Collapse to view only § 225.1 - Promulgation.
- § 225.1 - Promulgation.
- § 225.2 - General instructions.
- § 225.3 - Schedule of records and periods of retention.
§ 225.1 - Promulgation.
This part is prescribed and promulgated as the regulations governing the preservation of records by natural gas companies subject to the jurisdiction of the Commission, to the extent and in the manner set forth therein.
§ 225.2 - General instructions.
(a) Scope of this part. (1) The regulations in this part must apply to all books of account and other records prepared by or on behalf of the natural gas company. See item 40 of the schedule for those records that come into possession of the natural gas company in connection with the acquisition of property, such as purchases, consolidation, merger, etc.
(2) The regulations in this part should not be construed as excusing compliance with other lawful requirements of any other governmental body, Federal or State, prescribing other record keeping requirements, or for preservation of records for periods longer than those prescribed in this part.
(3) To the extent that any Commission regulations may provide for a different retention period, the records should be retained for the longer of the retention periods.
(4) Records other than those listed in the schedule may be destroyed at the option of the natural gas company: Provided, however, That records which are used in lieu of those listed shall be preserved for the periods prescribed for the records used for substantially similar purposes. And, provided further, That retention of records pertaining to added services, functions, plant, etc., the establishment of which cannot be presently foreseen, shall conform to the principles embodied herein.
(5) Notwithstanding the provisions of the Records Retention Schedule, the Commission may, upon the request of the company, authorize a shorter period of retention for any record listed therein upon a showing by the company that preservation of such record for a longer period is not necessary or appropriate in the public interest or for the protection of investors or consumers.
(b) Designation of supervisory official. Each natural gas company subject to the regulations in this part shall designate one or more persons with official responsibility to supervise the natural gas company's program for preservation and the authorized destruction of its records.
(c) Protection and storage of records. The natural gas company shall provide reasonable protection for records subject to the regulations in this part from damage by fires, floods, and other hazards and, in the selection of storage spaces, safeguard the records from unnecessary exposure to deterioration from excessive humidity, dryness, or lack of proper ventilation.
(d) Record storage media. Each natural gas company has the flexibility to select its own storage media subject to the following conditions.
(1) The storage media must have a life expectancy at least equal to the applicable record retention period provided in § 225.3 unless there is a quality transfer from one media to another with no loss of data.
(2) Each natural gas company is required to implement internal control procedures that assure the reliability of and ready access to data stored on machine readable media. Internal control procedures must be documented by a responsible supervisory official.
(3) Each transfer of data from one media to another must be verified for accuracy and documented. Software and hardware required to produce readable records must be retained for the same period the media format is used.
(e) Destruction of records. At the expiration of the records retention period, natural gas companies may use any appropriate method to destroy records.
(f) Premature destruction or loss of records. When records are destroyed or lost before the expiration of the prescribed period of retention, a certified statement listing, as far as may be determined, the records destroyed and describing the circumstances of accidental or other premature destruction or loss must be filed with the Commission within ninety (90) days from the date of discovery of the destruction.
(g) Schedule of records and periods of retention. (1) Records related to plant in service must be retained until the facilities are permanently removed from service, all removal and restoration activities are completed, and all costs are retired from the accounting records unless accounting adjustments resulting from reclassification and original costs studies have been approved by the regulatory commission having jurisdiction. If the plant is sold, the associated records or copies thereof, must be transferred to the new owners.
(2) Records related to additions, retirements, and betterments thereto must be retained until the Commission has determined the actual legitimate original cost of the facilities.
(h) Retention periods designated “Destroy at option”. “Destroy at option” constitutes authorization for destruction of records at managements' discretion if it does not conflict with other legal retention requirements or usefulness of such records in satisfying pending regulatory actions or directives.
(i) Records of services performed by associated companies. The natural gas companies must assure the availability of records of services performed by associated or affiliated companies with supporting cost information for the periods indicated in § 225.3 as necessary to be able to readily furnish detailed information as to the nature of the transaction, the amounts involved, and the accounts used to record the transactions.
