[Federal Register Volume 65, Number 152 (Monday, August 7, 2000)]
[Rules and Regulations]
[Pages 48148-48169]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19505]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 125, 225, and 356

[Docket No. RM99-8-000; Order No. 617]


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

Issued July 27, 2000.
AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Final rule.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) is 
amending its records retention regulations for public utilities and 
licensees, natural gas companies, and oil pipeline companies 
(``regulated companies''). The Commission is updating its regulations 
and eliminating unnecessary burdens on regulated companies as part of 
its ongoing program to reduce or eliminate burdensome and unnecessary 
regulatory requirements.

EFFECTIVE DATE: This final rule is effective January 1, 2001.

ADDRESSES: Office of the Secretary, Federal Energy Regulatory 
Commission,

[[Page 48149]]

888 First Street, NE, Washington, DC 20426.

FOR FURTHER INFORMATION CONTACT:

Mary C. Lauermann (Technical Information), Office of Finance, 
Accounting and Operations, 888 First Street, NE, Washington, DC 20426, 
(202) 208-0087
Julia A. Lake (Legal Information), Office of the General Counsel, 888 
First Street, NE, Washington, DC 20426, (202) 208-2019

SUPPLEMENTARY INFORMATION:
Before Commissioners: James J. Hoecker, Chairman; William L. Massey, 
Linda Breathitt, and Curt Hebert, Jr.

I. Introduction

    The Federal Energy Regulatory Commission (Commission) is amending 
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 final rule is part of the Commission's ongoing program 
to update and eliminate burdensome and unnecessary requirements. These 
changes will 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 (Mar. 28, 1983).
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    In response to an 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 final rule 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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    On December 21, 1999, the Commission issued a notice of proposed 
rulemaking (NOPR) in Docket No. RM99-8-000.\9\ The Commission received 
eight comments on the NOPR representing the electric and gas pipeline 
industries.\10\ No comments were received from oil pipeline companies 
or licensees.
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    \9\ 65 FR 1484 (Jan. 10, 2000).
    \10\ The American Gas Association (AGA), The Association of 
Records Managers and Administrators--Houston Chapter (ARMA), ANR 
Pipeline Company and Colorado Interstate Gas Company (ANR & CIG), 
Edison Electric Institute (EEI), Southern Companies (Southern), The 
United Illuminating Company (UI), UtiliCorp United, Williston Basin 
Interstate Pipeline Company.
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III. Discussion

    The Commission has made modifications to the current public 
utilities and licensees, natural gas companies, and oil pipeline 
companies records retention regulations. These 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 one retention reserve 
item. Therefore, the final order will reduce or eliminate burdensome 
and unnecessary regulatory requirements for public utilities and 
licensees, natural gas companies, and oil pipeline companies. All 
respondents to the NOPR commended the Commission's efforts in reducing 
retention requirements. However, several respondents felt the 
Commission had not gone far enough in reducing requirements for 
accounting records and ledgers. Specific comments are addressed below.

A. Changes to Public Utilities and Licensees, and Natural Gas Companies 
General Instructions

    The final rule makes the following changes to the general 
instructions of parts 125 and 225, incorporates the Commission's new 
regulation on record storage media, and clarifies the Commission's 
regulations on keeping records used to support costs in rate cases and 
depreciation.
    1. 125.2(d) and 225.2(d)--Incorporate the accounting issuance AI99-
2-000 \11\ on record storage media.
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    \11\ 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(m) and 225.2(m)--Incorporate a paragraph on life or 
mortality study data needed to be retained for depreciation purposes.
    The Commission also made some minor editorial corrections to 
reflect changes proposed in the NOPR.
    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 shortened certain retention periods in Secs. 125.3 
and 225.3 of the Commission's regulations to reduce the record keeping 
burden on the industries. The records retention periods for the 
following item numbers and description of records found in the 
regulations are 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.

[[Page 48150]]

    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.
Industry Comments--Retention of General Ledgers
    ANR Pipeline Company and Colorado Interstate Gas Company (ANR & 
CIG), Edison Electric Institute (EEI), The United Illuminating Company 
(UI), Southern Companies (Southern), and Association of Records 
Managers and Administrators--Houston Chapter (ARMA) stated that the 
retention requirements for general ledgers, journal vouchers, and 
indexes thereto should be reduced to 10 years, or if the requirement 
for ledgers (both general and plant) is maintained at 25 years, then 
the retention requirements for supporting documentation (journal 
entries, vouchers, etc.) should be reduced to no more than 10 years. 
Additionally, clarification was requested for retaining general 
accounting records for 25 years.
Commission Response
    The request to further reduce retention requirements to 10 years 
for general ledgers, journal vouchers and indexes thereto is granted, 
and the electric and gas schedules have been revised. However, 
companies must maintain sufficient records to support fully any 
current, future, or pending rate case (see the revised regulatory text 
for Secs. 125.2(k) and 225.2(k)).
Industry Comments--Electric and Gas Versus Oil
    EEI, UI, and Southern requested that record retention requirements 
in part 125 (and 225) be further reduced to conform to the retention 
periods in part 356. Additionally, EEI and UI wanted the Commission to 
provide substantive reasons for longer time periods for utilities and 
licensees than for oil pipelines for each category of information.
Commission Response
    The retention period needs for both electric and gas differ greatly 
from those of oil due to the nature of the industries, the licensing 
aspects of hydroelectric projects, the certification process in gas, 
and the cost based ratemaking in both electric and gas. Additionally, 
the regulatory/statutory requirements of the electric and gas 
industries differ greatly from those of the oil industry. As stated in 
the NOPR, the oil industry retention requirements and the reductions in 
part 356 are based on a statutory mandate that limits oil pipeline 
company reparations recovery to 3 years from the time the cause of 
action accrues. Therefore, retention of records beyond statutorily 
mandated reparation periods in the oil industry is not necessary. The 
Commission denies the request.
Industry Comments--Business Purpose
    EEI and UI requested the Commission provide a business purpose or 
regulatory need for periods in excess of 10 years (general ledgers), 
and substantive reasons for longer time periods for utilities and 
licensees than for oil pipelines.
Commission Response
    The Commission has revised the retention period for general ledgers 
to 10 years for public utilities and licensees and natural gas pipeline 
companies, but denies the request to reduce the retention period to 
bring it in line with the period required for oil pipeline companies. 
The Commission needs sufficient data available for scrutiny in order to 
carry out its regulatory mandates. As rate case filings become more 
infrequent, it is imperative that the Commission, and its staff, have 
access to supporting rate-case documentation, as well as documentation 
that might be pertinent to complaint proceedings. Because there is no 
statutory mandate that limits utilities and licensees reparations 
recovery time frames, records must be maintained for a significant 
period longer than those for an oil pipeline which is subject to 
statutorily mandated recovery period of 3 years from the time the cause 
of action accrues.
Industry Comments--Commission Focus
    EEI and UI stated that the revised retention requirements do not 
conform to the Commission's new stated focus. They stated that:

    The rationale for many of the current retention periods is no 
longer valid. Retention periods were established for many types of 
records based on audit cycles carried out by Commission staff. Under 
current regulation, many records have 6 or 10 year retention 
periods. This would make records available during one or two audit 
cycles that, historically, were on a 3 to 5 year basis. Based on the 
Commission's previous audit practices, this retention period made 
sense. Proposals in the NOPR do not reduce many of these prior 
requirements despite the fact that in 1998, the Commission changed 
its audit practices to focus on particular issues of concern.

