PART 356—PRESERVATION OF RECORDS FOR OIL PIPELINE COMPANIES 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. § 356.1 Promulgation. 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. § 356.2 General instructions. (a) Scope of this part. (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. (c) Protection and storage of records. (d) Record 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. (f) Premature destruction or loss of records. (g) Retention periods designated “Destroy at option”. (h) Records of services performed by associated companies. (i) Index of records. (j) Rate case. (k) Pending complaint litigation or governmental proceeding. (l) Companies going out of business. (m) Life or mortality study data. § 356.3 Preservation of records for oil pipeline companies. 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. Schedule of Records and Periods of Retention Item No. and description Retention period Corporate and General 1. Incorporation and reorganization: (a) Charter of certificate of incorporation and amendments Permanently or at termination of the corporation's existence. (b) Legal documents related to mergers, consolidations, reorganizations, receiverships, and similar actions which affect the identity or organization of the company Permanently or at termination of the corporation's existence. 2. Minutes to Directors', Executive Committees', Stockholders', and other corporate meetings 5 years. 3. Titles, franchises, and authorities: (a) Certificates of public convenience and necessity issued by regulating bodies Until expiration or cancellation. (b) Operating authorizations and exemptions to operate issued by regulating bodies Until expiration or cancellation. (c) Copies of formal orders of regulatory bodies served upon the company 1 year after expiration or cancellation. (d) Deeds, charters, and other title papers 3 years after disposition of property. 4. Contracts and agreements: (a) Contracts and related papers for transactions which are subject to the provisions of the Clayton Antitrust Act (15 U.S.C. 20) 4 years after expiration, provided there is no pending litigation or governmental inquiry or proceeding involved. (b) Service contracts, such as for operational management, accounting, financial or legal service, and agreements with agents 3 years after expiration or termination. (c) Contracts and other agreements relating to the construction, acquisition or sale of real property and equipment except as otherwise provided in paragraph (a) of this item 3 years after expiration or termination. 5. Accountant's, auditor's, and inspector's reports: (a) Certifications and reports of examinations and audits conducted by public and certified public accountants 3 years. (b) Reports of examinations and audits conducted by internal auditors, time inspectors, weight inspectors, and others 3 years. Treasury 6. Long-term debt records: (a) Bond indentures, underwriting, mortgage, and other long-term credit agreements 6 years after redemption. Financial Accounting 7. Ledgers: (a) General and subsidiary ledgers with indexes thereto 3 years. (b) Balance sheets and trial balance sheets of general and subsidiary ledgers 3 years. 8. Journals: (a) General journals 3 years. (b) Subsidiary journals and any supporting data, except as otherwise provided for, necessary to explain journal entries 3 years. (c) Schedules of recurring or standard journal entries with entry identifications Until superseded. 9. Vouchers: (a) Voucher registers or equivalent 5 years. (b) Paid and canceled vouchers, expenditure authorizations, detailed distribution sheets, and other supporting data including original bills and invoices, except as otherwise provided herein 5 years. 10. Accounts receivable, record, or register of accounts receivable 3 years after settlement. 11. Records of accounting codes and instructions 3 years after discontinuance. Property and Equipment 12. Property records: (a) Records which maintain complete information on cost or other value of all real property or equipment 3 years after disposition of property. (b) Records and additions and betterments made to property and equipment 3 years after disposition of property. (c) Records pertaining to retirements and replacements of property and equipment 3 years after disposition of property. (d) Records pertaining to depreciation: (1) When group method and depreciation rates are prescribed by the Commission 3 years after disposition of property. (2) Other 3 years after disposition of property. (e) Records of equipment number changes 3 years after disposition of property. (f) Records of motor and engine changes Destroy at option. (g) Files of detailed authorizations for expenditures, 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 3 years after disposition of property. (h) Periodical inventories of property and equipment 3 years after prior inventory. 13. Engineering records: (a) Plans and specifications 3 years after the disposition of the property. (b) Estimates of work, engineering studies, construction bids, and similar data pertaining to property changes actually made 15 years. Personnel and Payroll 14. Payroll records: (a) Registers, abstracts, or summaries showing earnings, deductions, and amounts paid to each employee by pay periods 3 years. (b) Records showing the detailed distribution of salaries and wages to various accounts 3 years. Taxes 15. 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 companies as to allocation of consolidated income taxes 3 years after final tax liability is determined. (f) Schedule of allocation of consolidated Federal income taxes among associate companies 3 years after final tax liability is determined. 16. Information returns and reports to taxing authorities 3 years, or for the period of any extensions granted for audits. Purchase and Stores 17. Material ledger, records of material and supplies on hand at all locations 2 years. 18. Inventories: General Inventories of material and supplies on hand, with record of adjustments between accounts required to bring stores records into agreement with physical inventories 2 years. Transportation 19. Oil and other products stocks and movement pipelines only: (a) Records and receipts, deliveries, pumpings, stocks, and over and short 3 years. (b) Run tickets showing quantities by tank measurement of meter reading of oil and other products received into the delivered from company's lines 3 years. (c) Statements of oil and oil products consumed as fuel including quantity value, and where consumed 3 years. (d) Statement of oil and other products lost by line breaks and leaks including quantity, value, and location of breaks and leaks 3 years. (e) Reports of power furnished by 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 3 years. (f) Records of producers' property identifying ownership and location for producers' tanks or wells to which carrier's lines are connected 3 years after disconnection. (g) Division or other periodical inventory reports of oil and other products on hand 3 years. (h) Division orders: Directions received by carrier as to the division of interest and to whose account transported oil should be credited 3 years after discontinuance. (i) Directions received by the carrier for the transfer of division order interests from one interest owner to another 3 years after discontinuance. (j) Transfer orders for the transfer of ownership of oil or other products in carrier's custody 3 years. Tariffs and Rates 20. Official file copies of tariffs, classifications, division sheets, and circulars relative to the transportation of property 3 years after expiration or cancelation. 21. Authorities and supporting papers for transportation of property for free or at reduced rates 3 years. 22.Copies of concurrences and powers of attorney 2 years after expiration or cancelation. 23. Correspondence and working papers in connection with the making of rates and compliance of tariffs, classifications, division sheets, and circulars affecting the transportation of property 2 years after cancelation of tariff. Reports and Statistics 24. Reports to Federal Energy Regulatory Commission and other regulatory bodies, annual financial, operating and statistical reports, file copies, and supporting data 5 years.