(j) Index of records. Natural gas companies must arrange, file, and index records so they may be readily identified and made available to Commission representatives.
(k) Rate case. Notwithstanding the minimum retention periods provided in these regulations, if a natural gas company intends to reflect costs in a current, pending, or future rate case, or if a natural gas company has abandoned or retired a plant subsequent to the test period of its last rate case, it must retain all relevant records.
(l) Pending complaint litigation or governmental proceeding. Notwithstanding the minimum requirements, if a natural gas company is involved in pending litigation, complaint procedures, proceedings remanded by the court, or governmental proceedings, it must retain all relevant records.
(m) Life or mortality study data. Life or mortality study data for depreciation purposes must be retained for 25 years or for 10 years after plant is retired whichever is longer.
§ 225.3 - Schedule of records and periods of retention.
Schedule of Records and Periods of Retention
| Item No. and description | Retention period | 1. Reports to stockholders: Annual reports or statements to stockholders | 5 years. | 2. Organizational documents: | (a) Minute books of stockholders', directors', and directors' committee meetings | 5 years or termination of the corporation's existence, whichever occurs first. | (b) Titles, franchises, and licenses: Copies of formal orders of regulatory commissions served upon the natural gas company | 6 years after final non-appealable order. | 3. Contracts including amendments and agreements (except contracts provided for elsewhere): | (a) Service contracts, such as for management, accounting, and financial services | All contracts, related memoranda, and revisions should be retained for 4 years after expiration or until the conclusion of any contract disputes pertaining to such contracts, whichever is later. | (b) Contracts with others for transportation or for the purchase, sale or interchange of product | All contracts, related memoranda, and revisions should be retained for 4 years after expiration or until the conclusion of any contract disputes or governmental proceedings pertaining to such contracts, whichever is later. | (c) Memoranda essential to clarifying or explaining provisions of contracts listed above, including requests for discounts | For the same periods as contracts to which they relate. | (d) Card or book records of contracts, leases, and agreements made that show dates of expirations, renewals, memoranda of receipts, and payments under such contracts | For the same periods as contracts to which they relate. | 4. Accountants' and auditors' reports: | (a) Reports of examinations and audits by accountants and auditors not in the regular employ of the natural gas company (such as reports of public accounting firms and Commission accountants) | 5 years after the date of the report. | (b) Internal audit reports and working papers | 5 years after the date of the report. | 5. Automatic data processing records (retain original source data used as input for data processing and data processing report printouts for the applicable periods prescribed elsewhere in the schedule): Software program documentation and revisions thereto. | Retain as long as it represents an active viable program or for periods prescribed for related output data, whichever is shorter. | 6. General and subsidiary ledgers: | (a) Ledgers: | (1) General ledgers | 10 years. | (2) Ledgers subsidiary or auxiliary to general ledgers except ledgers provided for elsewhere | 10 years. | (b) Indexes: | (1) Indexes to general ledgers | 10 years. | (2) Indexes to subsidiary ledgers except ledgers provided for elsewhere | 10 years. | (c) Trial balance sheets of general and subsidiary ledgers | 2 years. | 7. Journals: General and subsidiary | 10 years. | 8. Journal vouchers and journal entries including supporting detail: | (a) Journal vouchers and journal entries | 10 years. | (b) Analyses, summarizations, distributions, and other computations which support journal vouchers and journal entries: | (1) Charging plant accounts | 25 years. See § 225.2(g). | (2) Charging all other accounts | 6 years. | 9. Cash books: General and subsidiary or auxiliary books | 5 years after close of fiscal year. | 10. Voucher registers: Voucher registers or similar records when used as a source document | 5 years. See § 225.2(g). | 11. Vouchers: | (a) Paid and canceled vouchers (1 copy-analysis sheets showing detailed distribution of charges on individual vouchers and other supporting papers) | 5 years. See § 225.2(g). | (b) Original bills and invoices for materials, services, etc., paid by vouchers | 5 years. See § 225.2(g). | (c) Paid checks and receipts for payments of specific vouchers | 5 years. | (d) Authorization for the payment of specific vouchers | 5 years. See § 225.2(g). | (e) Lists of unaudited bills (accounts payable), list of vouchers transmitted, and memoranda regarding changes in