     expenditures, work or job orders showing
                     estimated costs of additions and
                     betterments, extensions, replacements,
                     major repairs and dismantlements, approved
                     by proper officials, together with
                     supporting data.
                    (h) Periodical inventories of property and    3 years after prior inventory.
                     equipment.
13..............  Engineering records:
                    (a) Plans and specifications................  3 years after the disposition of the property.
                    (b) Estimates of work, engineering studies,   15 years.
                     construction bids, and similar data
                     pertaining to property changes actually
                     made.
----------------------------------------------------------------------------------------------------------------
                                              PERSONNEL AND PAYROLL
----------------------------------------------------------------------------------------------------------------
14..............  Payroll records:
                    (a) Registers, abstracts, or summaries        3 years.
                     showing earnings, deductions, and amounts
                     paid to each employee by pay periods.
----------------------------------------------------------------------------------------------------------------
                    (b) Records showing the detailed              3 years.
                     distribution of salaries and wages to
                     various accounts.
----------------------------------------------------------------------------------------------------------------

[[Page 1502]]

 
                                                      TAXES
----------------------------------------------------------------------------------------------------------------
15..............  Copies of tax returns and supporting schedules
                   filed with taxing authorities, supporting
                   working papers, records of appeals of tax
                   bills, and receipts for payment. See
                   Subsection 9(b) for vouchers evidencing
                   disbursements:
                    (a) Income tax returns......................  3 years after final tax liability is
                                                                   determined.
                    (b) Property tax returns....................  3 years after final tax liability is
                                                                   determined.
                    (c) Sales and other use taxes...............  3 years final tax liability is determined.
                    (d) Other taxes.............................  3 years after final tax liability is
                                                                   determined
                    (e) Agreements between associate companies    3 years after final tax liability is
                     as to allocation of consolidated income       determined.
                     taxes.
                    (f) Schedule of allocation of consolidated    3 years after final tax liability is
                     Federal income taxes among associate          determined.
                     companies.
16..............  Information returns and reports to taxing       3 years, or for the period of any extensions
                   authorities.                                    granted for audits.
----------------------------------------------------------------------------------------------------------------
                                               PURCHASE AND STORES
----------------------------------------------------------------------------------------------------------------
17..............  Material ledger, records of material and        2 years.
                   supplies on hand at all locations.
18..............  Inventories: General Inventories of material    2 years.
                   and supplies on hand, with record of
                   adjustments between accounts required to
                   bring stores records into agreement with
                   physical inventories.
----------------------------------------------------------------------------------------------------------------
                                                 TRANSPORTATION
----------------------------------------------------------------------------------------------------------------
19..............  Oil and other products stocks and movement
                   pipelines only:
                    (a) Records and receipts, deliveries,         3 years.
                     pumpings, stocks, and over and short.
                    (b) Run tickets showing quantities by tank    3 years.
                     measurement of meter reading of oil and
                     other products received into the delivered
                     from company's lines.
                    (c) Statements of oil and oil products        3 years.
                     consumed as fuel including quantity value,
                     and where consumed.
                    (d) Statement of oil and other products lost  3 years.
                     by line breaks and leaks including
                     quantity, value, and location of breaks and
                     leaks.
                    (e) Reports of power furnished by producers:  3 years.
                     monthly reports of the quantity of oil run
                     in connection with which power was
                     furnished by producers, and records of
                     payment for such power.
                    (f) Records of producers' property            3 years after disconnection.
                     identifying ownership and location for
                     producers' tanks or wells to which
                     carrier's lines are connected.
                    (g) Division or other periodical inventory    3 years.
                     reports of oil and other products on hand.
                    (h) Division orders: Directions received by   3 years after discontinuance.
                     carrier as to the division of interest and
                     to whose account transported oil should be
                     credited.
                    (i) Directions received by the carrier for    3 years after discontinuance.
                     the transfer of division order interests
                     from one interest owner to another.
                    (j) Transfer orders for the transfer of       3 years.
                     ownership of oil or other products in
                     carrier's custody.
----------------------------------------------------------------------------------------------------------------
                                                TARIFFS AND RATES
----------------------------------------------------------------------------------------------------------------
20..............  Official file copies of tariffs,                3 years after expiration or cancellation.
                   classifications, division sheets, and
                   circulars relative to the transportation of
                   property.
21..............  Authorities and supporting papers for           3 years.
                   transportation of property for free or at
                   reduced rates.
22..............  Copies of concurrences and powers of attorney.  2 years after expiration or cancellation.
23..............  Correspondence and working papers in            2 years after cancellation of tariff.
                   connection with the making of rates and
                   compliance of tariffs, classifications,
                   division sheets, and circulars affecting the
                   transportation of property.
----------------------------------------------------------------------------------------------------------------
                                             REPORTS AND STATISTICS
----------------------------------------------------------------------------------------------------------------
24..............  Reports to Federal Energy Regulatory            5 years.
                   Commission and other regulatory bodies,
                   annual financial, operating and statistical
                   reports, file copies, and supporting data.
----------------------------------------------------------------------------------------------------------------


[[Page 1503]]

Note: This Appendix Will Not Appear in The Code of Federal 
Regulations

Appendix A--Current and Proposed Records Retention Requirements (18 
CFR Part 125.3)

----------------------------------------------------------------------------------------------------------------
                                              Current retention      Proposed retention
     Item No.            Description         period 18 CFR 125.3           period            Summary of changes
----------------------------------------------------------------------------------------------------------------
                                             CORPORATE AND GENERAL
----------------------------------------------------------------------------------------------------------------
1................  Reports to              Retain until receipt    5 years...............  Remove tie to FERC
                    stockholders: Annual    of FERC audit report                            audit report and set
                    reports or statements   or two years after                              fixed time period.
                    to stockholders.        auditors' exit
                                            conference, whichever
                                            comes first.
2................  Organizational
                    documents:
                     (a) Minute books of   50 years or             5 years or termination  Reduced by 45 years.
                      stockholders',        termination of the      of the corporation's
                      directors', and       corporation's           existence, whichever
                      directors'            existence, whichever    occurs first.
                      committee meetings.   occurs first.
                     (b) Titles,           6 years after final     6 years after final     No change.
                      franchises, and       non-appealable order.   non-appealable order.
                      licenses: Copies of
                      formal orders of
                      regulatory
                      commissions served
                      upon the utility.
3................  Contracts and
                    agreements (except
                    contracts provided
                    for elsewhere):
                     (a) Service           6 years after           All contracts, related  Reduced by 3 years.
                      contracts, such as    expiration or           memoranda and
                      for management,       cancellation. See       revisions should be
                      accounting and        Sec. 125.2(j).          retained for 3 years
                      financial services.                           after expiration or
                                                                    until the conclusion
                                                                    of any contract
                                                                    disputes pertaining
                                                                    to such contracts,
                                                                    whichever is later.
                     (b) Contracts with    6 years after           All contracts, related  Reduced by 2 years.
                      other utilities for   expiration or           memoranda and
                      the purchase, sale    cancellation.           revisions should be
                      or interchange of                             retained for 4 years
                      product.                                      after expiration or
                                                                    until the conclusion
                                                                    of any contract
                                                                    disputes or
                                                                    governmental
                                                                    proceedings
                                                                    pertaining to such
                                                                    contracts, whichever
                                                                    is later.
                     (c) Memoranda         For the same periods    For the same periods    No change.
                      essential to          as contracts to which   as contracts to which
                      clarifying or         they relate.            they relate.
                      explaining
                      provisions of
                      contracts listed
                      above.
                     (d) Card or book      For the same periods    For the same periods    No change.
                      records of            as contracts to which   as contracts to which
                      contracts, leases,    they relate.            they relate.
                      and agreements
                      made, showing dates
                      of expirations and
                      of renewals,
                      memoranda of
                      receipts and
                      payments under such
                      contracts.
4................  Accountants' and
                    auditors' reports:
                     (a) Reports of        7 years after date of   5 years after the date  Reduced by 2 years.
                      examinations and      report or Commission    of the report.
                      audits by             audit, whichever
                      accountants and       comes last.
                      auditors not in the
                      regular employ of
                      the utility (such
                      as reports of
                      public accounting
                      firms and
                      commission
                      accountants).
                     (b) Internal audit    7 years after the date  5 years after the date  Reduced by 2 years.
                      reports and work      of the report.          of the report.
                      papers.
----------------------------------------------------------------------------------------------------------------

[[Page 1504]]

 
                                            AUTOMATIC DATA PROCESSING
----------------------------------------------------------------------------------------------------------------
5................  Automatic data          Retain as long as it    Retain as long as it    No change.
                    processing records      represents an active    represents an active
                    (retain original        viable program or for   viable program or for
                    source data used as     periods prescribed      periods prescribed
                    input for data          for related output      for related output
                    processing and data     data, whichever is      data, whichever is
                    processing report       shorter.                shorter.
                    printouts for the
                    applicable periods
                    prescribed elsewhere
                    in the schedule:
                    Program documentation
                    and revisions thereto.
----------------------------------------------------------------------------------------------------------------
                                           GENERAL ACCOUNTING RECORDS
----------------------------------------------------------------------------------------------------------------
6................  General and subsidiary
                    ledgers:
                     (a) Ledgers:
                      (1) General ledgers  50 years..............  25 years..............  Reduced by 25 years.
                      (2) Ledgers          50 years..............  25 years..............  Reduced by 25 years.
                       subsidiary or
                       auxiliary to
                       general ledgers
                       except ledgers
                       provided for
                       elsewhere.
                     (b) Indexes:
                      (1) Indexes to       50 years..............  25 years..............   Reduced by 25 years.
                       general ledgers.
                      (2) Indexes to       50 years..............  25 years..............  Reduced by 25 years.
                       subsidiary ledgers
                       except ledgers
                       provided for
                       elsewhere.
                     (c) Trial balance     2 years...............  2 years...............  No change.
                      sheets of general
                      and subsidiary
                      ledgers.
7................  Journals: General and   50 years..............  25 years..............  Reduced by 25 years.
                    subsidiary.
8................  Journal vouchers and
                    journal entries
                    including supporting
                    detail:
                     (a) Journal vouchers  50 years..............  25 years..............  Reduced by 25 years.
                      and journal entries.
                   (b) Analyses,
                    summarization,
                    distributions, and
                    other computations
                    which support journal
                    vouchers and journal
                    entries:
                      (1) Charging plant   6 years. See Sec.       25 years..............  Reduced.
                       accounts.            125.2(j).
                      (2) Charging all     6 years...............  6 years...............  No change.
                       other accounts.
9................  Cash books: General     10 years after close    5 years after close of  Reduced by 5 years.
                    and subsidiary or       of fiscal year. See     fiscal year.
                    auxiliary books.        subsection 12(a).
10...............  Voucher registers:      6 years. See Sec.       5 years...............  Reduced by 1 year.
                    Voucher registers or    125.2(j).
                    similar records when
                    used as a source
                    document.
11...............  Vouchers:
                     (a) Paid and          6 years. See Sec.       5 years...............  Reduced by 1 year.
                      canceled vouchers     125.2(j).
                      (1 copy--analysis
                      sheets showing
                      detailed
                      distribution of
                      charges on
                      individual vouchers
                      and other
                      supporting papers).
                     (b) Original bills    6 years. See Sec.       5 years...............  Reduced by 1 year.
                      and invoices for      125.2(j).
                      materials,
                      services, etc.,
                      paid by vouchers.
                     (c) Paid checks and   6 years...............  5 years...............  Reduced by 1 year.
                      receipts for
                      payments of
                      specific vouchers.
                     (d) Authorization     6 years. See Sec.       5 years...............  Reduced by 1 year.
                      for the payment of    125.2(j).
                      specific vouchers.
                     (e) Lists of          Destroy at option.....  Destroy at option.....  No change.
                      unaudited bills
                      (accounts payable),
                      list of vouchers
                      transmitted and
                      memoranda regarding
                      changes in audited
                      bills.

