Gas Pipeline Uniform Accounting Regulations (SOR/83-190)

Short Title

1 These Regulations may be cited as the Gas Pipeline Uniform Accounting Regulations.

Interpretation

2 In these Regulations,

Board

Board[Repealed, SOR/2020-50, s. 6]

book cost

book cost means, in respect of plant, the amount that is recorded in a plant account without any deduction for accumulated depreciation or amortization or for any other purpose; (valeur comptable)

Commission

Commission means the Commission referred to in subsection 26(1) of the Canadian Energy Regulator Act; (Commission)

contingent assets

contingent assets means assets without known value to the company until fulfilment of conditions regarded as uncertain; (actif éventuel)

contingent liabilities

contingent liabilities means liabilities that may, under certain conditions, become obligations of the company but are not direct or assumed obligations on the date of the balance sheet; (passif éventuel)

fiscal year

fiscal year means, in relation to the accounts of a company, the calendar year or the fiscal year approved by the Commission for the accounts of the company; (exercice financier)

gas plant in service

gas plant in service means plant used for any aspect of pipeline operations or plant held for use under a definite plan for future gas pipeline operations; (installation de gazoduc en service)

minor item of plant

minor item of plant means an associated part or item included within a plant unit; (article d’installation accessoire)

net salvage value

net salvage value means salvage value minus any removal costs; (valeur nette de récupération)

operator

operator means a company authorized by the Commission to operate a gas pipeline; (exploitant)

other plant

other plant means any installation or property that is entirely distinct from and is not operated in connection with the gas pipeline service of the company; (autre installation)

plant

plant means in respect of a gas pipeline company, any installation or property the cost of which is to be recorded in the Plant Accounts listed in Schedule IV; (installation)

plant retired

plant retired means a unit of plant, whether it is replaced or not, that is sold, abandoned, demolished, dismantled or otherwise removed from gas pipeline service; (installation réformée)

plant unit

plant unit means a complete structure, apparatus or item of equipment that constitutes a component of any installation or property that could properly be included in the plant accounts listed in Schedule IV and includes a part of any structure or apparatus where such part is a physically distinct part of such structure or apparatus and the value of such part is material; (unité d’installation)

salvage value

salvage value means the amount received for plant retired, including insurance proceeds, and includes any amount received for material salvage from plant retired where the material is sold; (valeur de récupération)

undivided interest

undivided interest means a beneficial ownership in common of the assets, liabilities, revenues and expenses of a gas pipeline by two or more companies or persons. (copropriété indivise)

3 A company may submit any question of doubtful interpretation of these Regulations to the Regulator for consideration and guidance.

Application

4 These Regulations apply only to a company authorized by the Commission to construct or operate a gas pipeline.

• 5 (1) Every Group 1 company shall

  • (a) keep separate books of account in Canada in a manner consistent with generally accepted accounting principles;

  • (b) unless otherwise authorized or instructed by the Commission, keep accounts in the manner set out in these Regulations; and

  • (c) keep a system of accounts as prescribed in these Regulations.

• (2) Every Group 2 company

  • (a) shall keep separate books of account in Canada in a manner consistent with generally accepted accounting principles until the expiration of one year after such time as the Commission grants leave to abandon the operation of the pipeline;

  • (b) shall file a set of audited financial statements with the Regulator within one hundred and twenty (120) days after the end of each fiscal year of the company;

  • (c) shall comply with subsections 6(1), (7), (8) and (9); and

  • (d) is exempt from complying with these Regulations except as prescribed in paragraphs (a) to (c).

• (3) In this section,

  Group 1 company

  Group 1 company means a company listed in Schedule VIII; and (compagnies du groupe 1)

  Group 2 company

  Group 2 company means any company, other than a Group 1 company, that constructs or operates a gas pipeline. (compagnies du groupe 2)

Records

• 6 (1) A company’s accounting records shall provide sufficient particulars to show fully the facts pertaining to all entries made in the accounts.

• (2) A company shall maintain the applicable accounts listed in Schedules I to VII and may, in addition, keep subsidiary accounts for its own purposes.

• (3) The account numbers listed in Schedules I to VII shall be set out in the descriptive headings of the applicable ledger accounts, computer print-outs or other accounting records.

• (4) All transactions applicable to a month shall be recorded in the accounts for that month and, at the end of that month, trial balances of the accounts shall be prepared.

• (5) A company shall close its accounts at the end of each fiscal year.

• (6) Final accounting entries for each month shall be made not later than 30 days after the last day of the month, except that the final entries for the last month of each fiscal year may be made within a period not exceeding 90 days from the end of that last month.

• (7) The books, accounts and records referred to herein include not only accounting records in a limited technical sense, but all records such as minute books, capital stock records, reports, correspondence memoranda, computer printouts, tapes and card decks that may be useful in determining the history of or facts pertaining to any transaction.

