Code of Federal Regulations Title 18. Conservation of Power and Water Resources 18 CFR Pt. 352 Part 352 Uniform systems of accounts prescribed for oil pipeline companies subject to the provisions of the Interstate Commerce Act

1. Accounts means the accounts prescribed in this system of accounts.

2. Actually issued, as applied to securities issued or assumed by the carrier, means those which have been sold to bona fide purchasers or holders for a valuable consideration, those issued in exchange for other securities or other property, and those issued as dividends on stock;  and the purchasers or holders secured them free from control by the carrier.

3. Actually outstanding, as applied to securities issued or assumed by the carrier, means those which have been actually issued and are neither retired nor held by or for the carrier.

4. Additions means facilities, equipment, and structures added to existing property exclusive of replacements.

5. Affiliated companies means companies or persons that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the accounting carrier.

6. Amortization means the gradual extinguishment of an amount in an account by distributing such amount over a fixed period, over the life of the asset or liability to which it applies, or over the period during which it is anticipated the benefit will be realized.

7. Book cost means the amount at which assets are recorded in the accounts without deduction of related provisions for accrued depreciation, amortization, or for other purposes.

8. Carrier means a common carrier by pipeline subject to the Interstate Commerce Act.

9. Commission means the Federal Energy Regulatory Commission.

10. Control (including the terms controlling, controlled by, and under common control with) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a company, whether such power is exercised through one or more intermediary companies, or alone, or in conjunction with, or pursuant to an agreement, and whether such power is established through a majority or minority ownership or voting of securities, common directors, officers or stockholders, voting trusts, holding trusts, associated companies, contract or any other direct or indirect means. When there is doubt about an existence of control in any particular situation, the carrier shall report all pertinent facts to the Commission for determination.

11. Cost means the amount of money actually paid for property or services or the current cash value of the consideration given when it is other than money.

12. Cost of removal means cost of demolishing, dismantling, tearing down, or otherwise removing property including costs of handling and transportation. It does not include the cost of removal activities associated with asset retirement obligations that are capitalized as part of the tangible long-lived assets that give rise to the obligation. (See General Instruction 1–19).

13. Date of retirement means the date that property is withdrawn from service.

14. Debt expense means all expense in connection with the issuance and sale of evidences of debt, such as fees for drafting mortgages and trusts;  fees and taxes for issuing or recording evidences of debt;  cost of engraving and printing bonds, certificates of indebtedness, and other evidences of debt;  fees paid to trustees;  specific costs of obtaining governmental authority;  fees for legal services;  fees and commissions paid underwriters, brokers, and salesmen for marketing evidences of debt;  fees and expenses of listing on exchanges;  and other like costs.

15. Depreciation means the loss in service value not restored by current maintenance and incurred in connection with the consumption or prospective retirement of property in the course of service from causes against which the carrier is not protected by insurance, and the effect of which can be forecast with a reasonable approach to accuracy.

16. Discount, as applied to securities issued or assumed by the carrier, means the excess of the par or face value of the securities plus interest or dividends accrued at the date of the sale over the cash value of the consideration received from their sale.

17. Group plan means the plan under which depreciation charges are computed on the book cost of all property included in each depreciable account by application of a composite rate of depreciation based on the weighted average service lives of such property.

18. Improvements means alterations or changes in structural design of property which result in increased service life or efficiency.

19. Minor items of property means the associated parts or items of which units of property are composed.

20. Net salvage value means salvage value of property retired less the cost of removal.

21. Nominally issued, as applied to securities issued or assumed by the carrier, means those which have been signed, certified, or otherwise executed, and placed with the proper officer for sale and delivery, or pledged, or otherwise placed in some special fund of the accounting company.

22. Nominally outstanding, as applied to securities issued or assumed by the carrier, means those which, after being actually issued, have been reacquired by or for the accounting company under such circumstances which require them to be considered as held alive and not retired and canceled.

23. Premium, as applied to securities issued or assumed by the carrier, means the excess of the cash value of the consideration received from their sale over the sum of their par (stated value of no-par stocks) or face value and interest or dividends accrued at the date of sale.

24. Property retired means units of property which have been removed, sold, abandoned, destroyed, or which for any cause have been withdrawn from service;  also, minor items of property not replaced.

25. Replacement means the substitution of a part or of a complete unit of property with a new part or unit.

26. Salvage value means the amount received or estimated to be received for property retired less any expenses incurred in connection with the sale or preparing the property for sale;  or, if retained, the value at which the recovered material is chargeable to the material and supplies account or other appropriate account.

27. Service life means the period between the date that property is placed in service and the date of its retirement.

28. Service value means the book cost less the actual or estimated net salvage value of property.

29. Straight-line method, as applied to depreciation and amortization accounting, means the plan under which the service value of property is charged to expense and credited to the related accrued depreciation or amortization account through equal monthly charges during the service life of the property.

33. Compensating balance means the portion of any demand deposit (or any time deposit or certificate of deposit) maintained by a carrier (or by any person on behalf of the carrier) which constitutes support for existing borrowing arrangements of the carrier (or any person) with a lending institution. Such arrangements include both outstanding borrowings and the assurance of future credit availability. (The compensating balance requirement should be adjusted by the amount of float unless such adjustment would cause the compensating balance to be greater than the cash balance per carrier's books. The float adjustment is made by subtracting the float from the compensating balance requirement if the collected bank ledger balance exceeds the cash balance per carrier's books or by adding the float to the compensating balance requirement if the collected bank ledger balance is less than the cash balance per carrier's books.)

34. Float means deposits and withdrawals in transit which constitute a difference between the collected bank ledger balance and the cash balance per carrier's books.