[[Page 1505]]

 
                     (f) Voucher indexes.  Destroy at option.....  Destroy at option.....  No change.
----------------------------------------------------------------------------------------------------------------
                                                    INSURANCE
----------------------------------------------------------------------------------------------------------------
12...............  Insurance records:
                     (a) Records of        Destroy at option       Destroy at option       No change.
                      insurance policies    after expiration of     after expiration of
                      in force, showing     such policies.          such policies.
                      coverage, premiums
                      paid, and
                      expiration dates.
                     (b) Records of        6 years. See Sec.       6 years...............  No change.
                      amounts recovered     125.2(j).
                      from insurance
                      companies in
                      connection with
                      losses and of
                      claims against
                      insurance
                      companies,
                      including reports
                      of losses and
                      supporting papers.
----------------------------------------------------------------------------------------------------------------
                                           OPERATIONS AND MAINTENANCE
----------------------------------------------------------------------------------------------------------------
13.1.............  Production--Electric
                    (less Nuclear):
                     (a) Boiler-tube       3 years...............  3 years...............  No change.
                      failure report.
                     (b) Generation and    6 years...............  3 years...............  Reduced by 3 years.
                      output logs with
                      supporting data.
                      (1) Hydro-electric.  25 years. See Sec.      25 years..............  No change.
                                            125.2(j).
                      (2) Steam and        6 years. See Sec.       6 years...............  No change.
                       others.              125.2(j).
                     (c) Generating high-  3 years...............  3 years...............  No change.
                      tension and low-
                      tension load
                      records.
                     (d) Load curves,      3 years...............  3 years...............  No change.
                      temperature logs,
                      coal, and water
                      logs.
                     (e) Gage-reading      2 years, except river   2 years, except river   No change.
                      reports.              flow data collected     flow data collected
                                            in connection with      in connection with
                                            hydro operation shall   hydro operation shall
                                            be retained for life    be retained for life
                                            of corporation.         of corporation.
                     (f) Recording         1 year, except where    1 year, except where    No change.
                      instrumentation       the basic chart         the basic chart
                      charts.               information is          information is
                                            transferred to          transferred to
                                            another record, the     another record, the
                                            charts need only be     charts need only be
                                            retained 6 months       retained 6 months
                                            provided the record     provided the record
                                            containing the basic    containing the basic
                                            data is retained 1      data is retained 1
                                            year.                   year.
13.2.............  Production--Nuclear:
                   For informational
                    purposes, refer to
                    the document
                    retention
                    requirements of the
                    Nuclear Regulatory
                    Commission
14...............  Transmission and
                    distribution--Electri
                    c:
                     (a) Substation and    3 years...............  3 years...............  No change.
                      transmission line
                      logs.
                     (b) System            3 years...............  3 years...............  No change.
                      operator's daily
                      logs and reports of
                      operation.
                     (c) Transformer       For life of             For life of             No change.
                      history records.      transformer.            transformer.
                     (d) Records of        Destroy at option.....  Destroy at option.....  No change.
                      transformer
                      inspections, oil
                      tests, etc..
15...............  Maintenance work
                    orders and job
                    orders:
                     (a) Authorizations    6 years...............  5 years...............  Reduced by 1 year.
                      for expenditures
                      for maintenance
                      work to be covered
                      by work orders,
                      including memoranda
                      showing the
                      estimates of costs
                      to be incurred.

[[Page 1506]]

 
                     (b) Work order        6 years...............  5 years...............  Reduced by 1 year.
                      sheets to which are
                      posted in detail
                      the entries for
                      labor, material,
                      and other charges
                      in connection with
                      maintenance, and
                      other work
                      pertaining to
                      utility operations.
                     (c) Summaries of      6 years...............  5 years...............  Reduced by 1 year.
                      expenditures on
                      maintenance and job
                      orders and
                      clearances to
                      operating other
                      accounts (exclusive
                      of plant accounts).
----------------------------------------------------------------------------------------------------------------
                                             PLANT AND DEPRECIATION
----------------------------------------------------------------------------------------------------------------
16...............  Plant ledgers:
                     (a) Ledgers of        50 years..............  25 years..............  Reduced by 25 years.
                      utility plant
                      accounts including
                      land and other
                      detailed ledgers
                      showing the cost of
                      utility plant by
                      classes.
                     (b) Continuing plant  6 years after plant is  25 years..............  Reduced.
                      inventory ledger,     retired, provided
                      book or card          mortality data are
                      records showing       retained. See Note 5.
                      description,
                      location,
                      quantities, cost,
                      etc., of physical
                      units (or items) of
                      utility plant owned.
17...............  Construction work in
                    progress ledgers,
                    work orders, and
                    supplemental records:
                     (a) Construction      10 years after          5 years after           Reduced by 5 years.
                      work in progress      clearance to the        clearance to plant
                      ledgers.              plant account,          account, provided
                                            provided continuing     continuing plant
                                            plant inventory         inventory records are
                                            records are             maintained; otherwise
                                            maintained; otherwise   5 years after plant
                                            6 years after plant     is retired.
                                            is retired.
                     (b) Work orders       10 years after          5 years after           Reduced by 5 years.
                      sheets to which are   clearance to the        clearance to plant
                      posted in summary     plant account,          account, provided
                      form or in detail     provided continuing     continuing plant
                      the entries for       plant inventory         inventory records are
                      labor, materials,     records are             maintained; otherwise
                      and other charges     maintained; otherwise   5 years after plant
                      for utility plant     6 years after plant     is retired.
                      additions and the     is retired.
                      entries closing the
                      work orders to
                      utility plant in
                      service at
                      completion.
                     (c) Authorizations    10 years..............  5 years after           Reduced by 5 years.
                      for expenditures                              clearance to plant
                      for additions to                              account except where
                      utility plant,                                there are ongoing
                      including memoranda                           Commission
                      showing the                                   proceedings.
                      detailed estimates
                      of cost and the
                      bases therefor
                      (including original
                      and revised or
                      subsequent
                      authorizations).
                     (d) Requisitions and  10 years..............  5 years after           Reduced by 5 years.
                      registers of                                  clearance to plant
                      authorizations for                            account except where
                      utility plant                                 there are ongoing
                      expenditures.                                 Commission
                                                                    proceedings.
                     (e) Completion or     10 years..............  5 years after           Reduced by 5 years.
                      performance reports                           clearance to plant
                      showing comparison                            account except where
                      between authorized                            there are ongoing
                      estimates and                                 Commission
                      actual expenditures                           proceedings.
                      for utility plant
                      additions.
                     (f) Analysis or cost  10 years after          5 years after           Reduced by 5 years.
                      reports showing       clearance to the        clearance to plant
                      quantities of         plant account,          account except where
                      materials used,       provided continuing     there are ongoing
                      unit costs, number    property plant          Commission
                      of man-hours etc.,    inventory records are   proceedings.
                      in connection with    maintained; otherwise
                      completed             6 years after plant
                      construction          is retired.
                      project.

[[Page 1507]]

 
                     (g) Records and       Destroy at option.....  Destroy at option.....  No change.
                      reports pertaining
                      to progress of
                      construction work,
                      the order in which
                      jobs are to be
                      completed, and
                      similar records
                      which do not form a
                      basis of entries to
                      the accounts.
18...............  Retirement work in
                    progress ledgers,
                    work orders, and
                    supplemental records:
                     (a) Work order        10 years after plant    5 years after plant is  Reduced by 5 years.
                      sheets to which are   is retired. See Note    retired.
                      posted the entries    5.
                      for removal costs,
                      materials
                      recovered, and
                      credits to utility
                      plant accounts for
                      cost of plant
                      retirement.
                     (b) Authorizations    10 years after          5 years after plant is  Reduced by 5 years.
                      for retirement of     clearance to the        retired.
                      utility plant,        plant account,
                      including memoranda   provided continuing
                      showing the basis     plant inventory
                      for determination     records are
                      of be retired and     maintained; otherwise
                      estimates of          6 years after plant
                      salvage and removal   is retired. See Note
                      costs.                5.
                     (c) Registers of      10 years..............  5 years...............  Reduced by 5 years.
                      retirement work.
19...............  Summary sheets,         10 years after          5 years...............  Reduced by 5 years.
                    distribution sheets,    clearance to the
                    reports, statements     plant account,
                    and papers directly     provided continuing
                    supporting debits and   plant inventory
                    credits to utility      records are
                    plant accounts not      maintained; otherwise
                    covered by              6 years after plant
                    construction or         is retired.
                    retirement work
                    orders and their
                    supporting records
20...............  Appraisals and
                    valuations:
                     (a) Appraisals and    3 years after           3 years after           Replaces previous
                      valuations made by    disposition,            appraisal.              text. No substantive
                      the company of its    termination of lease,                           change.
                      properties or         or write off of
                      investments or the    property or
                      properties or         investment.
                      investments of any
                      associated
                      companies.
                      (Includes all
                      records essential
                      thereto.)
                     (b) Determinations                                                    Requirement added.
                      of amounts by which
                      properties or
                      investments of the
                      company or any of
                      its associated
                      companies will be
                      either written up
                      or written down as
                      a result of:
                      (1) Mergers or                               10 years after          Requirement added.
                       acquisitions.                                completion of
                                                                    transaction or as
                                                                    ordered by the FERC.
                      (2) Asset                                    10 years after          Requirement added.
                       impairments.                                 recognition of asset
                                                                    impairment.
                      (3) Other bases....                          10 years after the      Requirement added.
                                                                    asset was written up
                                                                    or down.
21...............  The original or
                    reproduction of
                    engineering records,
                    drawings and other
                    supporting data for
                    proposed as-
                    constructed utility
                    facilities:
                     (a) Maps, diagrams,                           Retain until retired..  Requirement added.
                      profiles,
                      photographs, field
                      survey notes, plot
                      plan, detail
                      drawings, records
                      of engineering
                      studies and similar
                      records showing the
                      location of
                      proposed or as
                      constructed
                      facilities:

