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 ascertaining valuations pursuant to Section 19a of the Interstate Commerce Act. The Oil Pipeline Board takes this action pursuant to the above mentioned authorities.

Introductory. - The Cook Inlet Pipe Line Company, hereinafter called the carrier, was incorporated March 21, 1966 under the general corporation laws of the State of Delaware. The carrier's corporate office is located at Wilmington, Delaware, and its general office at Dallas, Texas. It is controlled jointly by Atlantic Richfield Company, Marathon Oil Company, Mobil Pipe Line Company and Union Oil Company of California through ownership of the outstanding capital stock. The records do not indicate that the carrier, itself, controls any other common carrier. The carrier's property is operated by Mobil Oil Coporation

through its subsidiary Mobil Pipe Line Company under an agreement dated September 1, 1966.

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, 1968.

Location and general description of property and operations. The carrier is engaged in the transportation of crude oil by pipeline. Crude oil is received into its system at Granite Point and West Foreland, and transported in a southwesterly direction to a marine terminal at Drift River, Alaska. The entire pipeline is located in an undeveloped and uninhabited area on the western land side of Cook Inlet.

Wholly owned and used trunklines aggregate 55.460 miles, including 44.013 miles of main lines, 2.511 miles of loops or parallel lines, and 8.936 miles of other lines.

During the year ended December 31, 1977, the carrier received into its system 43,005,112 and delivered out 42,737,187 barrels of crude oil.

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 is $441,000.

The original cost of land and rights-of-way owned and used by the carrier on December 31, 1977 are $34,321 and $17,578, respectively.

Reference is made to Appendix 4, Ajax Pipe Line Corporation, 50 Valuation Report 1, for a statement of the methods employed and of the reasons for the differences between the various cost values reported.

In computing a single sum value, the Commis

sion 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 usefu! for common carrier purposes.

The details respecting the figures here reported are on file in the valuation records of the Commision. These details are referred to for greater particularity as to the matters herein stated. 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 $38,624,600.

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 $38,624,600. 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.

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.

controlled by any individual or corporation, nor on the other hand, that it controls any other common carrier.

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, 1960, 320 I.C.C. 787.

Location and general description of property and operations. The carrier owns and operates trunk pipelines in the States of Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, New Mexico, Oklahoma, Texas and Wisconsin, which are used for transporting refined petroleum products. The principal route of the main trunkline extends from Hobbs Station, Tex., northeasterly to McPherson, Kans. At McPherson, Kans., the trunkline diverges into two segments. The western segment extends in a northerly direction to Pine Bend Terminal near Minneapolis, Minn. The eastern segment extends in a northeasterly direction to the terminal at Janesville, Wis. Wholly owned and used trunklines aggregate 6,210.967 miles including 4,597.700 miles of main line, 1,541.683 miles of loops or parallel lines and 71.584 miles of other lines.

[162,06

Total owned

$343,613,673 $350,302,366

$211,007,803

Total used

Working capital is $273,500.

The original costs of land and rights-of-way owned and used by the carrier on December 31, 1977 are $424,604 and $8,636,019, respectively. The original cost of land leased from State Mutual Life Assurance Company of America is $6,898, and from Warpen and Methpen Realty Company, $1,684.

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 ost 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 herein stated.

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 or used by the carrier as of December 31, 1977 is hereby valued as shown in the above table. On or before 30 days from the date of service of this order, any person entitled to do so under Section 19a of the Interestate 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 Interstate Commerce Commission on July 7, 1977, 42 Fed. Reg. 34978, 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.

On March 18, 1976, Nushagak Electric Cooperative, Inc. (Applicant) of Dillingham, Alaska, filed an application for a 24-month preliminary permit under Section 4(f) of the Federal Power Act (Act)' to study the feasibility of the proposed Lake Elva Project No. 2767 to be located on Elva Creek in the Third Judicial Division in the State of Alaska. Elva Creek flows between Lake Elva and Lake Nerka, which flows into Lake Aleknagik. The latter flows into Nushagak Bay-a part of Bristol Bay and the Bering Sea. The proposed project is located on lands for which the Bureau of Land management

Management has interim responsibility.

Description of Proposed Project

The proposed project would include a dam on Elva Creek downstream from the outlet of Lake Elva and a mile-long steel penstock leading from the dam to a powerhouse and tailrace discharging into Lake Nerka. The powerhouse would contain a 3,000 horsepower turbine and generator. A proposed 28-mile-long transmission line would transmit electric energy from the powerhouse to Applicant's distribution system which serves the communities of Aleknagik, Kanakanak, and Dillingham. Applicant's system now relies on diesel generation. Public Notice and Agency Comments

Public notice was given on June 15, 1976, with

August 23, 1976 as the last day for filing protests or petitions to intervene. None was filed.

