18 CFR Part 2 Appendix 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)

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)

Line No.	Particulars	Schedule No.	Line No.	(1)—Total ¹	(2)—Total excluding production taxes ²	(3)—Gas only ³	(4)—Lease separation ³	(5)—No lease separation ³	(6)—Total ⁴	(7)—Percentage lease separation gas ⁵	(8)—Allocated amount gas ⁶
production, exploration and development costs
2	Direct and indirect lease costs and expenses	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
2	Taxes (except income and production)	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
4	Production taxes	1-A	03	479,424,297		27,124,210	96,699,673	10,005,599	133,829,482	90.33	124,478,624
5	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	40,435,977
6	Depletion, depreciation and amortization	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
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	39,843,838
8	Area, district, division and field expense	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
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 at 15 percent	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
11	Exploration and development costs and expenses	1-A	15	1,673,945,853	1,673,945,853						594,971,262
12	Return on exploration rate base at 15 percent	1-A	16	588,558,894	588,558,894						234,604,103
13	Regulatory commission expense including return	1-A	17	6,514,279	6,514,279						6,514,852
14
15	Total computed revenue			9,465,231,966	8,985,807,669						2,336,439,376
16 (gross income)
17
18 revenue deductions
19	Direct and indirect lease costs and expenses	1-A	01	1,694,893,558	1,694,893,558						207,740,872
20	Taxes (except income and production)	1-A	02	210,335,720	210,335,720						39,323,377
21	Production taxes	1-A	03	479,424,297							124,478,624
22	Other lease expenses	1-A	04	61,102,433	61,102,433						40,435,977
23	Book depletion			⁷ (283,121,142)	283,121,242	24,287,986	61,675,828	6,177,596	92,141,410	90.33	86,177,357
24	Depreciation expense	1-A	05	⁷ (654,604,447)	654,604,447	30,223,586	94,010,520	7,007,662	131,241,768	90.33	122,150,951
25	Amortization of capitalized IDC			⁷ (779,097,382)	779,097,382	51,488,205	142,194,964	12,316,790	205,999,959	90.33	192,249,706
26	Corporate general expense	1-A	06	278,845,909	278,845,909						39,843,838
27	Area, district, division and field expense	1-A	07	261,718,417	261,718,417						29,640,811
28	Miscellaneous lease revenues	1-A	09	(12,203,136)	(12,203,136)						(4,163,842)
29	Exploration and development costs and expenses			1,673,945,853	1,673,945,853						594,971,262
30	Regulatory commission expense	4-A	01	6,384,384	6,394,384						6,394,384
31
32	Total book expenses			6,371,380,505	5,891,856,209						1,479,243,227
33
34	Production net income (line 15 less line 32)			3,093,951,461	3,093,951,460						857,190,149
35
36 tax adjustment—add (deduct)
37	Amortization of capitalized IDC			779,097,282	779,097,382						192,249,706
38	Estimated IDC capitalized in 1972			⁸ (1,470,935,857)	(1,470,935,857)						(362,967,445)
39	Interest expense (calculated)			⁹ (243,846,540)	(243,846,540)						(60,587,136)
40
41	Taxable income			2,158,266,445	2,158,266,445						625,891,274
42
43	Federal income tax at 48 percent			1,992,245,949	1,992,245,949						¹⁰ 577,745,791
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.

[Opinion 749, 41 FR 3092, Jan. 21, 1976]