[[Page 1508]]

 
                     (b) If construction   Retain until receipt    Deleted...............  Deleted.
                      of facility results   of FERC audit report
                      wholly, or in part.   or two years after
                                            auditor's exit
                                            conference, whichever
                                            occurs first. See
                                            Note 5. See Sec.
                                            125.2(j).
22...............  Contracts relating to
                    utility records:
                     (a) Contracts         6 years after plant is  6 years after plant is  No change.
                      relating to           retired.                retired or sold.
                      acquisition or sale
                      of plant.
                     (b) Contracts and     6 years. See Sec.       6 years after plant is  No change.
                      other agreements      125.2(j).               retired or sold.
                      relating to
                      services performed
                      in connection with
                      construction of
                      utility plant
                      (including
                      contracts for the
                      construction of
                      plant by others for
                      the utility and for
                      supervision and
                      engineering
                      relating to
                      construction work)..
23...............  Records pertaining to   6 years See Sec.        6 years...............  No change.
                    reclassification of     125.2(j).
                    utility plant
                    accounts to conform
                    to prescribed systems
                    of accounts including
                    supporting papers
                    showing the bases for
                    such
                    reclassifications.
24...............  Records of accumulated
                    provisions for
                    depreciation and
                    depletion of utility
                    plant and supporting
                    computation of
                    expense:.
                     (a) Detailed records  25 years..............  25 years..............  No change.
                      or analysis sheets
                      segregating the
                      accumulated
                      depreciation
                      according to
                      functional
                      classification of
                      plant.
                     (b) Records           25 years. See Note 5..  25 years..............  No change.
                      reflecting the
                      service life of
                      property and the
                      percentage of
                      salvage and cost of
                      removal for
                      property retired
                      from each account
                      for depreciable
                      utility plant.
----------------------------------------------------------------------------------------------------------------
                                              PURCHASES AND STORES
----------------------------------------------------------------------------------------------------------------
25...............  Procurement:
                     (a) Agreements
                      entered into for
                      the acquisition of
                      goods or the
                      performance of
                      services. Includes
                      all forms of
                      agreements not
                      specifically set
                      for in Subsection 7
                      such as but not
                      limited to: Letters
                      of intent, exchange
                      of correspondence,
                      master agreements,
                      term contracts,
                      rental agreements
                      and the various
                      types of purchase
                      orders:.
                      (1) For goods or     6 years. See Sec.       6 years...............  No change.
                       services relating    125.2(j).
                       to plant
                       construction..
                      (2) For other goods  6 years...............  6 years...............  No change.
                       or services..

[[Page 1509]]

 
                     (b) Supporting        6 years. See Sec.       6 years...............  No change.
                      documents including   125.2(j).
                      accepted and
                      unaccepted bids or
                      proposals
                      (summaries of
                      unaccepted bids or
                      proposals may be
                      kept in lieu of
                      originals)
                      evidencing all
                      relevant elements
                      of the procurement.
26...............  Material ledgers:       Retain until receipt    6 years after the date  Removed tie to FERC
                    Ledger sheets of        of FERC audit report    the records/ledgers     audit report and set
                    materials and           or two years after      were created.           fixed time period.
                    supplies received,      auditors' exit
                    issued, and on hand..   conference, whichever
                                            occurs first.
27...............  Materials and supplies  6 years See Sec.        6 years...............  No change.
                    received and issued:    125.2(j).
                    Records showing the
                    detailed distribution
                    of materials and
                    supplies issued
                    during accounting
                    periods.
28...............    Records of sales of
                      scrap and materials
                      and supplies:.
                     (a) Authorization     3 years...............  3 years...............  No change.
                      for sale of scrap
                      and materials and
                      supplies.
                     (b) Contracts for     3 years...............  3 years...............  No change.
                      sale of scrap a
                      materials and
                      supplies.
----------------------------------------------------------------------------------------------------------------
                                        REVENUE ACCOUNTING AND COLLECTION
----------------------------------------------------------------------------------------------------------------
29...............  Customers' service      Retain until receipt    4 years after           Removed tie to FERC
                    applications and        of FERC audit report    expiration.             audit report and set
                    contracts: Contracts    or two years after                              fixed time period.
                    for extensions of       auditors' exit
                    service for which       conference, whichever
                    contributions are       occurs first.
                    made by customers and
                    others.
30...............  Rate schedules:         Retain until receipt    6 years after           Removed tie to FERC
                    General files of        of FERC audit report    published rate sheets   audit report and set
                    published rate sheets   or two years after      and schedules are       fixed time period.
                    and schedules of        auditors' exit          superseded or no
                    utility service.        conference, whichever   longer used to charge
                    (Including schedules    occurs first.           for utility service.
                    suspended or
                    superseded.).
31...............  Maximum demand, and     1 year, except where    1 year, except where    No change.
                    demand meter record     the basic chart         the basic chart
                    cards.                  information is          information is
                                            transferred to          transferred to
                                            another record the      another record the
                                            charts need only be     charts need only be
                                            retained 6 months,      retained 6 months,
                                            provided the basic      provided the basic
                                            data is retained 1      data is retained 1
                                            year.                   year.
32...............  Miscellaneous billing   Destroy at option.....  Destroy at option.....  No change.
                    data: Billing
                    department's copies
                    of contracts with
                    customers (in
                    addition to contracts
                    in general files).
33...............  Revenue summaries:
                     (a) Summaries of      6 years...............  5 years...............  Reduced by 1 year.
                      monthly operating
                      revenues according
                      to classes of
                      service by entire
                      utility.
                     (b) Summaries of      6 years...............  Deleted...............  Deleted.
                      monthly operating
                      revenues according
                      to classes of
                      service by towns,
                      districts, or
                      divisions
                      (Including
                      summaries of
                      forfeited discounts
                      and penalties).
----------------------------------------------------------------------------------------------------------------
                                                       TAX
----------------------------------------------------------------------------------------------------------------
34...............  Tax records:

[[Page 1510]]

 
                   (a) Copies of returns
                    and schedules filed
                    with taxing
                    authorities,
                    supporting work
                    papers, records of
                    appeals tax bills and
                    receipts for payment
                    (See Subsection 15(b)
                    for vouchers
                    evidencing
                    disbursements):
                      (1) Income tax       7 years after           2 years after final     Reduced by 5 years.
                       returns.             settlement.             tax liability is
                                                                    determined.
                      (2) Property tax     2 years after           2 years after final     No change.
                       returns.             settlement.             tax liability is
                                                                    determined.
                      (3) Sales and other  3 years...............  2 years...............  Reduced by 1 year.
                       use taxes.
                      (4) Other taxes....  2 years after           2 years after final     No change.
                                            settlement.             tax liability is
                                                                    determined.
                      (5) Agreements       7 years after           2 years after final     Reduced by 5 years.
                       between associate    settlement.             tax liability is        Renumbered (b).
                       companies as to                              determined.
                       allocation of
                       consolidated
                       income taxes.
                      (6) Schedule of      7 years after           2 years after final     Reduced by 5 years.
                       allocation of        settlement.             tax liability is        Renumbered (c).
                       consolidated                                 determined.
                       Federal income
                       taxes among
                       associate
                       companies.
                     (b) Summaries of      Destroy at option.....  Deleted...............  Deleted.
                      taxes paid.
                     (c) Filings with      7 years after           5 years after           Reduced by 2 years.
                      taxing authorities    settlement of Federal   settlement of Federal
                      to qualify employee   return or               return or
                      benefit plans.        discontinuance of       discontinuance of
                                            plan, whichever is      plan, whichever is
                                            later.                  later.
                     (d) Information       3 years, or for the     3 years, or for the     No change.
                      returns and reports   period of any           period of any
                      to taxing             extensions granted      extensions granted
                      authorities.          for audit.              for audit.
----------------------------------------------------------------------------------------------------------------
                                                    TREASURY
----------------------------------------------------------------------------------------------------------------
35...............  Statements of funds     Replacement for Item    For nuclear
                    and deposits:           58 currently            decommissioning
                                            contained in 18 CFR     funds, retain records
                                            Sec.  125.3.            for all items listed
                                                                    for a period of 3
                                                                    years after
                                                                    completion of final
                                                                    decommissioning of
                                                                    facilities.
                                                                   If amortization funds   Replaces previous
                                                                    related to licensed     text. Substantive
                                                                    projects are            changes made.
                                                                    maintained, retain
                                                                    until the Commission
                                                                    makes a final
                                                                    determination of the
                                                                    disposition of
                                                                    amortization reserves.
                     (a) Statements of                             Retain records for the  Requirement added.
                      periodic deposits                             most recent 3
                      with fund                                     calendar years.
                      administrators or
                      trustees.
                     (b) Statements of                             Retain records for the  Requirement added.
                      periodic                                      most recent 3
                      withdrawals from                              calendar years.
                      fund.
                     (c) Statements                                Retain records until    Requirement added.
                      prepared by fund                              the fund is dissolved
                      administrator or                              or terminated.
                      trustees of fund
                      activity including:
                      (1) Beginning of
                       the year balance
                       of fund;
                      (2) Deposits with
                       the fund;
                      (3) Acquisition of
                       investments held
                       by the fund;
                      (4) Disposition of
                       investments held
                       by the fund;
                      (5) Disbursements
                       from the fund,
                       including party to
                       whom disbursement
                       was made; and
                      (6) End of year
                       balance of fund.
36...............  Records of deposits
                    with banks and
                    others:.
                     (a) Statements from   Destroy at option       Destroy at option       No change.
                      depositories          after completion        after completion of
                      showing the details   annual audit by         audit by independent
                      of funds received,    independent             accountants.
                      disbursed,            accountants.
                      transferred, and
                      balances on deposit.

