Check appropriate box: 0 An Original Signed Form Form Approved (Expires 1/31/2002) OMB NO. 1902-0030 This report is mandatory under the Natural Gas Act, Sections lO(a), and 16 and 18 CFR 260.1. Failure to report may result in criminal fines, civil penalties, another sanctions as provided by law. The Federal Energy Regulatory Commission does not consider this report to be of a confidential , nature. FERC Form No. 2=A ANNUAL REPORT OF NONMAJOR NATURAL GAS COMPANIES Exact Legal Name of Respondent (Company) Arkansas Oklahoma Gas Corporation Year of Report Dec. 31, 2001
Transcript
Check appropriate box:
0 An Original Signed Form Form Approved
(Expires 1/31/2002) OMB NO. 1902-0030
This report is mandatory under the Natural Gas Act, Sections lO(a), and 16 and 18 CFR 260.1. Failure to report may result in criminal fines, civil penalties, another sanctions as provided by law. The Federal Energy Regulatory Commission does not consider this report to be of a confidential , nature.
FERC Form No. 2=A ANNUAL REPORT OF NONMAJOR
NATURAL GAS COMPANIES
Exact Legal Name of Respondent (Company)
Arkansas Oklahoma Gas Corporation
Year of Report
Dec. 31, 2001
ERWIN & C O M P A N Y CERTIFIED PUBLIC ACCOUNTANTS
631 1 Ranch Drive Little Rock, AR 72223 (501) 868-7486 (501) 868-7750 (Fax)
Chief Accountant Federal Energy Regulatory Commission 888 First Street, NE. Room 72-04 Washington, D.C. 20426
INDEPENDENT ACCOUNTANTS’ REPORT
In connection with our audit of the financial statements of Arkansas Oklahoma Gas Corporation (a wholly-owned subsidiary of AOG Corporation) for the year ended December 3 1,2001 on which we have reported separately under date of February 28, 2002, we have also reviewed the following schedules included in FERC Form No. 2A for the year ended December 3 1,2001 filed with the Federal Energy Regulatory Commission, for conformity in all material respects with the requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System of Accounts and the Chief Accountant’s published accounting releases:
Schedules
Comparative Balance Sheet Statement of Income Statement of Retained Earnings Statement of Cash Flows Notes to Financial Statements
Reference Pages
110 - 113 114 - 116 118 - 119 120 - 121
122
Our review for this purpose included such tests of the accounting records and other such auditing procedures as we considered necessary in the circumstances.
Based on our review, in our opinion the accompanying schedules identified in the preceding paragraph conform in all material respects with the accounting requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System of Accounts and published accounting releases. .
This report is intended solely for the information and use of the board of directors and management of Arkansas Oklahoma Gas Corporation and for filing with the Federal Energy Regulatory Commission and state regulatory agencies and should not be used for any other purpose.
Little Rock, Arkansas March 21, 2002
ANNUAL REPORT OF NON-MAJOR NATURAL GAS COMPANIES
01 Exact Legal Name of Respondent
Arkansas Oklahoma Gas Corporation
02 Year of Report
Dec. 31. 2001
05 Name of Contact Person
Robert J. Mulson, Jr.
06 Title of Contact Person
Sr. VP Finance
I 11 Name of Officer Having Custody of the Books of Account I 12~itleof0fficer
08 Telephone of Contact Person, lnduding Area Code
479783-3iai (2) O A Resubmission
This Report Is: (1) e]An Original
Robert J. Mulson, Jr. Sr. VP Finance
10 Date of Report (Mo, Da, Yr)
I 13 Address of Officer Where Books of Accounts Are Kept (Street, City, State, Zip Code)
14 Name of State Where Respondent is Incorporated AR 1Z3111944
15 Date of Incorporation (Mo, Da, Yr) 16 If applicable Reference Law Incorporated Under
Arkansas Oklahoma Gas Corporation is a wholly owned subsidary of A.O.G. Corporation
Michael C. Carter
20 Signature
ATTESTATION
President
21 Date Signed
03/29/2001
The undersigned officer certifies that he/she has examined the accompanying report; that to the best of hisher knowledge, information, and belief, all statements of fact contained in the accompanying report are true and the accompanying report is a correct statement of the business and affairs of the above named respondent in respect to each and every matter set forth therein during the period from and including January 1 to and including December 31 of the year of the report.
I 18 Name I 19Title
Title 18, U.S.C. 1001, makes it a crime for any person knowingly and willingly to make to any Agency or Department of the United States any false, fictitious or fraudulent statements as to any matter within its jurisdiction.
Page 1
Name of Kespondent This Keport Is: Uate of Re
Arkansas Oklahoma Gas Corporation (1) eJAn Original (Mo. Da. Y r (2) n A Resubmission
r i of schedule
( 4
GENERAL CORPORATE INFORMATION AND
YearotReport 'I
Dec.31, 2001
FINANCIAL STATEMENTS Security Holders and Voting Powers Comparative Balance Sheet
List of Schedules (Natural Gas Company)
Enter in column (d) the terms "none," "not applicable," or "NA" as appropriate, where no information or amounts have been reported for . certain pages. Omit pages where the responses are "none," "not applicable," or "NA."