audited bills | Destroy at option. | (f) Voucher indexes | Destroy at option. | 12. Insurance records: | (a) Records of insurance policies in force, showing coverage, premiums paid, and expiration dates | Destroy at option after expiration. | (b) Records of amounts recovered from insurance companies in connection with losses and of claims against insurance companies, including reports of losses, and supporting papers | 6 years. See § 225.2(g). | 13. Production—Gas: | (a) Recording instrument charts such as pressure (static and/or differential), temperature, specific gravity, heating value, etc | If the measurement data have not been disputed or adjusted, destroy after 1 year. | (b) Test of heating value at stations and outlying points | If the measurement data have not been disputed or adjusted, destroy after 1 year. | (c) Records of gas produced, out, and holder stock | If the measurement data have not been disputed or adjusted, destroy after 1 year. | (d) Analysis of (gas produced) B.T.U. and sulphur content | If the measurement data have not been disputed or adjusted, destroy after 1 year. | (e) Well records, including clearing, bailing, shooting etc., records; rock pressure; open flow; production, gas analysts' reports etc | 1 year after field or relevant production area abandoned | (f) Gas measuring records | If the measurement data have not been disputed or adjusted, destroy after 1 year. | 14. Transmission and distribution—Gas: | (a) Substation and transmission line log | If the measurement data have not been disputed or adjusted, destroy after 1 year. | (b) System operator's daily logs and reports of operation | If the measurement data have not been disputed or adjusted, destroy after 1 year. | (c) Gas measuring records | If the measurement data have not been disputed or adjusted, destroy after 1 year. | (d) Transmission line operating reports | If the measurement data have not been disputed or adjusted, destroy after 1 year. | (e) Compression operation and reports | If the measurement data have not been disputed or adjusted, destroy after 1 year. | (f) Recording instrument charts such as pressure (static and/or differential), temperature, specific heating value, etc | If the measurement data have not been disputed or adjusted, destroy after 1 year. | 14.1 Underground storage of natural gas: | (a) Well records, reports, and logs which include data relating to pressures, injected volumes, withdrawn volumes, core analysis, daily volumes of gas injected into and withdrawn from reservoir, cushion, and working gas volumes for each reservoir | 1 year after reservoir, field, or relevant storage area is abandoned. | (b) Records containing information relating to reservoir gas leakage, showing the total gas leakage, and recycled gas | 1 year after reservoir, field, or relevant storage area is abandoned. | (c) Records on back pressure tests field data | 1 year or until superseded. | (d) Records on back pressure test results, gas analysis | 1 year or until superseded. | 15. Maintenance work orders and job orders: | (a) Authorizations for expenditures for maintenance work to be covered by work orders, including memoranda showing the estimates of costs to be incurred | 5 years. | (b) Work order sheets to which are posted in detail the entries for labor, material, and other charges in connection with maintenance, and other work pertaining to natural gas company operations | 5 years. | (c) Summaries of expenditures on maintenance and job orders and clearances to operating other accounts (exclusive of plant accounts) | 5 years. | 16. Plant ledgers: | (a) Ledgers of natural gas company's plant accounts including land and other detailed ledgers showing the cost of plant by class | 25 years. See § 225.2(g). | (b) Continuing plant inventory ledger, book or card records showing description, location, quantities, cost, etc., of physical units (or items) of natural gas plant owned | 25 years. See § 225.2(g). | 17. Construction work in progress ledgers: | (a) Construction work in progress ledgers | 5 years after clearance to the plant account, provided continuing plant inventory records are maintained; otherwise 5 years after plant is retired. | (b) Work order sheets to which are posted in summary form or in detail the entries for labor, materials, and other charges for natural gas company's plant additions and the entries closing the work orders to plant in service at completion | 5 years after clearance to the plant account, provided continuing plant inventory records are maintained; otherwise 5 years after plant is retired. | (c) Authorizations for expenditures for additions to natural gas company plant, including memoranda showing the detailed estimates of cost, and the bases therefor (including original and revised or subsequent authorizations) | 5 years after clearance to the plant account, provided continuing plant inventory records are maintained; otherwise 5 years after plant is retired. | (d) Requisitions and registers of authorizations for natural