[[Page 1511]]

 
                     (b) Check stubs,      6 years...............  3 years...............  Reduced by 3 years.
                      registers, or other
                      records of checks
                      issued.
----------------------------------------------------------------------------------------------------------------
                                                  MISCELLANEOUS
----------------------------------------------------------------------------------------------------------------
37...............  Reserve
38...............  Statistics:
                     (a) Annual            10 years after date of  3 years...............  Reduced by 7 years
                      financial,            report.                                         and text rewritten.
                      operating and
                      statistical reports
                      regularly prepared
                      in the course of
                      business for
                      internal
                      administrative or
                      operating purposes
                      (and not used for
                      the basis for
                      entries to accounts
                      of the companies
                      concerned) to show
                      the results of
                      operations and the
                      financial condition
                      of the utility.
                     (b) Quarterly,        2 years after date of   Deleted...............  Deleted.
                      monthly or other      report.
                      periodic financial,
                      operating and other
                      statistical reports
                      as above.
39...............  Budgets and other       3 years...............  3 years...............  Text rewritten.
                    forecasts (Prepared
                    for internal
                    administrative or
                    operating purposes)
                    of estimated future
                    income, receipts and
                    expenditures in
                    connection with
                    financing,
                    construction and
                    operations and
                    acquisitions or
                    disposals of
                    properties or
                    investments by the
                    company and its
                    associate companies,
                    including revisions
                    of such estimates and
                    memoranda showing
                    reasons for
                    revisions; also
                    records showing
                    comparison of actual
                    income and receipts
                    and expenditures with
                    estimates.
40...............  Records of              Retain until the        Retain consistent with  Text rewritten.
                    predecessors and        records of utility      the requirements for
                    former associates.      plant acquired have     the same types of
                                            been integrated with    records of the
                                            the utility's plant     utility.
                                            records and the
                                            original cost of the
                                            acquired plant is
                                            adequately supported
                                            by cost details and
                                            until it is
                                            ascertained that such
                                            records are not
                                            necessary to
                                            fulfillment of any
                                            unsatisfied
                                            regulatory
                                            requirement, such as:
                                            (a) Approval and
                                            recording of
                                            accounting
                                            adjustments resulting
                                            from reclassification
                                            and original cost
                                            studies and
                                            acceptance of
                                            property acquisition
                                            journal entries, (b)
                                            cost depreciation and
                                            amortization reserve
                                            determinations for
                                            licensed projects,
                                            (c) establishment of
                                            continuing plant
                                            inventory records or
                                            accounting evidence
                                            of the cost of long-
                                            lived property in the
                                            absence of such
                                            continuing plant
                                            inventory records.
41...............  Reports to Federal and
                    State regulatory
                    commissions:

[[Page 1512]]

 
                     (a) Annual
                      financial,
                      operating and
                      statistical
                      reports:
                      (1) Federal          Retain until receipt    5 years...............  Removed tie to FERC
                       agencies.            of FERC audit report                            audit report and set
                                            or two years after                              fixed time period.
                                            auditors' exit                                  Text combined.
                                            conference which ever
                                            occurs first.
                      (2) State            Retain as long as the   Text combined.........  Text combined.
                       commissions.         active tariffs or
                                            rates are in effect.
                     (b) Special or
                      periodic reports on
                      the following
                      subjects:
                      (1) Transactions     6 years...............  Deleted...............  Deleted.
                       with associated
                       companies.
                      (2) Budgets of       3 years...............  Deleted...............  Deleted.
                       expenditures.
                      (3) Employees and    5 years...............  Deleted...............  Deleted.
                       wages.
                      (4) Loans to         3 years after fully     Deleted...............  Deleted.
                       officers and         paid.
                       employees.
                      (5) Issues of        Data filed with SEC     Deleted...............  Deleted.
                       securities.          retain 25 years or
                                            until all securities
                                            covered are retired
                                            whichever is shorter;
                                            other reports retain
                                            until securities
                                            covered are retired.
                      (6) Purchases and    10 years after plant    Deleted...............  Deleted.
                       sales, utility       is retired. See Sec.
                       properties.          125.2(j).
                      (7) Plant changes--  10 years after plant    Deleted...............  Deleted.
                       units added and      is retired. See Sec.
                       retired.             125.2(j).
                      (c) Cost of service  5 years...............  Deleted...............  Deleted.
                       reports filed
                       under section 133
                       of the Public
                       Utility Regulatory
                       Policies Act
                       (PURPA). (See 18
                       CFR Part 290.).
42...............  Other miscellaneous     6 years...............  2 years...............  Reduced by 4 years.
                    records: Copies of                                                      Description title
                    advertisements by the                                                   changed. Text
                    company in behalf of                                                    rewritten.
                    itself or any
                    associate company in
                    newspapers, magazines
                    and other
                    publications
                    including records
                    thereof (excluding
                    advertising of
                    product, appliances,
                    employment
                    opportunities,
                    services, territory,
                    routine notices and
                    invitations for bids
                    for securities all of
                    which may be
                    destroyed at option).
----------------------------------------------------------------------------------------------------------------

Note: This Appendix Will Not Appear in The Code of Federal 
Regulations

Appendix B--Current and Proposed Records Retention Requirements (18 
CFR Part 225.3)

----------------------------------------------------------------------------------------------------------------
                                             Retention period 18     Proposed retention
     Item no.            Description              CFR 225.3                period            Summary of changes
----------------------------------------------------------------------------------------------------------------
                                              CORPORATE AND GENERAL
----------------------------------------------------------------------------------------------------------------
1................  Reports to              Retain until receipt    5 years...............  Removed tie to FERC
                    stockholders: Annual    of FERC audit report                            audit report and set
                    reports or statements   or two years after                              fixed time period
                    to stockholders.        auditors' exit
                                            conference, whichever
                                            comes first.
2................  Organizational
                    documents:
                     (a) Minute books of   50 years or             5 years or termination  Reduced by 45 years.
                      stockholders',        termination of the      of the corporation's
                      directors', and       corporation's           existence, whichever
                      directors'            existence, whichever    occurs first.
                      committee meetings.   occurs first.

[[Page 1513]]

 
                     (b) Titles,           6 years after final     6 years after final     No change.
                      franchises, and       non-appealable order.   non-appealable order.
                      licenses: Copies of
                      formal orders of
                      regulatory
                      commissions served
                      upon the natural
                      gas company.
3................  Contracts and
                    agreements (except
                    contracts provided
                    for elsewhere):
                     (a) Service           6 years after           6 years...............  No change.
                      contracts, such as    expiration or
                      for management,       cancellation. See
                      accounting and        Sec. 225.2(j).
                      financial services.
                     (b) Contracts with    6 years after           All contracts, related  Reduced by 2 years.
                      other                 expiration or           memoranda, and
                      transportation or     cancellation.           revisions should be
                      for the purchase,                             retained for 4 years
                      sale or interchange                           after expiration or
                      of product.                                   until the conclusions
                                                                    of any contract
                                                                    disputes or
                                                                    governmental
                                                                    proceedings
                                                                    pertaining to such
                                                                    contracts, whichever
                                                                    is later.
                     (c) Memoranda         For the same periods    For the same periods    No change.
                      essential to          as contracts to which   as contracts to which
                      clarifying or         they relate.            they relate.
                      explaining
                      provisions of
                      contracts listed
                      above.
                     (d) Card or book      For the same periods    For the same periods    No change.
                      records of            as contracts to which   as contracts to which
                      contracts, leases,    they relate.            they relate.
                      and agreements made
                      that show dates of
                      expirations,
                      renewals, memoranda
                      of receipts, and
                      payments under such
                      contracts.
4................  Accountants' and
                    auditors' reports:
                     (a) Reports of        7 years after date of   5 years after the date  Reduced by 2 years.
                      examinations and      report or Commission    of the report.
                      audits by             audit, whichever
                      accountants and       comes last.
                      auditors not in the
                      regular employ of
                      the natural gas
                      company (such as
                      reports of public
                      accounting firms
                      and Commission
                      accountants).
                     (b) Internal audit    7 years after date of   5 years after the date   Reduced by 2 years.
                      reports and working   report or Commission    of the report.
                      papers.               audit, whichever
                                            comes last.
----------------------------------------------------------------------------------------------------------------
                                       INFORMATION TECHNOLOGY MANAGEMENT
----------------------------------------------------------------------------------------------------------------
5................  Automatic data          Retain as long as it    Retain as long as it    No change.
                    processing records      represents an active    represents an active
                    (retain original        viable program or for   viable program or for
                    source data used as     periods prescribed      periods prescribed
                    input for data          for related output      for related output
                    processing and data     data, whichever is      data, whichever is
                    processing report       shorter.                shorter.
                    printouts for the
                    applicable periods
                    prescribed elsewhere
                    in the schedule:
                    Program documentation
                    and revisions thereto.
----------------------------------------------------------------------------------------------------------------
                                           GENERAL ACCOUNTING RECORDS
----------------------------------------------------------------------------------------------------------------
6................  General and subsidiary
                    ledgers:
                     (a) Ledgers:
                      (1) General ledgers  50 years..............  25 years..............  Reduced by 25 years.
                      (2) Ledgers          50 years..............  25 years..............  Reduced by 25 years.
                       subsidiary or
                       auxiliary to
                       general ledgers
                       except ledgers
                       provided for
                       elsewhere.
                     (b) Indexes:
                      (1) Indexes to       50 years..............  25 years..............  Reduced by 25 years.
                       general ledgers.
                      (2) Indexes to       50 years..............  25 years..............  Reduced by 25 years.
                       subsidiary ledgers
                       except ledgers
                       provided for
                       elsewhere.