~
Statement of Income forthe Year Statement of Retained Earnings forthe Year Statements of Cash Flows Notes to Financial Statements BALANCE SHEET SUPPORTING SCHEDULES lAssets and Ottrer Debii l Gas Plant in Sewice General Information on Phnt and Operations Gas Properly and Capacity Leased From and to Others Accumulated Pfovision for Depredation of Gas U n i i Plant m e r Regulatory Assets - Gas BALANCE SHEET SUPPORTING SCHEDULES [ L a b i l i i and Other Credii) Capital Stock and Long-Term Debt Data Other Reaulatorv L i a b i l i - - INCOME ACCOUNT SUPPORTING SCHEDULES Gas Operating Revenues Gas Operation and Maintenance Expenses %As PLANT STATISTICAL DATA $as Account-Natural Gas :ootnote Reference :ootnote Text
I 107
110-113 114116 118119 120-1 21
122
204-209
21 2-21 3 219
232 I
250 278
300-301 31 7-325
520 551 552 I
None
None
None
Name of Respondent
Arkansas Oklahoma Gas Corporation (2) n A Resubmission
I his Report Is: (1) BA” Original
6 I I I I
Security Holders and Voting Powers
1. Give the names and addresses of the 10 security holders of the respondent who, at the date of the latest closing of the stock book c)r compilation of list of stockholders of the respondent, prior to the end of the year, had the highest voting powers in the respondent. .nd state the number of votes that each could cast on that date if a meeting were held. If any such holder held in trust, give in a ootnote the known particulars of the trust (whether voting trust, etc.), duration of trust, and principal holders of beneficiary interests in he trust. If the company did not close the stock book or did not compile a list of stockholders within one year prior to the end of the rear, or if since it compiled the previous list of stockholders, some other class of security has become vested with voting rights, then show such 10 security holders as of the close of the year. Arrange the names of the security holders in the order of voting power, mmmencing with the highest. Show in column (a) the titles of officers and directors included in such list of 10 security holders. 2. If any security other than stock carries voting rights, explain in a supplemental statement how such security became vested with foting rights and give other important details concerning the voting rights of such security. State whether voting rights are actual or mntingent; if contingent, describe the contingency. 3. If any class or issue of security has any special privileges in the election of directors, trustees or managers, or in the determination
If corporate action by any method, explain briefly in a footnote. 4. Furnish details concerning any options, warrants, or rights outstanding at the end of the year for others to purchase securities of he respondent or any securities or other assets owned by the respondent, including prices, expiration dates, and other material nformation relating to exercise of the options, warrants, or rights. Specify the amount of such securities or assets any officer. director, rssociated company, or any of the 10 largest security holders is entitled to purchase. This instruction is inapplicable to convertible iecurities or to any securities substantially all of which are outstanding in the hands of the general public where the options, warrants,
Date of Keport Year of Report
Dec.31. 2001 (Mo. Da. Yr)
1. Give date of the latest dosing of the stock mok prior to end of year, and, in a footnote,state
the purpose of such dosing:
2. State the total number of votes cast at the latest general meeting prior to the end of year for election of directors of the
respondent and number of such votes cast by proxy.
3. Give the date and place of such meeting:
Total: 1500
By Proxy:
I 4. Number of votes as of (date): 04/25/2001 I I I
04/25/2001 111 Celltarsbet LitlleR~&AR 72201
Name (Title) and Address of Security Holder
(a)
~ Line No.
5
6
TOTAL votes of all voMg securities
TOTAL number of security holders
Total Votes Common Stock Preferred Stock Other
(b) (c) (dl (e) 1,500 1,500
I 1
‘ 18 ‘ 19
20
7
8
9 10
Page 107
TOTAL Mtes of securily holders listed bekw 1,500 1,500
A. 0. G. Corpomtion
Name ot Respondent Arkansas Oklahoma Gas Corporation
I I I I Comparative Balance Sheet (Assets and Other Debits) I
his Report IS: Date ot Report Year or ~epoct (1) mA” Original (Mo, m, Yr) (2) n A Resubmission Dec.31, 2001
Title of Account
(a)
I Reference Balance at End Balance at End Page Number of Current Year of Previous Year
(in dollars) (in ddlas) (c) (dl I
UTlLrry PLANT
Utility Plant (101-106, 114)
I
OTHER PROPERTY AND INVESTMENTS Nonutility Property (1 21 ) 01 0
(Less) Atarm. Provision for Depredation and Amortization (122) 0 0
Investments in Associated Companies (123) 222-223 0 0
Investments in Subsidiary Companies (123.1) 224-225 0 0
(For Cost of Account 123.1 See Footnote Page 224, line 40)
Noncurrent Portion of Allowances
Other Investments (124) 222-223 6,450 6.450
Special Funds (125 thru 128) 0 0
TOTAL Other Property and Investments (Total of lines 17-20.22-24) 6,450 6.450 I
CURRENT AND ACCRUED ASSETS
Cash (131) 1 950,199 I 413,479 Special Deposits (1 32-1 34) 0 0
51 Deferred Gains from Disposition of Utility Plant (256) 0 C I
Other Deferred Credits (253) 269 0 C
Other Regulabty Liabilities (254) 278 0 C
Unamortized Gain on Reacquired Debt (257) 260 0 C
Accumulated Deferred Income Taxes (281-283) 9,595.080 9,321,602
10,527,148 10,339,369
89,386,451 93,757,611
TOTAL Deferred Credits (Total of lines 49 thru 55)
TOTAL Liabilities and Other Credits (Total of lines 14,23,31,47,and 56)
M Page 113
This Keport Is: Date of KB Year ot ~eport (1 ) (XJ An Original
Dec.31, 2001 (2) n A Resubmission (Mot Da, sr;"' Name of Respondent
Arkansas Oklahoma Gas COrporatiOn
Statement of Income for the Year
I. Report amounts for accounts 412 and 413, Revenue and Expenses from Utility Plant Leased to Others, in another utility column (id) in a similar manner to a utility department. Spread the amount(s) over lines 2 thm 24 as appropriate. Include these amounts in columns (c) and (d) totals. 2. Report amounts in discount 414, Other Utility Operating Income, in the same manner as accounts 412 and 413 above. 3. Report data for lines 7, 9, and I O for Natural Gas companies using accounts 404.1,404.2,404.3,407.1, and 407.2.