By letters dated February 17, 1977, the Secretary of the Commission circulated the application and requested Federal, State, and local agencies to comment thereon. The Forest Service, the Department of Health, Education, and Welfare, the City of Dillingham, and the Alaska Public Utilities Commission responded with comments which either supported or offered no objection to the issuance of the permit. The Corps of Engineers requested that the Applicant be advised of the need to apply for a Department of the Army permit in the event that dredged or fill material were to be discharged into waters of the United States at the project site. The Corps also recommended that Applicant coordinate its study with that agency as provided for by the Alaska Hydroelectric Power Development Act. Applicant has acknowledged the Corps' comments. The substantive comments of other agencies are discussed by topic hereafter.

Stream Gaging

The Department of the Interior (Interior) requested that the permit require the Applicant to gage the flows of the stream to provide a better understanding of the effects the project would have on water resources. Applicant has reported that the Alaska Power Administration and the United States Geological Survey have arranged to perform pre

liminary hydrologic studies, including stream gaging. Article 1 of Form P-1 requires the Permit.ee to install such stream gages as the District Engineer of the U.S. Geological Survey may find necessary. Fish and Wildlife

The State of Alaska (Alaska) and Interior noted that the project could affect a fishery resource in the lower reach of the stream and wildlife resources in the area of the development. They requested that Applicant be required to consult with the U.S. Fish and Wildlife Service, the National Marine Fisheries Service, and the Alaska Department of Fish and Game in determining and dealing with the impacts of the project on these resources. Applicant is agreeable to this and Article 10 provides for such consultation.

Land Resources

Interior stated that the project would be located on lands for which the Bureau of Land Management (BLM) has an interim management responsibility and requested that Applicant be advised to consult with BLM with regard to obtaining permits for conducting studies at the site. Archeological Resources

The Division of Parks of the Alaska Department of Natural Resources (Parks) recommended an archeological survey of the areas of the dam, reservoir, powerhouse, and transmission line. The Advisory Council on Historic Preservation suggested identifying existing or potential cultural resource sites and contacting the State Historic Preservation Officer.

Article 7 of this permit will require Applicant to consult with the Alaska State Historic Preservation Officer in conducting studies pertaining to archeological resources.

Scenic Concerns

Parks stated that the powerhouse should be located and constructed so that it will not be observed by persons on Lake Nerka as a detraction from the scenery of the area. The terms of Article 7 require Applicant to coordinate with Parks on this

matter.

Recreation

Interior recommended that Applicant study the impact of the project on recreation, aesthetics, and environmental resources, and volunteered the assistance of the Bureau of Outdoor Recreation (now the Heritage Conservation and Recreation Service) in such an endeavor. Article 7 provides for consultation in this respect.

Environmental Impact

A preliminary permit does not authorize the construction of any project works. This permit

(A) This preliminary permit is issued to Nushagak Electric Co-operative, Inc. of Dillingham, Alaska, for the Lake Elva Project No. 2767, located on Elva Lake and its outlet stream in the Third Judicial Division in the State of Alaska, for a period of 24 months, effective the first day of the month in which this permit is issued. This permit is subject to the terms and conditions of the Federal Power Act (Act) which is incorporated by reference as part of this permit and subject to the rules and regulations which the Commission issues under the provisions of the Act.

(B) This permit is also subject to the terms and conditions set forth in Form P-1 (revised October 1975)' entitled "Terms and Conditions of Preliminary Permit" (designated as Articles 1 through 6 and attached (See 54 FPC 1797) to this permit, and subject to the following special conditions set forth

as additional articles:

Article 7. Permittee, in the interest of protecting and developing the natural resources and other environmental values of the project area, shall consult with the appropriate Federal, State, and local agencies in their fields of responsibility and expertise, shall conduct its project investigations in a manner which protects the environmental integrity of the area, and shall fully explore all feasible alternatives to the project, and alternative project designs, taking into account impacts on natural resources and other environmental values. These resources and values include, but are not limited to, forests, land management and treatment, fish, wildlife, recreation and public use, water and air quality (including water supply, ground water, waste treatment and disposal); public health and safety; archeology; historical and cultural sites; threatened or endangered flora and fauna; and scenic and aesthetic values. The Permittee shall initiate and conduct at its expense such studies as may be necessary to determine the impact of the construction and operation of the proposed project on these natural resources and values and measures needed to protect and develop them or to provide for their mitigation or replacement, including alternative designs and operational measures, and shall utilize the results of such studies in the preparation of Exhibits H, R, S, V and W to accompany any application for a license to construct and operate the project. In