[[Page 1514]]

 
                     (c) Trial balance     2 years...............  2 years...............  No change.
                      sheets of general
                      and subsidiary
                      ledgers.
7................  Journals: General and   50 years..............  25 years..............  Reduced by 25 years.
                    subsidiary.
8................  Journal vouchers and
                    journal entries
                    including supporting
                    detail:.
                     (a) Journal vouchers  50 years..............  25 years..............  Reduced by 25 years.
                      and journal entries.
                     (b) Analyses,
                      summarizations,
                      distributions, and
                      other computations
                      which support
                      journal vouchers
                      and journal
                      entries:
                      (1) Charging plant   6 years. See Sec.       25 years..............  Reduced.
                       accounts.            225.2(j).
                      (2) Charging all     6 years...............  6 years...............  No change.
                       other accounts.
9................  Cash books: General     10 years after close    5 years after close of  Reduced by 5 years.
                    and subsidiary or       of fiscal year. See     fiscal year.
                    auxiliary books.        subsection 12(a).
10...............  Voucher registers:      6 years. See Sec.       5 years...............  Reduced by 1 year.
                    Voucher registers or    225.2(j).
                    similar records when
                    used as a source
                    document.
11...............  Vouchers:
                     (a) Paid and          6 years. See Sec.       5 years...............  Reduced by 1 year.
                      cancelled vouchers    225.2(j).
                      (1 copy--analysis
                      sheets showing
                      detailed
                      distribution of
                      charges on
                      individual vouchers
                      and other
                      supporting papers).
                     (b) Original bills    6 years. See Sec.       5 years...............  Reduced by 1 year.
                      and invoices for      225.2(j).
                      materials,
                      services, etc.,
                      paid by vouchers.
                     (c) Paid checks and   6 years...............  5 years...............  Reduced by 1 year.
                      receipts for
                      payments of
                      specific vouchers.
                     (d) Authorization     6 years. See Sec.       5 years...............  Reduced by 1 year.
                      for the payment of    225.2(j).
                      specific vouchers.
                     (e) Lists of          Destroy at option.....  Destroy at option.....  No change.
                      unaudited bills
                      (accounts payable),
                      list of vouchers
                      transmitted, and
                      memoranda regarding
                      changes in audited
                      bills.
                     (f) Voucher indexes.  Destroy at option.....  Destroy at option.....  No change.
----------------------------------------------------------------------------------------------------------------
                                                    INSURANCE
----------------------------------------------------------------------------------------------------------------
12...............  Insurance records:
                     (a) Records of        Destroy at option       Destroy at option
                      insurance policies    after expiration of     after expiration. No
                      in force, showing     such policies.          change..
                      coverage, premiums
                      paid, and
                      expiration dates.
                     (b) Records of        6 years. See Sec.       6 years...............  No change.
                      amounts recovered     225.2(j).
                      from insurance
                      companies in
                      connection with
                      losses and of
                      claims against
                      insurance
                      companies,
                      including reports
                      of losses and
                      supporting papers.
----------------------------------------------------------------------------------------------------------------
                                           OPERATIONS AND MAINTENANCE
----------------------------------------------------------------------------------------------------------------
13...............  Production--Gas:
                     (a) Gas generation    6 years...............  Deleted...............  Deleted.
                      and output logs
                      with supporting
                      data.

[[Page 1515]]

 
                     (b) Recording         1 year, except where    If the measurement      Reduced by 5 months.
                      instrument charts     the basic chart         data have not been
                      such as pressure      information is          disputed or adjusted,
                      (static and/or        transferred to          destroy after 7
                      differential),        another record, the     months.
                      temperature           charts need only be
                      specific gravity,     retained 6 months
                      heating value, etc.   provided the record
                                            containing the basic
                                            data is retained one
                                            year.
                     (c) Test of heating   6 years...............  If the measurement      Reduced by 5 years
                      value at stations                             data have not been      and 5 months.
                      and outlying points.                          disputed or adjusted,
                                                                    destroy after 7
                                                                    months.
                     (d) Records of gas    1 year, except where    If the measurement      Reduced by 5 months.
                      produced, out, and    the basic chart         data have not been
                      holder stock.         information is          disputed or adjusted,
                                            transferred to          destroy after 7
                                            another record, the     months.
                                            charts need only be
                                            retained 6 months
                                            provided the record
                                            containing the basic
                                            date is retained one
                                            year.
                     (e) Analysis of (gas  1 year, except where    If the measurement      Reduced by 5 months.
                      produced) B.T.U.      the basic chart         data have not been
                      and sulphur content.  information is          disputed or adjusted,
                                            transferred to          destroy after 7
                                            another record, the     months.
                                            charts need only be
                                            retained 6 months
                                            provided the record
                                            containing the basic
                                            data is retained one
                                            year.
                     (f) Well records,     1 year after field or   If the measurement      Reduced by 5 months.
                      including clearing,   relevant production     data have not been
                      bailing, shooting     area abandoned.         disputed or adjusted,
                      etc., records; rock                           destroy after 7
                      pressure; open                                months.
                      flow; production,
                      gas analysts'
                      reports etc.
                     (g) Gas measuring     1 year, except where    If the measurement      Reduced by 5 months.
                      records.              the basic chart         data have not been
                                            information is          disputed or adjusted,
                                            transferred to          destroy after 7
                                            another record, the     months.
                                            charts need only be
                                            retained 6 months
                                            provided the record
                                            containing the basic
                                            data is retained one
                                            year.
14...............  Transmission and
                    distribution--Gas:
                     (a) Substation and    3 years...............  If the measurement      Reduced by 2 years
                      transmission line                             data have not been      and 5 months.
                      logs.                                         disputed or adjusted,
                                                                    destroy after 7
                                                                    months.
                     (b) System            3 years...............  If the measurement      Reduced by 2 years
                      operator's daily                              data have not been      and 5 months.
                      logs and reports of                           disputed or adjusted,
                      operation.                                    destroy after 7
                                                                    months.
                     (c) Gas measuring     1 year................  If the measurement      Reduced by 5 months.
                      records.                                      data have not been
                                                                    disputed or adjusted,
                                                                    destroy after 7
                                                                    months.
                     (d) Transmission      3 years...............  If the measurement      Reduced by 2 years
                      line operating                                data have not been      and 5 months.
                      reports.                                      disputed or adjusted,
                                                                    destroy after 7
                                                                    months.
                     (e) Compression       3 years...............  If the measurement      Reduced by 2 years
                      operation and                                 data have not been      and 5 months.
                      reports.                                      disputed or adjusted,
                                                                    destroy after 7
                                                                    months.
                     (f) Recording         1 year, except where    If the measurement      Reduced by 5 months.
                      instrument charts     the basic chart         data have not been
                      such as pressure      information is          disputed or adjusted,
                      (static and/or        transferred to          destroy after 7
                      differential),        another record, the     months.
                      temperature           charts need only be
                      specific heating      retained 6 months
                      value, etc.           provided the record
                                            containing the basic
                                            data is retained one
                                            year.
14.1.............  Underground storage of
                    natural gas:

[[Page 1516]]

 
                     (a) Well records,     1 year after            1 year after            No change.
                      reports and logs      reservoir, field, or    reservoir, field, or
                      which includes data   relevant storage area   relevant storage area
                      relating to           is abandoned.           is abandoned.
                      pressures, injected
                      volumes, withdrawn
                      volumes, core
                      analysis, daily
                      volumes of gas
                      injected into and
                      withdrawn from
                      reservoir, and
                      cushion and working
                      gas volumes for
                      each reservoir.
                     (b) Records           1 year after            1 year after            No change.
                      containing            reservoir, field, or    reservoir, field, or
                      information           relevant storage area   relevant storage area
                      relating to           is abandoned.           is abandoned.
                      reservoir gas
                      leakage, showing
                      the total gas
                      leakage and
                      recycled gas.
                     (c) Records on back   1 year or until         1 year or until         No change.
                      pressure tests        superseded.             superseded.
                      field data.
                     (d) Records on back   1 year or until         1 year or until         No change.
                      pressure test         superseded.             superseded.
                      results, gas
                      analysis.
15...............  Maintenance work
                    orders and job
                    orders:
                     (a) Authorizations    6 years...............  5 years...............  Reduced by 1 year.
                      for expenditures
                      for maintenance
                      work to be covered
                      by work orders,
                      including memoranda
                      showing the
                      estimates of costs
                      to be incurred.
                     (b) Work order        6 years...............  5 years...............  Reduced by 1 year.
                      sheets to which are
                      posted in detail
                      the entries for
                      labor, material,
                      and other charges
                      in connection with
                      maintenance, and
                      other work
                      pertaining to
                      natural gas company
                      operations.
                     (c) Summaries of      6 years...............  5 years...............  Reduced by 1 year.
                      expenditures on
                      maintenance and job
                      orders and
                      clearances to
                      operating other
                      accounts (exclusive
                      of plant accounts).
----------------------------------------------------------------------------------------------------------------
                                             PLANT AND DEPRECIATION
----------------------------------------------------------------------------------------------------------------
16...............  Plant ledgers:
                     (a) Ledgers of        50 years..............  25 years..............  Reduced by 25 years.
                      natural gas
                      company's plant
                      accounts including
                      land and other
                      detailed ledgers
                      showing the cost of
                      plant by classes.
                     (b) Continuing plant  6 years after plant is  25 years..............  Reduced.
                      inventory ledger,     retired, provided
                      book or card          mortality data are
                      records showing       retained. See Note 1.
                      description,
                      location,
                      quantities, cost,
                      etc., of physical
                      units (or items) of
                      natural gas plant
                      owned.
17...............  Construction work in
                    progress ledgers:
                     (a) Construction      10 years after          5 years after            Reduced by 5 years.
                      work in progress      clearance to the        clearance to the
                      ledgers.              plant account,          plant account,
                                            provided continuing     provided continuing
                                            plant inventory         plant inventory
                                            records are             records are
                                            maintained; otherwise   maintained; otherwise
                                            6 years after plant     5 years after plant
                                            is retired.             is retired.

[[Page 1517]]

 
                     (b) Work order        10 years after          5 years after           Reduced by 5 years.
                      sheets to which are   clearance to the        clearance to the
                      posted in summary     plant account,          plant account,
                      form or in detail     provided continuing     provided continuing
                      the entries for       plant inventory         plant inventory
                      labor, materials,     records are             records are
                      and other charges     maintained; otherwise   maintained; otherwise
                      for natural gas       6 years after plant     5 years after plant
                      company's plant       is retired.             is retired.
                      additions and the
                      entries closing the
                      work orders to
                      natural gas company
                      plant in service at
                      completion.
                     (c) Authorizations    10 years..............  5 years after           Reduced by 5 years.
                      for expenditures                              clearance to the
                      for additions to                              plant account,
                      natural gas company                           provided continuing
                      plant, including                              plant inventory
                      memoranda showing                             records are
                      the detailed                                  maintained; otherwise
                      estimates of cost                             5 years after plant
                      and the bases                                 is retired.
                      therefor (including
                      original and
                      revised or
                      subsequent
                      authorizations).
                     (d) Requisitions and  10 years..............  5 years after           Reduced by 5 years.
                      registers of                                  clearance to the
                      authorizations for                            plant account,
                      natural gas company                           provided continuing
                      plant expenditures.                           plant inventory
                                                                    records are
                                                                    maintained; otherwise
                                                                    5 years after plant
                                                                    is retired.
                     (e) Completion or     10 years..............  5 years after           Reduced by 5 years.
                      performance reports                           clearance to the
                      showing comparison                            plant account,
                      between authorized                            provided continuing
                      estimates and                                 plant inventory
                      actual expenditures                           records are
                      for natural gas                               maintained; otherwise
                      company plant                                 5 years after plant
                      additions.                                    is retired.
                     (f) Analysis or cost  10 years after          5 years after           Reduced by 5 years.
                      reports showing       clearance to the        clearance to the
                      quantities of         plant, provided         plant account,
                      materials used,       continuing project      provided continuing
                      unit costs, number    plant inventory         plant inventory
                      of man-hours etc.,    records are             records are
                      in connection with    maintained; otherwise   maintained; otherwise
                      completed             6 years after plant     5 years after plant
                      construction          is retired.             is retired.
                      project.
                     (g) Records and       Destroy at option.....  Destroy at option.....  No change.
                      reports pertaining
                      to progress of
                      construction work,
                      the order in which
                      jobs are to be
                      completed, and
                      similar records
                      which do not form a
                      basis of entries to
                      the accounts.
                     (h) Well-drilling     1 year after field or   1 year after field or   No change.
                      logs and well         well is abandoned.      well is abandoned.
                      construction
                      records.
18...............  Retirement work in
                    progress ledgers,
                    work orders, and
                    supplemental records:
                     (a) Work order        10 years after plant    5 years after plant is  Reduced by 5 years.
                      sheets to which are   is retired. See Note    retired.
                      posted the entries    1.
                      for removal costs,
                      materials
                      recovered, and
                      credits to natural
                      gas company plant
                      accounts for cost
                      of plant retirement.
                     (b) Authorizations    10 years after          5 years after plant is  Reduced by 1 year.
                      for retirement of     clearance to the        retired.
                      natural gas company   plant account,
                      plant, including      provided continuing
                      memoranda showing     plant inventory
                      the basis for         records are
                      determination of      maintained; otherwise
                      cost of plant to be   6 years after plant
                      retired and           is retired. See Note
                      estimates of          5.
                      salvage and removal
                      costs.
                     (c) Registers of      10 years..............  5 years...............  Reduced by 5 years.
                      retirement work.

