18 C.F.R. Appendix C to Part 2—Nationwide Proceeding Computation of Federal Income Tax Allowance Independent Producers, Pipeline Affiliates and Pipeline Producers Continental U.S.—1972 Data (Docket No. R–478)
Title 18 - Conservation of Power and Water Resources
[Opinion 749, 41 FR 3092, Jan. 21, 1976]
Title 18: Conservation of Power and Water Resources
PART 2—GENERAL POLICY AND INTERPRETATIONS
Appendix C to Part 2—Nationwide Proceeding Computation of Federal Income Tax Allowance Independent Producers, Pipeline Affiliates and Pipeline Producers Continental U.S.—1972 Data (Docket No. R–478)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ (2)_Total (5)_No (7)_Percentage Schedule Line excluding (3)_Gas (4)_Lease lease (6)_Total lease (8)_Allocated Line No. Particulars No. No. (1)_Total \1\ production taxes only \3\ separation separation \4\ separation gas amount gas \6\ \2\ \3\ \3\ \5\------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ production, exploration and development costs2 Direct and indirect lease costs 1-A 01 1,694,893,558 1,694,893,558 57,287,938 $144,679,567 $19,763,791 $221,731,296 90.33 207,740,782 and expenses.2 Taxes (except income and A-1 02 210,335,720 210,335,720 16,507,630 20,431,444 4,360,024 41,299,098 9.33 39,323,337 production).4 Production taxes............... 1-A 03 479,424,297 ................ 27,124,210 96,699,673 10,005,599 133,829,482 90.33 124,478,6245 Other lease expenses........... 1-A 04 61,102,433 61,102,433 17,527,077 24,988,900 336,427 42,852,404 90.33 40,435,9776 Depletion, depreciation and 1-A 05 1,716,823,070 1,716,823,070 105,999,777 297,881,312 25,502,048 429,383,137 90.33 400,578,014 amortization.7 Corporate general expense...... 1-A 06 278,845,909 278,845,909 13,611,337 25,077,796 3,579,728 42,268,861 90.33 39,843,8388 Area, district, division and 1-A 07 261,718,417 26,178,417 7,207,320 21,758,604 2,778,944 31,744,868 90.33 29,640,811 field expense.9 Miscellaneous lease revenues... 1-A 09 (12,203,136) (12,203,136) (1,348,729) (2,768,788) (314,067) (4,431,584) 90.33 (4,163,842)10 Return on production rate base 1-A 13 2,505,272,672 2,505,272,672 186,055,524 427,939,601 69,857,212 663,852,337 90.33 622,470,578 at 15 percent.11 Exploration and development 1-A 15 1,673,945,853 1,673,945,853 ........... ............ ........... ............ .............. 594,971,262 costs and expenses.12 Return on exploration rate base 1-A 16 588,558,894 588,558,894 ........... ............ ........... ............ .............. 234,604,103 at 15 percent.13 Regulatory commission expense 1-A 17 6,514,279 6,514,279 ........... ............ ........... ............ .............. 6,514,852 including return. =========================================================================================================================1415 Total computed revenue........ ........ ..... 9,465,231,966 8,985,807,669 ........... ............ ........... ............ .............. 2,336,439,37616 (gross income) -------------------------------------------------------------------------------------------------------------------------1718 revenue deductions19 Direct and indirect lease costs 1-A 01 1,694,893,558 1,694,893,558 ........... ............ ........... ............ .............. 207,740,872 and expenses.20 Taxes (except income and 1-A 02 210,335,720 210,335,720 ........... ............ ........... ............ .............. 39,323,377 production).21 Production taxes............... 1-A 03 479,424,297 ................ ........... ............ ........... ............ .............. 124,478,62422 Other lease expenses........... 1-A 04 61,102,433 61,102,433 ........... ............ ........... ............ .............. 40,435,97723 Book depletion................. ........ ..... \7\ 283,121,242 24,287,986 61,675,828 6,177,596 92,141,410 90.33 86,177,357 (283,121,142)24 Depreciation expense........... 1-A 05 \7\ 654,604,447 30,223,586 94,010,520 7,007,662 131,241,768 90.33 122,150,951 (654,604,447)25 Amortization of capitalized IDC ........ ..... \7\ 779,097,382 51,488,205 142,194,964 12,316,790 205,999,959 90.33 192,249,706 (779,097,382)26 Corporate general expense...... 1-A 06 278,845,909 278,845,909 ........... ............ ........... ............ .............. 39,843,83827 Area, district, division and 1-A 07 261,718,417 261,718,417 ........... ............ ........... ............ .............. 29,640,811 field expense.28 Miscellaneous lease revenues... 1-A 09 (12,203,136) (12,203,136) ........... ............ ........... ............ .............. (4,163,842)29 Exploration and development ........ ..... 1,673,945,853 1,673,945,853 ........... ............ ........... ............ .............. 594,971,262 costs and expenses.30 Regulatory commission expense.. 4-A 01 6,384,384 6,394,384 ........... ............ ........... ............ .............. 6,394,384 --------------------------------------------------------------------------------------------------------------------------------3132 Total book expenses........... ........ ..... 6,371,380,505 5,891,856,209 ........... ............ ........... ............ .............. 1,479,243,227 --------------------------------------------------------------------------------------------------------------------------------3334 Production net income (line 15 ........ ..... 3,093,951,461 3,093,951,460 ........... ............ ........... ............ .............. 857,190,149 less line 32). --------------------------------------------------------------------------------------------------------------------------------3536 tax adjustment_add (deduct)37 Amortization of capitalized IDC ........ ..... 779,097,282 779,097,382 ........... ............ ........... ............ .............. 192,249,70638 Estimated IDC capitalized in ........ ..... \8\ (1,470,935,857) ........... ............ ........... ............ .............. (362,967,445) 1972. (1,470,935,857)39 Interest expense (calculated).. ........ ..... \9\ (243,846,540) ........... ............ ........... ............ .............. (60,587,136) (243,846,540) --------------------------------------------------------------------------------------------------------------------------------4041 Taxable income................ ........ ..... 2,158,266,445 2,158,266,445 ........... ............ ........... ............ .............. 625,891,274 --------------------------------------------------------------------------------------------------------------------------------4243 Federal income tax at 48 ........ ..... 1,992,245,949 1,992,245,949 ........... ............ ........... ............ .............. \10\ percent. 577,745,791------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------\1\ Lines 1 thru 15, col. (1). From Notice issued Sept. 12, 1974, app. A, p. 12, col. (d).\2\ Production taxes have been deleted from col. (1).\3\ From notice issued Sept. 12, 1974, app. A, p. 12, cols. (g), (h), and (i).\4\ Col. (3) plus col. (4) plus col. (5).\5\ Calculated on a modified British thermal unit basis (1.5 to 1).\6\ Col. (7) times col. (4), plus cols. (3) and (5).\7\ See composites mailed to all parties on Feb. 13, 1974.\8\ Calculated, 188.8 percent (A R64-1-2) times $779,097,382 equals $1,470,935,857.\9\ Calculated 0.0146 (interest rate) times $16,701,817,818 (app. A, schedule 2-A, (d), line 11, p. 13) equals $243,846,540.\10\ $577,745,791 divided by 9,508,369,001 equals 6.08 cents per thousand cubic feet.
