Oil Pipeline Uniform Accounting Regulations (C.R.C., c. 1058)

Text Pertaining to Plant Accounts

General

• 1 The total of the balances in the plant accounts shall equal the total of the balances in balance sheet accounts 30 (Transportation Plant) and 38 (Transportation Plant Leased to Others).

• 2 Where the same account title is used for more than one group of plant accounts, the account text instructions are given in detail only for the accounts under the gathering lines group, except in the case of account 153 (Pipelines).

Gathering Lines

• 101 Land

  • (1) This account shall include

    • (a) the cost of land owned in fee simple and used for the construction and operation of pipelines; and

    • (b) the cost of removing the property of others from the land and relocating the property.

  • (2) The cost of land not used in transportation service or for which there is no definite plan for use in pipeline operations, shall be debited to account 34 (Other Plant).

  • (3) Net proceeds from the sale of timber, minerals or improvements that were part of the land cost shall be credited to this account.

  • (4) Subject to the approval of the Commission, a company shall credit the amount of any excess of net proceeds referred to in subsection (3) over the original cost of the timber, minerals or improvements included in land cost to account 402 (Extraordinary Income) unless the amount of the excess is not material, in which case the company shall credit that amount to account 410 (Other Income).

  • (5) The following is a representative list of items of land to be included in the account: (See Regulations, section 14)

    • (a) abstract;

    • (b) appraisal;

    • (c) arbitrator in expropriation cases;

    • (d) commissions paid to others;

    • (e) compensation and expenses of outside land agents if specifically assigned to acquisition of land except arbitrary apportionments for incidental services;

    • (f) cost of clearing, filling and levelling submerged or low land;

    • (g) compensation for damages to property of others;

    • (h) cost of a ditch for waterway when it is part of consideration for purchase;

    • (i) engineering and survey expenses in connection with the purchase of land in fee-simple;

    • (j) expropriation expenses, including court costs and special counsel fees;

    • (k) judgments and decreed costs to clear or defend titles;

    • (l) legal and notarial fees;

    • (m) plats;

    • (n) premiums on expropriation bonds;

    • (o) cost of registering, filing and depositing title documents and plans;

    • (p) payments for release and discharge of encumbrances and charges against the land;

    • (q) payments for release from restrictive provisions of original title documents and for other rights;

    • (r) removal and relocation of buildings and other structures on the land that are not purchased;

    • (s) rent of land where it is part of the consideration for purchase; and

    • (t) taxes accrued on the land and assumed at time of purchase.

• 102 Land Rights

  • (1) This account shall include amounts paid for registered land rights or easements and the costs incurred in connection with obtaining the land rights.

  • (2) Temporary land rights or easements used for construction purposes only and the cost of clearing, levelling or grading land for which the company has acquired land rights both before and after the construction of facilities thereon shall be included in the plant account provided for the facilities constructed.

  • (3) A company shall credit to this account the net proceeds from the sale of timber, minerals or improvements that were part of the cost of land rights.

  • (4) Subject to the approval of the Commission, a company shall credit the amount of any excess of net proceeds referred to in subsection (3) over the original cost of the timber, minerals or improvements included in the cost of land rights to account 402 (Extraordinary Income) unless the amount of the excess is not material, in which case the company shall credit that amount to account 410 (Other Income).

  • (5) The following is a representative list of items of land rights to be included in the account: (See Regulations, section 14)

    • (a) abstract expenses;

    • (b) engineering and survey expenses;

    • (c) expropriation expenses;

    • (d) fees and costs of registering, filing and depositing title documents and plans;

    • (e) judgments and decreed costs of clearing or defending titles;

    • (f) legal and notarial fees;

    • (g) outside land right agents’ compensation;

    • (h) plats;

    • (i) premiums on expropriation bonds;

    • (j) payments for release and discharge of encumbrances and charges against the land affected by the land rights;

    • (k) payments for tenants’ consents, options and easements; and

    • (l) servitudes.

• 103 Pipelines

  • (1) This account shall include the cost of installed line pipe and line pipe fittings laid in the construction of gathering lines and shall be maintained to show separately the costs of line pipe, line pipe fittings and pipeline construction.

