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File No. 70-
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form U-1
JOINT APPLICATION-DECLARATION
UNDER
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
<TABLE>
<S> <C>
THE COLUMBIA GAS SYSTEM, INC. COLUMBIA GULF
COLUMBIA GAS SYSTEM SERVICE CORPORATION TRANSMISSION COMPANY
COLUMBIA LNG CORPORATION 1700 MacCorkle Avenue, S.E.
COLUMBIA ATLANTIC TRADING CORPORATION Charleston, WV 25314
TRISTAR VENTURES CORPORATION
TRISTAR CAPITAL CORPORATION COLUMBIA GAS DEVELOPMENT
20 Montchanin Road CORPORATION
Wilmington, DE 19807 One Riverway
Houston, TX 77056
COLUMBIA NATURAL RESOURCES, INC.
COLUMBIA COAL GASIFICATION CORPORATION
900 Pennsylvania Avenue COMMONWEALTH PROPANE, INC.
Charleston, WV 25302 COLUMBIA PROPANE CORPORATION
800 Moorefield Park Drive
COLUMBIA ENERGY SERVICES CORPORATION Richmond, VA 23236
2581 Washington Road
Upper Saint Clair, PA 15241
</TABLE>
COLUMBIA GAS OF KENTUCKY, INC.
COLUMBIA GAS OF OHIO, INC.
COLUMBIA GAS OF MARYLAND, INC.
COLUMBIA GAS OF PENNSYLVANIA, INC.
COMMONWEALTH GAS SERVICES, INC.
200 Civic Center Drive
Columbus, OH 43215
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(Names of company or companies filing this statement
and addresses of principal executive offices)
THE COLUMBIA GAS SYSTEM, INC.
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(Name of top registered holding company parent of
each applicant or declarant)
L. J. Bainter, Treasurer
THE COLUMBIA GAS SYSTEM, INC.
20 Montchanin Road
Wilmington, DE 19807
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(Name and address of agent for service)
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(Other Agents for Service are Listed on the
Reverse Side of the Front Cover)
Names and Addresses of Subsidiary Company Agents for Service:
<TABLE>
<S> <C>
W. H. HARMON, Treasurer D. L. GELBAUGH, Vice President
Columbia Natural Resources, Inc. Columbia Gas of Ohio, Inc.
Columbia Coal Gasification Corp. Columbia Gas of Kentucky, Inc.
900 Pennsylvania Avenue Commonwealth Gas Services, Inc.
Charleston, West Virginia 25302 Columbia Gas of Pennsylvania, Inc.
Columbia Gas of Maryland, Inc.
D. DETAR, Treasurer 200 Civic Center Drive
TriStar Ventures Corporation Columbus, Ohio 43215
20 Montchanin Road
Wilmington, Delaware 19807
S. L. Parks Downey, Asst. Treasurer
J. W. GROSSMAN, Treasurer Columbia Gulf Transmission Company
Columbia LNG Corporation 1700 MacCorkle Avenue, S.E.
Columbia Atlantic Trading Corp. Charleston, West Virginia 25314
20 Montchanin Road
Wilmington, Delaware 19807 J. R. LISENBY, Treasurer
Columbia Gas Development Corp.
L. J. BAINTER, Vice President One Riverway
Columbia Gas System Service Corp. Houston, Texas 77056
TriStar Capital Corporation
20 Montchanin Road ROBERT GUSTAFSON, Controller
Wilmington, Delaware 19807 Columbia Energy Services Corp.
2581 Washington Road
H. F. HAYES, Treasurer Upper Saint Clair, PA 15241
Commonwealth Propane, Inc.
Columbia Propane Corporation
800 Moorefield Park Drive
Richmond, Virginia 23236
</TABLE>
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(Names and Addresses of Other Agents for Service)
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Item 1. Description of Proposed Transaction.
