18 C.F.R. PART 356—PRESERVATION OF RECORDS FOR OIL PIPELINE COMPANIES
Title 18 - Conservation of Power and Water Resources
Authority: 42 U.S.C. 7101–7352; 49 U.S.C. 1–27; E.O. 12009, 3 CFR 1978 Comp. p. 142.
Source: Order 617, 65 FR 48166, Aug. 7, 2000, unless otherwise noted.
This part is prescribed and promulgated as the regulations governing the preservation of records by oil pipeline companies subject to the jurisdiction of the Commission, to the extent and in the manner set forth therein. This part is enforceable as of the date the oil pipeline company becomes subject to the jurisdiction of the Commission. (a) Scope of this part. (1) The regulations in this part apply to all books of account and other records prepared by or on behalf of the oil pipeline companies. (2) The regulations in this part must 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 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) Unless otherwise specified in the schedule in §356.3, duplicate copies of records may be destroyed at any time. Provided, however, that such duplicate copies must not contain significant information not shown on the originals. (5) Records other than those listed in the schedule may be destroyed at the option of the oil pipeline company. Provided, however, that records which are used in lieu of those listed must be preserved for the periods prescribed for the records used for substantially similar purposes and that retention of records pertaining to added services, functions, plant, etc., the establishment of which cannot be presently foreseen, must conform to the principles embodied herein. (6) Notwithstanding the provision of the records retention schedule, the Commission may, upon request of the oil pipeline company, authorize shorter retention periods for any records listed in §356.3. The oil pipeline companies must show that the longer retention periods are no longer necessary or appropriate to protect the public interest, investors, or consumers. A waiver from any provision of these regulations may be made by the Commission upon its own initiative or upon submission of a written request by the company. Each request for waiver must demonstrate that unusual circumstances warrant a departure from prescribed retention periods, procedures, or techniques, or that compliance with such prescribed requirements would impose an unreasonable burden on the company. (b) Designation of supervisory official. Each oil pipeline company subject to the provision of this part must designate one or more persons to supervise the oil pipeline company's program for preservation and authorized destruction of records. (c) Protection and storage of records. Each oil pipeline company subject to these regulations must provide reasonable protection for records. The records must have protections from fire, floods, and other hazards. Storage spaces, will also prevent unnecessary exposure to deterioration from excessive humidity, dryness, or lack of proper ventilation. (d) Record storage media. (1) Each oil pipeline company has the flexibility to select its own storage media. (2) The storage media must have a life expectancy at least equal to the applicable record retention period provided in §356.3 unless there is a quality transfer from one media to another with no loss of data. (3) Each oil pipeline 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. (e) Destruction of records. Oil pipeline companies may use any appropriate method to destroy permitted 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 such destruction. (g) 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 action or directives. (h) Records of services performed by associated companies. Oil pipeline companies must assure the availability of records of services performed by associated companies for the periods indicated in §356.3 as necessary to be able to readily furnish detailed information as to the nature of transaction, the involved, and the accounts used to record the transactions. (i) Index of records. Oil pipeline companies must arrange, file, and index records so they may be readily identified and made available to Commission representatives. (j) Rate case. The schedule of records in §356.3 shows the periods of time that designated records must be preserved. However, not withstanding the minimum retention periods provided in this regulation, if an oil pipeline company intends to reflect costs in a current, pending, or future rate case, or if an oil pipeline company has abandoned or retired plant subsequent to the test period of its last rate case, it must retain the appropriate records to support the costs, and adjustments proposed in the next or current rate case. (k) Pending complaint litigation or governmental proceeding. Notwithstanding the minimum requirements, if an oil pipeline company is involved in pending litigation, complaint proceedings, proceedings remanded by the court, or governmental proceedings, it must retain all relevant records. (l) Companies going out of business. The records referred to in these regulations may be destroyed after business is discontinued and the company is completely liquidated. The records may not be destroyed until dissolution is final and all transactions are completed. When a company is merged with another company under jurisdiction of the Commission, the successor company must preserve records of the merged company in accordance with these regulations. (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.