Commission Response
    We agree that the Commission has expressly changed its audit focus. 
That change illustrates the need for the retention of records as 
outlined in the final rule. The ``ad hoc'' nature of audits in the 
future requires that data necessary to complete those audits be 
retained for a period long enough to provide sufficient data for 
review. The final rule does reduce the overall retention requirements 
significantly from the current regulation. Additionally, records are 
not retained solely for the purpose of audit. Data must be maintained 
to support current, future, or pending rate cases submitted to the 
Commission.
Industry Comments--Service Applications
    ANR & CIG requested a reduction in the proposed retention period 
for service applications to 1 year after the date of the application 
versus 4 years because the terms of the contract would supersede any in 
the service application.
Commission Response
    The statute of limitations for imposing civil penalties for 
violations is 3 years. A 4 year retention period covers the statute of 
limitations time period of 3 years plus 1 additional year to conduct 
any extensive investigation. Service applications for awarded contracts 
are to be maintained for the same period so it is possible to go back, 
for audit purposes, to determine the circumstances that existed at that 
time and not just the current circumstances. The Commission denies the 
request.
Industry Comments--Gas Measurement Data
    ANR & CIG requested that the retention period for gas measurement 
data be increased from 7 months to 1 year, which could be extended in 
the event of an unresolved dispute. The concern of the company is that, 
if measurement data for interconnections was destroyed after seven 
months because no dispute was filed, it would be difficult to identify 
and determine the cause of any equipment malfunctions. The companies 
stated that

[[Page 48151]]

a year would be sufficient to identify malfunctions in the absence of a 
complaint, but that seven months would be too short a time. The 
companies further stated that maintaining measurement data for a year 
would not be burdensome.
Commission Response
    Considering that most companies maintain records for a complete 
business year regardless of when such records can be destroyed, the 
Commission grants this request and has revised the schedule to require 
gas measurement data be retained for a year. Additionally, the 
Commission takes this opportunity to clarify that for retention item 
13(e) related to ``well records, including clearing, bailing, shooting 
etc., records; rock pressure; open flow; production, gas analysts' 
reports etc.,'' records must be maintained for 1 year after the field 
or relevant production area is abandoned.
Industry Comments--Plant in Service
    ANR & CIG, EEI, UI, and Southern requested clarification of the 
retention requirements for plant in service and the seeming conflict 
between Secs. 125.2(g) and 225.2(g) and Secs. 125.3 and 225.3 items 16 
(a) and (b) plant ledgers. The companies wanted to know if there were 
any records related to plant in service which must be retained for a 
period that is longer than that set forth in the NOPR schedule, and 
whether the schedule or text controlled.
Commission Response
    Sections 125.2(g) and 225.2(g) state that plant in service records 
must be maintained for 25 years or until the plant is removed from 
service, all removal/restoration activities are complete, and all costs 
are removed from the accounting records unless accounting adjustments 
from reclassification and original cost studies have been approved by 
the commission having jurisdiction. Therefore, if the plant in question 
has a life longer than 25 years, Secs. 125.2(g) and 225.2(g) govern. 
Additionally, EEI and UI recommended that general instruction 125.2(g) 
be deleted as it does not add clarity to the requirement. The 
Commission denies this request. Sections 125.2(g) and 225.2(g) address 
more than just the retention periods for plant, they address additions, 
retirements, and betterments.
Industry Comments--Affiliates
    The American Gas Association (AGA), EEI, and UI requested 
clarification of the changes to Secs. 125.2(i) and 225.2(i) regarding 
imposing retention requirements on affiliates. AGA believes the 
Commission intends to impose retention requirements on a natural gas 
company or jurisdictional electric utility only with respect to 
situations where an affiliate performs services for it. EEI and UI are 
concerned that the proposed revised language may be interpreted to 
expand the Commission's authority inappropriately beyond the current 
regulation, and recommends the Commission not make the proposed change 
to the regulations.
Commission Response
    The Commission grants the request for clarification, but denies 
EEI's request not to change the language in Sec. 125.2(i). The 
Commission does not intend to expand its authority or retention 
requirements to non-regulated affiliates. Only those records supporting 
services provided to pipelines or utilities by affiliates must be 
maintained by the affiliates. Records supporting services performed for 
affiliates must be maintained by utilities to provide information 
related to the nature of the transaction, the amounts involved, and the 
accounts used to record the transactions.
Industry Comments--Technology Management
    ARMA requested clarification of the requirements related to 
Secs. 125.3 and 225.3--item 5 Information Technology Management which 
states ``retain as long as it represents an active viable program or 
for periods prescribed for related output data, whichever is shorter.''
Commission Response
    The Commission clarifies that this item is strictly referring to 
software program documentation and any revisions thereto. The original 
source data used as input for data processing and data processing 
report outputs must be maintained for the retention period established 
for that data type, as identified elsewhere in the schedule. To further 
clarify, the schedule has been modified to include ``software'' as part 
of the item text.
Industry Comments--Standardization Across Media
    ARMA felt that the non-standardization of retention periods across 
media types, i.e., paper versus electronic record retention 
requirements could lead to confusion if an oil, gas, and/or electric 
company chose electronic records retention to meet Commission 
requirements. ARMA cited Secs. 125.3 and 225.3 item 5 as the source of 
the confusion. Sections 125.3 and 225.3 item 5 states: ``Retain as long 
as it represents an active viable program or for periods prescribed for 
related output data, whichever is shorter.''
Commission Response
    This requirement speaks only to the documentation supporting 
computer programs still in use by the utility. As long as the program 
is active and viable the supporting documentation for that program 
should be retained. If the program has been superseded, the supporting 
software documentation can be destroyed. Additionally, ARMA states that 
``the Commission is not requiring the electronic, non-graphic, data and 
programs be maintained for the same periods as required paper 
documents. This is incorrect. Sections 125.3 and 225.3 item 5 addresses 
only computer software documentation and revisions thereto. The 
original source data used for input for data processing and data 
processing report printouts must be retained for the applicable periods 
identified elsewhere in the schedule.
Industry Comments--Uniform Retention Across Media
    ARMA, EEI, UI, and Southern want the Commission to adopt uniform 
retention periods across media types and record types. ARMA stated that 
the Commission opened the door for companies to maintain records in 
various media, including digital media, tape disk, or image files.
Commission Response
    The Commission purposefully established no specific media type to 
allow companies flexibility in the selection of media which would 
provide the ability to adapt quickly to changes in technology without 
the necessity of obtaining Commission approval of the use of media not 
provided for in the regulations. We do not see this as leading to 
confusion but rather to efficiencies of storage. EEI and UI recommend 
uniformity in retention periods and lowering requirements to maximize 
efficiencies of business operations. The proposed regulations provide 
uniformity by type of information to be retained. Further the retention 
periods are reduced from those presently in place. We believe that the 
revised regulations will provide for efficiencies and savings from 
reduced retention periods and unrestricted use of storage media.
Industry Comments--Mergers and Acquisitions
    ARMA requested clarification to Secs. 125.3 and 225.3 item 20(b)(1) 
Mergers