Title of Account Reference Total Total Page Number Current Year Previous Year
(in dollars) (in dollars) (a) (b) (c)
UTNlTY OPERATING INCOME Gas O~eratina Revenues (400) 300-301
ODeratbn ExDenses (401) I I
31 7-325 . . . .- 317-325 1,548,947 1231,372
336-338 3,728,460 3,593,862 Maintenance &&(402)
(Less) Provision for Deferred lna~meT~es-Credt(411.1) 234-235 95,220
(Less) Gains from Disposition of Utilii Plant (41 1.6) 0 a Losses from Disposition of Utilii Plant (41 1.7) 0 0
I I a ~~ ~
(Less) Gains from D i s d i n of Alkwances (41 1.8) Losses from Disposition of Allowances (411.9) 0 0
TOTAL Utility Opefating Expenses (Total of lines 4 thru 22) 74,793,466 64,983,959 3.1 23,042 3,172,244 Net Utili Operating Income (Total of lines 2 lass 23) (Carry forward to page 116, line 25)
Page 114
This Keport Is: Date of Report Year of ~eport (1) aAn Original (2) U A Resubmission Dec.31. 2001
Statement of Income for the Year
(Mo, Da, Yr) Name of Respondent
Arkansas Oklahoma Gas Corporation ,
L E x p l a i n in a footnote if the previous year's figures are different from those reported in prior reports. . 5. If the columns are insufficient for reporting additional utility departments, supply the appropriate account titles, lines 2 to 23, and report the information in the blank space on page 122 or in a supplemental statement.
4 0 U 58,209,970 0 0
5 0 0 1,548,947 1,231,372 0 0
0 0 3,728,460 3,593,862 0 0 6
20 0 0 0 0 0
21 0 0 0 0 0 (
22 0 0 0 0 0 ( I
23 0 0 74,793,466 64,983,959 I 0 (
24 0 0 3,123,842 3,172,244 I 0 (
Page 115
This Keport is: (1) e]AnOriginal (2) n A Resubmission
Date Ot K e (Mo. Da, Y V
Name ot KeSpondent Arkansas Oklahoma Gas C o r P w a ~ ~
I V I I I
Statement of Income for the Year(conUnued)
I ins I Title of Account I Reference I Total I Totd
rear ot Report
Dec.31, 2001
Previousyear I
42 43 44 45
Miscellaneous Amortization (425) U U
Millaneous Income Deductions (426.1 thru 426.5) 340 23,915 34,465 TOTAL Other Income Deductions (Total of lines 41 thru 4) 340 92,210 52.463
Taxes Applii to Other income and Deductions . 1 - I 46 47
48
Taxes Other than Income Taxes (408.2) 262-263 0
Income TaxesFederal(409.2) 262-263 33,466 60,78 t
l m Taxes-Olher 1409.2) 262-263 856 5,002
49
50 51 52 53 54
I I 57 I Amortization of DeM Disc. and Expense (428) I 258-259 I 20,347 I 10,347 I
. . Provision for Deferred Income Taxes (410.2) 234-235 0 0
(Leas) Provisiin for Deferred Income Taxes-Credit (41 1.2) 234-235 0 0 Investment Tax Credit Adjustments-Net (4t1.5) 0 0
(Leas) Investment Tax CmdL (420) 0 0 TOTAL Taxes on Other Income and Deduclions (Total of lines 46-52) Net Other Income and Deductions flotal of lines 39,44,53)
34,322 65.703 35,684 46,810
m- I Amortization of Loss on Reacquired Debt (428.1) I I 01 01
55 56
159-1 (Less) Amoltization of Premium on DeM-Cradit (429) I 256-259 I 01 01
INTEREST CHARGES I Interest on Long-Term Debt (427) 1,871 .71 9
70
(Lesi) Amortization of Gain on Reacquirefl Debt-Credii(429.1) 0 0 Interest on Debt 1D Associated Companies (430) 340 135,799 0
Other Interest Expense (431) 340 542.990 232,853
(Less) Allowance for B o w e d Funds Used During Construction-Credii (432) 0 4.332
Net Interest Charges (Total of lines 56 thru 63) 2,626,007 2,110,587
l n m Before Ehrdinaw Items llotal of lines 2534 and 64) 533,519 1,108,467
Extraordinary Income (434) 0 0
(Less) Extraordinary Deductions (435) 0 0 Net Extraordinary Items (Total of line 67 less l i e 68) lnmme Taxes-Federal and Other f409.3) 262-263 0 0 1
0
71 I Exbordinary Item after Taxes (Total of line 69 less line 70) I I 01 0 72 I Net Income (Total of lines 65 and 71) 533,519 I 1,108,467
__ ~
Page 116
- mls Report IS: Date ot Report (Mo, Da, Yr)
Name ot Kespondent Arkansas Oklahoma Gas Corp0~tiOn
Credit I I TOTAL Credits to Retained Earnings (Amunt 439) (Total of lines 3.01 to 3.7)
i
Current Year Pravious Year Amount AmOUnl
(in dollan) (in dolhs) (c) (4
Debt I I I Dabit
ldMl Debit I I I I
Debt I I I Debt
4.10 Debt 5 6 Balance Transfed from Income ( A d 433 less A d 418.1) 533,519 1,108,467 7
TOTAL Debits to Retained Earnings (Amunt 439) (Total of lines 4.01 to 4.7)
Appropiations of Retained Earnings (Account 436)
7.03 I I I I 7.04 I I 7.05 I I I I 7.06 I 7.07
0 9 9.01 Q.02 32
- - -
I I I 1 I I I
TOTAL A~~m~r iat ions of Retained Earninas [Account 436) notal of lines 7.01 to
I I I 9.03 9.04 9.05 9.06
Page 118-119
- This Keport Is: (1) aAnOrlginal (2) n A Resubmission
Date of Ke (Mo, Da, YV Name of Respondent
Arkansas Oklahoma Gas Corporation
7. Explain in a footnote
8. At lines 3,4,7,9,1 I, and 15, add rows as necessary b repti all data. When lows are added, the additional mw numbers should foEbw in sequence, eg., 3.01,3.02, etc
be recunent state the number and annual amounts b be reserved or appropriated as well as the totals eventually to be accumulated.
Year of Report
Dec.31, 2001
I 13 I Transfers from Aaxwnt 216.1, Unappropriated Undistributed Subsdiary Earnings I I I
. .
Page 118-119a
Name ot Kespondent Arkansas Oklahoma Gas Corporation
This Keport Is: (1) mAnOriginal (2) n A Resubmission
3. Operating Activities-Other: Include gains and losses pertaining to operating activities only. Gains and losses pertaining to investing and financing activities should be reported in those activities. Show on page 122 the amounts of interest paid (net of amounts capitalized) and income taxes paid. 4. Investing Activities: lndude at Other (Line 27) net cash outflow to acquire other companies. Provide a reconaliation of assets acquired with !abilities
assumed on page 122. Do not include on this statement the dollar amount of leases capitalized per U.S. of A. General Instruction 20: instead provide a reconciliation of the dollar amount of leases capitalized with the plant cost on page 122.