Table of Contents Corporate and General 1. Incorporation and reorganization. 2. Minutes to Directors, Executive Committees, and Stockholders 3. Titles, franchises, and authorities. 4. Contracts and agreements. 5. Accountants', auditors', and inspectors' reports. Treasury 6. Long-term debt records. Financial Accounting 7. Ledgers. 8. Journals. 9. Vouchers. 10. Accounts receivable. 11. Records of accounting codes and instructions. Property and Equipment 12. Property records. 13. Engineering records. Personnel and Payroll 14. Payroll records. 15. Copies of tax returns and supporting schedules. 16. Information returns, and reports to taxing authorities. Purchase and Stores 17. Material ledger. 18. Inventories. Transportation 19. Oil and other products stocks. Tariffs and Rates 20. Official file copies of tariffs. 21. Authorities and supporting papers for transportation. 22. Copies of concurrences and powers of attorney. 23. Correspondence and working papers in connection with the making of rates. Reports and Statistics 24. Reports to Federal Energy Regulatory Commission and other regulatory bodies.
Title 18: Conservation of Power and Water Resources
PART 356—PRESERVATION OF RECORDS FOR OIL PIPELINE COMPANIES
Section Contents
§ 356.1 Promulgation.
§ 356.2 General instructions.
§ 356.3 Preservation of records for oil pipeline companies.
§ 356.1 Promulgation.
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§ 356.2 General instructions.
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§ 356.3 Preservation of records for oil pipeline companies.
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Schedule of Records and Periods of Retention------------------------------------------------------------------------ Item No. and description Retention period------------------------------------------------------------------------ Corporate and General1. Incorporation and reorganization: (a) Charter of certificate of Permanently or at termination incorporation and amendments. of the corporation's existence. (b) Legal documents related to Permanently or at termination mergers, consolidations, of the corporation's reorganizations, receiverships, existence. and similar actions which affect the identity or organization of the company.2. Minutes to Directors', Executive 5 years. Committees', Stockholders', and other corporate meetings.3. Titles, franchises, and authorities: (a) Certificates of public Until expiration or convenience and necessity issued cancellation. by regulating bodies. (b) Operating authorizations and Until expiration or exemptions to operate issued by cancellation. regulating bodies. (c) Copies of formal orders of 1 year after expiration or regulatory bodies served upon the cancellation. company. (d) Deeds, charters, and other 3 years after disposition of title papers. property.4. Contracts and agreements: (a) Contracts and related papers 4 years after expiration, for transactions which are subject provided there is no pending to the provisions of the Clayton litigation or governmental Antitrust Act (15 U.S.C. 20). inquiry or proceeding involved. (b) Service contracts, such as for 3 years after expiration or operational management, termination. accounting, financial or legal service, and agreements with agents. (c) Contracts and other agreements 3 years after expiration or relating to the construction, termination. acquisition or sale of real property and equipment except as otherwise provided in paragraph (a) of this item.5. Accountant's, auditor's, and inspector's reports: (a) Certifications and reports of 3 years. examinations and audits conducted by public and certified public accountants. (b) Reports of examinations and 3 years. audits conducted by internal auditors, time inspectors, weight inspectors, and others. Treasury6. Long-term debt records: (a) Bond indentures, underwriting, 6 years after redemption. mortgage, and other long-term credit agreements. Financial Accounting7. Ledgers: (a) General and subsidiary ledgers 3 years. with indexes thereto. (b) Balance sheets and trial 3 years. balance sheets of general and subsidiary ledgers.8. Journals: (a) General journals............... 3 years. (b) Subsidiary journals and any 3 years. supporting data, except as otherwise provided for, necessary to explain journal entries. (c) Schedules of recurring or Until superseded. standard journal entries with entry identifications.9. Vouchers: (a) Voucher registers or equivalent 5 years. (b) Paid and canceled vouchers, 5 years. expenditure authorizations, detailed distribution sheets, and other supporting data including original bills and invoices, except as otherwise provided herein.10. Accounts receivable, record, or 3 years after settlement. register of accounts receivable.11. Records of accounting codes and 3 years after discontinuance. instructions. Property and Equipment12. Property records: (a) Records which maintain complete 3 years after disposition of information on cost or other value property. of all real property or equipment. (b) Records and additions and 3 years after disposition of betterments made to property and property. equipment. (c) Records pertaining to 3 years after disposition of retirements and replacements of property. property and equipment. (d) Records pertaining to depreciation: (1) When group method and 3 years after disposition of depreciation rates are property. prescribed by the Commission. (2) Other...................... 