Gas Pipeline Uniform Accounting Regulations

Index of Accounts

Operating Expense Accounts

Text Pertaining to Operating Expense Accounts

General

• (1) The total of the balances in the operating expense accounts is included in income account 301 (Operating Expenses).

• (2) Where the same account title is used in more than one group of operating expense accounts, the account text instructions are given in detail for the accounts under the gathering group.

Gathering Operation

• 610 

  Supervision

  • (1) This account shall include the cost of labour, supplies and expenses incurred at a division, district or similar field office in the general supervision of the operation of the gathering system facilities.

  • (2) Representative List of Items of Supervision to be included. (See section 14 of these Regulations)

    • Salaries and wages of superintendents, engineers, clerks, stenographers and other field office employees
    • Travelling, subsistence, automotive and incidental expenses of employees
    • Office supplies and expenses such as stationery, postage, maps, telephone, telegraph, light, heat, water
    • Rents, janitor services and supplies, maintenance of office buildings and equipment

• 612 

  Gathering of Gas by Others

  This account shall include the cost of gathering charges paid to others where the charges are separate and not included as part of the delivered price of gas.

• 615 

  Pipeline

  • (1) This account shall include the cost of labour, supplies and expenses incurred in the operation of gathering system pipeline facilities.

  • (2) Representative List of Items of Pipeline to be included. (See section 14 of these Regulations)

    • Direct supervision
    • Inspecting and lubricating valves, injectors, etc.
    • Blowing and cleaning lines, drips, traps, injectors, etc., thawing freeze-ups
    • Injection of kontol, methanol, glycol and other chemicals
    • Reading and reporting line pressures, changing charts
    • Stand-by time of crews, time spent fire fighting and for other local services
    • Cutting grass and weeds, clearing brush, fallen trees and other debris, removing snow on right-of-way and access roads
    • Patrolling lines
    • Cleaning buildings and other structures
    • Supplies such as lubricants, wiping rags, charts, chemicals, light bulbs, hand tools and general equipment
    • Expenses such as the use of automotive trucking, aircraft and heavy work equipment, transportation of supplies, light, heat, water, telephone, telegraph, rents, employees travelling and subsistence, employee housing
    • Gas used or lost in pipeline operations

• 616 

  Compressor

  • (1) This account shall include the cost of labour, supplies and expenses incurred in the operation of gathering system compressor stations and facilities.

  • (2) Representative Lists of Items of Compressor to be included. (See section 14 of these Regulations)

    • Direct supervision
    • Operating, cleaning, lubricating engines, generators and other equipment
    • Packing valves, changing gauge glasses, changing oil and air filter elements
    • Reading metering instruments, changing charts
    • Taking water samples, dew point readings, testing and recording
    • Tending station grounds, removing snow
    • Cleaning buildings and other structures
    • Preparing logs and other clerical work
    • Supplies such as lubricants, wiping rags, charts, chemicals, light bulbs, cleaning and washrooms supplies, first aid supplies, landscaping supplies, hand tools and equipment
    • Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, light, heat, waters, telephone, telegraph, rents, employee travelling and subsistence, employee housing
    • Gas used or lost in compressor operations

• 617 

  Measuring and Regulating

  • (1) This account shall include the cost of labour, supplies and expenses incurred in the operation of gathering system measuring and regulating stations and facilities.

  • (2) Representative List of Items of Measuring and Regulating to be included. (See section 14 of these Regulations)

    • Direct supervision
    • Operating, inspecting, testing, adjusting, cleaning and calibrating equipment
    • Changing meters, orifice plates, clocks, etc.
    • Recording pressures, reading meters, changing charts
    • Taking gas samples, water samples, dew point readings, testing and recording
    • Inspecting, cleaning and blowing drips, pits, sumps, etc.
    • Tending station grounds, removing snow
    • Cleaning buildings and other structures
    • Preparing reports and other clerical work
    • Supplies such as lubricants, wiping rags, charts, chemicals, pens, ink, mercury, light bulbs, cleaning and washroom supplies, first aid supplies, landscaping supplies and tools and general equipment
    • Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, light, heat, water, telephone, telegraph, rents, employee travelling and subsistence, employee housing.