gas company plant expenditures | 5 years after clearance to the plant account, provided continuing plant inventory records are maintained; otherwise 5 years after plant is retired. | (e) Completion or performance reports showing comparison between authorized estimates and actual expenditures for natural gas company plant additions | 5 years after clearance to the plant account, provided continuing plant inventory records are maintained; otherwise 5 years after plant is retired. | (f) Analysis or cost reports showing quantities of materials used, unit costs, number of man-hours etc., in connection with completed construction project | 5 years after clearance to the plant account, provided continuing plant inventory records are maintained; otherwise 5 years after plant is retired. | (g) Records and reports pertaining to progress of construction work, the order in which jobs are to be completed, and similar records which do not form a basis of entries to the accounts | Destroy at option. | (h) Well-drilling logs and well construction records | 1 year after field or well is abandoned. | 18. Retirement work in progress ledgers, work orders, and supplemental records: | (a) Work order sheets to which are posted the entries for removal costs, materials recovered, and credits to natural gas company plant accounts for cost of plant retirement | 5 years after plant is retired. | (b) Authorizations for retirement of natural gas company plant, including memoranda showing the basis for determination of cost of plant to be retired, and estimates of salvage and removal costs | 5 years after plant is retired. | (c) Registers of retirement work | 5 years. | 19. Summary sheets, distribution sheets, reports, statements, and papers directly supporting debits and credits to natural gas company plant accounts not covered by construction or retirement work orders and their supporting records | 5 years. | 20. Appraisals and valuations: | (a) Appraisals and valuations made by the company of its properties or investments or of the properties or investments of any associated companies. Includes all records essential thereto | 3 years after appraisal. | (b) Determinations of amounts by which properties or investments of the company or any of its associated companies will be either written up or written down as a result of: | (1) Mergers or acquisitions | 10 years after completion of transaction or as ordered by the Commission. | (2) Asset impairments | 10 years after recognition of asset impairment. | (3) Other bases | 10 years after the asset was written up or down. | 21. The original or reproduction of engineering records, drawings, and other supporting data for proposed or as-constructed gas facilities: Maps, diagrams, profiles, photographs, field survey notes, plot plan, detail drawings, records of engineering studies, and similar records showing the location of proposed or as-constructed facilities | Retained until retired or abandoned. | 22. Contracts relating to natural gas plant: | (a) Contracts relating to acquisition or sale of plant | 6 years after plant is retired or sold. | (b) The primary records of gas acreage owned, leased or optioned excluding deeds and leases but including such records as lease sheets, leasehold cards, and option agreements | 6 years after plant is retired or sold. | 23. Records pertaining to reclassification of natural gas plant accounts to conform to prescribed systems of accounts including supporting papers showing the bases for such reclassifications | 6 years. | 24. Records of accumulated provisions for depreciation and depletion of gas plant and supporting computation of expense: | (a) Detailed records or analysis sheets segregating the accumulated depreciation according to functional classification of plant | 25 years. | (b) Records reflecting the service life of property and the percentage of salvage and cost of removal for property retired from each account for depreciable natural gas plant | 25 years. | 25. Procurement: | (a) Agreements entered into for the acquisition of goods or the performance of services. Includes all forms of agreements not specifically set forth in Subsection 7 such as but not limited to: Letters of intent, exchange of correspondence, master agreements, term contracts, rental agreements, and the various types of purchase orders: | (1) For goods or services relating to plant construction | 6 years. See § 225.2(g). | (2) For other goods or services | 6 years. | (b) Supporting documents including accepted and unaccepted bids or proposals (summaries of unaccepted bids or proposals may be kept in lieu of originals) evidencing all relevant elements of the procurement | 6 years. See § 225.2(g). | 26. Material ledgers: Ledger sheets of materials and supplies received, issued, and on hand | 6 years after the date records/ledgers were created. | 27. Materials and supplies received and issued: Records showing the detailed distribution of materials and supplies issued during accounting periods | 6 years. See § 225.2(g). | 