[[Page 48152]]

and Acquisitions. ARMA states that the use of the phrase ``* * * or as 
ordered by the Commission'' along with the identified 10 year time 
frame for retention of plant and depreciation records relevant to 
mergers and acquisitions does not provide a true retention guideline. 
ARMA suggests that a defined period, such as audit completion, should 
be used.
Commission Comments
    The Commission does not concur with using audit completion as the 
retention requirement. The stated 10 year retention period is valid. A 
longer period would be on an exception basis as merited by the 
specifics of a particular case. The longer period would not be an 
across-the-board, generally applicable requirement. As such, this 
requirement would not be burdensome on the industry as a whole.
Industry Comments--Retention Costs
    EEI and UI raised the issue that excessive record retention imposes 
substantial costs. They argued that documents with long retention 
requirements require migration of data to updated or new media several 
times during their lives. They stated that the migration of data to new 
media is ``costly, time-consuming, and labor intensive'' and that 
savings resulting from the current reduction in retention requirements 
will not be as significant as the Commission envisions. They pointed 
out that the Commission's accounting release on Records Storage Media 
\12\ gave regulated utilities ``flexibility to select storage media 
other than those previously prescribed, the new media requirements will 
not alleviate the burden of long retention requirements.''
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    \12\ See note 8.
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Commission Response
    The Commission purposefully did not mandate a storage media in 
order to reduce additional burden on industry. Migration to updated 
media is only necessary for those records that are maintained on media 
that does not provide an archival feature, or cannot be moved to 
archival media.
Industry Comments--OMB Reauthorization of FERC Form 555
    EEI and UI stated that the NOPR failed to adhere to the conditions 
contained in the Office of Management and Budget's (OMB) 
reauthorization of the FERC Form 555, ``Preservation of Records of 
Public Utilities and Licensees, Natural Gas Companies and Oil Pipeline 
Companies'' of July 22, 1998. The companies stated that the Commission 
followed OMB's terms of clearance for reduction of the retention period 
for plant ledgers (from 50 to 25 years), but did not reduce the 
retention period of general ledgers as outlined in the clearance (from 
50 to 10 years).
Commission Response
    The Commission has revised the retention period for general ledgers 
with this final rule to the 10 year period as requested in the OMB 
reauthorization and by industry.
Industry Response--Reporting Burden
    EEI and UI believe that the estimated reporting burden included in 
the NOPR is inaccurate and low. The companies state that the revised 
retention requirements may allow utilities to reduce record storage 
costs, but reductions in labor costs will be minimal. Additionally, 
long retention requirements will require data to be transferred to 
different media several times during their lives as companies upgrade 
their systems.
Commission Response
    Burden estimates were based on projected reductions to retention 
periods and only serve as an average. Staff found no definitive studies 
on the ratio of staffing to record storage, but substantial savings 
should result due to the reduction in retention periods coinciding with 
the opportunity to retain records in whatever medium companies select. 
Although EEI and UI performed a informal survey and determined that 
from 9 (small companies) to 26 (large companies) full-time staff were 
needed to comply with record retention requirements, a report on 
information management \13\ concluded ``There is definitely no simple 
relationship between the number of records maintained and the number of 
people needed to maintain them.'' The report continued that an informal 
survey determined that, in many cases, very few people can adequately 
manage a great deal of paper, especially when there is high control, 
high automation, and low retrieval rates. The Commission does not 
concur with industry's comments.
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    \13\ Ann Balough, ``The Cost of Information Management'', The 
Records & Retrieval Report, The Newsletter for Professional 
Information Managers, Vol. 13, No. 10, Dec. 1997.
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Industry Comments--Miscellaneous
    Southern noted an apparent inadvertent omission in retention item 
13.1 Production--Electric (less Nuclear), where an entry for ``station 
and system generation reports and clearance logs'' was omitted from the 
schedule, and the sub-items below that entry were associated with 
``generation and output logs with supporting data''. The Commission 
concurs, and retention item 13.1(c) ``Station and system generation 
reports and clearance logs,'' has been added. Additionally, sub-items 
13.1(b)(1) and (b)(2) have been renumbered to sub-items 13.1(c)(1) 
Hydro-electric, and (2) Steam and others, and been properly associated 
with item 13.1(c). Retention items 13.1(c) through (f) have been 
renumbered to 13.1(d) through (g).
    Southern requested clarification of the textual descriptions of 
retention items 34(c) and (d) tax records between the schedule and the 
NOPR appendix. The NOPR appendix was included for informational 
purposes only, and may have included preliminary language revised in 
the final NOPR; the language included in the regulatory text governs.
    Southern noted that the retention period for retention item 38 
Statistics, was listed as 5 years in the schedule and 3 years in the 
NOPR appendix, and requested clarification of the proposed retention 
period. The NOPR appendix was included for informational purposes only; 
the language included in the regulatory text governs, and the correct 
retention period is 5 years.
    Southern requested clarification on whether the Commission would 
categorize customer service orders as contracts, work orders, or some 
other record item under the proposed rule. The characterization of a 
service order lies in the nature of the order, there is no generic 
definition or answer.
    EEI and UI request clarification of the revised retention 
requirement for Journal Vouchers, retention item 8(b)(1) ``Charging 
Plant Accounts,'' in the appendix to the NOPR. They point out that the 
change between the current and proposed retention periods is summarized 
as revised, but that the current period is 6 years and the proposed 
revised period is 25 years, and state that this represents an increase 
and not a reduction to the current schedule. All the Commission has 
done is clarify an already existing regulation. The current schedule 
identifies a retention period of 6 years for journal vouchers charging 
plant accounts, but also requires regulated companies to see current 
Sec. 125.2(j) for additional governing language. Section 125.2(j) 
requires records related to plant be retained a minimum of 25 years. 
EEI and UI are correct that there has been no reduction in the 
retention requirement, but neither has there been an increase.
    Southern requested adoption of consistent retention periods for the