• 618 

  Purification

  • (1) This account shall include the cost of labour, supplies and expenses incurred in the operation of gathering system purification facilities.

  • (2) Representative List of Items of Purification to be included. (See section 14 of these Regulations)

    • Direct supervision
    • Changing charts on fuel meters
    • Emptying, cleaning and refilling purifier boxes
    • Oiling dip-sheets of purifier covers
    • Removing spent oxide to refuse piles
    • Revivifying oxide
    • Taking readings of inlet and outlet pressures and temperature
    • Unloading and storing glycol
    • Watching station and equipment
    • Cutting grass and weeds, and minor grading around equipment and stations
    • Hauling materials, supplies and tools, etc.
    • Inspecting and testing equipment, not specifically to determine necessity for repairs or replacement of parts
    • Lubricating equipment valves, etc.
    • Operating and checking equipment, valve instruments, etc.
    • Supplies such as liquid purifying supplies, wiping rags, charts, chemicals, light bulbs, cleaning and washroom supplies, first aid supplies, hand tools and equipment
    • Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, light, heat, water, telephone, telegraph, rents, employee travelling and subsistence, employee housing
    • Gas used or lost in purification operations

• 619 

  Other Gathering Operations

  This account shall include the cost of labour, supplies and expenses that are incurred in the operation of the gathering system facilities and that are not provided for elsewhere.

Products Extraction Operation

• 620 

  Supervision

  • (1) This account shall include the cost of labour, supplies and expenses incurred in the general supervision of the operation of product extraction and refining facilities

  • (2) Representative List of Items of Supervision to be included. (See section 14 of these Regulations)

  Details are the same as for account 610(2).

• 621 

  Extraction and Refining

  • (1) This account shall include:

    • (a) the cost of labour, supplies and expenses incurred in the operation of products extraction and refining facilities; and

    • (b) direct supervision of specific activities such as power plant, extraction and refining units, laboratory and warehouse facilities.

  • (2) Representative List of Items of Extraction and Refining to be included. (See section 14 of these Regulations)

    • Direct supervision
    • Operating, cleaning, lubricating machinery, valves, gauges, instruments and other equipment
    • Inspecting and testing instruments and other equipment
    • Reading meters, gauges and other instruments, changing charts, gauge glasses
    • Taking and testing water samples, gas samples and other similar laboratory services
    • Tending plant grounds, removing snow
    • Producing electricity, steam, pumping cooling water
    • Preparing logs, reports and other data
    • Supplies such as amine, dehydration agents, water treatment and other chemicals, absorption oil, lubricants, wiping rags, charts, light bulbs, gauge glasses, cleaning and washroom supplies, first aid supplies, landscaping supplies, gas used or lost in operations, hand tools and equipment
    • Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, light, heat, power, water, telephone, telegraph, rents employee travelling and subsistence, employee housing.

• 622 

  Gas Processing by Others

  This account shall include the cost of gas shrinkage, gas consumed for fuel, royalties and other expenses in connection with the processing of gas of the company by others for extraction of saleable products.

Gas Supply Accounts

• 623 

  Gas Purchases

  This account shall include the cost, at point of receipt by the company, of all gas purchased.

• 626 

  Exchange Gas

  • (1) Except in the case of minor transactions, this account shall include the debits or credits for the cost of gas in unbalanced exchange transactions with another party when the delivery or receipt of the gas is not completed during the accounting period.

  • (2) If revenue is earned in consideration of the performance of exchange services, it shall be recorded in account 579 (Miscellaneous Operating Revenues).

• 627 

  Gas Withdrawn from Underground Storage

  This account shall include the cost of gas withdrawn from underground storage and such cost shall be concurrently credited to account 152 (Gas Stored Underground — Available for Sale).

• 628 

  Gas Delivered to Underground Storage (Credit)

  This account shall be credited with the cost of gas delivered to underground storage and such cost shall be concurrently debited to account 152 (Gas Stored Underground — Available for Sale).

• 629 

  Gas Used (Credit)

  • (1) This account shall be credited with the cost of gas used for other than storage purposes and such cost shall be concurrently debited to operating expenses, construction or other accounts.