(a) Furnish a reasonably detailed and precise description of
the proposed transaction, including a statement of the reasons why it is
desired to consummate the transaction and the anticipated effect thereof. If
the transaction is part of a general program, describe the program and its
relation to the proposed transaction.
The Columbia Gas System, Inc. ("Columbia"), a Delaware
Corporation, and a holding company registered with the Securities and Exchange
Commission ("Commission") under the Public Utility Holding Company Act of 1935
("the Act"), and the following wholly owned subsidiary companies, are Joint
Applicants-Declarants:
Distribution Subsidiaries -
Columbia Gas of Pennsylvania, Inc. ("Columbia Pennsylvania")
Columbia Gas of Ohio, Inc. ("Columbia Ohio")
Columbia Gas of Maryland, Inc. ("Columbia Maryland")
Columbia Gas of Kentucky, Inc. ("Columbia Kentucky")
Commonwealth Gas Services, Inc. ("Commonwealth Services")
Transmission Subsidiary -
Columbia Gulf Transmission Company ("Columbia Gulf")
Exploration and Development Subsidiaries -
Columbia Gas Development Corporation ("Development")
Columbia Natural Resources, Inc. ("Columbia Natural")
Other Subsidiaries -
Columbia Coal Gasification Corporation ("Coal Gasification")
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Columbia Energy Services Corporation ("Energy Services")
Columbia Gas System Service Corporation ("Service")
Columbia Propane Corporation ("Columbia Propane")
Commonwealth Propane, Inc. ("Commonwealth Propane")
TriStar Ventures Corporation ("TriStar Ventures")
TriStar Capital Corporation ("TriStar Capital")
Columbia Atlantic Trading Corporation ("Columbia Atlantic")
Columbia LNG Corporation ("Columbia LNG")1
The foregoing named subsidiaries are principally engaged in
one or more phases of the natural gas business. All such companies, other than
Energy Services, Columbia LNG, Columbia Atlantic and TriStar Ventures, are
hereinafter referred to collectively as "the Subsidiaries." Columbia and the
Subsidiaries are sometimes hereinafter collectively referred to as the
"System".
The System is seeking Commission authorization for: (A) the
recapitalization of Columbia Gulf, Development and Coal Gasification,
collectively referred to as the "Recapitalization Subsidiaries"; (B) the 1995
and 1996 Long-Term and Short-Term Financing Programs of the Subsidiaries; and
(C) continuation of the Intrasystem Money Pool ("Money Pool") in 1995 and 1996,
all as more fully described herein.
- --------------------
1 In 1993, Columbia LNG and PEPCO Enterprises established a partnership
jointly and owned and controlled to develop a peaking service at Columbia
LNG's Cove Point Terminal (Release No. 35-25993; 70-8313). Financing for
Columbia LNG is covered in File No. 70-8317.
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Certain financing transactions of Columbia's state-regulated
companies (Columbia Kentucky, Columbia Ohio, Columbia Pennsylvania, and
Commonwealth Services) will require authorization of the various state
commissions. Petitions will be filed with the appropriate state commissions
and such transactions will be carried out in accordance with express state
commission authorizations. These regulatory approvals are more fully described
in Items 3 and 4.
Background:
Through the Subsidiaries, Columbia operates an interconnected
natural gas system that is engaged in all phases of the natural gas industry
including exploration, production, storage, purchase, transmission and local
distribution by the state- regulated utility companies. Prior to July 31,
1991, substantially all external funding of the System had been implemented
through public equity and debt offerings by Columbia and short-term borrowings
by Columbia from banks and through the sale of its commercial paper. The
proceeds were provided to the Subsidiaries on comparable terms through
purchases of debt or equity from the Subsidiaries or, in the case of short-term
funds, through advances on open account from Columbia or through the Money
Pool.