Uate of Keport (Mo. Da. Yr)
Year of Report
Dec.31, 2001
Line Description (See lnstrctions for explanation of codes) Current Year Previous Year No. Amount Amount
Net (Inuwase) Deaease in Inventory ( 30.177) 29,828 Net (Increase) Deaaase in Receivables 4,628,870 ( 11,901,034)
h.13 I I I
12
13
14
15
16
5.14 I I I
Net (Increase) Decrease in Other Regulatoly Assets Net lnaease (Decrease) in Other Regulatory Liabilities (Less) Allowance for Other Funds Used Dutng Construction (Less) Undiibuted Earnings from Subsidiary Companies Other:
I ~~
10 I Net (Increase) Deaease in Allowances Inventory 11 I Net lnaease (&masel in Pavables and Amued ExDanses ( 7,195,280) I 9,685,577
16.011 I I 16.021 Decrease in Preoaid ESD. and M i . Current Assetr ( WO39) I 41 1,348
16.03 16.04
16.05
"YO6
~ 0 7 16.08
16.09
I ~~ ~
16.lOl 1 Page 120
'Name ot Kespondent This Report Is: ( I ) mAn Original
Arkansas Oklahoma Gas CorporatiOn ' (2) A Resubmission
Page 120a
a e o e Year of Report K, DFX" Dec.31. 2001
Line No.
16.11
16.12
16.13
Description (See lnstrctions for explanation of codes)
(a)
Current Year Previous Year Amount Amount
@) (c)
37 38
39 Purchase of Investment Securities (a) Prooeeds from Sales of Investment Securities (a)
This Keport Is: Date of Report Yearo+Keport Name of Respondent (1) aAn Original
Arkansas Oklahoma Gas Corporation (2) n A Resubmission -31, 2M)i (Mo. Da. Yr)
Statement of Cash Flows (continued)
5. codesused: (a) Net Proceeds or payments. (b) Bonds, Debentures, and other long-term debt. (c) Include commercial paper. (d) Identify separate such items as investments fixed assets. intangibles, etc.
6. Enter on page 122 clarifications and explanations. 7. At lines 5,16,27.47.56.58. and 65, add rows as necessary to report all data. Number the extra rows in sequence. 5.01.5.02, etc
~ ~~
56.02
56.03
56.04
Description (See lnstrctions for explanation of codes) Current Year Previous Year Amount Amount
Line No.
$0 LoansMadeorPurchased ( 1,512) ( 4,412)
11 cdlectionsonLoans
(a) (b) (C)
56.05 57 58 58.01
58.02
58.03 9.04
I 38-05
Net (Increase) Deaease in Receivables Net (Increase) Demase in Inventory Net (Inaease) Deaease in Allowance Held for Spearlation Net lnaease (Oeaease) in Payables and A m e d Expanses ( 320,909) ( 506.748)
Net Increase in Short-Term Debt (c) 2.800,Ooo Other:
17 Other: 17.01 Decrease in Customers Advance For construction ( 2,886) ( 286,378)
17.02 Increase in Customen Advance For Construction
17.03 17.04 17.05 ‘7.06
~~ ~
58.07 58.08
J.08 47.09 47.10 I
I I I I I I
156 I Other: I I I 56.011 I I I
158.06) I I 1
Name of Respondent
Arkansas Oklahoma Gas Corporation (2) n A Resubmission
This Report Is: (1) e]AnOriginal
63 I Preferredstock I I
Date of Re (Mo, Da. Y r
Year of Report
Dec.31, 2001
I I I
65.04 65.05 66
67
68
I65.021 I I I
I Net Deaaase in Short-Term Debt (c) ( 6 ~ , 0 0 0 )
Dividends cm Prefened Stock
I I I
Page 121a
Name of Respondent This Report is: Date of Report (1) An Original (Mo, Da, Yr)
Arkansas Oklahoma Gas Corporation (2) A Resubmission
1. Provide important disclosures regarding the Balance Sheet, Statement of Income for the Year, Statement of Retained Earnings for the Yea and Statement of Cash Flow. or any account thereof. Classify the disdosures according to each financial statement, providing a subheading fo each statement except where a disclosure is applicable to more than one statement The disclosures must be on the same subject matters anc in the same level of detail that would be required if the respondent issued general purpose financial statements to the public or shareholders. 2. Furnish details as to any significant contingent assets or liabilities existing at year end, and briefly explain any action initiated by the lntema
Revenue Service involving possible assessment of additional income taxes of material amount, or a daim for refund of income taxes of a material amount initiated by the utility. Also, briefly explain any dividends in arrears on cumulative preferred stock. 3. Furnish details on the respondent's pension plans, past-retirement benefits other than pensions (PBOP) plans. and post-employment benef
plans as required by instruction no. 1 and, in addition, disclose for each individual plan the current year's cash contributions. Furnish details on the accounting for the plans and any changes in the method of accounting for them. Include de&& on the accounting for transition obligations I
assets. gains or losses, the amounts deferred and the expected recovery periods. Also, disclose any cumnt year's plan or bust curtailments, terminations, transfers, or reversions of assets. 4. Where Account 189, Unamortized Loss on Reacquired Debt, and 257, Unamortized Gain on Reacquired Debt, am not used, give an
explanation, providing the rate treatment given these item. See General Instruction 17 of the Uniform System of Accounts. 5. Explain concisely any retained earnings restrictions and state the amount of retained earnings affected by such restrictions. 6. Disclose details on any significant financial changes during the reporting year to the respondent or the respondent's consolidated group thal
directly affect the respondent's gas pipeline operations. including: sales, transfers or mergers of affiliates, investments in new partnerships. sala of gas pipeline facilities or the sale of ownership interests in the gas pipeline b limited partnerships, investments in related industries (Le., production, gathering), major pipeline investments, acquisitions by the parent corporation@), and distributions of capital. 7. Explain concisely unsettled rate proceedings where a contingency exists such that the company may need to refund a matefiat amount to
the utility's customers or that the utility may receive a material refund with respect to power or gas purchases. State for each year affected the gross revenues or costs to which the contingency relates and the tax effects and explain the major factors that affect the rights of the utility to retain such revenues or to recover amounts paid with respect to power and gas purchases. 8. Explain concisely significant amounts of any refunds made or received during the year resulting from settlement of any rate proceeding
affecting revenues received or costs incurred for power or gas purchases, and summarize the adjustments made to balance sheet, Income, and expense accounts. 9. Explain concisely only those significant changes in accounting methods made during the year which had an effect on net income, including
the basis of allocations and apportionments from those used in the preceding year. Also give the approximate ddlar effect of such changes. <. The Company follows the uniform system of accounts for gas utilities. Balance Sheet- Additions, betterments and
. >placements to property, plant and equipment are capitalized at cost. Both additions and retirements are recorded with the uniform system of accounts. Provisions for depreciation are computed using straight-line rates which approximate 3.1 % of depreciable property. Inventories of materials and supplies are stated at the lower of average cost or market. Long-term debt consists of senior unsecured notes totaling $25,000,000 and unsecured notes totaling $3,115,779. Deferred income taxes are recorded using guidelines in FASB 109.