  • (2) This account shall be subdivided as follows:

    • (a) gas used in construction;

    • (b) gas used in products extraction; and

    • (c) gas used in operations or for other purposes.

Underground Storage Operation

• 650 

  Supervision

  • (1) This account shall include the cost of labour, supplies and expenses incurred in the general supervision of the operation of underground storage facilities.

  • (2) Representative List of Items of Supervision to be included. (See section 14 of these Regulations)

  Details are the same as for account 610(2).

• 651 

  Exploration and Development

  • (1) This account shall include

    • (a) the cost of labour, supplies and expenses incurred in the investigation, exploration and development of underground projects that do not prove feasible; and

    • (b) the net cost of drilling non-operative wells within an existing storage project.

  • (2) Where the costs described in subsection (1) are material in relation to the net income of the year, the company may prepare and submit to the Board, for its approval, an alternative method of accounting.

• 653 

  Wells

  • (1) This account shall include the cost of labour, supplies and expenses incurred

    • (a) in the operation of underground storage system wells and facilities; and

    • (b) in the drilling of wells used for storage purposes.

  • (2) Representative List of Items of Wells to be included. (See section 14 of these Regulations)

    • Direct supervision
    • Testing, bailing, swabbing, blowing and gauging storage wells
    • Paintings, signs
    • Minor upkeep of well roads, fences
    • Turning storage wells on and off
    • Moving cleaning-out tools between locations
    • Supplies such as gas, gasoline, oil used in pumping and bailing, lumber, nails, well swabs, chemicals, first aid supplies, hand tools and equipment
    • Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, light, heat, water, telephone, telegraph, rents, employee travelling and subsistence, employee housing

• 654 

  Gas Losses

  • (1) This account shall include the amounts of inventory adjustments representing the cost of gas lost or unaccounted for in underground storage operations due to cumulative inaccuracies of gas measurement or other causes.

  • (2) Adjustments relating to prior years shall be accounted for in accordance with section 78.

• 655 

  Field Line

  • (1) This account shall include the cost of labour, supplies and expenses incurred in the operation of underground storage field line and facilities.

  • (2) Representative List of Items of Field Line to be included. (See section 14 of these Regulations)

  Details are the same as for account 615(2).

• 656 

  Compressor

  • (1) This account shall include the cost of labour, supplies and expenses incurred in the operation of underground storage system compressor stations and facilities.

  • (2) Representative List of Items of Compressor to be included. (See section 14 of these Regulations)

  Details are the same as for account 616(2).

• 657 

  Measuring and Regulating

  • (1) This account shall include the cost of labour, supplies and expenses incurred in the operation of underground storage system measuring and regulating facilities.

  • (2) Representative List of Items of Measuring and Regulating to be included. (See section 14 of these Regulations)

  Details are the same as for account 617(2).

• 658 

  Purification

  • (1) This account shall include the cost of labour, supplies and expenses incurred in the operation of underground storage system purification facilities.

  • (2) Representative List of Items of Purification to be included. (See section 14 of these Regulations)

  Details are the same as for account 618(2).

• 659 

  Other Underground Storage Operations

  This account shall include the cost of labour, supplies and expenses incurred in the operation of underground storage system facilities not provided for elsewhere.

Transmission Operation

• 660 

  Supervision

  • (1) This account shall include the cost of labour, supplies and expenses incurred at a division, district or similar field office in the general supervision of the operation of transmission system facilities.

  • (2) Representative List of Items of Supervision to be included. (See section 14 of these Regulations)

  Details are the same as for account 610(2).

• 663 

  Transportation of Gas by Others

  This account shall include the cost of transportation charges paid to others where the charges are separate and not included as part of the delivery price of gas.

• 664 

  Communication

  • (1) This account shall include the cost of labour, supplies and expenses incurred in the operation of facilities used wholly or predominantly in connection with the transmission communication system.

