[Code of Federal Regulations] [Title 18, Volume 1] [Revised as of April 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 18CFR2.500] [Page 38-42] TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY PART 2_GENERAL POLICY AND INTERPRETATIONS--Table of Contents Sec. 2.500 Penalty reduction/waiver policy for small entities. (a) It is the policy of the Commission that any small entity is eligible to be considered for a reduction or waiver of a civil penalty if it has no history of [[Page 39]] previous violations, and the violations at issue are not the product of willful or criminal conduct, have not caused loss of life or injury to persons, damage to property or the environment or endangered persons, property or the environment. An eligible small entity will be granted a waiver if it can also demonstrate that it performed timely remedial efforts, made a good faith effort to comply with the law and did not obtain an economic benefit from the violations. An eligible small entity that cannot meet the criteria for waiver of a civil penalty may be eligible for consideration of a reduced penalty. Upon the request of a small entity, the Commission will consider the entity's ability to pay before assessing a civil penalty. (b) Notwithstanding paragraph (a) of this section, the Commission reserves the right to waive or reduce civil penalties in appropriate individual circumstances where it determines that a waiver or reduction is warranted by the public interest. [Order 594, 62 FR 15830, Apr. 3, 1997] Appendix A to Part 2--Guidance for Determining the Acceptable Construction Area for Replacements These guidelines shall be followed to determine what area may be used to construct the replacement facility. Specifically, they address what areas, in addition to the permanent right-of-way, may be used. Pipeline replacement must be within the existing right-of-way as specified by Sec. 2.55(b)(1)(ii). Construction activities for the replacement can extend outside the current permanent right-of-way if they are within the temporary and permanent right-of-way and associated work spaces used in the original installation. If documentation is not available on the location and width of the temporary and permanent rights-of-way and associated work space that was used to construct the original facility, the company may use the following guidance in replacing its facility, provided the appropriate easements have been obtained: a. Construction should be limited to no more than a 75-foot-wide right-of-way including the existing permanent right-of-way for large diameter pipeline (pipe greater than 12 inches in diameter) to carry out routine construction. Pipeline 12 inches in diameter and smaller should use no more than a 50-foot-wide right-of-way. b. The temporary right-of-way (working side) should be on the same side that was used in constructing the original pipeline. c. A reasonable amount of additional temporary work space on both sides of roads and interstate highways, railroads, and significant stream crossings and in side-slope areas is allowed. The size should be dependent upon site-specific conditions. Typical work spaces are: ------------------------------------------------------------------------ Item Typical extra area (width/length) ------------------------------------------------------------------------ Two lane road (bored)............... 25-50 by 100 feet. Four lane road (bored).............. 50 by 100 feet. Major river (wet cut)............... 100 by 200 feet. Intermediate stream (wet cut)....... 50 by 100 feet. Single railroad track............... 25-50 by 100 feet. ------------------------------------------------------------------------ d. The replacement facility must be located within the permanent right-of-way or, in the case of nonlinear facilities, the cleared building site. In the case of pipelines this is assumed to be 50-feet- wide and centered over the pipeline unless otherwise legally specified. However, use of the above guidelines for work space size is constrained by the physical evidence in the area. Areas obviously not cleared during the original construction, as evidenced by stands of mature trees, structures, or other features that exceed the age of the facility being replaced, should not be used for construction of the replacement facility. If these guidelines cannot be met, the company should consult with the Commission's staff to determine if the exemption afforded by Sec. 2.55 may be used. If the exemption may not be used, construction authorization must be obtained pursuant to another regulation under the Natural Gas Act. [Order 603, 64 FR 26603, May 14, 1999] Appendix B to Part 2 [Reserved] [[Page 40]] Appendix C to Part 2--Nationwide Proceeding Computation of Federal Income Tax Allowance Independent Producers, Pipeline Affiliates and Pipeline Producers Continental U.S.--1972 Data (Docket No. R-478) ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ (2)--Total (5)--No (7)--Percentage Schedule Line excluding (3)--Gas (4)--Lease lease (6)--Total lease (8)--Allocated Line No. Particulars No. No. (1)--Total \1\ production taxes only \3\ separation separation \4\ separation gas amount gas \6\ \2\ \3\ \3\ \5\ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ production, exploration and development costs 2 Direct and indirect lease 1-A 01 1,694,893,558 1,694,893,558 57,287,938 $144,679,567 $19,763,791 $221,731,296 90.33 207,740,782 costs and expenses. 2 Taxes (except income and A-1 02 210,335,720 210,335,720 16,507,630 20,431,444 4,360,024 41,299,098 9.33 39,323,337 production). 