Columbia Gas Transmission Corporation ("Columbia
Transmission"), the larger of the interstate transmission companies owned by
Columbia, experienced significant financial difficulties related to the
purchase of high cost gas under long-term contracts which resulted in both
Columbia and Columbia Transmission seeking protection from creditors under
Chapter 11 of the Bankruptcy Code (the "Code") on July 31, 1991.
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After filing for protection from its creditors under the Code,
Columbia negotiated debtor-in-possession ("DIP") financing in order to fund the
operating needs of its subsidiaries other than Columbia Transmission. Columbia
Transmission negotiated its own DIP financing.
An order approving a $275,000,000 Secured Revolving Credit
Facility, among Columbia, The Banks Parties Thereto and Chemical Bank (as
successor to Manufacturers Hanover Trust Company), as Agent, (the "DIP
Facility"), was granted by the United States Bankruptcy Court for the District
of Delaware ("Bankruptcy Court") on September 10, 1991, and Commission approval
was granted on September 20, 1991 (Release No. 35-25380; 70-7903). An order
approving an amendment to the DIP Facility improving its terms and reducing its
available amount to $100,000,000 was granted by the Bankruptcy Court on May 11,
1993, and Commission approval was granted on June 11, 1993 (Release No.
35-25825). Orders approving a further amendment to the DIP Facility were
issued by the Bankruptcy Court on August 16, 1994 and by this Commission on
September 12, 1994, (Release No. 35-26120)(i) to eliminate the commitments of
all banks other than Chemical Bank and, (ii) to provide for Chemical Bank's
commitment to be $25,000,000 and be available only for the issuance of
irrevocable standby letters of credit ("LOCs").
A. Recapitalization of Columbia Gulf, Development and Coal Gasification
--------------------------------------------------------------------
Columbia and the Recapitalization Subsidiaries are seeking
Commission authorization for the recapitalization of Columbia Gulf,
Development and Coal Gasification (on or about December 31, 1994) in order to
establish capital structures which are more appropriate for the business and
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economic conditions under which these companies currently operate. The
proposed transactions and the goals for the Recapitalization Subsidiaries
(approved by the Bankruptcy Court on July 20, 1994) are summarized as follows:
Columbia Gulf
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Goal: Bring Columbia Gulf's long-term debt/equity ratio to 45/55.
1. Issue Installment Promissory Notes ("Installment Notes") to
Columbia, for cash, of up to $67 million.
2. Reduce the par value of Columbia Gulf's common stock from $25
per share to $10 per share. This will create approximately $90 million
additional paid in capital.
3. Pay a dividend of up to $67 million to Columbia out of
surplus. The dividend would approximate the dollar amount of Installment Notes
issued.
Columbia Gulf operates a major interstate pipeline system
which extends from offshore Louisiana to Kentucky. Columbia Gulf also owns
partnership interests in three other pipelines which extend into major
midcontinent and western gas producing areas.
Columbia Gulf currently has a capital structure with an equity
component much higher than necessary given its current business climate. The
proposed increase in Columbia Gulf's debt service can be readily supported from
cash flow from its operations. To effect the recapitalization, the $25 par
value of Columbia Gulf's common stock must be reduced to create adequate
surplus from which a dividend can be paid.
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Development
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Goal: Bring Development's long-term debt/equity ratio to 40/60.
1. Columbia will make a tax-free capital contribution of up to $62 million
of Installment Notes previously issued by Development and held by Columbia.
Development conducts oil and gas operations in the Gulf of
Mexico and the continental United States, excluding the Appalachian region.
Development's profitability has been adversely affected by depressed oil and
gas prices which have significantly reduced Development's equity ratio.
Lower debt balances will reduce Development's debt service
requirement to a level more appropriate for its business prospects and
operations. The transaction proposed would be similar to the one approved by
this Commission in 1992 when Columbia made a capital contribution of existing
Development debt to Development's equity in order to comply with the Federal
Offshore Oil Pollution Compensation fund regulations. Development needed an
equity infusion at that time and the Bankruptcy Court and the Commission
approved the transaction on December 11, 1992 (Release No. 35-25703; 70-8067).
