Oklahoma Administrative Code › Title 165 - Corporation Commission › Chapter 75 - Cotton Gin Utilities › Subchapter 5 - Maintenance and Operation › Part 1 - SERVICE REQUIREMENTS › Section 165:75-5-4 - Replacements/additions

Current through Vol. 41, No. 20, July 1, 2024
(a) The Commission
				  shall be notified of destruction, material damage by fire, or tornado, or other
				  causes of all gin utilities provided that nothing herein shall prevent the
				  owner or operator of a gin so damaged or destroyed to replace said ginning
				  facilities prior to the beginning of the next cotton ginning season. If the gin
				  cannot be repaired or rebuilt within the above designated period, the owner or
				  operator shall seek relief under
				  165:75-3-5.
(b) Additions, replacements, betterments, and
				  repairs in respect to cotton gin plants shall be so defined and classified as
				  follows:
(1) Additions are structures,
				  facilities, equipment, and other property added to those in service at any
				  given time and not taking the place of any property of like kind previously
				  held by the owner or operator and taken into the property accounts. Such
				  additions to the cotton gin utility shall be taken into the property account
				  and shown in the next annual report in the details and particulars and on
				  blanks authorized by the Commission.
(2) Replacements are those installations of
				  plant and equipment which have for their purpose the substitution of one (1)
				  building, structure, piece of equipment, machine or mechanical part for
				  another, which it has become necessary to retire; the substitute, having
				  substantially no greater capacity than the building, structure, piece of
				  equipment, machine or mechanical part retired, shall be credited to the
				  accounts in which it is carried and the cost of the substitute so installed
				  shall be charged to the appropriate accounts.
(3) If such replaced substitute shall be
				  greater capacity or efficiency than the building, structure, piece of
				  equipment, machine, or mechanical part replaced at the time of the latter's
				  previously installation, the excess of cost of such substitute, if any, over
				  the first cost of that removed shall be carried as cost of betterment, and such
				  increase of capacity or efficiency shall be regarded as betterment and the
				  residue of such cost as replacement cost, and all such shall be shown in the
				  annual report of such cotton gin utility in such detail and particulars and
				  upon such blanks as may be authorized by the Commission.
(4) For the purpose of determining what shall
				  constitute repairs, the major parts of all cotton gin utilities, such as gin
				  stands, et cetera, shall be regarded as equipment and each part of such
				  equipment known in the cotton gin trade as a "unit" shall be regarded as
				  divided into a class having determine function in such unit, such as gin frame,
				  gin breast, saw cylinder, brush cylinder, et cetera; and a class having merely
				  contributory such as saws, et cetera; and the substitution of any unit of a
				  mechanical part of a unit having a determinative function shall be regarded as
				  a replacement and not as a repair, and shall be carried, with the determined
				  betterment, if any, under the paragraph (3); but the replacement or correction
				  of any of the merely contributory parts shall be regarded as a repair and be
				  charged to the appropriate operating expense account. Mechanical parts for such
				  substitutes shall be regarded as replacement line and center shafting, line
				  shaft and pulleys, idlers, fan jacks, fans, complete airlines, droppers,
				  separators, vacuum boxes, cleaners, extractor machine distributors, feeders,
				  gin breast, complete saw cylinder, complete brush, gin frames, complete lint
				  flues, condensers, packers, lint cleaners, complete press boxes, ram cylinder,
				  rams, press screws, pumps, scales, complete conveyor elevators, main drive
				  belting, bull extractors, unloaders, generators, motors, boilers, heaters,
				  engines, engine flywheels, engine cylinders, crank shafts, engine frames or
				  bases. The substitution or repair of any of the minor parts of the foregoing
				  shall be regarded as repair and other mechanical parts not enumerated shall be
				  regarded according the same rule or principle. In the matter of buildings,
				  complete roofs, partitions, complete floors, complete walls, foundations,
				  platforms, and decks and other outside annexes and wells, tanks and complete
				  water lines, etc.; shall be regarded as replacements and that minor corrections
				  or repairs of any one of these and painting shall be regarded as
				  repairs.