Year of Report
Dec31.2001
Income Statement- Revenues are as shown on page 300. Included are accrued unbilled revenues based on estimated gas volumes used by customers subsequent to the last day of their billing cycle through month end. Income Taxes of the Company are included in the consolidated tax returns of its parent. Current and deferred taxes represent amounts due the parent for income taxes as if the Company was filing separate returns. The Company records income taxes according to the provisions of Statement of Financial Accounting Standards No. 109 (FASB 109). Deferred income taxes result primarily from differences between depreciation at straight-line rates versus corresponding amounts at liberalized rates used for tax purposes.
2. NA
3. Retirement Benefits-Effective November 1, 1993, the Company established a 401 (K) savings plan covering all non-bargaining unit employees who meet age and service requirements. Participants must contribute a minimum of 1 .O% of compensation up to a maximum of 12.0%. The Company makes matching contributions up to a maximum of 3.5% of the first 6.0% of employee contributions to the plan. The Company's contribution to the Plan was $1 33,686 for 2001 and $1 29,636 for 2000.
The Company's noncontributory defined benefit pension plans include all employees meeting specified service requirements. The benefits are based on years of service and the employee's final average monthly compensation. In 1987, the Company adopted Statement of Financial Accounting Standards No. 87 (SFAS 87), "Employers' Accounting for
ansions." The Financial Accounting Standards Board in adopting the standard recognized that net periodic pension cost, as
~
(FERC FORM NO. 2-A (12-96) Page 122 1
!Name of Rewondent IThis Report is: IDate of Report [Year of Report I Arkansas Oklahoma Gas Corporation I (1 ) X An Original (Mo, Da, Yr)
(2) A Resubmission Dec 31,2001
~ ~ ~ ~ _ _ ~~ -~
defined in SFAS 87, is not necessarily the appropriate amount for any particular employer's funding contribution. It is the Company's policy to fund the plans on a current basis to the extent deductible under existing income tax provisions. Such contributions are computed under actuarial assumptions and methods within parameters required by those tax provisions and which management believes are more appropriate for funding and ratemaking purposes and results in better measurement and matching of persion expense and revenue.
Pension expense for 2001 :
Service cost-benefits earned during the period $ 704,526 Interest cost on projected benefit obligation 1,251,596 Expected return on plan assets (1,303,174) Amortization of prior service costs 66,733 Amortization of transition obligations (80,433)
'
SFAS No.87 net periodic pension cost 639,248 Adjustment to funded amount 54,660
Pension expense charged to operations 693,908
Projected benefit obligation to date Plan assets at fair value
18,837,539 16,047,947
Obligation in excess of plan assets (2,789,592)
4. NA
5. NA
6. NA
7. NA
8. NA
9. NA
FERC FORM NO. 2-A (12-96) Page 122.1 I
This Repwt Is: Uate of Re Year of ~eport (1) mAn Original
Dec. 31, 2001 (2) n A Resubmission (Mo, Da, Y!?
'Name ot Kespondent Arkansas Oklahoma Gas Corporation
g
0 1
2 3
I 1 1 I I
Gas Plant in Service (Accounts 101,102,103, and 106)
1. Report below the original cost of gas plant in senrice according to the prescribed accounts. 2. In addition to Account 101, Gas Plant in Service (Classified), this page and the next include Account 102, Gas Plant Purchased or Sold, Account
3. Include in column (c) and (d). as appropriate corrections of additions and retirements for the current or preceding year. 4. Enclose in parenthesis credit adjustments of plant accounts to indicate the negative effect of such accounts. 5. Classify Account 106 according to prescribed accounts, on an
103, Experimental Gas Plant Unclassified, and Account 106, Completed Construction Not Classified-Gas.
sstimated basis if necessary, and indude the entries in column (c).Also to be included in column (c) are entries for reversals of tentative distributions of prior year reported in column (b). Likewise, if the respondent has a significant amount of plant retirements which have not been classified to primary accounts at the end of the year, indude in column (d) a tentative distribution of such retirements, on an estimated basis, with appropriate contra entry to the account for accumulated depreciation provision. Include also in column (d) reversals of tentative distributions of prior year's unclassified retirements. 9ttach supplemental statement showing the account distributions of these tentative classifications in columns (c) and (d),
i n e No.