[[Page 1518]]

 
19...............  Summary sheets,         10 years after          5 years...............  Reduced by 5 years.
                    distribution sheets,    clearance to the
                    reports, statements     plant account,
                    and papers directly     provided continuing
                    supporting debits and   plant inventory
                    credits to utility      records are
                    plant accounts not      maintained; otherwise
                    covered by              6 years after plant
                    construction or         is retired.
                    retirement work
                    orders and their
                    supporting records.
20...............  Appraisals and
                    valuations:
                     (a) Appraisals and    3 years after           3 years after           Replaces previous
                      valuations made by    disposition,            appraisal.              text. No substantive
                      the company of its    termination of lease,                           change.
                      properties or         or write off of
                      investments or the    property or
                      properties or         investment.
                      investments of any
                      associated
                      companies. Includes
                      all records
                      essential thereto.
                     (b) Determinations
                      of amounts by which
                      properties or
                      investments of the
                      company or any of
                      its associated
                      companies will be
                      either written up
                      or written down as
                      a result of:.
                      (1) Mergers or                               10 years after          Requirement added.
                       acquisitions.                                completion of
                                                                    transaction or as
                                                                    ordered by the
                                                                    Commission.
                      (2) Asset                                    10 years after          Requirement added.
                       impairments.                                 recognition of asset
                                                                    impairment.
                      (3) Other bases....                          10 years after the      Requirement added.
                                                                    asset was written up
                                                                    or down.
21...............  The original or
                    reproduction of
                    engineering records,
                    drawings and other
                    supporting data for
                    proposed as-
                    constructed utility
                    facilities:.
                     (a) Maps, diagrams,                           Retained until retired  Requirement added.
                      profiles,                                     or abandoned.
                      photographs, field
                      survey notes, plot
                      plan, detail
                      drawings, records
                      of engineering
                      studies and similar
                      records showing the
                      location of
                      proposed or as-
                      constructed
                      facilities.
                     (b) If construction   Retain until receipt    Deleted...............  Deleted.
                      of facility results   of FERC audit report
                      wholly, or in part.   or two years after
                                            auditor's exit
                                            conference, whichever
                                            occurs first.
22...............    Contracts relating
                      to utility records:.
                     (a) Contracts         6 years after plant is  6 years after plant is  No change.
                      relating to           retired.                retired or sold.
                      acquisition or sale
                      of plant.
                   oi2(b) The primary      6 years after rights    6 years after plant is  Text rewritten.
                    records of gas          to the gas acreage      retired or sold.
                    acreage owned, leased   have expired or
                    or optioned excluding   otherwise dissolved.
                    deeds and leases but
                    including such
                    records a lease
                    sheets, leasehold
                    cards, and option
                    agreements.
23...............    Records pertaining    6 years. See Sec.       6 years...............  No change.
                      to reclassification   225.2(j).
                      of utility plant
                      accounts to conform
                      to prescribed
                      systems of accounts
                      including
                      supporting papers
                      showing the bases
                      for such
                      reclassifications.
24...............  Records of accumulated
                    provisions for
                    depreciation and
                    depletion of utility
                    plant and supporting
                    computation of
                    expense:

[[Page 1519]]

 
                     (a) Detailed records  25 years..............  25 years..............  No change.
                      or analysis sheets
                      segregating the
                      accumulated
                      depreciation
                      according to
                      functional
                      classification of
                      plant.
                     (b) Records           25 years. See Note 5..  25 years..............  No change.
                      reflecting the
                      service life of
                      property and the
                      percentage of
                      salvage and cost of
                      removal for
                      property retired
                      from each account
                      for depreciable
                      natural gas plant.
----------------------------------------------------------------------------------------------------------------
                                              PURCHASES AND STORES
----------------------------------------------------------------------------------------------------------------
25...............  Procurement:
                   (a) Agreements entered
                    into for the
                    acquisition of goods
                    or the performance of
                    services. Includes
                    all forms of
                    agreements not
                    specifically set for
                    in Subsection 7 such
                    as but not limited
                    to: Letters of
                    intent, exchange of
                    correspondence,
                    master agreements,
                    term contracts,
                    rental agreements and
                    the various types of
                    purchase orders:
                      (1) For goods or     6 years. See Sec.       6 years...............  No change.
                       services relating    225.2(j).
                       to plant
                       construction.
                      (2) For other goods  6 years...............  6 years...............  No change.
                       or services.
                     (b) Supporting        6 years. See Sec.       6 years...............  No change.
                      documents including   225.2(j).
                      accepted and
                      unaccepted bids or
                      proposals
                      (summaries of
                      unaccepted bids or
                      proposals may be
                      kept in lieu of
                      originals)
                      evidencing all
                      relevant elements
                      of the procurement.
26...............  Material ledgers:       Retain until receipt    6 years after the date  Removed tie to FERC
                    Ledger sheets of        of FERC audit report    records/ledgers were    audit report and set
                    materials and           or two years after      created.                fixed time period.
                    supplies received,      auditors' exit
                    issued, and on hand.    conference, whichever
                                            occurs first.
27...............  Materials and supplies  6 years. See Sec.       6 years...............  No change.
                    received and issued:    225.2(j).
                    Records showing the
                    detailed distribution
                    of materials and
                    supplies issued
                    during accounting
                    periods.
28...............  Records of sales of
                    scrap and materials
                    and supplies:
                     (a) Authorization     3 years...............  3 years...............  No change.
                      for sale of scrap
                      and materials and
                      supplies.
                     (b) Contracts for     3 years...............  3 years...............  No change.
                      sale of scrap
                      materials and
                      supplies.
----------------------------------------------------------------------------------------------------------------
                                        REVENUE ACCOUNTING AND COLLECTION
----------------------------------------------------------------------------------------------------------------
29...............  Customers' service      Retain until receipt    4 years after           Removed tie to FERC
                    applications and        of FERC audit report    expiration.             audit report and set
                    contracts: Contracts    or two years after                              fixed time period.
                    for extensions of       auditors' exit
                    service for which       conference, whichever
                    contributions are       occurs first.
                    made by customers and
                    others.
30...............  Rate schedules:         Retain until receipt    6 years after           Removed tie to FERC
                    General files of        of FERC audit report    published rate sheets   audit report and set
                    published rate sheets   or two years after      and schedules are       fixed time period.
                    and schedules of        auditors' exit          superseded or no
                    utility service         conference, whichever   longer used to charge
                    (including schedules    occurs first.           for services.
                    suspended or
                    superseded).

[[Page 1520]]

 
31...............  Maximum demand,         1 year, except where    If the measurement      Reduced by 5 months.
                    pressure,               the basic chart         data have not been
                    temperature, and        information is          disputed or adjusted,
                    specific gravity        transferred to          destroy after 7
                    charts and demand       another record the      months.
                    meter record card.      charts need only be
                                            retained 6 months,
                                            provided the basic
                                            data is retained 1
                                            year.
32...............  Miscellaneous billing   Destroy at option.....  Destroy at option.....  No change.
                    data: Billing
                    department's copies
                    of contracts with
                    customers (in
                    addition to contracts
                    in general files).
33...............  Revenue summaries:
                     (a) Summaries of      6 years...............  5 years...............   Reduced by 1 year.
                      monthly operating
                      revenues according
                      to classes of
                      service by entire
                      utility.
                     (b) Summaries of      6 years...............  Deleted...............  Deleted.
                      monthly operating
                      revenues according
                      to classes of
                      service by towns,
                      districts, or
                      divisions.
                      (Including
                      summaries of
                      forfeited discounts
                      and penalties).
----------------------------------------------------------------------------------------------------------------
                                                       TAX
----------------------------------------------------------------------------------------------------------------
34...............    Tax records:
                     (a) Copies of
                      returns and
                      schedules filed
                      with taxing
                      authorities,
                      supporting work
                      papers, records of
                      appeals, tax bills
                      and receipts for
                      payment. See
                      Subsection 11(b)
                      for vouchers
                      evidencing
                      disbursements.:.
                      (1) Income tax       7 years after           2 years after final      Reduced by 5 years.
                       returns.             settlement.             tax liability is
                                                                    determined.
                      (2) Property tax     2 years after           2 years after final      No change.
                       returns.             settlement.             tax liability is
                                                                    determined.
                      (3) Sales and other  3 years...............  2 years...............   Reduced by 1 year.
                       use taxes.
                      (4) Other taxes....  2 years after           2 years after final      No change.
                                            settlement.             tax liability is
                                                                    determined.
                      (5) Agreements       7 years after           2 years after final      Reduced by 5 years.
                       between associate    settlement.             tax liability is
                       companies as to                              determined.
                       allocation of
                       consolidated
                       income taxes.
                      (6) Schedule of      6 years...............  2 years final tax       Reduced.
                       allocation of                                liability is
                       consolidated                                 determined.
                       Federal Income
                       taxes among
                       associate
                       companies.
                     (b) Summaries of      Destroy at option.....  Deleted...............  Deleted.
                      taxes paid.
                     (c) Filings with      7 years after           5 years after           Reduced by 2 years
                      taxing authorities    settlement of Federal   discontinuance of       Renumbered (b).
                      to qualify employee   return or               plan.
                      benefit plans.        discontinuance of
                                            plan, whichever is
                                            later.
                     (d) Information       3 years, or for the     3 years or for the      No change Renumbered
                      returns and reports   period of any           period of any           (c).
                      to taxing             extensions granted      extensions granted
                      authorities.          for audit.              for audit.
----------------------------------------------------------------------------------------------------------------
                                                    TREASURY
----------------------------------------------------------------------------------------------------------------
35...............  Statements of funds     Replacement for Item    ......................  Replaces previous
                    and deposits:.          58 currently                                    text. Substantive
                                            contained in 18 CFR                             change.
                                            Sec.  225.3
                     (a) Statements of     ......................  Retain records for the  Requirement added.
                      periodic deposits                             most recent 3
                      with fund                                     calendar years.
                      administrators or
                      trustees.
                     (b) Statements of     ......................  Retain records for the  Requirement added.
                      periodic                                      most recent 3
                      withdrawals from                              calendar years.
                      fund.
                     (c) Statements        ......................  Retain records until    Requirement added.
                      prepared by fund                              the fund is dissolved
                      administrator or                              or terminated.
                      trustees of fund
                      activity including:.