Columbia Coal
- -------------
Goal: Bring Columbia Coal's long-term debt/equity ratio to 40/60.
1. Columbia will make a tax-free capital contribution of up to $12 million
of Installment Notes previously issued by Columbia Coal and held by Columbia.
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Columbia Coal was originally established for the purpose of
developing and operating coal mines, with part of the coal to be used in a coal
gasification plant. Changes in the industrial energy markets resulted in a
negative competitive and economic climate for synthetic fuels and Columbia Coal
withdrew from that research effort. Columbia Coal's distorted capital
structure results from operating losses which related to its efforts to carry
out its original operating plan. After Columbia Coal's mining operations also
became uneconomic, the company changed its business plan and has been
successful in leasing some of its coal interests and obtaining royalty payments
based on the amount of coal produced on its leased properties.
Columbia Coal requires an increase in its equity in order to
establish a capital structure representative of its expectations for growth,
profitability and capital requirements. The changes proposed for Columbia Coal
would achieve an equity ratio which recognizes these factors and the business
climate associated with Columbia Coal's operations. Columbia Coal's debt
service would be reduced to a level more appropriate to its expected future
business prospects.
B. 1995 and 1996 FINANCING PROGRAM OF THE SUBSIDIARIES
---------------------------------------------------
Sources of funds for the Subsidiaries, in addition to
Columbia's funds, will include each Subsidiary's internal cash flow and Money
Pool borrowings. No external sources are projected to be needed by Columbia to
provide funding of the Subsidiaries' 1995 and 1996 financing programs while
Columbia remains in bankruptcy. When Columbia emerges from bankruptcy,
external sources of funds will be described in the declaration seeking
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approval of the Plan of Reorganization. An amendment to this application may
or may not be required.
1. Financing Long-Term Requirements of Subsidiaries:
If needed, Columbia LNG, Energy Services, TriStar Ventures and Columbia
Atlantic will apply for financing in separate filings, or by amendment to this
filing, and are currently party to this filing only for authorization to
participate as investors in the Money Pool.
The financing for TriStar Capital is needed only to fund ongoing
operating expenses, e.g., accounting, franchise taxes, etc. No additional
investments are contemplated for TriStar Capital. TriStar Capital is also
included in this filing as an investor in the Money Pool.
The Subsidiaries plan to finance part of their capital expenditure
programs with funds generated from internal sources with the balance financed
through short-term borrowings from the Money Pool, to the extent any
subsidiaries or Columbia have temporary excess funds, or from the sale to
Columbia, for cash, of common stock at par value and/or Installment Notes up to
the amounts indicated below:
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<TABLE>
<CAPTION>
Long Term Financing
-------------------------------------
Common Installment
Stock Notes Total
----- ----------- -----
$MM $MM $MM
<S> <C> <C> <C>
Columbia Kentucky . . . . . . . . . . . . . . . . . 2.0 12.7 14.7
Columbia Maryland . . . . . . . . . . . . . . . . . 3.0 5.5 8.5
Columbia Ohio . . . . . . . . . . . . . . . . . 44.0 91.8 135.8
Columbia Pennsylvania . . . . . . . . . . . . . . . 16.5 33.6 50.1
Commonwealth Services. . . . . . . . . . . . . . . 26.0 16.2 42.2
Columbia Natural . . . . . . . . . . . . . . . . . . -- 50.0 50.0
Development . . . . . . . . . . . . . . . . . 25.0 25.0 50.0
Commonwealth Propane . . . . . . . . . . . . . . . . -- 4.5 4.5
Columbia Gulf . . . . . . . . . . . . . . . . . -- 13.0 13.0
Service . . . . . . . . . . . . . . . . . 10.0 5.0 15.0
TriStar Capital . . . . . . . . . . . . . . . . . 0.1 -- 0.1
==== ===== =====
Total . . . . . . . . . . . . . . . . . 126.6 257.3 383.9
</TABLE>
The requested financing allows for contingencies such as
higher gas prices, warm weather, the timing and amounts of projected tax
refunds, the timing and amounts of rate refunds and the variability of the
Subsidiaries' capital expenditure programs. To the extent that such
contingencies do not materialize, the requested financing authorizations will
not be fully utilized.