4 Production taxes.............. 1-A 03 479,424,297 ................ 27,124,210 96,699,673 10,005,599 133,829,482 90.33 124,478,624 5 Other lease expenses.......... 1-A 04 61,102,433 61,102,433 17,527,077 24,988,900 336,427 42,852,404 90.33 40,435,977 6 Depletion, depreciation and 1-A 05 1,716,823,070 1,716,823,070 105,999,777 297,881,312 25,502,048 429,383,137 90.33 400,578,014 amortization. 7 Corporate general expense..... 1-A 06 278,845,909 278,845,909 13,611,337 25,077,796 3,579,728 42,268,861 90.33 39,843,838 8 Area, district, division and 1-A 07 261,718,417 26,178,417 7,207,320 21,758,604 2,778,944 31,744,868 90.33 29,640,811 field expense. 9 Miscellaneous lease revenues.. 1-A 09 (12,203,136) (12,203,136) (1,348,729) (2,768,788) (314,067) (4,431,584) 90.33 (4,163,842) 10 Return on production rate base 1-A 13 2,505,272,672 2,505,272,672 186,055,524 427,939,601 69,857,212 663,852,337 90.33 622,470,578 at 15 percent. 11 Exploration and development 1-A 15 1,673,945,853 1,673,945,853 ........... ............ ........... ............ ............... 594,971,262 costs and expenses. 12 Return on exploration rate 1-A 16 588,558,894 588,558,894 ........... ............ ........... ............ ............... 234,604,103 base at 15 percent. 13 Regulatory commission expense 1-A 17 6,514,279 6,514,279 ........... ............ ........... ............ ............... 6,514,852 including return. =================== 14 15 Total computed revenue....... ........ ..... 9,465,231,966 8,985,807,669 ........... ............ ........... ............ ............... 2,336,439,376 16 (gross income) ------------------- 17 18 revenue deductions 19 Direct and indirect lease 1-A 01 1,694,893,558 1,694,893,558 ........... ............ ........... ............ ............... 207,740,872 costs and expenses. 20 Taxes (except income and 1-A 02 210,335,720 210,335,720 ........... ............ ........... ............ ............... 39,323,377 production). 21 Production taxes.............. 1-A 03 479,424,297 ................ ........... ............ ........... ............ ............... 124,478,624 22 Other lease expenses.......... 1-A 04 61,102,433 61,102,433 ........... ............ ........... ............ ............... 40,435,977 23 Book depletion................ ........ ..... \7\ 283,121,242 24,287,986 61,675,828 6,177,596 92,141,410 90.33 86,177,357 (283,121,142) 24 Depreciation expense.......... 1-A 05 \7\ 654,604,447 30,223,586 94,010,520 7,007,662 131,241,768 90.33 122,150,951 (654,604,447) 25 Amortization of capitalized ........ ..... \7\ 779,097,382 51,488,205 142,194,964 12,316,790 205,999,959 90.33 192,249,706 IDC. (779,097,382) 26 Corporate general expense..... 1-A 06 278,845,909 278,845,909 ........... ............ ........... ............ ............... 39,843,838 [[Page 41]] 27 Area, district, division and 1-A 07 261,718,417 261,718,417 ........... ............ ........... ............ ............... 29,640,811 field expense. 28 Miscellaneous lease revenues.. 1-A 09 (12,203,136) (12,203,136) ........... ............ ........... ............ ............... (4,163,842) 29 Exploration and development ........ ..... 1,673,945,853 1,673,945,853 ........... ............ ........... ............ ............... 594,971,262 costs and expenses. 30 Regulatory commission expense. 4-A 01 6,384,384 6,394,384 ........... ............ ........... ............ ............... 6,394,384 -------- 31 32 Total book expenses.......... ........ ..... 6,371,380,505 5,891,856,209 ........... ............ ........... ............ ............... 1,479,243,227 -------- 33 34 Production net income (line 15 ........ ..... 3,093,951,461 3,093,951,460 ........... ............ ........... ............ ............... 857,190,149 less line 32). -------- 35 36 tax adjustment--add (deduct) 37 Amortization of capitalized ........ ..... 779,097,282 779,097,382 ........... ............ ........... ............ ............... 192,249,706 IDC. 38 Estimated IDC capitalized in ........ ..... \8\ (1,470,935,857) ........... ............ ........... ............ ............... (362,967,445) 1972. (1,470,935,857) 39 Interest expense (calculated). ........ ..... \9\ (243,846,540) ........... ............ ........... ............ ............... (60,587,136) (243,846,540) -------- 40 41 Taxable income............... ........ ..... 2,158,266,445 2,158,266,445 ........... ............ ........... ............ ............... 625,891,274 -------- 42 43 Federal income tax at 48 ........ ..... 1,992,245,949 1,992,245,949 ........... ............ ........... ............ ............... \10\ percent. 577,745,791 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ \1\ Lines 1 thru 15, col. (1). From Notice issued Sept. 12, 1974, app. A, p. 12, col. (d). \2\ Production taxes have been deleted from col. (1). \3\ From notice issued Sept. 12, 1974, app. A, p. 12, cols. (g), (h), and (i). \4\ Col. (3) plus col. (4) plus col. (5). \5\ Calculated on a modified British thermal unit basis (1.5 to 1). \6\ Col. (7) times col. (4), plus cols. (3) and (5). \7\ See composites mailed to all parties on Feb. 13, 1974. \8\ Calculated, 188.8 percent (A R64-1-2) times $779,097,382 equals $1,470,935,857. \9\ Calculated 0.0146 (interest rate) times $16,701,817,818 (app. A, schedule 2-A, (d), line 11, p. 13) equals $243,846,540. \10\ $577,745,791 divided by 9,508,369,001 equals 6.08 cents per thousand cubic feet. [Opinion 749, 41 FR 3092, Jan. 21, 1976] [[Page 42]] PART 3 [RESERVED]