  • (2) The following is a representative list of pipeline fittings to be included in the account: (See Regulations, section 14)

    • (a) flange;

    • (b) scraper trap; and

    • (c) valve.

  • (3) The following is a representative list of items of work and material to be included in the account: (See Regulations, section 14)

    • (a) Labour and Equipment

      • (i) backfilling,

      • (ii) cleaning up rights-of-way,

      • (iii) clearing rights-of-way,

      • (iv) construction damage,

      • (v) ditching,

      • (vi) engineering and surveying,

      • (vii) hauling and stringing,

      • (viii) inspection and testing,

      • (ix) installing line pipe fittings,

      • (x) laying,

      • (xi) superintendence,

      • (xii) treating, and

      • (xiii) welding; and

    • (b) Material

      • (i) barrier,

      • (ii) bent,

      • (iii) bridge, road, fence and gate when essential to pipeline construction,

      • (iv) casting pipe,

      • (v) cathodic protection system,

      • (vi) clamp and sleeve,

      • (vii) cattleguard,

      • (viii) culvert,

      • (ix) insulator,

      • (x) pole,

      • (xi) protective coating,

      • (xii) river weight,

      • (xiii) rock shield,

      • (xiv) slab,

      • (xv) support and cable,

      • (xvi) vent line, and

      • (xvii) wire.

• 106 Buildings

  • (1) This account shall include the cost of buildings, including foundations and other components such as heating, lighting, plumbing, air conditioning and sprinkler systems.

  • (2) The following is a representative list of items of buildings to be included in the account: (See Regulations, section 14)

    • (a) air strip;

    • (b) clearing and landscaping building area;

    • (c) fencing;

    • (d) loading platform;

    • (e) sewage system;

    • (f) road and parking area;

    • (g) boiler;

    • (h) cistern;

    • (i) incinerator; and

    • (j) pipe rack.

• 108 Pumping Equipment

  • (1) This account shall include the cost of engines, motors, pumps and all other pumping equipment required in the transportation of oil, including installation costs and the cost of any special foundations.

  • (2) The following is a representative list of items of pumping equipment to be included in the account: (See Regulations, section 14)

    • (a) air compressor;

    • (b) air cooling system;

    • (c) air intake and exhaust system;

    • (d) air starting system;

    • (e) booster pump;

    • (f) engine cooling system;

    • (g) engine and motor;

    • (h) exhaust silencer;

    • (i) fuel oil system;

    • (j) fuel and water storage tank;

    • (k) heat exchanger;

    • (l) generator;

    • (m) lube oil system;

    • (n) pump;

    • (o) seal oil system;

    • (p) speed controller; and

    • (q) speed increaser.

• 109 Station Oil Lines

  This account shall include the incoming and outgoing station gate valves at each station and the pipelines, fittings, manifolds and tank lines between those valves.

• 110 Other Station Equipment

  • (1) This account shall include the cost of all station equipment not provided for in other accounts under the Regulations.

  • (2) The following is a representative list of items of other station equipment to be included in the account: (See Regulations, section 14)

    • (a) calibration tank;

    • (b) compensator;

    • (c) electrical system;

    • (d) electrical equipment and control;

    • (e) firefighting equipment;

    • (f) fuel and lubricating oil tank;

    • (g) gasoline system;

    • (h) metering equipment complete with strainer and filter;

    • (i) oil sump system;

    • (j) oil trap;

    • (k) oil treating plant;

    • (l) outside power line and lighting facilities;

    • (m) permanent water right;

    • (n) reservoir;

    • (o) safety device;

    • (p) service line;

    • (q) siding and spur track for station use;

    • (r) skimmer;

    • (s) station tools and equipment;

    • (t) station instrument control;

    • (u) steam system;

    • (v) substation;

    • (w) utility and instrument air system; and

    • (x) water system, storage tank and tower structure.

• 111 Oil Tanks

  • (1) This account shall include the cost of tanks used for the storage of crude or product oil and other appurtenances necessary to equip the tanks for such storage.

  • (2) The following is a representative list of items of oil tanks to be included in the account: (See Regulations, section 14)

    • (a) ammonia injection system;

    • (b) catwalk;

    • (c) cathodic protection system;

    • (d) fire protection equipment attached to the tank;

    • (e) fire wall;

    • (f) grade;

    • (g) inlet valve;

    • (h) oil tank;

    • (i) outlet valve;

    • (j) roof;

    • (k) steam coil;

    • (l) swing pipe; and

    • (m) tank gauge system.