Account Balance at Additions Beginning of Year
@I (c)
341 Structures and Improvements 342 Extraction and Refining Equipment 343 Pipe Lines 344 Extracted Products Storage Equipment 345 Compressor Equipment
3 302 Franchises and Consents 8.278
4 303 Miscellaneous Intangible Plant 5 9,588 TOTAL Intangible Plant (Enter Total of lines 2 thru 4)
10 325.3 Gas Rights 11 325.4 Rights-of-way 339,191 7.984 12 325.5 Other Land and Land Rights 28,510
13 326 Gas Well Structures 14 327 Fieid Compressor Station Structures 1,289
15 328 Field Measuring and Regulating Station Equipment 68,024
16 329 OtherStructures 17 330 Producing Gas Wells-Well Construction 378,099
g 332 Field Lines 3,320.251 35,118 10 333 Field Compressor Station Equipment 364,265 11 334 Field Measuring and Regulating Station Equipment 2,980,474 5,348
4 337 OtherEquipment 5 338 Unsuccessful Exploration and Development Costs 6 TOTAL Production and Gathering Plant (Enter Total of lines 8 7,866,553 48,450
8 331 Producing Gas Wells-Well Equipment 104,085
I I I
7 I PRODUCTS EXTRACTION PLANT g I 340 LandandlandRights *
Page 204
Name of Respondent Arkansas Oklahoma Gas CorpoEitiOn
This Keport Is: (1) BAn Original (2) n A Resubmission
I4ccountlOl and 106 will avoid serious omissions of respondent's reported amount for plant actually in service at end of year. 6. Show in column (9 reclassifications or transfers within utility plant accounts. lndude also in column (9 the additions or reductions of primary
account classifications arising from distnbution of amounts initially recorded in Account 102. In showing the dearance of Account 102, indude in dumn (e) the amounts with respect to accumulated provision for depreciation, acquisition adjustments, etc., and show in d u m n (9 only the offset to the debits or credits to primary account classifications.
subaccount classification of such plant conforming to the requirements of these pages.
and date of transaction. If proposed journal entries have been filed with the Commission as required by the Uniform System of Accounts, give date of
Line No.
7. For Account 399, state the nature and use of plant induded in this account and if substantial in amount submit a supplementary statement showing
8. For each amount comprising the reported balance and changes in Account 102, state the property purchased or sdd. name of vendor or purchaser,
Retirements Adjustments Transfers Balance at End of Year
(9 (SI
Year of Report
-31, 2001
1 ,310
8,278 2 3 4
I 9,588
Gas Plant In Sewice (Accounts 101,102,103, and 106) (continued)
'indudina the reversals of the prior years tentative account distributions of these amounts. careful observance of the above instructions and the texts of
8 9 9,063
10 11 347,175 12 28,510
1
I I I I
15 1 1.264 I I I 66,760 I I I I
16 I I I
28 29 30 31 32 33
Page 205
This Keport Is: (1) mAn Original (2) n A Resubmission
Date of Ke (Mo, Da, fl I Name of Respondent
Mansas Oklahoma Gas Corporation
Year of ~eport
Dec31,
Account Balance at Line No.
34 35 347 Other Equipment
36
37
38 39
Beginning of Year @) (a)
346 Gas Measuring and Regulating Equipment
TOTAL Products Extraction Plant (Enter Total of lines 28 WIN 35) TOTAL Natural Gas Production Plant (Enter Total of lines 26 and 7,866,553
Manufactured Gas Production Plant (Submit Supplementary TOTAL Production Plant (Enter Total of lines 37 and 38) 7,866,553
Additions
(c)
48,450
48,450
42 350.1 Land 43 350.2 Rights-of-way 4 351 Structures and Improvements 45 352 Wells
Name of Respondent This Report is: Date of Report (Mo, Da, Yr) (1) 3 An Original
(2) -A Resubmission Arkansas Oklahoma Gas Corporation
1. In the space below provide a brief description of the plant and operations of the respondent. 2. State the name and location of the fields in which the respondent operates, the number of acres of operated gas lands, number of gas wells,
miles of gathering lines, miles of transmission lines, number and capacity of compressor stations, and other information which will give a general idea of the size and nature of the facilities operated by the respondent in the production, gathering, transmission and storage of natural gas.
1. Arkansas Oklahoma Gas Corporation is a Corporation organized and existing under the laws of the state of Arkansas and operates natural gas distribution, transmission and gathering facilities serving approximately 63,000 customers in Sebastian, Crawford, Franklin, Scott and Logan Counties in Arkansas; Sequoyah, LeFlore, Haskell and Latimer Counties in Oklahoma. All of the counties served by the respondent are contiguous.
3. Provide details covering any important changes in the scope of respondent's operations during the report year.
Year of Report
Dec 31,2001
Arkansas Oklahoma Gas Corporation makes no sale for resale. Rather, all of Arkansas Oklahoma Gas Corporation's sales are direct sales for residential, commercial, and industrial customers. All of Arkansas Oklahoma Gas Corporation's sales and sales rates are regulated by the Oklahoma Corporation Commission and the Arkansas Public Service Commission.
Although primarily engaged in the loa1 distribution of natural gas, Arkansas Oklahoma Gas Corporation has, since 1979, also provided transportation services for a number of pipelines. Initially, Arkansas Oklahoma Gas Corporation provided such transportation services pursuant to an Order No. 60 blanket certificate and section 31 1 (a) (1) of the NGPA.
Since November 18,1985, however, Arkansas Oklahoma Gas Corporation has operated under a Section 7(9 service area determination and transported gas under an Order No. 63 blanket. certificate, 33 FERC paragraph 61,197. The maximum rates applicable to Arkansas Oklahoma Gas Corporation's Order No. 63 transportation service were approved on May 14,1998 in PR98-6-000. In 1988 Arkansas Oklahoma Gas Corporation received an interpretation under
2 NGPA from the FERC concluding that Arkansas Oklahoma Gas Corporation is a local distribution company for uansportation purposes, including NGPA sections 31 1 and 312.
Arkansas Oklahoma Gas Corporation's Section 7 (c) certificate has been vacated (Docket No. CP89465-001) and Arkansas Oklahoma Gas Corporation is now treated as a local distribution company by the FERC for all purposes (see Docket No. CP89-465-001).
2. Respondent does not operate any gas fields, but does operate numerous wells. The company owns two producing wells located in Massard Field and eleven wells in Mansfield Field, Sebastian County, Arkansas.