The Installment Notes will be unsecured, will be dated the
date of their issue, and will have other provisions as noted in Exhibit A-1.
It is proposed that, as previously approved by this Commission in Columbia's
current authorization (Order dated September 30, 1993, File No. 70-8219,
Release No. 35-26062), the interest rate on the Installment Notes will be
determined quarterly based upon the three-month average yield on newly issued
"A" rated 25-30 year utility bonds as published in Salomon Brothers' weekly
Bond Market Roundup, rounded to the nearest 1/8% per annum ("Benchmark Rate").
The
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Benchmark Rate would be used for all Installment Notes issued in the subsequent
quarter. For example, the rounded three-month average yield on newly issued
"A" rated 25-30 year utility bonds as published in Salomon Brothers' weekly
Bond Market Roundup for the period ended June 30, 1994 was 8.25%. Under this
methodology, the 8.25% rate would be used for all Installment Notes issued by
Subsidiaries to Columbia from July 1, 1994 through September 30, 1994. It is
proposed that a default rate equal to 2% per annum in excess of the stated rate
on unpaid principal or interest amounts would be assessed if any interest or
principal payment becomes past due. The principal amount of the Installment
Notes will be repaid over a term not exceeding thirty years. All of the
Installment Notes will be purchased by Columbia on or before December 31, 1996.
2. Money Pool/Short-Term Funding Requirements of the Subsidiaries:
The Subsidiaries require short-term funds to meet normal
working capital requirements. For example, distribution subsidiaries
participate in storage services under which they pay for and store gas during
the summer months and recover the cost of such gas when it is delivered to
customers in the winter.
It is proposed that the Subsidiaries borrow short-term funds
from the Money Pool as described below. Advances from the Money Pool will be
limited to a maximum amount outstanding at any one time from January 1, 1995
through December 31, 1996 for each of the Subsidiaries as shown below:
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<TABLE>
<CAPTION>
Short-Term
Debt
----------
$MM
<S> <C>
Columbia Kentucky . . . . . . . . . . . . . . . . . 19.0
Columbia Maryland . . . . . . . . . . . . . . . . . 4.0
Columbia Ohio . . . . . . . . . . . . . . . . . . . 240.0
Columbia Pennsylvania . . . . . . . . . . . . . . . 88.0
Commonwealth Services . . . . . . . . . . . . . . . 19.0
Columbia Gulf . . . . . . . . . . . . . . . . . . . 19.0
Columbia Natural . . . . . . . . . . . . . . . . . . 30.0
Development . . . . . . . . . . . . . . . . . . . . 15.0
Columbia Propane . . . . . . . . . . . . . . . . . . 2.0
Commonwealth Propane . . . . . . . . . . . . . . . . 4.0
Service . . . . . . . . . . . . . . . . . . . . . . 10.0
Coal Gasification . . . . . . . . . . . . . . . . . 2.0
=====
Total . . . . . . . . . . . . . . . 452.0
</TABLE>
There is considerable seasonal and daily fluctuation in each
subsidiary's cash flow due to normal receipt and disbursement patterns. The
patterns vary from company to company so that the companies which have excess
cash and the companies which need cash vary from day to day. Accordingly, it
is proposed that the Money Pool, the existence of which was last approved by
the Commission in File No. 70-8219 (Release No. 35-26062 dated September 30,
1993), be continued for all parties to this Joint Application-Declaration
through December 31, 1996. All short-term borrowing will be through the Money
Pool with Service acting as agent. Columbia may invest in the Money Pool, but
will not borrow from the Money Pool.
