Code of Massachusetts Regulations › 220 CMR - DEPARTMENT OF PUBLIC UTILITIES › Title 220 CMR 50.00 - Uniform System Of Accounts For Gas Companies › GAS PLANT INSTRUCTIONS › Section 6 - Land and Land Rights

Current through Register 1525, July 5, 2024
A. The accounts for
		  land and land rights shall include the cost of land owned in fee by the utility
		  and rights, interest, and privileges held by the utility in land owned by
		  others, such as leaseholds, easements, water and water power rights, diversion
		  rights, submersion rights, rights of way and other like interests in
		  land.
B. Where special assessments
		  for public improvements provide for deferred payments, the full amount of the
		  assessments shall be charged to the appropriate land account and the unpaid
		  balance shall be carried in an appropriate liability account. Interest on
		  unpaid balances shall be charged to the appropriate interest account. If any
		  part of the cost of public improvements is included in the general tax levy,
		  the amount thereof shall be charged to the appropriate tax account.
C. The net profit from the sale of timber,
		  cord wood, or other property acquired with rights of way or other lands shall
		  be credited to the appropriate land and land rights or clearing land account.
		  Where land is held for a considerable period of time and timber on the land at
		  the time of purchase increases in value, the net profit (after giving effect to
		  the cost of the timber) from the sales of timber or its product shall be
		  credited to account 421, Miscellaneous Non-operating Income.
D. Separate entries shall be made for the
		  acquisition, transfer, or retirement of each parcel of land, and each land
		  right (except rights of way for distribution lines), or water right, having a
		  life of more than one year. A record shall be maintained showing the nature of
		  ownership, full legal description, area, map reference, purpose for which used,
		  city, county, and tax district in which situated, from whom purchased or to
		  whom sold, payment given or received, other costs, contract date and number,
		  date of recording of deed, and book and page of record. Entries transferring or
		  retiring land or land rights shall refer to the original entry recording its
		  acquisition.
E. Any difference
		  between the amount received from the sale of land or land rights, less agents'
		  commissions and other costs incident to the sale, and the book cost of such
		  land or rights, when such amount is significant, shall be included in account
		  434, Miscellaneous Credits to Surplus, or account 435, Miscellaneous Debits to
		  Surplus, as appropriate, unless a reserve therefor has been authorized and
		  provided. Appropriate adjustments of the accounts shall be made with respect to
		  any structures or improvements located on land sold.
F. The cost of buildings and other
		  improvements (other than public improvements) shall not be included in the land
		  accounts. If at the time of acquisition of an interest in land such interest
		  extends to buildings or other improvements (other than public improvements),
		  which are then devoted to gas operations, the land and improvements shall be
		  separately appraised and the cost allocated to land and buildings or
		  improvements on the basis of the appraisals. If the improvements are removed or
		  wrecked without being used in operations, the cost of removing or wrecking
		  shall be charged and the salvage credited to the account in which the cost of
		  the land is recorded.
G. When the
		  purchase of land for gas operations requires the purchase of more land than
		  needed for such purposes, the charge to the specific land account shall be
		  based upon the cost of the land purchased, less the fair market value of that
		  portion of the land which is not to be used in gas operations. The portion of
		  the cost measured by the fair market value of the land not to be used shall be
		  included in account 105, Property Held for Future Use, or account 121,
		  Nonutility Property, as appropriate.
H. Provision shall be made for amortizing
		  amounts carried in the accounts for limited-term interests in land so as to
		  apportion equitably the cost of each interest over the life thereof. (See
		  account 257, Reserve for Amortization of Utility Plant in Service, and account
		  404, Amortization of Limited-Term Utility Plant.)
I. The items of cost to be included in the
		  accounts for land and land rights are as follows:
1. Bulkheads, buried, not requiring
		  maintenance or replacement.
2.
		  Cost, first, of acquisition including mortgages and other liens assumed (but
		  not subsequent interest thereon).
3. Clearing (first cost) the land of brush,
		  trees, and debris.
4. Condemnation
		  proceedings, including court and counsel costs.
5. Consents and abutting damages, payment
		  for.
6. Conveyancers' and notaries'
		  fees.
7. Fees, commissions, and
		  salaries to brokers, agents, and others in connection with the acquisition of
		  the land or land rights.
8. Grading
		  the land, except when directly occasioned by the building of a
		  structure.
9. Leases, cost of
		  voiding upon purchase to secure possession of land.
10. Removing, relocating, or reconstructing
		  property of others, such as buildings, highways, railroads, bridges,
		  cemeteries, churches, telephone and power lines, etc., in order to acquire
		  quiet possession.
11. Retaining
		  walls unless identified with structures.
12. Special assessments levied by public
		  authorities for public improvements on the basis of benefits for new roads, new
		  bridges, new sewers, new curbing, new pavements, and other public improvements,
		  but not taxes levied to provide for the maintenance of such
		  improvements.
13. Surveys in
		  connection with the acquisition, but not amounts paid for topographical surveys
		  and maps where such costs are attributable to structures or plant equipment
		  erected or to be erected or installed on such land.
14. Taxes assumed, accrued to date of
		  transfer of title.
15. Title,
		  examining, clearing, insuring, and registering in connection with the
		  acquisition and defending against claims relating to the period prior to the
		  acquisition.
16. Appraisals prior
		  to closing title.
17. Cost of
		  dealing with distributees or legatees residing outside of the state or county,
		  such as recording power of attorney, recording will or exemplification of will,
		  recording satisfaction of state tax.
18. Filing satisfaction of
		  mortgage.
19. Documentary
		  stamps.
20. Photographs of property
		  at acquisition.
21. Fees and
		  expenses incurred in the acquisition of water rights, and grants.
22. Cost of fill to extend bulkhead line over
		  land under water, where riparian rights are held, which is not occasioned by
		  the erection of a structure.
23.
		  Sidewalks and curbs constructed by the utility on public property.
24. Labor and expenses in connection with
		  securing rights of way, where performed by company employees and company
		  agents.