  • (2) Representative List of Items of Communication to be included. (See section 14 of these Regulations)

    • Direct supervision
    • Operating radio equipment, microwave equipment, power generators
    • Inspecting, testing, cleaning and lubricating equipment
    • Inspecting and cleaning buildings and other structures
    • Refuelling fuel tanks at station sites
    • Patrolling lines
    • Cutting grass and weeds, clearing brush, fallen trees and other debris, removing snow from access roads, station sites and structures
    • Supplies such as lubricants, wiping rags, charts, chemicals, hand tools, testing and other general equipment
    • Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, first aid supplies, radio tubes and crystals, landscaping supplies, light, heat, water, telephone, telegraph, rents, employee travelling and subsistence, employee housing
    • Changing radio frequencies
    • Transferring mobile radios between vehicles
    • Changing locations of communication equipment not relocated in connection with maintenance or construction

• 665 

  Pipeline

  • (1) This account shall include the cost of labour, supplies and expenses incurred in the operation of transmission system pipeline and facilities.

  • (2) Representative List of Items of Pipeline to be included. (See section 14 of these Regulations)

  Details are the same as for account 615(2).

• 666 

  Compressor

  • (1) This account shall include the cost of labour, supplies and expenses incurred in the operation of transmission system compressor stations and facilities.

  • (2) Representative List of Items of Compressor to be included. (See section 14 of these Regulations)

  Details are the same as for account 616(2).

• 667 

  Measuring and Regulating

  • (1) This account shall include the cost of labour, supplies and expenses incurred in the operation of transmission system measuring and regulating stations and facilities.

  • (2) Representative List of Items of Measuring and Regulating to be included. (See section 14 of these Regulations)

  Details are the same as for account 617(2).

• 669 

  Other Transmission Operations

  This account shall include the cost of labour, supplies and expenses that are incurred in the operation of the transmission system facilities and that are not provided for elsewhere.

General Operations

• 684 

  Communication

  • (1) This account shall include the cost of labour, supplies and expenses incurred in the operation of facilities used wholly or predominantly in connection with the general communicating system.

  • (2) Representative List of Items of Communication to be included. (See section 14 of these Regulations)

    • Direct supervision
    • Operating radio equipment, microwave equipment and power generators
    • Inspecting, testing, cleaning and lubricating equipment
    • Inspecting and cleaning buildings and other structures
    • Refuelling fuel tanks at station sites
    • Patrolling lines
    • Cutting grass and weeds, clearing brush, fallen trees and other debris, removing snow from access roads, station sites and structures
    • Supplies such as lubricants, wiping rags, charts, chemicals, hand tools, testing and other general equipment
    • Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, first aid supplies, radio tubes and crystals, landscaping supplies, light, heat, water, telephone, telegraph, rents, employee travelling and subsistence, employee housing
    • Transferring mobile radios between vehicles
    • Changing locations of communication equipment not in connection with maintenance or construction

• 685 

  System Operation and Engineering

  • (1) This account shall include the cost of labour, supplies and expenses incurred at the general offices of the company for the operation and engineering of the pipeline system.

  • (2) Representative List of Items of System Operation and Engineering to be included. (See section 14 of these Regulations)

    • Salaries and wages of superintendents, engineers, clerks, stenographers and other employees of the general operating and engineering departments
    • Travelling, subsistence, automotive and incidental expenses of employees
    • Office supplies and expenses such as stationery, printing, postage, maps, drawings, telephone, telegraph, light, heat, water
    • Rents, janitor services and supplies, maintenance of office building and office equipment

• 688 

  Other General Operations

  This account shall include the cost of labour, supplies and expenses that are incurred in the general operation of the pipeline system facilities and that are not provided for elsewhere.

• 689 

  General Operations Transferred (Credit)

  This account shall be credited with the costs of general operations transferred to other accounts, such as costs transferred to overhead charged to construction.

Administrative and General Expense

• 721 

  Administrative Expense

  • (1) This account shall include the cost of salaries, supplies and expenses incurred in the general administration of the company where such costs are assignable to specific executive, administrative and general departments and are not chargeable to any other of the operating service functions listed in paragraphs 12(4) (a) to (f) inclusive.

