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.

ownership of the outstanding capital stock. It 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, 1950, reported in 52 Val. Rep. 612.

Location and general description of property and operations. - The carrier owns and operates trunk pipelines in the States of Colorado, South Dakota and Wyoming which are used for the transportation of refined petroleum products. The pipelines extend southeasterly from Casper, Wyoming to Fountain, Colorado, and from near Douglas, Wyoming, northeasterly to a terminal near Rapid City, South Dakota. They aggregate 744.717 miles, including 553.262 miles of main line, 177.831 miles of loops and 13.624 miles of other lines.

During the year the carrier received into its system 17,304,224 and delivered out 17,295,831 barrels of refined oils.

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Working capital is $3,300.

The original costs of land and rights-of-way owned and used by the carrier on December 31, 1977, are $94,732 and $373,675, respectively. 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 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. The Board finds:

1. After careful consideration of all facts herein contained, including appreciation, depreciation, going-concern value, and all other matters which

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 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 protests 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.

laws of the State of Delaware. The carrier's corporate office is located at Wilmington, Delaware, and its general office at Ponca City, Oklahoma. The carrier is jointly controlled by the Exxon Pipe Line Company and Continental Pipe Line Company, both being common carriers, through majority ownership of equal shares of the outstanding capital stock. It 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, 1954, 55 Valuation Report 541.

Location and general description of property

and operations. The carrier owns and operates trunk pipelines in the States of Idaho, Montana, and Washington used for transporting refined petroleum products. The line extends from Billings, Montana, through Coeur d'Alene, Idaho, to Moses Lake, Washington, and aggregates 753.153 miles, including 746.038 miles of main line, 4.087 miles of loops or parallel lines and 3.028 miles of other lines.

During the year the carrier received into its system 21,267,427 and delivered out 21,271,435 barrels of refined oils.

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

Working capital is $73,500.

The original costs of land and rights-of-way owned and used by the carrier on December 31, 1977 are $39,106 and $469,212, 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 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 reflected 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.

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 $26,217,800.

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 $26,217,800. 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.

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

Introductory. The Dixie Pipeline Company, hereinafter called the carrier, was incorporated February 6, 1961 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 Houston, Texas. The carrier is not controlled by any one individual or corporation. The records do not indicate that the carrier, itself, controls any common carrier corporation.

The common carrier property of the carrier is operated by the Exxon Pipeline Company as agent. 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, 1962, 330 ICC 648.

Location and general description of property and operation. The carrier owns and uses trunklines in the Statesof Alabama, Georgia, Louisiana, Mississippi, North Carolina, South Carolina and Texas for the transportation of refined petroleum products. Its main trunkline extends from Mont Belvieu, Texas to Apex, North Carolina. A lateral trunkline extends from Opelika, Alabama (a station located on the main trunkline of the system) southeasterly to Alma, Georgia.

Wholly owned and used trunklines aggregate 1,308.811 miles, including 1,298.774 miles of main line, 1.673 miles of loop line and 8.364 miles of other lines.

During the year ended December 31, 1977, the carrier received into its system 30,926,662 and delivered out 30,477,645 barrels of refined petroleum products.

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