[[Page 1521]]

 
                   (1) Beginning of the
                    year balance of fund;
                   (2) Deposits with the
                    fund;
                   (3) Acquisition of
                    investments held by
                    the fund;
                   (4) Disposition of
                    investments held by
                    the fund;
                   (5) Disbursements from
                    the fund, including
                    party to whom
                    disbursement was
                    made; and
                   (6) End of year
                    balance of fund.
36...............  Records of deposits
                    with banks and
                    others:
                     (a) Statements from   Destroy at option       Destroy at option       No change.
                      depositories          after completion of     after completion of
                      showing the details   audit by independent    audit by independent
                      of funds received,    accountants.            accountants.
                      disbursed,
                      transferred, and
                      balances on deposit.
                     (b) Check stubs,      6 years...............  3 years...............  Reduced by 3 years.
                      registers, or other
                      records of checks
                      issued.
37...............  Records of receipts
                    and disbursements:
                     (a) Daily or other    Destroy at option       Destroy at option       No change.
                      periodic statements   after completion of     after completion of
                      of receipts or        annual audit by         annual audit by
                      disbursements of      independent             independent
                      funds.                accountants.            accountants.
                     (b) Records or        Destroy at option       Destroy at option       No change.
                      periodic statements   after completion of     after completion of
                      of outstanding        annual audit by         annual audit by
                      vouchers, checks,     independent             independent
                      drafts, etc.,         accountants.            accountants.
                      issued and not
                      presented.
                     (c) Reports of        Destroy at option       Destroy at option       No change.
                      associates showing    after completion of     after completion of
                      working fund          annual audit by         annual audit by
                      transactions and      independent             independent
                      summaries thereof.    accountants.            accountants.
                     (d) Reports of        Destroy at option       Destroy at option       No change.
                      revenue collections   after completion of     after completion of
                      by field cashiers,    annual audit by         annual audit by
                      pay stations, etc.    independent             independent
                                            accountants.            accountants.
----------------------------------------------------------------------------------------------------------------
                                                  MISCELLANEOUS
----------------------------------------------------------------------------------------------------------------
38...............  Statistics:
                     (a) Annual            10 years after date of  5 years...............  Reduced by 5 years.
                      financial,            report.
                      operating and
                      statistical reports
                      regularly prepared
                      in the course of
                      business for
                      internal
                      administrative or
                      operating purposes
                      (and not used for
                      the basis for
                      entries to accounts
                      of the companies
                      concerned to show
                      the results of
                      operations and the
                      financial condition
                      of the utility.
                     (b) Quarterly,        2 years after date of   Deleted...............  Deleted.
                      monthly or other      report.
                      periodic financial,
                      operating and other
                      statistical reports
                      as above.
39...............  Budgets and other       3 years...............  3 years...............  No change.
                    forecasts (prepared
                    for internal
                    administrative or
                    operating purposes)
                    of estimated future
                    income, receipts and
                    expenditures in
                    connection with
                    financing,
                    construction and
                    operations and
                    acquisitions or
                    disposals of
                    properties or
                    investments.

[[Page 1522]]

 
40...............  Records of              Retain until the        Retain consistent with  Text rewritten.
                    predecessors and        records of utility      the requirements for
                    former associates.      plant acquired have     the same types of
                                            been integrated with    records of the
                                            the utility's plant     natural gas company.
                                            records and the
                                            original cost of the
                                            acquired plant is
                                            adequately supported
                                            by cost details and
                                            until it is
                                            ascertained that such
                                            records are not
                                            necessary to
                                            fulfillment of any
                                            unsatisfied
                                            regulatory
                                            requirement, such as:
                                            (a) Approval and
                                            recording of
                                            accounting
                                            adjustments resulting
                                            from reclassification
                                            and original cost
                                            studies and
                                            acceptance of
                                            property acquisition
                                            journal entries, (b)
                                            establishment of
                                            continuing plant
                                            inventory records or
                                            accounting evidence
                                            of the cost of long-
                                            lived property in the
                                            absence of such
                                            continuing plant
                                            inventory records.
41...............  Reports to Federal and
                    State regulatory
                    commissions:
                     (a) Annual
                      financial,
                      operating and
                      statistical
                      reports:
                      (1) Federal          Retain until receipt    5 years...............  Removed tie to FERC
                       agencies.            of FERC audit report                            audit report and set
                                            or two years after                              fixed time period.
                                            auditors' exit
                                            conference which ever
                                            occurs first.
                      (2) State            Retain as long as the   Deleted...............  Deleted.
                       commissions.         active tariffs or
                                            rates are in effect.
                     (b) Special or
                      periodic reports on
                      the following
                      subjects:
                      (1) Transactions     6 years...............  Deleted...............  Deleted.
                       with associated
                       companies.
                      (2) Budgets of       3 years...............  Deleted...............  Deleted.
                       expenditures.
                      (4) Employees and    5 years...............  Deleted...............  Deleted.
                       wages.
                      (5) Loans to         3 years after fully     Deleted...............  Deleted.
                       officers and         paid.
                       employees.
                      (7) Purchases and    10 years after plant    Deleted...............  Deleted.
                       sales, utility       is retired.
                       properties.
                      (8) Plant changes--  10 years after plant    Deleted...............  Deleted.
                       units added and      is retired.
                       retired..
                     (c) Records required  3 years...............  Deleted...............  Deleted
                      to be retained
                      under Sec. 277.210
                      of this chapter,
                      relating to the
                      Natural Gas Policy
                      Act of 1978.
42...............  Other miscellaneous     6 years...............  2 years...............  Reduced by 4 years.
                    records: Copies of                                                      Description title
                    advertisements by the                                                   change. Text
                    company in behalf of                                                    rewritten.
                    itself or any
                    associate company in
                    newspapers, magazines
                    and other
                    publications
                    including records
                    thereof (excluding
                    advertising of
                    product, appliances,
                    employment
                    opportunities,
                    services, territory,
                    routine notices and
                    invitations for bids
                    for securities all of
                    which may be
                    destroyed at option).
----------------------------------------------------------------------------------------------------------------


[[Page 1523]]

Note: This Appendix Will Not Appear in The Code of Federal 
Regulations

Appendix C--Current and Proposed Records Retention Requirements (18 
CFR Part 356.3)

----------------------------------------------------------------------------------------------------------------
                                             Retention period 18     Proposed retention
     Item No.            Description             CFR 356.11                period            Summary of changes
----------------------------------------------------------------------------------------------------------------
                                              CORPORATE AND GENERAL
----------------------------------------------------------------------------------------------------------------
1................  Incorporation and
                    reorganization:
                     (a) Charter of        Permanently...........  Permanently or at       No change.
                      certificate of                                termination of the
                      incorporation and                             corporation's
                      amendments.                                   existence.
                     (b) Legal documents   Permanently...........  Permanently or at       No change.
                      related to mergers,                           termination of the
                      consolidations,                               corporation's
                      reorganizations,                              existence.
                      receiverships and
                      similar actions
                      which effect the
                      identity or
                      organization of the
                      company.
2................  Minutes to Directors',  Permanently...........  5 years...............  Reduced.
                    Executive
                    Committees',
                    Stockholders', and
                    other corporate
                    meetings.
3................  Titles, franchises and
                    authorities:
                     (a) Certificates of   Until expiration or     Until expiration or     No change.
                      public convenience    cancellation.           cancellation.
                      and necessity
                      issued by
                      regulating bodies.
                     (b) Operating         Until expiration or     Until expiration or     No change.
                      authorizations and    cancellation.           cancellation.
                      exemptions to
                      operate issued by
                      regulating bodies.
                     (c) Copies of formal  1 year after            1 year after            No change.
                      orders of             expiration or           expiration or
                      regulatory bodies     cancellation.           cancellation.
                      served upon the
                      company.
                     (d) Deeds, charters,  3 years after           3 years after           No change.
                      and other title       disposition of          disposition of
                      papers.               property.               property.
4................  Contracts and
                    Agreements:
                     (a) Contracts and     10 years after          4 years after           Reduced by 6 years.
                      related papers for    expiration, provided    expiration, provided
                      transactions which    there is no pending     there is no pending
                      are subject to the    litigation involved,    litigation or
                      provisions of the     and provided the        governmental inquiry
                      Clayton Antitrust     company notifies the    or proceeding
                      Act (15 U.S.C. 20).   Commission of it        involved.
                                            intended action 2
                                            weeks prior to the
                                            date the records are
                                            to be destroyed.
                     (b) Service           3 years after           3 years after           No change.
                      contracts, such as    expiration or           expiration or
                      for operational       termination.            termination.
                      management,
                      accounting,
                      financial or legal
                      service, and
                      agreements with
                      agents.
                     (c) Contracts and     3 years after           3 years after           No change.
                      other agreements      expiration or           expiration or
                      relating to the       termination.            termination.
                      construction,
                      acquisition or sale
                      of real property
                      and equipment
                      except as otherwise
                      provided in (a)
                      above.
5................  Accountant's,
                    auditor's, and
                    inspector's reports:
                     (a) Certifications    3 years...............  3 years...............  No change.
                      and reports of
                      examinations and
                      audits conducted by
                      public and
                      certified public
                      accountants.
                     (b) Reports of        3 years...............  3 years...............  No change.
                      examinations and
                      audits conducted by
                      internal auditors,
                      time inspectors,
                      weight inspectors,
                      and others.
----------------------------------------------------------------------------------------------------------------
                                                    TREASURY
----------------------------------------------------------------------------------------------------------------
6................  Long-term debt
                    records:

[[Page 1524]]