Pipelines Operated: Gathering 156.67 Miles Transmission 442.04 Miles
Respondent operates three compressor stations, one in Oklahoma and two in Arkansas. The total maximum daily capacity is 2mmcflD.
3. Not Applicable.
FERC FORM NO. 2-A (12-96) Page 21 1 I
This Keport Is: (1) e]An Original (2) n A Resubmission
Date of Re (Mo, Da,
Wame of Respondent Arkansas Oklahoma Gas Corporation
year of Heport
Dec.31, 2001
I I I I
I P I I
Gas Property and Capacity Leased from Others -
1. Report below the information called for concerning gas properly and capacity leased from others for gas operations. 2. For all leases in which the average annual lease payment over the initial term of the lease exceeds $500,000. describe in dumn
,c), if applicable: the property or capacity leased. Designate associated companies with an asterisk in column (b).
t Name of Lessor Description of Lease Lease Payments for tine Current Year No. (a) (b) (a (d)
1 None 2 3 4 5 6 7 8 9 10
--
30 I I I I 31 I I 32 33 34
-
35 36 37 38 39 40 4 1 I I I I
I I I I I I
Page 212
T ~ I S Keport IS: (1) RAn Original
Date ot Ke (Mo, Da, Y r
Name of Kespondent Arkansas Oklahoma Gas Corporation (2) n A Resubmission
. . I I I
Gas Property and Q-pacity Leased to Others
1. For all leases in which the average lease income over the initial term of the lease exceeds $500,000 provide in column (c), a description of each facility or leased capacity that is classified as gas plant in service, and is leased to others for gas operations. 2. In column (d) provide the lease payments received from others. 3. Designate associated companies with an asterisk in column (b).
I Name of Lessor Description of Lease I Lease Payments for
Year Ot Keport
Dec.31, 2001
- I I I
3 1 I I I
I I I 14 I 15 I 16 I
I I I 17 I 18 I
I I I
37 38 39 40 41 42 43
Page 213
Name of KespOndent
Arkansas Oklahoma Gas Corporation
ThlS Keport IS: (1) BAn Original (2) n A Resubmission
I
Accumulated Provision for Depreciation of Gas Utility Plant (Account 108)
1 I. Explain in a footnote any important adjustments during year. 2. Explain in a footnote any difference between the amount for book cost of plant retired, line 10, column (c), and that reported for gas
~ plant in service, page 204-209, column (d), excluding retirements of nondepreciable property. 3. The provisions of Account 108 in the Uniform System of Accounts require that retirements of depreciable plant be recorded when
such plant is removed from service. If the respondent has a significant amount of plant retired at year end which has not been recorded andlor classified to the various reserve functional classifications, make preliminary closing entries to tentatively functionalite the book cost of the plant retired. In addition, include all costs included in retirement work in progress at year end in the appropriate functional classifications. 4. Show separately interest credits under a sinking fund or similar method of depreciation accounting. 5. At lines 7 and 14, add rows as necessary to report all data. Additional rows should be numbered in sequence, e.g., 7.01,7.02, etc.
Gas Plant Leased Gas Plant Held
IC) Id) le)
Item Total Gas Plant in (c+d+e) Service for Future Use to Others Line
No.
Year of Report
Dec.31, 2001
I 3,728,6001 3,728,6001 I I
~
7.01
7.02
7.03
CWlP 95,036 95,036
I 7 . 4 I I I I I
13 --TOTAL NGChrgs for Plant Ret (Total of lines 10 thru 12) 14
14.01 NetDebit
Other Debt or Cdi i Items (Desaibe):
~ - ( 740,541) ( 740,541)
46,438 46,438 14.02 14.03
Page 219
I
I I
Name ot Kespondent Arkansas Oklahoma Gas Corporation (2) n A Resubmission
This Keport Is: (1) BAn Original
Date ot Keport (Mo, Da, Yr)
Year ot Report
Dec.31, 2001 I I 1 I I
Accumulated Provision for Depreciation of Gas Utility Plant (Account 108) (continued)
1. Explain in a footnote any important adjustments during year. 2. Explain in a footnote any difference between the amount for book cost of plant retired, line 10, column (c), and that reported for ga! ant in service, page 204-209, column (d). excluding retirements of nondepreciable property. 3. The provisions of Account 108 in the Uniform System of Accounts require that retirements of depreciable plant be recorded when
such plant is removed from service. If the respondent has a significant amount of plant retired at year end which has not been recorded and/or classified to the various reserve functional classifications, make preliminary closing entries to tentatively functionalize the book cost of the plant retired. In addition, include all costs included in retirement work in progress at year end in the appropriate functional classifications. 4. Show separately interest credits under a sinking fund or similar method of depreciation accounting. 5. At lines 7 and 14, add rows as necessary to report all data. Additional rows should be numbered in sequence, e.g.. 7.01,7.02, etc.
Item Total Gas Plant in Gas Plant Held Gas Plant Leased
fa) (c+d+e) Service for Future Use to Others Line
No. Ib)
This Keport Is: jnal bmission
,A. -.- -2 Name ot Kespondent Date ot Keport (Mo, Da, Yr)
Year ot Report
Dec.31, 2001
~~
21 Base Load LNG Terminating and Processing Plant I I 22 ITransmission
I I
16
17
18
19
20
23 IOistributiOn I I I I
Productions-ManufredGas
Produdion and GatheringNatural Gas Producb ExtractionNatural Gas
Underground Gas Storage
Other Storage Plant
24
25
Page 219 (continued)
~ ~~
General
TOTAL (Total of lines 16 thN 24)
I (2) n A Resubmission Arkansas Oklahoma Gas Corporation
I I * I I
Other Regulatoly Assets (Account 182.3)
1. Report below the details called for concerning other regulatory assets which are created through the ratemaking d o n s of regulatory agenaes (and not indudable
2. For regulatory assets being amortized, show pericd of amortization in column (a). 3. Minor items (5% of the Balance at End of Year for Account 182.3 or amounts less than $250,000, whichever is less) may be grouped by dasses. 4. Report separately any 'Deferred Regulatory Commission Expenses' that are also reported on pages 350-351, Regulatory Commission Expenses.
in other accounts).
other Regulatory Assets
Page 232
Name of Respondent mis Report IS: Date or Keport
Arkansas Oklahoma Gas Corporation (1) aAn Original (Mo, Da. Yr) (2) n A Resubmission
I Class and Series of Stock Number of Par Value stated value Shares Per Share Pershare
(Add lines as necessary b Authorized of Par of Nonpar 1 Line report all data) Value Stock 1 NO. S W
Year of Report
Dec.31, 2001
I I I 6 1
I
7 I 8
I
10 I I I I
I
150,000.00
Class and Serias of Obligation (Add lines as newsmy b report
all data.)