  • (2) Representative List of Items of Administrative Expense to be included. (See section 14 of these Regulations)

    • Salaries and wages of officers, executives and other employees
    • Expenses of officers, executives and other employees such as travelling and subsistence, automotive, club and professional dues and expenses, and other incidental expenses
    • Office supplies and expenses such as stationery, printing, postage, maps, drawings, telephone, telegraph, light, heat, water
    • Rents, janitor services and supplies, maintenance of office building and office equipment

• 722 

  Special Services

  • (1) This account shall include the fees and expenses of professional consultants and others for general services not applicable to any other particular operating functions. (See subsection 12(3) of these Regulations)

  • (2) Representative List of Items of Special Services to be included. (See section 14 of these Regulations)

    • Fees and expenses of auditors, accountants, appraisers, engineering consultants, management consultants, legal consultants, public relations and labour consultants
    • Fees and expenses paid under contracts for general management services
    • Pay and expenses of persons engaged for a special administrative or general purpose where the person so engaged is not considered an employee of the company

• 723 

  Insurance

  • (1) This account shall include the premium payable to insurance companies against any loss that may be sustained by the company.

  • (2) Where the company provides self-insurance, the reserve accruals shall be debited to this account and concurrently credited to account 290 (Insurance Reserves). (See sections 21 and 61 of these Regulations)

  • (3) Representative List of Items of Insurance to be included. (See section 14 of these Regulations)

    • Fire, storm, burglary, boiler explosion, lightning, riot and fidelity
    • Public liability, casualty, property damage and employee liability

• 724 

  Injuries and Damages

  • (1) This account shall include all expenses, including losses not recovered by insurance but excluding law expenses incurred in the settlement of injury and damage claims.

  • (2) Representative List of Items of Injuries and Damages to be included. (See section 14 of these Regulations)

    • Losses not covered by insurance on account of injuries to employees or others and damages to property of others
    • Fees and expenses of claims of outside investigators and adjusters
    • Payments of awards to claimants for court costs and legal services
    • Medical and hospital services and other expenses of claimants

• 725 

  Employee Benefits

  • (1) This account shall include

    • (a) payments or contributions to provide pension in respect of past or current services of employees;

    • (b) salaries or wages paid to employees disabled by injuries after the employees have been off duty for a reasonable length of time;

    • (c) amounts paid or contributed for the relief or welfare of employees, including any expenses related thereto; and

    • (d) premiums for group, life, medical, hospital, accident and sickness insurance.

  • (2) Where the company has instituted a pension fund, trust fund or welfare fund, the contributions shall be debited to this account and transferred to such pension, trust or welfare fund.

  • (3) Where the company does not institute a pension or trust fund but makes provision for a reserve against pension or welfare, the reserve accrual shall be debited to this account and concurrently credited to account 291 (Welfare and Pension Reserves).

  • (4) Representative List of Items of Employee Benefits to be included. (See section 14 of these Regulations)

    • Payments to or on behalf of employees or pensioners, and to pension funds or to insurance companies for pension purposes
    • Payments for group and life insurance premiums
    • Payments for medical, hospital and other accident and sickness expenses, either directly or to insurance companies or others
    • Payments to employees disabled by accident or sickness when off duty for a reasonable length of time
    • Savings plan contributions
    • Expenses in connection with educational, recreational and social activities for the benefit of employees

• 728 

  Other General Expense

  • (1) This account shall include expenses that are incurred in connection with the general management of the company and that are not provided for elsewhere.

  • (2) Representative List of Items of Other General Expense to be included. (See section 14 of these Regulations)

    • Industry association dues for company memberships
    • Contributions for conventions and meetings of the industry
    • Contributions to the experimental and research work of the industry, including scholarships and similar grants
    • Trustee, registrar, and transfer agents, fees and expenses and other fiscal or corporate expenses
    • Stockholders’ meeting expenses
    • Publishing and printing annual reports
    • Advertising and promotion
    • Donations
    • Bad Debts

• 729 

  Administrative and General Expense Transferred (Credit)

  • (1) This account shall be credited with the amounts of administrative and general expenses that are allocated to other accounts or to overhead during construction.

  • (2) The method and basis of allocation referred to in subsection (1) shall be maintained in subsidiary records.