[[Page 48153]]

same or similar record types, i.e., service contracts and commodity 
contracts. Southern points out that in Sec. 125.3 items 3(a) service 
contracts, and 3(b) commodity contracts the retention periods are 3 
years and 4 years respectively. Also, in Sec. 125.3 item 29 customer 
service contracts, the retention period is 4 years. The Commission 
concurs and clarifies that the retention period for service, commodity, 
and customer service contracts is 4 years. Section 125.3 item 3(a) has 
been revised to reflect this clarification.
Audit Requirement Changes
    In addition, the Commission is revising the public utilities and 
licensees and natural gas companies requirements that are tied to 
``FERC audit reports.'' The Commission no longer audits on a 3 year 
cycle. Instead it conducts industry wide audits on specific Commission 
accounting issues. The Commission's 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 is 
adding records retention requirements for the following public 
utilities and licensees, and natural gas companies record categories:
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.
    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.
    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.
    Retention item 35, Statement of funds and deposits, is revised in 
response to FERC policy statement on Post-Employment Benefits Other 
Than Pension \14\ (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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    \14\ 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 is removing all but one reserve item in both public 
utilities and licensees, and natural gas companies (see schedules at 
Secs. 125.3 and 225.3). 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 
a 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.
Industry Comments
    Southern requested that the Commission refrain from deleting the 
reserve items and from renumbering the Sec. 125.3 schedule, as such 
actions would require the company procedures and guidelines citing 
items in the schedule to be revised. Southern Company stated that re-
numbering the schedule solely for the purpose of deleting [reserved] 
items creates an unnecessary burden for Southern.
Commission Response
    The purpose of the NOPR was to bring the retention periods up-to-
date. Therefore, this wholesale change and a complete renumbering of 
the regulatory text is appropriate. Removal of the reserved items 
better identifies only those records the Commission needs to fulfill 
its mission, and eliminates confusion for those entities that consist 
of both public utilities and licensees and natural gas companies. The 
Commission also feels that the prospective nature and the 
implementation date of the final rule provides sufficient time for 
companies to update their regulations prior to the new schedule going 
into effect. Therefore, the Commission denies this request.

E. Changes to Oil Pipeline Companies General Instructions

    The Commission is reorganizing the oil pipeline companies general 
instructions to better align them to the public utilities and 
licensees, and natural gas companies general instructions (see 
Sec. 356.2). This reorganization makes the general instructions for all 
industries consistent.

F. Shortening of Oil Pipeline Companies Records Retention Periods

    The Commission shortened certain oil pipeline companies retention 
periods for 7 of the 24 items to 3 years for Sec. 356 (see schedule at 
Sec. 356.3). These reductions represent a significant reduction in the 
reporting burden on the oil industry. They are based on the statutory 
mandate that limits oil pipeline company reparations recovery to 3 
years from the time the cause of action accrues. \15\ We are reducing 
the following oil pipeline companies records retention requirements to 
3 years:
---------------------------------------------------------------------------

    \15\ 49 U.S.C. 1, Sec. 16(3).
---------------------------------------------------------------------------

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 revised records retention requirements for the 
following oil pipeline companies record items (see schedule at 
Sec. 356.3):
Item Number and Description
    12. (d) (1) Group method and depreciation rate.
    12. (g) Files of detailed authorizations for expenditures.
    Record 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. 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.

IV. Environmental Statement

    Commission regulations require that an environmental assessment or 
an

[[Page 48154]]

environmental impact statement be prepared for any Commission action 
that may have a significant adverse effect on the human environment. 
\16\ No environmental consideration is necessary for the promulgation 
of a rule that is clarifying, corrective, procedural or that does not 
substantially change the effect of legislation or regulations being 
amended, \17\ and also for information gathering, analysis, and 
dissemination. \18\ The final rule changes do not substantially change 
the effect of the underlying legislation or change the forms. 
Accordingly, no environmental assessments are necessary.
---------------------------------------------------------------------------

    \16\ Regulations Implementing National Environmental Policy Act, 
52 FR 47897 (Dec. 17, 1987); FERC Stats. & Regs. para. 30,783 (Dec. 
10, 1987).
    \17\ 18 CFR 380.4(a)(2)(ii).
    \18\ 18 CFR 380.4(a)(5).
---------------------------------------------------------------------------

V. Regulatory Flexibility Act

    The Commission received no comments on its certification, in the 
NOPR, that the proposed rule would not have a significant economic 
impact on a substantial number of small entities and that an initial 
Regulatory Flexibility Act (RFA) \19\ analysis is not required.
---------------------------------------------------------------------------

    \19\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------

    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.
    This final rule will not have an adverse impact on small entities, 
nor will it impose upon them any significant costs of compliance. 
Rather, 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. \20\ Therefore, the Commission certifies that this rule 
will not have a significant economic impact on a substantial number of 
small entities.
---------------------------------------------------------------------------

    \20\ 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.
---------------------------------------------------------------------------

VI. Information Collection Statement

    The following collection of information contained in this final 
rule was submitted to the Office of Management and Budget (OMB) for 
review under 3507(d) of the Paperwork Reduction Act of 1995. \21\ FERC 
identifies the information retained under parts 125, 225, and 356 as 
FERC Form 555. The reporting burden to implement this final rule is as 
follows:
---------------------------------------------------------------------------

    \21\ 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
----------------------------------------------------------------------------------------------------------------

    The NOPR was submitted to OMB at the time of issuance. OMB terms of 
clearance, provided in their May 19, 2000 response, was that the NOPR 
``engendered significant public comment and that OMB will review the 
package at the final rule stage after FERC has completed any revisions 
to the information collection.'' Comments were received from EEI and UI 
and are addressed in Section III--Discussion. The retention 
requirements remain essentially the same as those in the NOPR, 
therefore, the estimated annual filing burden remains the same. The 
burden estimates for complying with this rule are set out in the 
preceding Table.
    Total Annual Hours for Collection (Reporting + Record keeping, (if 
appropriate) = 556,200). Based on the Commission's experience with 
current record keeping requirement practices, it is estimated that 
about 1,080 hours \22\ are needed to retain records per year, for a 
total annual burden of 556,200 hours. The Commission estimates that the 
final rule will significantly decrease the burden of the current 
regulations by shortening the retention periods for certain records.
---------------------------------------------------------------------------

    \22\ Previous to this proposed rule, the reporting burden was 
estimated at approximately 2400 hours per response.
---------------------------------------------------------------------------

    Information Collection Costs: The Commission has projected the 
average annualized cost for all respondents to comply with these 
requirements to be:
    Annualized Capital/Startup Costs: $0.00.
    Annualized Costs (Operations & maintenance): $29,274,430.
    Total Annualized Costs: $29,274,430.
    The OMB regulations require OMB to approve certain information 
collection requirements imposed by agency rule. \23\ Accordingly, 
pursuant to OMB regulations the Commission provided notice of 
information collection to OMB.
---------------------------------------------------------------------------

    \23\ 5 CFR 1320.11.
---------------------------------------------------------------------------

    Title: FERC Form 555, Preservation of Records of Public Utilities, 
Natural Gas Companies, and Oil Pipeline Companies.
    Action: 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 final 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 ensuring 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.

[[Page 48155]]

    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. Document Availability

    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's 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 accessed 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 
[email protected]) or the Public Reference Room 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.