Nominal Date of oumkrs Inteerest Interest Date of Maturity Per Balance foryear h Y W Issue Sheet
Arkansas Oklahoma Gas Corporation (Mo, Da, Yr) (1) aAn Original
(2) n A Resubmission
I 2. Natural gas means either natural gas unmixed or any mixture of natural and manufactured gas.
Year ot Report
Dec.31. 2001
3. Enter in column (c) the Dth as reported in the schedules indicated forthe items of receipts and deliveries. 4. Indicate in a footnote the quantities of bundled sales and transpoltation gas and specify the line on whdr such quantities are liisted. 5. If the respondent operates N o or more systems which are not interconnected. submi separate pages for this purposa. Use copies of pages 520. 6. Also indicate by footnote the quantities of gas not subject to Commission regulation which did not incur FERC regulatory cosk by s M i (1) the kcal disbibution volumesanother
Line Item
(4 NO.
Ref. Amount of
No. Page Dth
@I (4
Gas Purchases (Accounts 800405) 10,508,982 Gas of Others Received for Gathering (Account 489.1)
Gas of Others Received for Transmission (Account 489.2) 305 9,946,930 Gas of Others Received for Distdbution ( A m n t 489.3) Gas of 0 t h ~ Received for Contract StDlage (Account 489.4)
303
301
307 328 328 332
Exchanged Gas Received from Others (Account 806) Gas Received as Imbalances (Account 806)
Other Gas Withdrawn from Storage (Explain) Gas Received from Shippers as Compressor Station Fuel Gas Received from Shippers as Lost and Unaccounted for
Other Receipk (Specify)
Receipts of Respondent‘s Gas Transpotted by Others (Account 858)
I14.041 I - 1 1
23
24
25
14.051 I I 14.061
Exchange Gas Delivered ta Others (Account 806) Gas Delivered as Imbalances (Account 806)
Deliveries of Gas to Others for Transportation (Account 858)
Other Gas Delivered to Storage (Explain)
328 320
332
14.07
14.08
14.09
Name of Respondent ThlS Keport IS: Date of Re (1) 8 A n Original (Mo, Da. Y r
Arkansas Oklahoma Gas Corporation (2) n A Resubmission YWf Of Keport
Dec. 31, 2001 I Y I I
Gas Account - Natural Gas (continued)
Ref. Amount of Line Item Page m No. No.
(a) @) (4 26 GasUsadforCompressorStalionFuel 509
27.01 CompanyUSe 46,560 27 Other Deliveries (Specify)
27.02 27.03 27.04
1 33
i7.09 27.10 28 Total Deliveries mota1 of lines 17 thtu 27.1) 19.626.524
I Production system Losses Gathering System Losses Transmission System Losses Disbibution System Losses Storage System Losses System Losses 829,388 Total Unaccounted For (Total of lines 30 UIN 351 829.388 I I I
I I 20,455,: 37 I Total Deli& 8 Unamunted For (Total of lina 28 and 36)
I
Page 520a
Name of Respondent This Report is: (1) X An Original
Arkansas Oklahoma Gas CorporaEm (2) -A Resubmission
Schedule Page: 107 Line No.: 1 Column: 1 I 1. Annual Stockholders Meeting
Date of Report Year of Report (Mo, Da, Yr)
Dec 31,2001
IFERC FORM NO. 2 112-96) Paoe 552 1
Name of Respondent
Arkansas Oklahoma Gas Corporation
chedule Page: 120 Line No.: 78 Column: b 874.1 89
I 2. Per Statement of Cash Flows
This Report is: Date of Report Year of Report (1) X An Original (2) A Resubmission Dec31,2001
(Mol Da, Yr)
Per Balance Sheet: Cash (131) 950,199 Working Funds (131) (76,010) Total 874,189
ISchedule Page: 120 Line No.: 78 Column: c I 3. Per Statement of Cash Flows 332,221
Per Balance Sheet: Cash (131) 413,479 Working Funds (135) (81,258) Total 332,221
I FERC FORM NO. 2 (12-96) Paae 552 I
Name of Respondent
Arkansas Oklahoma Gas Corporation
1. Furnish five copies of a system map (one with each filed copy of this report) of the facilities operated by the respondent for the production, gathering, transportation, and sale of natural gas. New maps need not be furnished if no important change has occurred in the facilities operate by the respondent since the date of the maps furnished with a previous year's annual repok If, however, maps are not furnished for this reason reference should be made in the space below to the year's annual report with which the maps were furnished. 2. Indicate the following information on the maps:
(a) Transmission lines. (b) Incremental facilities. (c) Location of gathering areas. (d) Location of zones and rate areas. (e) Location of storage fields. (9 Location of natural gas fields. (9) Location of compressor stations. (h) Normal direction of gas flow (indicated by arrows). (i) Size of pipe. (j) Location of products extraction plants, stabilization plants, purification plants, recycling areas, etc. (k) Principal communities receiving service through the respondent's pipeline.
3. In addition, show on each map: graphic scale of the map; date of the facts the map purports to show; a legend giving all symbols and
4. Maps not larger than 24 inches square are desired. If necessary, however, submit larger maps to show essential information. Fold the abbreviations used; designations of facilities leased to or from another company, giving name of such other company.
maps to a size not larger then this report. Bind the maps to the report.
This Report is: Date of Report Year of Report (1 ) X An Original (2) -A Resubmission Dec 31,2001
(Mo, Da, Yr)
FERC FORM NO. 2-A (REV. 12-96) Page 522 I
I L., ............. , : t t
: , I
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