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 Southern Pacific Pipe Lines, Inc., hereinafter called the carrier, was incorporated February 18, 1955, under the General Corporation Laws of the State of Delaware. The carrier's corporate office is located at Wilmington, Delaware. It is controlled by Southern Pacific Company through ownership of the outstanding capital stock. It controls, through complete ownership of the outstanding capital stock, Black Mesa Pipeline, Inc.

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, 1957, 57 Val. Rep. 461.

Location and general description of property and operations. The carrier owns and operates trunk pipelines in the States of Arizona, California, Nevada, New Mexico, Oregon and Texas, that are used for the transportation of refined petroleum products. The principal wholly owned and used trunkline routes extend from El Paso, Texas to Phoenix, Arizona; from Los Angeles, California to Phoenix, Arizona; from Richmond, California to Fallon, Nevada; from Richmond, California to

Oakland, Oakland International Airport, Brisbane, and San Francisco International Airport, California; from Bakersfield to Fresno, California; from Watson to Taylor Yard, Los Angeles, California; and from Portland to Eugene, Oregon. Lateral lines extend from Niland to Imperial, California; from Yuma, Arizona to Yuma Marine Corps Auxiliary Air Station; from Phoenix, Arizona to Williams and Davis Monthan Air Force Bases; from Stockton, California to Castle Air Force Base; from Roseville, California to Beale Air Force Base, and from a point known as Erle Junction on this line to Chico, California; from Bradshaw, California to Mather and McClellan Air Force Base; from Concord to Suisun City, California, serving Travis Air Force Base; from Concord to San Jose, California; from Imperial, California to El Centro Naval Auxiliary Air Station; from Ontario to Ontario International Airport, California; and from Colton to Norton Air Force Base, California.

Wholly owned and used trunklines aggregate 2,512.385 miles, including 2,128.328 miles of main lines, 317.526 miles of loops or parallel lines, and 66.531 miles of other lines. In addition, the carrier jointly owns and uses with Chanslor-Western Oil & Development Company, a wholly owned subsidiary of the Atchison, Topeka, and Santa Fe Railroad Company, 50 percent each, trunklines extending from the Colton Tank Farm to March Air Force Base, California, and from Phoenix to Luke Air Force Base, Arizona, aggregating 32.741 miles including 32.562 miles of main line and 0.179 mile of other lines.

During the year ended December 31, 1977, the carrier received into its system 225,083,241 and delivered out 224,961,322 barrels of petroleum products.

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:

[162,126]

Working capital is $1,968,300.

The original costs of land and rights-of-way owned and used by the carrier on December 31, 1977 are $257,725 and $2,510,079, 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 appear to have a bearing upon the values here reported, the values, pursuant to Section 19a of the Interstate Commerce Act, as of December 31, 1977, of the property owned or used by the carrier for common carrier purposes are found to be as follows: Classification

Value $140,097,400

149,800 2,800

152,600

140,097,400

$140,250,000

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 table above. 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 the findings in the said report,

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 Federal Register 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.

Introductory. - The White Shoal Pipeline Corporation, hereinafter called the carrier, was incorporated July 9, 1968, 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 Oklahoma City, Oklahoma. It is jointly controlled by Kerr-McGee Corporation, Cabot Corporation, Case-Pomeroy Oil Corporation and Felmont Oil Corporation through ownership of the outstanding capital stock. The records do not indicate that the carrier, itself, controls any common carrier corporation.

from the State of Louisiana in the Ship Shoal area of the Gulf of Mexico where they connect into the Whitecap Pipe Line System. The gathering lines are operated by the Kerr-McGee Corporation.

The carrier also jointly owns and uses an undivided interest in the Whitecap Pipeline System. The Whitecap Pipeline System is jointly owned and used in an undivided interest by the carrier, Paloma Pipe Line Company and Pure Transportation Company. The system was constructed in 1968 and is operated by Pure Transportation Company, as agent, under an agreement between the three participants. Crude oil is transported in a northerly direction from Block 208, approximately 51 miles offshore Louisiana, to Block 28, approximately 7 miles offshore Louisiana in the Gulf of Mexico where it connects into the Ship Shoal Pipe Line System. The jointly owned and used Whitecap Pipe Line System aggregates 44.366 miles including 44.355 miles of main line and 0.011 mile of other lines.

Significant changes during the year include the sale of approximately 1 mile of 6-inch gathering line to Kerr-McGee Corporation.

During the year the carrier received into its system 3,885,139 and delivered out 3,855,139 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:

[162,127

Working capital is $25,100.

The original cost of rights-of-way owned and used by the carrier on December 31, 1977 is $204.

Reference is made to Appendix 4, Ajax Pipe Line Corporation, 50 Val. Rep. 1, 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 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 $2,535,500.

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 $2,535,500. 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 Federal Register 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.

[ 63,003.]