 
                     (a) Bond indentures,  6 years after           6 years after           No change.
                      underwriting,         redemption.             redemption.
                      mortgage, and other
                      long-term credit
                      agreements.
----------------------------------------------------------------------------------------------------------------
                                              FINANCIAL ACCOUNTING
----------------------------------------------------------------------------------------------------------------
7................  Ledgers:
                     (a) General and       50 years..............  3 years...............  Reduced by 47 years.
                      subsidiary ledgers
                      with indexes
                      thereto.
                     (b) Balance Sheets    5 years...............  3 years...............  Reduced by 2 years.
                      and Trial Balance
                      sheets of general
                      and subsidiary
                      ledgers.
8................  Journals:
                     (a) General Journals  50 years..............  3 years...............  Reduced by 47 years.
                      (except for
                      ratemaking
                      organizations).
                     (b) Subsidiary        6 years...............  3 years...............  Reduced by 3 years.
                      Journals ad any
                      supporting data,
                      except as otherwise
                      provided for,
                      necessary to
                      explain journal
                      entries.
                     (c) Schedules of      Until superseded......  Until superseded......  No change.
                      recurring or
                      standard journal
                      entries with entry
                      identifications.
9................  Vouchers:
                     (a) Voucher           6 years...............  5 years...............  Reduced by 1 year.
                      registers or
                      equivalent.
                     (b) Paid and          6 years...............  5 years...............  Reduced by 1 year.
                      cancelled vouchers,
                      expenditure
                      authorizations,
                      detailed
                      distribution sheets
                      and other
                      supporting data
                      including original
                      bills and invoices,
                      except as otherwise
                      provided herein.
10...............  Accounts receivable,    3 years after           3 years after           No change.
                    record, or register     settlement.             settlement.
                    of accounts
                    receivable.
11...............  Records of accounting   6 years after           3 years after           Reduced by 3 years.
                    codes and               discontinuance.         discontinuance.
                    instructions.
----------------------------------------------------------------------------------------------------------------
                                              PROPERTY AND EQUIPMENT
----------------------------------------------------------------------------------------------------------------
12...............  Property records:
                     (a) Records which     3 years after           3 years after           No change.
                      maintained complete   disposition of          disposition of
                      information on cost   property.               property.
                      or other value of
                      all real property
                      or equipment.
                     (b) Records and       3 years after           3 years after           No change.
                      additions and         disposition of          disposition of
                      betterments made to   property.               property.
                      property and
                      equipment.
                     (c) Records           3 years after           3 years after           No change.
                      pertaining to         disposition of          disposition of
                      retirements and       property.               property.
                      replacements of
                      property and
                      equipment.
                     (d) Records
                      pertaining to
                      depreciation:
                      (1) When group       10 years..............  3 years after           Added requirement.
                       method and                                   disposition of
                       depreciation rates                           property.
                       are prescribed by
                       the Commission.
                      (2) Other..........  3 years after           3 years after           No change.
                                            disposition of          disposition of
                                            property.               property.
                     (e) Records of        3 years after           3 years after           No change.
                      equipment number      disposition of          disposition of
                      changes.              property.               property.
                     (f) Records of motor  3 years after           Destroy at option.....  Changed requirement.
                      and engine changes.   disposition of
                                            property.

[[Page 1525]]

 
                     (g) Files of          3 years...............  3 years after           Added requirement.
                      detailed                                      disposition of
                      authorizations for                            property.
                      expenditures, work
                      or job orders
                      showing estimated
                      costs of additions
                      and betterments,
                      extensions,
                      replacements, major
                      repairs and
                      dismantlements,
                      approved by proper
                      officials, together
                      with supporting
                      data.
                     (h) Periodical        3 years after prior     3 years after prior     No change.
                      inventories of        inventory.              inventory.
                      property and
                      equipment.
13...............  Engineering Records:
                     (a) Plans and         3 years after the       3 years after the       No change.
                      specifications.       disposition of the      disposition of the
                                            property.               property.
                     (b) Estimates of      15 years..............  15 years..............  No change.
                      work, engineering
                      studies,
                      construction bids,
                      and similar data
                      pertaining to
                      property changes
                      actually made.
----------------------------------------------------------------------------------------------------------------
                                              PERSONNEL AND PAYROLL
----------------------------------------------------------------------------------------------------------------
14...............  Payroll Records:
                     (a) Registers,        3 years...............  3 years...............  No change.
                      abstracts, or
                      summaries showing
                      earnings,
                      deductions and
                      amounts paid to
                      each employee by
                      pay periods.
----------------------------------------------------------------------------------------------------------------
                     (b) Records showing   3 years...............  3 years...............  No change.
                      the detailed
                      distribution of
                      salaries and wages
                      to various accounts.
----------------------------------------------------------------------------------------------------------------
                                                      TAXES
----------------------------------------------------------------------------------------------------------------
15...............  Copies of returns and
                    schedules filed with
                    taxing authorities,
                    supporting work
                    papers, records or
                    appeals, tax bills
                    and receipts for
                    payments. (See item
                    9(b) for vouchers
                    evidencing
                    disbursements):
                     (a) Income tax        3 years after           3 years after final     No change.
                      returns.              settlement.             tax liability is
                                                                    determined.
                     (b) Property tax      3 years after           3 years after final     No change.
                      returns.              settlement.             tax liability is
                                                                    determined.
                     (c) Sales and use     3 years...............  3 years...............  No change.
                      taxes.
                     (d) Other taxes.....  3 years after           3 years after final     No change.
                                            settlement.             tax liability is
                                                                    determined.
                     (e) Agreements        3 years after           3 years after final     No change.
                      between affiliated    settlement.             tax liability is
                      companies as to                               determined.
                      allocation of
                      consolidated income
                      taxes.
                     (f) Schedule of       3 years after           3 years after final     No change.
                      allocation of         settlement.             tax liability is
                      consolidated                                  determined.
                      Federal income
                      taxes among
                      affiliated
                      companies.
16...............  Information returns     3 years, or for the     3 years, or for the     No change.
                    and reports to taxing   period of any           period of any
                    authorities.            extensions granted      extensions granted
                                            for audits.             for audits.
----------------------------------------------------------------------------------------------------------------
                                               PURCHASE AND STORES
----------------------------------------------------------------------------------------------------------------
17...............  Material ledger,        2 years...............  2 years...............  No change.
                    records of material
                    and supplies on hand
                    at all locations.

[[Page 1526]]

 
18...............  Inventories: General    2 years...............  2 years...............  No change.
                    Inventories of
                    material and supplies
                    on hand, with record
                    of adjustments
                    between accounts
                    required to bring
                    stores records into
                    agreement with
                    physical inventories.
----------------------------------------------------------------------------------------------------------------
                                                 TRANSPORTATION
----------------------------------------------------------------------------------------------------------------
19...............  Oil and other products  3 years...............  3 years...............  No change.
                    stocks and movement
                    pipelines only: (a)
                    Records and receipts,
                    deliveries, pumpings,
                    stocks, and over and
                    short
                     (b) Run tickets       3 years...............  3 years...............  No change.
                      showing quantities
                      by tank measurement
                      of meter reading of
                      oil and other
                      products received
                      into the delivered
                      from company's
                      lines.
                     (c) Statements of     3 years...............  3 years...............  No change.
                      oil and oil
                      products consumed
                      as fuel including
                      quantity value, and
                      where consumed.
                     (d) Statement of oil  3 years...............  3 years...............  No change.
                      and other products
                      lost by line breaks
                      and leaks including
                      quantity, value,
                      and location of
                      breaks and leaks.
                     (e) Reports of power  3 years...............  3 years...............  No change.
                      furnished by
                      producers: Monthly
                      reports of the
                      quantity of oil run
                      in connection with
                      which power was
                      furnished by
                      producers, and
                      records of payment
                      for such power.
                     (f) Records of        3 years after           3 years after           No change.
                      producers' property   disconnection.          disconnection.
                      identifying
                      ownership and
                      location for
                      producers' tanks or
                      wells to which
                      carrier's lines are
                      connected.
                     (g) Division or       3 years...............  3 years...............  No change.
                      other periodical
                      inventory reports
                      of oil and other
                      products on hand.
                     (h) Division orders:  3 years after           3 years after           No change.
                      Directions received   discontinuance.         discontinuance.
                      by carrier as to
                      the division of
                      interest and to
                      whose account
                      transported oil
                      should be credited.
                     (i) Directions        3 years after           3 years after           No change.
                      received by the       discontinuance.         discontinuance.
                      carrier for the
                      transfer of
                      division order
                      interests from one
                      interest owner to
                      another.
                     (j) Transfer orders   3 years...............  3 years...............  No change.
                      for the transfer of
                      ownership of oil or
                      other products in
                      carrier's custody.
----------------------------------------------------------------------------------------------------------------
                                                TARIFFS AND RATES
----------------------------------------------------------------------------------------------------------------
20...............  Official file copies    3 years after           3 years after           No change.
                    of tariffs,             expiration or           expiration or
                    classifications,        cancellation.           cancellation.
                    division sheets, and
                    circulars relative to
                    the transportation of
                    property.

[[Page 1527]]

 
21...............  Authorities and         3 years...............  3 years...............  No change.
                    supporting papers for
                    transportation of
                    property for free or
                    at reduced rates.
22...............  Copies of concurrences  2 years after           2 years after           No change.
                    and powers of           expiration or           expiration or
                    attorney.               cancellation.           cancellation.
23...............  Correspondence and      2 years after           2 years after           No change.
                    working papers in       cancellation of         cancellation of
                    connection with the     tariff.                 tariff.
                    making of rates and
                    compliance of
                    tariffs,
                    classifications,
                    division sheets, and
                    circulars affecting
                    the transportation of
                    property.
----------------------------------------------------------------------------------------------------------------
                                             REPORTS AND STATISTICS
----------------------------------------------------------------------------------------------------------------
24...............  Reports to Federal
                    Energy Regulatory
                    Commission and other
                    regulatory bodies:
                     (a) Annual            10 years..............  5 years...............  Reduced by 5 years.
                      financial,
                      operating and
                      statistical
                      reports, file
                      copies of, and
                      supporting data.
                     (b) Valuation         3 years after           Delete item in its      Deleted.
                      inventory reports     disposition of the      entirety.
                      and records           property.
                      together with
                      related notes,
                      maps, and sketches;
                      underlying
                      engineering, land,
                      and accounting
                      reports, pricing
                      schedules, summary
                      of collection
                      sheets, yearly
                      reports of changes
                      and other
                      miscellaneous data,
                      all relating to the
                      valuation of the
                      company's property
                      by the Federal
                      Energy Regulatory
                      Commission or other
                      regulatory body.
----------------------------------------------------------------------------------------------------------------

[FR Doc. 00-59 Filed 1-7-00; 8:45 am]
BILLING CODE 6717-01-P