VIII. Effective Date and Congressional Notification

    This rule will take effect on January 1, 2001. The Commission has 
determined, with the concurrence of the Administrator of the Office of 
Information and Regulatory Affairs of the Office of Management and 
Budget, that this Rule is not a ``major rule'' within the meaning of 
section 251 of the Small Business Regulatory Enforcement Fairness Act 
of 1966.\24\ The Commission will submit the final rule to both houses 
of Congress and the General Accounting Office. \25\
---------------------------------------------------------------------------

    \24\ 5 U.S.C. 804(2).
    \25\ 5 U.S.C. 801(a)(1)(A).
---------------------------------------------------------------------------

List of Subjects

18 CFR Part 125

    Electric power; Electric utilities; Reporting and record keeping 
requirements.

18 CFR Part 225

    Natural gas; Reporting and record keeping requirements.

18 CFR Part 356

    Pipelines; Reporting and record keeping requirements

    By the Commission.
David P. Boergers,
Secretary.

    In consideration of the foregoing, the Commission amends 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.


    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, and paragraph (n) is 
removed:


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

[[Page 48156]]

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 a public utility or licensee wants to 
reflect costs in a current, future, or pending rate case, or if a 
public utility or licensee 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:


Sec. 125.3  Schedule of records and periods of retention.

Table of Contents

Corporate and General

1. Reports to stockholders.
2. Organizational documents.
3. Contracts including amendments 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 orders 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 relating to utility plant.
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. [Reserved.]
38. Statistics.
39. Budgets and other forecasts.
40. Records of predecessors companies.
41. Reports to Federal and State regulatory commissions.
42. Advertising.

              Schedule of Records and Periods of Retention
------------------------------------------------------------------------
        Item No. and description                 Retention period
------------------------------------------------------------------------
         Corporate and General
 
1. Reports to stockholders: Annual       5 years.
 reports or statements to stockholders.
2. Organizational documents:
    (a) Minute books of stockholders',   5 years or termination of the
     directors', and directors'           corporation's existence,
     committee meetings.                  whichever occurs first.
    (b) Titles, franchises, and          6 years after final non-
     licenses: Copies of formal orders    appealable order.
     of regulatory commissions served
     upon the utility.
3. Contracts, including amendments and
 agreements (except contracts provided
 for elsewhere):

[[Page 48157]]

 
    (a) Service contracts, such as for   All contracts, related
     management, accounting, and          memoranda, and revisions
     financial services.                  should be retained for 4 years
                                          after expiration or until the
                                          conclusion of any contract
                                          disputes pertaining to such
                                          contracts, whichever is later.
    (b) Contracts with others for        All contracts, related
     transmission or the purchase, sale   memoranda, and revisions
     or interchange of product.           should be retained for 4 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           For the same periods as
     clarifying or explaining             contracts to which they
     provisions of contracts listed       relate.
     above, including requests for
     discounts.
    (d) Card or book records of          For the same periods as
     contracts, leases, and agreements    contracts to which they
     made, showing dates of expirations   relate.
     and of renewals, memoranda of
     receipts, and payments under such
     contracts.
4. Accountants' and auditors' reports:
    (a) Reports of examinations and      5 years after the date of the
     audits by accountants and auditors   report.
     not in the regular employ of the
     utility (such as reports of public
     accounting firms and commission
     accountants).
    (b) Internal audit reports and       5 years after the date of the
     working papers.                      report.
 
   Information Technology Management
 
5. Automatic data processing records     Retain as long as it represents
 (retain original source data used as     an active viable program or
 input for data processing and data       for periods prescribed for
 processing report printouts for the      related output data, whichever
 applicable periods prescribed            is shorter.
 elsewhere in the schedule): Software
 program documentation and revisions
 thereto.
 
       General Accounting Records
 
6. General and subsidiary ledgers:
    (a) Ledgers:
        (1) General ledgers............  10 years.
        (2) Ledgers subsidiary or        10 years.
         auxiliary to general ledgers
         except ledgers provided for
         elsewhere.
    (b) Indexes:
        (1) Indexes to general ledgers.  10 years.
        (2) Indexes to subsidiary        10 years.
         ledgers except ledgers
         provided for elsewhere.
    (c) Trial balance sheets of general  2 years.
     and subsidiary ledgers.
7. Journals: General and subsidiary....  10 years.
8. Journal vouchers and journal entries
 including supporting detail:
    (a) Journal vouchers and journal     10 years.
     entries.
    (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   5 years after close of fiscal
 or auxiliary books.                      year.
10. Voucher registers: Voucher           5 years.
 registers or similar records when used
 as a source document.
11. Vouchers:
    (a) Paid and canceled vouchers (one  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    5 years.
     of specific vouchers.
    (e) Lists of unaudited bills         Destroy at option.
     (accounts 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    Destroy at option after
     in force, showing coverage,          expiration of such policies.
     premiums paid, and expiration
     dates.
    (b) Records of amounts recovered     6 years.
     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--Public utilities and
 licensees (less Nuclear):
    (a) Boiler-tube failure report.....  3 years.
    (b) Generation and output logs with  3 years.
     supporting data:.
    (c) Station and system generation
     reports and clearance logs:
        (1) Hydro-electric.............  25 years.
        (2) Steam and others...........  6 years.
    (d) Generating high-tension and low- 3 years.
     tension load records.

[[Page 48158]]

 
    (e) Load curves, temperature logs,   3 years.
     coal, and water logs.
    (f) Gauge-reading reports..........  2 years, except river flow data
                                          collected in connection with
                                          hydro operation must be
                                          retained for life of
                                          corporation.
    (g) Recording instrumentation        1 year, except where the basic
     charts.                              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--
 Public utilities and licensees.
    (a) Substation and transmission      3 years.
     line logs.
    (b) System operator's daily logs     3 years.
     and reports of operation.
    (c) Transformer history records....  For life of transformer.
    (d) Records of transformer           Destroy at option.
     inspections, oil tests, etc.
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
     utility 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 utility plant         25 years.
     accounts including land and other
     detailed ledgers showing the cost
     of utility plant by classes.
    (b) Continuing plant inventory       25 years.
     ledger, book 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    5 years after clearance to
     ledgers.                             plant account, provided
                                          continuing plant inventory
                                          records are maintained;
                                          otherwise 5 years after plant
                                          is retired.
    (b) Work orders sheets to which are  5 years after clearance to
     posted in summary form or in         plant account, provided
     detail the entries for labor,        continuing plant inventory
     materials, and other charges for     records are maintained;
     utility plant additions and the      otherwise 5 years after plant
     entries closing the work orders to   is retired.
     utility plant in service at
     completion.
    (c) Authorizations for expenditures  5 years after clearance to
     for additions to utility plant,      plant account except where
     including memoranda showing the      there are ongoing Commission
     detailed estimates of cost, and      proceedings.
     the bases therefor (including
     original and revised or subsequent
     authorizations).
    (d) Requisitions and registers of    5 years after clearance to
     authorizations for utility plant     plant account except where
     expenditures.                        there are ongoing Commission
                                          proceedings.
    (e) Completion or performance        5 years after clearance to
     reports showing comparison between   plant account except where
     authorized estimates and actual      there are ongoing Commission
     expenditures for utility plant       proceedings.
     additions.
    (f) Analysis or cost reports         5 years after clearance to
     showing quantities of materials      plant account except where
     used, unit costs, number of man-     there are ongoing Commission
     hours etc., in connection with       proceedings.
     completed construction project.
    (g) Records and reports pertaining   Destroy at option.
     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 sheets to which are   5 years after plant is retired.
     posted the entries for removal
     costs, materials recovered, and
     credits to utility plant accounts
     for cost of plant retirement.
    (b) Authorizations for retirement    5 years after plant is retired.
     of 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         5 years.
 sheets, reports, 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:

[[Page 48159]]

 
    (a) Appraisals and valuations made   3 years after appraisal.
     by 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      Retain until retired.
 engineering 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            6 years after plant is retired
     acquisition or sale of plant.        or sold.
    (b) Contracts and other agreements   6 years after plant is retired
     relating to services performed in    or sold.
     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.
 reclassification 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:
    (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
     utility plant.
 
          Purchase 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        6 years.
         relating to plant construction.
        (2) For other goods or services  6 years.
    (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 the
 materials and supplies received,         records/ledgers 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      3 years.
     materials and supplies.
 
   Revenue Accounting and Collecting
 
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
 published rate sheets and schedules of   sheets and schedules are
 utility service. Including schedules     superseded or no longer used
 suspended or superseded                  to charge for utility service.
31. Maximum demand, and demand meter     1 year, except where the basic
 record cards                             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      5 years.
 monthly operating revenues according
 to classes of service. Including
 summaries of forfeited discounts and
 penalties
 
                  Tax
 
34. Tax records:

[[Page 48160]]

 
    (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           2 years after final tax
         associate companies as to        liability is determined.
         allocation of consolidated
         income taxes.
        (6) Schedule of allocation of    2 years after final tax
         consolidated Federal income      liability is determined.
         taxes among associate
         companies.
        (b) Filings with taxing          5 years after discontinuance of
         authorities to qualify           plan.
         employee benefit plans.
        (c) Information returns and      3 years after final tax
         reports to taxing authorities.   liability is determined.
                Treasury
35. Statements of funds and deposits...  For nuclear decommissioning
                                          funds, retain records for all
                                          items listed for 3 years after
                                          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  Retain records for the most
     with fund administrators or          recent 3 years.
     trustees.
    (b) Statements of periodic           Retain records for the most
     withdrawals from fund.               recent 3 years.
    (c) Statements prepared by fund      Retain records until the fund
     administrator or trustees of fund    is dissolved or terminated.
     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;
        (6) End of year balance of
         fund.
36. Records of deposits with banks and
 others:
    (a) Statements from depositories     Destroy at option after
     showing the details of funds         completion of audit by
     received, disbursed, transferred,    independent accountants.
     and balances on deposit.
    (b) Check stubs, registers, or       3 years.
     other records of checks issued.
             Miscellaneous
37. [Reserved]
38. Statistics: Financial, operating     5 years.
 and statistical reports used for
 internal administrative or operating
 purposes.
39. Budgets and other forecasts          3 years.
 (prepared 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
                                          utility.
41. Reports to Federal and State         5 years.
 regulatory commissions including
 annual financial, operating and
 statistical reports.
42. Advertising: Copies of               2 years.
 advertisements by 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).
------------------------------------------------------------------------

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, and 
paragraph (n) is removed:


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.

[[Page 48161]]

    (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 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 including amendments 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 journal 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 orders 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 relating to natural gas.
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 companies.
41. Reports to Federal and State regulatory commissions.
42. Advertising.

[[Page 48162]]



              Schedule of Records and Periods of Retention
------------------------------------------------------------------------
        Item No. and description                 Retention period
------------------------------------------------------------------------
         Corporate and General
 
1. Reports to stockholders: Annual       5 years.
 reports or statements to stockholders.
2. Organizational documents:
    (a) Minute books of stockholders',   5 years or termination of the
     directors', and directors'           corporation's existence,
     committee meetings.                  whichever occurs first.
    (b) Titles, franchises, and          6 years after final non-
     licenses: Copies of formal orders    appealable order.
     of regulatory commissions served
     upon the natural gas company.
3. Contracts including amendments and
 agreements (except contracts provided
 for elsewhere):
    (a) Service contracts, such as for   All contracts, related
     management, accounting, and          memoranda, and revisions
     financial services.                  should be retained for 4 years
                                          after expiration or until the
                                          conclusion of any contract
                                          disputes pertaining to such
                                          contracts, whichever is later.
    (b) Contracts with others for        All contracts, related
     transportation or for the            memoranda, and revisions
     purchase, sale or interchange of     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           For the same periods as
     clarifying or explaining             contracts to which they
     provisions of contracts listed       relate.
     above, including requests for
     discounts.
    (d) Card or book records of          For the same periods as
     contracts, leases, and agreements    contracts to which they
     made that show dates of              relate.
     expirations, renewals, memoranda
     of receipts, and payments under
     such contracts.
4. Accountants' and auditors' reports:
    (a) Reports of examinations and      5 years after the date of the
     audits by accountants and auditors   report.
     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       5 years after the date of the
     working papers.                      report.
 
   Information Technology Management
 
5. Automatic data processing records     Retain as long as it represents
 (retain original source data used as     an active viable program or
 input for data processing and data       for periods prescribed for
 processing report printouts for the      related output data, whichever
 applicable periods prescribed            is shorter.
 elsewhere in the schedule): Software
 program documentation and revisions
 thereto.
 
       General Accounting Records
 
6. General and subsidiary ledgers:
    (a) Ledgers:
        (1) General ledgers............  10 years.
        (2) Ledgers subsidiary or        10 years.
         auxiliary to general ledgers
         except ledgers provided for
         elsewhere.
    (b) Indexes:
        (1) Indexes to general ledgers.  10 years.
        (2) Indexes to subsidiary        10 years.
         ledgers except ledgers
         provided for elsewhere.
    (c) Trial balance sheets of general  2 years.
     and subsidiary ledgers.
7. Journals: General and subsidiary....  10 years.
8. Journal vouchers and journal entries
 including supporting detail:
    (a) Journal vouchers and journal     10 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    5 years after close of fiscal
 or auxiliary books.                      year.
10. Voucher registers: Voucher           5 years.
 registers or similar records when used
 as a source document.
11. Vouchers:
    (a) Paid and canceled 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    5 years.
     of specific vouchers.
    (e) Lists of unaudited bills         Destroy at option.
     (accounts 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    Destroy at option after
     in force, showing coverage,          expiration.
     premiums paid, and expiration
     dates.

