with the Wyco Pipeline Company at Cheyenne, Wyoming to terminal facilities at North Platte, Nebraska. Wholly owned and used trunklines aggregate 264.539 miles, including 260.274 miles of main line and 4.265 miles of other lines.

During the year, the carrier received into its system 341,114 and delivered out 341,114 barrels of crude oil and received 6,074,245 and delivered out 6,074,245 barrels of refined oils.

Elements of value. - As of December 31, 1977, the elements of value of property owned and used by the carrier in common carrier service are as follows:

Working capital: $87,400.

The original costs of land and rights-of-way owned and used by the carrier on December 31, 1977 are $26,580 and $101,126, respectively.

Reference is made to Appendix 4, Ajax Pipe Line Corporation, 50 Val. Rep. 1, which is hereby made a part hereof, for a statement of the methods generally employed and of the reasons for the differences between the various cost values reported.

In computing a single sum value, the Commission places primary emphasis on two elements of cost, namely cost of reproduction new and original cost to date. These two elements are weighted together based on each one's percentage to the sum of the two. The weighted figure is then depreciated to reflect the value of the property in its present condition by applying a condition percent factor derived from a ratio of cost of reproduction new less depreciation value to the cost of reproduction new value. The resultant depreciated value is increased by 6 percent to reflect an amount for going concern. To this increased value an amount is added for the present value of land, rights-of-way and working capital. This final figure is the total single sum value of the carrier's properties that are used and useful for common carrier purposes.

The details respecting the figures here reported are on file in the valuation records of the Commission. These details are referred to for greater particularity as to the matters stated herein.

The Board finds:

1. After careful consideration of all facts herein contained, including appreciation, depreciation, going-concern value, and all other matters which appear to have a bearing upon the values here reported, the value, pursuant to Section 19a of the Interstate Commerce Act, as of December 31, 1977, of the property owned and used by the carrier for common carrier purposes is $5,453,500.

2. No other values or elements of value to which specific sums can now be ascribed are found to exist.

The Board orders:

1. The property owned and used by the carrier as of December 31, 1977, is hereby valued at $5,453,500. On or before 30 days from the date of service of this order, any person entitled to do so under Section 19a of the Interstate Commerce Act may file with the Secretary of the FERC written protest concerning this valuation, such protest to specify in detail the findings concerning which protest is made and the reasons for such protest.

2. If no protest is filed within the period specified and if no petition for leave to intervene has been filed as provided by the notice published by the Federal Energy Regulatory Commission on October 12, 1978, 43 Fed. Reg. 47000, and the proceeding is not reopened for any other reason, these findings will be the findings of the FERC, and the valuation as found will be final.

[162,095

Idaho Power Company, Project No. 2736

Letter-Order Amending License

Mr. James E. Bruce

President

Idaho Power Company

P. O. Box 70

Boise, Idaho 83707

Subject: Amendment of License Article No. 9 and Addition of Article No. 50 to the License for Project No. 2736.

Dear Mr. Bruce:

Pursuant to the authority vested in me by the Commission's Regulations, 18 CFR 3.5(a) (as amended August 14, 1978, FERC Statutes and Regulations ¶30,016), and your Application for Amendment of License filed May 11, 1978, your license for Project No. 2736 is amended to the following extent:

1. License Article No. 9 is amended by adding the following sentence to the end of the Article: This Article is effective through May 10, 1978. 2. The following new Article is added to your license effective May 11, 1978, through the remaining term of the license:

Article No. 50. Pursuant to Section 10(d) of the Act, after the first 20 years of operation of the project under license, the rate as computed below shall be the specified rate of return on the net investment in the project for determining surplus earnings of the project for the establishment and maintenance of amortization reserves. One half of the project surplus earnings, if any, accumulated after the first 20 years of operation under the license, in excess of the specified rate of return per annum on the net investment, shall be set aside in a project amortization reserve account as of the end of each fiscal year: Provided, that, if

and to the extent that there is a deficiency of project earnings below the specified rate of return per annum for any fiscal year or years after the first 20 years of operation under the license, the amount of such deficiency shall be deducted from the amount of any surplus earnings accumulated thereafter until absorbed, and one-half of the remaining surplus earnings, if any, thus cumulatively computed, shall be set aside in the project amortization reserve account; and the amounts thus established in the project amortization reserve account shall be maintained until further order of the Commission.

The annual specified reasonable rate of return shall be the sum of the weighted cost components of long-term debt, preferred stock, and the cost of common equity, as defined herein. The weighted cost components for each element of the reasonable rate of return is the product of its capital ratios and cost rate. The current capital ratios for each of the above elements of the rate of return shall be calculated annually based on an average of 13 monthly balances of amounts properly includable in the Licensee's long-term debt and proprietary capital accounts as listed in the Commission's Uniform System of Accounts. The cost rates for such ratios shall be the weighted average cost of long-term debt and preferred stock for the year, and the cost of common equity shall be the interest rate on 10-year government bonds (reported as the Treasury Department's 10 year constant maturity series) computed on the monthly average for the year in question plus four percentage points (400 basis points). This document should be regarded as an official license instrument and be filed accordingly. Kenneth F. Plumb, Secretary.