3 years after disposition of property. (e) Records of equipment number 3 years after disposition of changes. property. (f) Records of motor and engine Destroy at option. changes. (g) Files of detailed 3 years after disposition of authorizations for expenditures, property. work or job orders showing estimated costs of additions and betterments, extensions, replacements, major repairs and dismantlements, approved by proper officials, together with supporting data. (h) Periodical inventories of 3 years after prior inventory. property and equipment.13. Engineering records: (a) Plans and specifications....... 3 years after the disposition of the property. (b) Estimates of work, engineering 15 years. studies, construction bids, and similar data pertaining to property changes actually made. Personnel and Payroll14. Payroll records: (a) Registers, abstracts, or 3 years. summaries showing earnings, deductions, and amounts paid to each employee by pay periods. (b) Records showing the detailed 3 years. distribution of salaries and wages to various accounts. Taxes15. 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 9(b) for vouchers evidencing disbursements: (a) Income tax returns............. 3 years after final tax liability is determined. (b) Property tax returns........... 3 years after final tax liability is determined. (c) Sales and other use taxes...... 3 years final tax liability is determined. (d) Other taxes.................... 3 years after final tax liability is determined. (e) Agreements between associate 3 years after final tax companies as to allocation of liability is determined. consolidated income taxes. (f) Schedule of allocation of 3 years after final tax consolidated Federal income taxes liability is determined. among associate companies.16. Information returns and reports to 3 years, or for the period of taxing authorities. any extensions granted for audits. Purchase and Stores17. Material ledger, records of 2 years. material and supplies on hand at all locations.18. Inventories: General Inventories of 2 years. material and supplies on hand, with record of adjustments between accounts required to bring stores records into agreement with physical inventories. Transportation19. Oil and other products stocks and movement pipelines only: (a) Records and receipts, 3 years. deliveries, pumpings, stocks, and over and short. (b) Run tickets showing quantities 3 years. by tank measurement of meter reading of oil and other products received into the delivered from company's lines. (c) Statements of oil and oil 3 years. products consumed as fuel including quantity value, and where consumed. (d) Statement of oil and other 3 years. products lost by line breaks and leaks including quantity, value, and location of breaks and leaks. (e) Reports of power furnished by 3 years. producers: monthly reports of the quantity of oil run in connection with which power was furnished by producers, and records of payment for such power. (f) Records of producers' property 3 years after disconnection. identifying ownership and location for producers' tanks or wells to which carrier's lines are connected. (g) Division or other periodical 3 years. inventory reports of oil and other products on hand. (h) Division orders: Directions 3 years after discontinuance. received by carrier as to the division of interest and to whose account transported oil should be credited. (i) Directions received by the 3 years after discontinuance. carrier for the transfer of division order interests from one interest owner to another. (j) Transfer orders for the 3 years. transfer of ownership of oil or other products in carrier's custody. Tariffs and Rates20. Official file copies of tariffs, 3 years after expiration or classifications, division sheets, and cancelation. circulars relative to the transportation of property.21. Authorities and supporting papers 3 years. for transportation of property for free or at reduced rates.22.Copies of concurrences and powers of 2 years after expiration or attorney. cancelation.23. Correspondence and working papers 2 years after cancelation of in connection with the making of rates tariff. and compliance of tariffs, classifications, division sheets, and circulars affecting the transportation of property. Reports and Statistics24. Reports to Federal Energy 5 years. Regulatory Commission and other regulatory bodies, annual financial, operating and statistical reports, file copies, and supporting data.------------------------------------------------------------------------
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