[[Page 48163]]

 
    (b) Records of amounts recovered     6 years.
     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) Recording instrument charts      If the measurement data have
     such as pressure (static and/or      not been disputed or adjusted,
     differential), temperature,          destroy after 1 year.
     specific gravity, heating value,
     etc.
    (b) Test of heating value at         If the measurement data have
     stations and outlying points.        not been disputed or adjusted,
                                          destroy after 1 year.
    (c) Records of gas produced, out,    If the measurement data have
     and holder stock.                    not been disputed or adjusted,
                                          destroy after 1 year.
    (d) Analysis of (gas produced)       If the measurement data have
     B.T.U. and sulphur content.          not been disputed or adjusted,
                                          destroy after 1 year.
    (e) Well records, including          1 year after field or relevant
     clearing, bailing, shooting etc.,    production area abandoned
     records; rock pressure; open flow;
     production, gas analysts' reports
     etc.
    (f) Gas measuring records..........  If the measurement data have
                                          not been disputed or adjusted,
                                          destroy after 1 year.
14. Transmission and distribution--Gas:
    (a) Substation and transmission      If the measurement data have
     line log.                            not been disputed or adjusted,
                                          destroy after 1 year.
    (b) System operator's daily logs     If the measurement data have
     and reports of operation.            not been disputed or adjusted,
                                          destroy after 1 year.
    (c) Gas measuring records..........  If the measurement data have
                                          not been disputed or adjusted,
                                          destroy after 1 year.
    (d) Transmission line operating      If the measurement data have
     reports.                             not been disputed or adjusted,
                                          destroy after 1 year.
    (e) Compression operation and        If the measurement data have
     reports.                             not been disputed or adjusted,
                                          destroy after 1 year.
    (f) Recording instrument charts      If the measurement data have
     such as pressure (static and/or      not been disputed or adjusted,
     differential), temperature,          destroy after 1 year.
     specific heating value, etc.
14.1 Underground storage of natural
 gas:
    (a) Well records, reports, and logs  1 year after reservoir, field,
     which include data relating to       or relevant storage area is
     pressures, injected volumes,         abandoned.
     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,
     relating to reservoir gas leakage,   or relevant storage area is
     showing the total gas leakage, and   abandoned.
     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           25 years.
     company's plant accounts including
     land and other detailed ledgers
     showing the cost of plant by class.
    (b) Continuing plant inventory       25 years.
     ledger, 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
     ledgers.                             plant 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
     posted in summary form or in         plant account, provided
     detail the entries for labor,        continuing plant inventory
     materials, and other charges for     records are maintained;
     natural gas company's plant          otherwise 5 years after plant
     additions and the entries closing    is retired.
     the work orders to plant in
     service at completion.
    (c) Authorizations for expenditures  5 years after clearance to the
     for additions to natural gas         plant account, provided
     company plant, including memoranda   continuing plant inventory
     showing the detailed estimates of    records are maintained;
     cost, and the bases therefor         otherwise 5 years after plant
     (including original and revised or   is retired.
     subsequent authorizations).

[[Page 48164]]

 
    (d) Requisitions and registers of    5 years after clearance to the
     authorizations for natural gas       plant account, provided
     company plant expenditures.          continuing plant inventory
                                          records are maintained;
                                          otherwise 5 years after plant
                                          is retired.
    (e) Completion or performance        5 years after clearance to the
     reports showing comparison between   plant account, provided
     authorized estimates and actual      continuing plant inventory
     expenditures for natural gas         records are maintained;
     company plant additions.             otherwise 5 years after plant
                                          is retired.
    (f) Analysis or cost reports         5 years after clearance to the
     showing quantities of materials      plant account, provided
     used, unit costs, number of man-     continuing plant inventory
     hours etc., in connection with       records are maintained;
     completed construction project.      otherwise 5 years after plant
                                          is retired.
    (g) Records and reports pertaining   Destroy at option.
     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 logs and well      1 year after field or well is
     construction records.                abandoned.
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    5 years after plant is retired.
     of 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         5 years.
 sheets, 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   3 years after appraisal.
     by 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
 engineering records, drawings, and       abandoned.
 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            6 years after plant is retired
     acquisition or sale of plant.        or sold.
    (b) The primary records of gas       6 years after plant is retired
     acreage owned, leased or optioned    or sold.
     excluding deeds and leases but
     including such records as lease
     sheets, leasehold cards, and
     option agreements.
23. Records pertaining to                6 years.
 reclassification 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        6 years.
         relating to plant construction.
        (2) For other goods or services  6 years.

[[Page 48165]]

 
    (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/
 materials and supplies received,         ledgers 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 and  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
 published rate sheets and schedules of   sheets and schedules are
 natural gas company service (including   superseded or no longer used
 schedules suspended or superseded).      to charge for services.
31. Maximum demand, pressure,            If the measurement data have
 temperature, and specific gravity        not been disputed or adjusted,
 charts and demand meter record card.     destroy after 7 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      5 years.
 monthly 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           2 years after final tax
         associate companies as to        liability is determined.
         allocation of consolidated
         income taxes.
        (6) Schedule of allocation of    2 years after final tax
         consolidated Federal income      liability is determined.
         taxes among associate
         companies.
    (b) Filings with taxing authorities  5 years after discontinuance of
     to qualify employee benefit plans.   plan.
        (c) Information returns and      3 years after final tax
         reports to taxing authorities.   liability is determined.
 
                Treasury
 
35. Statements of funds and deposits:
    (a) Statements of periodic deposits  Retain records for the most
     with fund administrators or          recent 3 years.
     trustees.
    (b) Statements of periodic           Retain records for the most
     withdrawals from fund.               recent 3 years.
    (c) Statements prepared by fund      Retain records until the fund
     administrator or trustees of fund    is 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
     showing the details of funds         completion of audit by
     received, disbursed, transferred,    independent accountants.
     and balances on deposit.
    (b) Check stubs, registers, or       3 years.
     other records of checks issued.
37. Records of receipts and
 disbursements:
    (a) Daily or other periodic          Destroy at option after
     statements of fund receipts or       completion of annual audit by
     disbursements.                       independent accountants.
    (b) Records or periodic statements   Destroy at option after
     of outstanding vouchers, checks,     completion of annual audit by
     drafts, etc., issued and not         independent accountants.
     presented.
    (c) Reports of associates showing    Destroy at option after
     working fund transactions and        completion of annual audit by
     summaries thereof.                   independent accountants.
    (d) Reports of revenue collections   Destroy at option after
     by field cashiers, pay stations,     completion of annual audit by
     etc.                                 independent accountants.
 