Jurisdiction over oil pipelines, as it relates to the establishment of valuations for pipelines, was

transferred from the Interstate Commerce Commission to the Federal Energy Regulatory Commission

(FERC), pursuant to Sections 306 and 402 of the Department of Energy Organization Act, 42 U.S.C. §§ 7155 and 7172, and Executive Order No. 12009, 42 Fed. Reg. 46267 (September 15, 1977).

The FERC, by order issued February 10, 1978, FERC Statutes and Regulations 30,007, established an Oil Pipeline Board and delegated to the Board its functions with respect to the issuance of valuation reports pursuant to Section 19a of the Interstate Commerce Act. The Oil Pipeline Board takes this action pursuant to the above mentioned authorities.

Introductory. - The Mobil Pipe Line Company, hereinafter called the carrier, was incorporated March 10, 1969 under the general corporation laws of the State of Delaware. It was originally incorporated November 24, 1925, under the general corporation laws of the State of Texas as the Magnolia Pipe Line Company (name changed November 1, 1966). The carrier's principal office is located at Dallas, Texas. The carrier is controlled by the Mobil Oil Corporation, through ownership of the outstanding capital stock, and does not, itself, control any common carrier corporation.

Additional data regarding corporate history, organization, operation, financial, other detail and elements of value will be found in the carrier's basic valuation report as of December 31, 1934, and in its revaluation report as of December 31, 1947, 48 Val. Rep. 775 and 50 Val. Rep. 571.

Location and general description of property and operations. The carrier owns and operates crude oil gathering pipelines in the States of Illinois, Kansas, Michigan, New Mexico, Oklahoma, Texas and Wyoming; crude trunklines in the States of Arkansas, Illinois, Kansas, Louisiana, Missouri, New Mexico, Oklahoma, Texas and Wyoming; and products trunklines in the States of Connecticut, Iowa, Kansas, Louisiana, Maine, Massachusetts, Missouri, Nebraska, New Jersey and New York, Oklahoma, Pennsylvania, Rhode Island, South Dakota and Texas.

The principal crude oil trunkline routes extend

from Purcell, Oklahoma, via Corsicana, Texas, to Beaumont, Texas; Crossroads, New Mexico, via Corsicana, Texas, to Patoka, Illinois; Kinsloe to Beaumont, Texas; Mirando to Hull, Texas; Chase to Augusta, Kansas; and Little Bear to Horse Creek, Wyoming. These main routes are fed by several short branch lines.

Trunklines used for transporting refined products extend from Beaumont to Hearne, Texas; Beaumont to Waskom, Texas; Hull to Texas City, Texas; Seelingson to Luling, Texas; Augusta, Kansas to Sioux Falls, South Dakota, via Topeka, Kansas and Omaha, Nebraska, with a branch line from Topeka to Fairfax, Kansas (Kansas City); and Paulsboro, New Jersey to Midland Terminal (Pittsburgh, Pennsylvania) via Malvern, Harrisburg and Altoona, Pennsylvania; Malvern, Pennsylvania to Waterloo, New York, with a branch line to Elmira; Buffalo to Syracuse, New York, via Waterloo, with a branch line to Rochester; East Providence, Rhode Island to Springfield, Massachusetts, via East Douglas, with a branch line to Hartford, Connecticut; East Douglas to Worcester, Massachusetts; and Portland to Bangor, Maine.

Owned and used gathering lines aggregate 4,449.711 miles, and trunklines 7,765.492 miles including 5,967.300 miles of main line, 1,656.579 miles of loops or parallel lines and 141.613 miles of other lines.

In addition to its owned and used property, the carrier owns 9.422 miles of crude trunklines leased to Permian Oil Company; 0.920 miles of trunklines leased to Du Pont. Also owned but leased to Pure Transportation, is 0.712 mile of gathering lines, and 2.927 miles of gathering lines are leased to Ted True, Inc.

During the year the carrier received into its system 271,367,313 and delivered out 273,095,804 barrels of crude oil, and received 103,392,693 and delivered out 103,308,819 barrels of refined oils.

Elements of value. - As of December 31, 1977, the elements of value of property owned or used by the carrier in common carrier service are as follows:

[162,09

Working capital is $1,365,200.

The original costs of land and rights-of-way owned and used by the carrier on December 31, 1977 are $725,334 and $6,661,692, respectively. The original cost of land leased to Mobil Oil Corporation is $10,985. The original cost of rights-of-way leased to Permian Oil Company is $1,356, to Pure Transportation Company $334, to Ted True, Inc. $248, and to Du Pont $1,178. The original cost of land leased from others was not determined.

Reference is made to Appendix 4, Ajax Pipe Line Corporation, 50 Val. Rep. 1, which is hereby

made a part hereof, for a statement of the methods generally employed and of the reasons for the differences between the various cost values reported.

In computing a single sum value, the Commission places primary emphasis on two elements of cost, namely cost of reproduction new and original cost to date. These two elements are weighted together based on each one's percentage to the sum of the two. The weighted figure is then depreciated to reflect the value of the property in its present condition by applying a condition percent factor