28. Records of sales of scrap and materials and supplies: | (a) Authorization for sale of scrap and materials and supplies | 3 years. | (b) Contracts for sale of scrap and materials and supplies | 3 years. | 29. Customers' service applications and contracts: Contracts, including amendments for extensions of service, for which contributions are made by customers and others | 4 years after expiration. | 30. Rate schedules: General files of published rate sheets and schedules of natural gas company service (including schedules suspended or superseded) | 6 years after published rate sheets and schedules are superseded or no longer used to charge for services. | 31. Maximum demand, pressure, temperature, and specific gravity charts and demand meter record card | If the measurement data have not been disputed or adjusted, destroy after 1 year. | 32. Miscellaneous billing data: Billing department's copies of contracts with customers (other than contracts in general files) | Destroy at option. | 33. Revenue summaries: Summaries of monthly operating revenues according to classes of service. Including summaries of forfeited discounts and penalties | 5 years. | 34. Tax records: | (a) Copies of tax returns and supporting schedules filed with taxing authorities, supporting working papers, records of appeals of tax bills, and receipts for payment. See Subsection 11(b) for vouchers evidencing disbursements: | (1) Income tax returns | 2 years after final tax liability is determined. | (2) Property tax returns | 2 years after final tax liability is determined. | (3) Sales and other use taxes | 2 years. | (4) Other taxes | 2 years after final tax liability is determined. | (5) Agreements between associate companies as to allocation of consolidated income taxes | 2 years after final tax liability is determined. | (6) Schedule of allocation of consolidated Federal income taxes among associate companies | 2 years after final tax liability is determined. | (b) Filings with taxing authorities to qualify employee benefit plans | 5 years after discontinuance of plan. | (c) Information returns and reports to taxing authorities | 3 years after final tax liability is determined. | 35. Statements of funds and deposits: | (a) Statements of periodic deposits with fund administrators or trustees | Retain records for the most recent 3 years. | (b) Statements of periodic withdrawals from fund | Retain records for the most recent 3 years. | (c) Statements prepared by fund administrator or trustees of fund activity including: | Retain records until the fund is dissolved or terminated. | (1) Beginning of the year fund balance | (2) Deposits with the fund; | (3) Acquisition of investments held by the fund; | (4) Disposition of investments held by the fund; | (5) Disbursements from the fund, including party to whom disbursement was made; and, | (6) End of year fund balance. | 36. Records of deposits with banks and others: | (a) Statements from depositories showing the details of funds received, disbursed, transferred, and balances on deposit | Destroy at option after completion of audit by independent accountants. | (b) Check stubs, registers, or other records of checks issued | 3 years. | 37. Records of receipts and disbursements: | (a) Daily or other periodic statements of fund receipts or disbursements | Destroy at option after completion of annual audit by independent accountants. | (b) Records or periodic statements of outstanding vouchers, checks, drafts, etc., issued and not presented | Destroy at option after completion of annual audit by independent accountants. | (c) Reports of associates showing working fund transactions and summaries thereof | Destroy at option after completion of annual audit by independent accountants. | (d) Reports of revenue collections by field cashiers, pay stations, etc | Destroy at option after completion of annual audit by independent accountants. | 38. Statistics: Financial, operating, and statistical reports used for internal administrative or operating purposes | 5 years. | 39. Budgets and other forecasts (prepared for internal administrative or operating purposes) of estimated future income, receipts, and expenditures in connection with financing, construction and operations, including acquisitions and disposals of properties or investments | 3 years. | 40. Records of predecessor companies | Retain consistent with the requirements for the same types of records of the natural gas company. | 41. Reports to Federal and State regulatory commissions including annual financial, operating, and statistical reports | 5 years. | 42. Advertising: Copies of advertisements by or for the company on behalf of itself or any associate company in newspapers, magazines, and other publications, including costs and other records relevant thereto (excluding advertising of appliances, employment opportunities, routine notices, and invitations for bids all of which may be destroyed at option) | 2 years. |
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