[[Page 48166]]

 
             Miscellaneous
 
38. Statistics: Financial, operating,    5 years.
 and statistical reports used for
 internal administrative or operating
 purposes.
39. Budgets and other forecasts          3 years.
 (prepared 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         5 years.
 regulatory commissions including
 annual financial, operating, and
 statistical reports.
42. Advertising: Copies of               2 years.
 advertisements by 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 enforceable 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 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

[[Page 48167]]

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 these regulations.
    (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, Executive Committees, and Stockholders
3. Titles, franchises, and authorities.
4. Contracts and agreements.
5. Accountants', auditors', and inspectors' 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 tax returns and supporting schedules.
16. Information returns, and reports to taxing authorities.

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. and description                 Retention period
------------------------------------------------------------------------
         Corporate and General
 
1. Incorporation and reorganization:
    (a) Charter of certificate of        Permanently or at termination
     incorporation and amendments.        of the corporation's
                                          existence.
    (b) Legal documents related to       Permanently or at termination
     mergers, consolidations,             of the corporation's
     reorganizations, receiverships,      existence.
     and similar actions which affect
     the identity or organization of
     the company.
2. Minutes to Directors', Executive       5 years.
 Committees', Stockholders', and other
 corporate meetings.
3. Titles, franchises, and authorities:
    (a) Certificates of public           Until expiration or
     convenience and necessity issued     cancellation.
     by regulating bodies.
    (b) Operating authorizations and     Until expiration or
     exemptions to operate issued by      cancellation.
     regulating bodies.
    (c) Copies of formal orders of       1 year after expiration or
     regulatory bodies served upon the    cancellation.
     company.
    (d) Deeds, charters, and other       3 years after disposition of
     title papers.                        property.
4. Contracts and agreements:
    (a) Contracts and related papers     4 years after expiration,
     for transactions which are subject   provided there is no pending
     to the provisions of the Clayton     litigation or governmental
     Antitrust Act (15 U.S.C. 20).        inquiry or proceeding
                                          involved.
    (b) Service contracts, such as for   3 years after expiration or
     operational management,              termination.
     accounting, financial or legal
     service, and agreements with
     agents.
    (c) Contracts and other agreements   3 years after expiration or
     relating to the construction,        termination.
     acquisition or sale of real
     property and equipment except as
     otherwise provided in paragraph
     (a) of this item.
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      3 years.
     audits conducted by internal
     auditors, time inspectors, weight
     inspectors, and others.
 

[[Page 48168]]

 
                Treasury
 
6. Long-term debt records:
    (a) Bond indentures, underwriting,   6 years after redemption.
     mortgage, and other long-term
     credit agreements.
 
          Financial Accounting
 
7. Ledgers:
    (a) General and subsidiary ledgers   3 years.
     with indexes thereto.
    (b) Balance sheets and trial         3 years.
     balance sheets of general and
     subsidiary ledgers.
8. Journals:
    (a) General journals...............  3 years.
    (b) Subsidiary journals and any      3 years.
     supporting data, except as
     otherwise provided for, necessary
     to explain journal entries.
    (c) Schedules of recurring or        Until superseded.
     standard journal entries with
     entry identifications.
9. Vouchers:
    (a) Voucher registers or equivalent  5 years.
    (b) Paid and canceled vouchers,      5 years.
     expenditure authorizations,
     detailed distribution sheets, and
     other supporting data including
     original bills and invoices,
     except as otherwise provided
     herein.
10. Accounts receivable, record, or      3 years after settlement.
 register of accounts receivable.
11. Records of accounting codes and      3 years after discontinuance.
 instructions.
 
         Property and Equipment
 
12. Property records:
    (a) Records which maintain complete  3 years after disposition of
     information on cost or other value   property.
     of all real property or equipment.
    (b) Records and additions and        3 years after disposition of
     betterments made to property and     property.
     equipment.
    (c) Records pertaining to            3 years after disposition of
     retirements and replacements of      property.
     property and equipment.
    (d) Records pertaining to
     depreciation:
        (1) When group method and        3 years after disposition of
         depreciation rates are           property.
         prescribed by the Commission.
        (2) Other......................  3 years after disposition of
                                          property.
    (e) Records of equipment number      3 years after disposition of
     changes.                             property.
    (f) Records of motor and engine      Destroy at option.
     changes.
    (g) Files of detailed                3 years after disposition of
     authorizations for expenditures,     property.
     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        3 years after prior inventory.
     property and equipment.
13. Engineering records:
    (a) Plans and specifications.......  3 years after the disposition
                                          of the property.
    (b) Estimates of work, engineering   15 years.
     studies, construction bids, and
     similar data pertaining to
     property changes actually made.
 
         Personnel and Payroll
 
14. Payroll records:
    (a) Registers, abstracts, or         3 years.
     summaries 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.
 
                 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     3 years after final tax
     companies as to allocation of        liability is determined.
     consolidated income taxes.
    (f) Schedule of allocation of        3 years after final tax
     consolidated Federal income taxes    liability is determined.
     among associate companies.
16. Information returns and reports to   3 years, or for the period of
 taxing authorities.                      any extensions granted for
                                          audits.
 
          Purchase and Stores
 
17. Material ledger, records of          2 years.
 material and supplies on hand at all
 locations.

[[Page 48169]]

 
18. Inventories: General Inventories of  2 years.
 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 stocks and
 movement pipelines only:
    (a) Records and receipts,            3 years.
     deliveries, pumpings, stocks, and
     over and short.
    (b) Run tickets showing quantities   3 years.
     by tank measurement of meter
     reading of oil and other products
     received into the delivered from
     company's lines.
    (c) Statements of oil and oil        3 years.
     products consumed as fuel
     including quantity value, and
     where consumed.
    (d) Statement of oil and other       3 years.
     products lost by line breaks and
     leaks including quantity, value,
     and location of breaks and leaks.
    (e) Reports of power furnished by    3 years.
     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 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     3 years.
     inventory reports of oil and other
     products on hand.
    (h) Division orders: Directions      3 years after discontinuance.
     received by carrier as to the
     division of interest and to whose
     account transported oil should be
     credited.
    (i) Directions received by the       3 years after discontinuance.
     carrier for the transfer of
     division order interests from one
     interest owner to another.
    (j) Transfer orders for the          3 years.
     transfer of ownership of oil or
     other products in carrier's
     custody.
 
           Tariffs and Rates
 
20. Official file copies of tariffs,     3 years after expiration or
 classifications, division sheets, and    cancelation.
 circulars relative to the
 transportation of property.
21. Authorities and supporting papers    3 years.
 for transportation of property for
 free or at reduced rates.
22.Copies of concurrences and powers of  2 years after expiration or
 attorney.                                cancelation.
23. Correspondence and working papers    2 years after cancelation of
 in connection with the making of rates   tariff.
 and compliance of tariffs,
 classifications, division sheets, and
 circulars affecting the transportation
 of property.
 
         Reports and Statistics
 
24. Reports to Federal Energy            5 years.
 Regulatory Commission and other
 regulatory bodies, annual financial,
 operating and statistical reports,
 file copies, and supporting data.
------------------------------------------------------------------------

[FR Doc. 00-19505 Filed 8-4-00; 8:45 am]
BILLING CODE 6717-01-P