• (8) The books, accounts and records shall be readily accessible for examination by representatives of the Regulator.

• (9) Where a gas pipeline is owned in undivided interest, the operator shall maintain all books, accounts and records of the total assets, liabilities, revenues and expenses of the pipeline in a manner that permits ready identification and access to the books, accounts and records of the beneficial owners of the pipeline.

• (10) The accounts required to be maintained pursuant to subsection (2) shall be retained until the expiration of one year after leave to abandon the operation of the pipeline has been granted by the Commission.

Account Grouping

Balance Sheet Accounts

• 7 (1) Balance sheet accounts, set out in Schedule I as account series 100 to 293, shall, in respect of a company, disclose the company’s financial position at the balance sheet date.

• (2) The balance sheet accounts referred to in subsection (1) shall record assets, liabilities, share capital, and retained earnings, as the case may be.

Income Accounts

• 8 (1) Income accounts, set out in Schedule II as account series 300 to 341, shall show a summary of a company’s revenue, expenses and extraordinary items.

• (2) A company shall inform the Regulator of all extraordinary items and shall record them in account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable.

• (3) A company’s net balance of income or loss shall be transferred to retained earnings at the end of each fiscal year.

• (4) In this section, extraordinary item means material gain or loss that is not typical of a company’s normal business activities, is not expected to occur regularly over a period of years and would not be considered a recurring factor in any evaluation of the ordinary operating process of the company.

Retained Earnings Accounts

9 Retained earnings accounts, set out in Schedule III as account series 350 to 357, shall show a summary of all changes in balance sheet account 212 (Retained Earnings) for each year and shall include

• (a) the balance transferred from income for the year;

• (b) prior period adjustments;

• (c) miscellaneous retained earnings adjustments;

• (d) dividend appropriations; and

• (e) income tax applicable to retained earnings adjustments.

Plant Accounts

• 10 (1) Plant accounts, set out in Schedule IV as account series 401 to 498, are subsidiary to balance sheet accounts 100 (Gas Plant in Service), 101 (Gas Plant Leased to Others), 102 (Gas Plant Held for Future Use) and 107 (Improvement to Facilities Leased from Others), and shall be used to classify a company’s plant.

• (2) Plant accounts shall be supported by subsidiary accounts that record the costs, by location, of

  • (a) each major facility including each main gathering system, products extraction plant, gas storage facility, compressor station and main pipeline; and

  • (b) any other facility that is separately located.

• (3) Plant accounts shall be maintained to record separately expenditures for each plant addition, replacement and retirement authorized by the Commission.

• (4) Any installation or property not used in pipeline operations shall be recorded in balance sheet account 110 (Other Plant).

Operating Revenue Accounts

11 Operating revenue accounts, set out in Schedule V as account series 500 to 579, shall be used to classify all revenue of a company from pipeline operations.

Operating and Maintenance Expense Accounts

• 12 (1) Operating expense accounts, set out in Schedule VI as account series 610 to 729, shall include records of a company’s operating expenses pertaining to pipeline operations.

• (2) Maintenance expense accounts, set out in Schedule VII as accounts series 810 to 889, shall include records of a company’s maintenance expenses pertaining to pipeline operations.

• (3) The operating and maintenance expenses referred to in subsections (1) and (2) shall be recorded in the appropriate account under the applicable service function referred to in Schedule VI and VII.

• (4) The service functions referred to in subsection (3) are

  • (a) gathering;

  • (b) products extraction;

  • (c) gas supply (operating only);

  • (d) underground storage;

  • (e) transmission;

  • (f) general; and

  • (g) administrative and general (operating only).

• (5) Expenses common to more than one operating or maintenance expense account shall, where practicable, be equitably apportioned between such accounts and adequate records showing the basis of such apportionment shall be maintained.

• (6) The operating and maintenance expense accounts under the service functions listed in paragraphs (4)(a) to (f) shall be supported by subsidiary accounts that record the expenses, by location as practicable for each major facility such as each main gathering system, products extraction plant, gas storage facility, compressor station, main pipeline system and any other facility that is separately located.

Clearing Accounts

• 13 (1) Where it is not possible to record expenditures directly to a particular expense or plant account, a company may maintain clearing accounts for recording the expenditures.

• (2) Amounts recorded in clearing accounts shall be regularly distributed to the appropriate expense or plant accounts on an equitable basis.

• (3) Any balances in the clearing accounts shall be substantially distributed before the end of each fiscal year unless items held therein relate to a future period.

• (4) The net monthly balance in clearing accounts shall be included in account 179 (Other Deferred Debits) or account 279 (Other Deferred Credits), as applicable.

• (5) Where an operator maintains clearing accounts for the purpose of distributing monthly balances to the beneficial owners of a pipeline, the accounts shall contain sufficient particulars to permit ready identification and reconciliation with the accounts of the beneficial owners.