• 112 Receiving and Delivery Facilities

  • (1) This account shall include the cost of facilities for receiving or delivering oil and oil products to or from vessels, railroad cars and trucks.

  • (2) The following is a representative list of items of receiving and delivery facilities to be included in the account: (See Regulations, section 14)

    • (a) automatic sampler;

    • (a.1) barge;

    • (b) ballast system;

    • (b.1) breakwater;

    • (c) calibration tank;

    • (c.1) cargo hose;

    • (d) cofferdam;

    • (e) crane;

    • (f) crib;

    • (g) delivery rack;

    • (h) derrick;

    • (i) dock;

    • (j) dock structure;

    • (k) engine and pump at loading rack and on wharf;

    • (l) grading and site preparation;

    • (m) gravitometer;

    • (n) loading platform;

    • (o) metering equipment complete with strainer and filter;

    • (p) oil tank at dock;

    • (q) oil line pipe and fittings used in connection with receiving and delivery facilities;

    • (r) pier;

    • (s) pumping equipment;

    • (t) pumphouse;

    • (u) rail track used in connection with receiving and delivery facilities;

    • (v) seawall;

    • (w) slip including piling;

    • (x) tanker;

    • (y) wharf; and

    • (z) winch.

• 113 Communication Systems

  • (1) This account shall include the cost of telephone, telegraph, radio, radar and other communication structures and equipment used wholly or predominantly in oil transportation operations.

  • (2) The following is a representative list of items of communication systems to be included in the account: (See Regulations, section 14)

    • (a) Telephone and Telegraph Equipment

      • (i) aerial attachment,

      • (ii) battery,

      • (iii) brace,

      • (iv) bracket,

      • (v) cable and wire,

      • (vi) cable box and appurtenance,

      • (vii) conduit and appurtenance,

      • (viii) connecting wire,

      • (ix) current controlling instrument,

      • (x) cross arm and cross arm bolt,

      • (xi) electric generator and motor,

      • (xii) electric meter,

      • (xiii) fuse and mechanical protector,

      • (xiv) guy stub and anchor,

      • (xv) guy rod and wire,

      • (xvi) insulator and pin,

      • (xvii) rectifier,

      • (xviii) rheostat,

      • (xix) pole,

      • (xx) sending and receiving instrument,

      • (xxi) stationary engine,

      • (xxii) submarine cable and connection,

      • (xxiii) switchboard,

      • (xxiv) telephone pole box,

      • (xxv) testing outfit,

      • (xxvi) tower,

      • (xxvii) transformer, and

      • (xxviii) underground cable and connection; and

    • (b) Radio and Radar Equipment

      • (i) aerial or antenna and attachments,

      • (ii) control unit,

      • (iii) power generating, converting or supply equipment,

      • (iv) radar console and associated equipment,

      • (v) radio tower,

      • (vi) specialized testing and repair equipment, and

      • (vii) transmitter and receiver, including mobile unit.

Trunk Lines

• 151 Land

  For the text of this account, see account 101.

• 152 Land Rights

  For the text of this account, see account 102.

• 153 Pipelines

  • (1) This account shall include the costs of line pipe, line pipe fittings and labour incurred in the construction of trunk lines, including the costs of scraper traps, main line valves and other trunk line facilities between stations.

  • (2) This account shall be maintained to show separately the costs of line pipe, line pipe fittings and pipeline construction, respectively.

  • (3) The representative list of items of pipeline fittings and work and material to be included is the same as the list set out for account 103: (See Regulations, section 14).

• 156 Buildings

  For the text of this account, see account 106.

• 158 Pumping Equipment

  For the text of this account, see account 108.

• 159 Station Oil Lines

  For the text of this account, see account 109.

• 160 Other Station Equipment

  For the text of this account, see account 110.

• 161 Oil Tanks

  For the text of this account, see account 111.

• 162 Receiving and Delivery Facilities

  For the text of this account, see account 112.

• 163 Communications Systems

  For the text of this account, see account 113.

General

• 171 Land

  For the text of this account, see account 101.

• 176 Buildings

  For the text of this account, see account 106.

• 183 Communication Systems

  For the text of this account, see account 113.

• 184 Office Furniture and Equipment

  • (1) This account shall include the cost of office equipment, furniture and fixtures that are not built in or permanently attached to buildings.

  • (2) The following is a representative list of items of office furniture and equipment to be included in the account: (See Regulations, section 14)

    • (a) accounting machine;

    • (a.1) adding machine;

    • (b) air conditioner;

    • (c) calculating machine;

    • (d) carpet;

    • (e) chair;

    • (f) clock;

    • (g) comptometer;

    • (h) desk;

    • (i) dictating machine;

    • (j) duplicating machine;

    • (k) filing cabinet;

    • (l) fire extinguisher;

    • (m) humidifier;

    • (n) I.B.M. panel;

    • (o) integrator;

    • (p) lamp;

    • (q) library;

    • (r) locker;

    • (s) photographic equipment;

    • (t) projection equipment;

    • (u) rug;

    • (v) safe;

    • (w) space heater;

    • (x) table;

    • (y) typewriter; and

    • (z) water cooler.

• 185 Vehicles and Other Work Equipment

  • (1) This account shall include the cost of

    • (a) motor and other vehicles,

    • (b) motor and other portable work equipment,

    • (c) garage equipment, and

    • (d) portable tools,

    not specifically provided for in other accounts under the Regulations.

  • (2) The following is a representative list of vehicles and other work equipment to be included in the account: (See Regulations, section 14)

    • (a) air compressor;

    • (b) automobile;

    • (c) compressed air tool;

    • (d) concrete mixer and breaker;

    • (e) derrick;

    • (f) ditching machine;

    • (g) drill and hammer;

    • (h) gasoline and oil pump, portable;

    • (i) grading machine;

    • (j) hand truck;

    • (k) hydraulic outfit;

    • (l) laying tongs;

    • (m) motor boat and barge;

    • (n) motorcycle;

    • (o) motor and generator;

    • (p) pipe cleaning machine;

    • (q) power mower;

    • (r) power shovel;

    • (s) pump tamping and back filling machine;

    • (t) tractor;

    • (u) truck and truck trailer;

    • (v) valve reseating machine;

    • (w) welding machine; and

    • (x) winch.

• 186 Miscellaneous Plant

  This account shall include the cost of plant used in pipeline operations where such plant is not provided for in other accounts under the Regulations.

• 187 Aircraft

  This account shall include the cost of aircraft and navigational and other flying equipment attached to or used to equip aircraft.

• 188 Joint Plant

  • (1) This account shall include a company’s contribution towards the cost of construction of a project involving joint use of facilities by the company and others, where title to the project is not held by the company.

  • (2) Where title to a project involving joint use of facilities is held by a company, the company’s contribution to the cost shall be included in the applicable plant account.

  • (3) Notwithstanding subsections (1) and (2), plant that is held in undivided interest shall be included in the appropriate plant accounts.

• 189 Allowance for Funds Used During Construction

  • (1) A company shall not, without the approval of the Commission, charge an allowance for funds used during construction (in this section referred to as an “allowance”).

  • (2) The rate used to determine the amount of an allowance shall be based on a reasonable allowance for the use of funds expended during the construction period, whether or not such funds have been borrowed.

  • (3) Where an allowance is capitalized, the relevant amounts shall be debited to this account and concurrently credited to account 410.1 (Allowance for Funds Used During Construction (Credit)).

  • (4) An allowance capitalized prior to the coming into force of these Regulations shall be included in this account, except where it has been prorated over the appropriate plant accounts.

  • (5) A company may, at its option, close out this account by prorating the allowance to the plant accounts (see section 27 of these Regulations).

• 190 Overhead During Construction

  • (1) This account shall include that portion of a company’s overhead expense attributable to the acquisition of plant and that portion shall be calculated on the basis of actual costs equitably allocated to each job or unit.

  • (2) The company may, at its option, close out this account by prorating the amounts recorded therein to the appropriate plant accounts: (See Regulations, section 26).

• 191 Unclassified Plant in Service

  This account shall include the cost of transportation plant pending analysis and distribution to the appropriate plant accounts.