When Columbia and/or the subsidiaries generate cash in excess
of their immediate cash requirements, such temporary excess cash may be
invested in the Money Pool. Columbia and investing subsidiaries would be
investors ("Investors") pursuant to a Money Pool evidence of a deposit. Loans
to Subsidiaries ("Borrowers") through the Money Pool will be made pursuant to a
short-term grid note. Such short-term grid notes will be due upon demand by
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the Investor(s), but not later than April 30, 1997. Each Borrower's loans will
be allocated to the Investors based on the proportion of each Investor's
investment in the Money Pool to the aggregate of such investments. Columbia
LNG, Energy Services, TriStar Ventures and Columbia Atlantic, while not
included as Subsidiaries herein, are included in this filing for the purpose of
being potential Investors.
The Money Pool is designed to meet the following objectives:
(1) reduction of Columbia's need to borrow from outside sources to meet the
Subsidiaries' fluctuating cash needs; (2) settlement of intrasystem obligations
on a non-cash basis; and (3) reduction of the Subsidiaries' net corporate
interest expense by investment of the maximum funds available and the borrowing
of a lower amount of funds in a more timely fashion than the Subsidiaries could
otherwise achieve.
The cost of money on all short-term advances from, and the
investment rate for moneys invested in, the Money Pool will be the interest
rate per annum equal to the Money Pool's weighted average short-term investment
rate. Should there be no Money Pool investments, the cost of money will be the
prior month's average Federal Funds rate as published in the Federal Reserve
Statistical Release, Publication H.15 (519). A default rate equal to 2% per
annum above the pre-default rate on unpaid principal or interest amounts will
be assessed if any interest or principal payment becomes past due.
(b) Describe briefly, and where practicable state the
approximate amount of, any material interest in the proposed transaction,
direct or indirect, of any associate or affiliate of the applicant or declarant
company or any affiliate of any such associate company.
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Not applicable.
(c) If the proposed transaction involves the acquisition of
securities not issued by a registered holding company or subsidiary thereof,
describe briefly the business and property, present or proposed, of the issuer
of such securities.
Not applicable.
(d) If the proposed transaction involves the acquisition or
disposition of assets, describe briefly such assets, setting forth original
cost, vendor's book cost (including the basis of determination) and applicable
valuation and qualifying reserves.
Not applicable.
Item 2. Fees, Commissions and Expenses.
(a) State (1) the fees, commissions and expenses paid or
incurred, or to be paid or incurred, directly or indirectly, in connection with
the proposed transaction by the applicant or declarant or any associate company
thereof, and (2) if the proposed transaction involves the sale of securities at
competitive bidding, the fees and expenses to be paid to counsel selected by
applicant or declarant to act for the successful bidder.
<TABLE>
<S> <C>
Securities and Exchange Commission Filing Fee ...... $2,000
Services of Columbia Gas System Service
Corporation in connection with the preparation
of the Application-Declaration .................... 8,000
------
Total ......................................... $10,000
=======
</TABLE>
(b) If any person to whom fees or commissions have been or are
to be paid in connection with the proposed transaction is an associate company
or an affiliate of the applicant or declarant, or is an affiliate of an
associate company, set forth the facts with respect thereto.
Service will perform certain services at cost as set forth in
Item 2(a) above.
Item 3. Applicable Statutory Provisions
(a) State the section of the Act and the rules thereunder
believed to be applicable to the proposed transaction. If any section or rule
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would be applicable in the absence of a specific exemption, state the basis of
exemption.
RECAPITALIZATION:
Sections 6 and 7 and Rule 43 are applicable to the issue of
Installment Notes by Columbia Gulf to Columbia. Sections 9 and 10 are
applicable to the acquisition of said notes by Columbia. Sections 6 and 12(c)
and Rule 46 are applicable to the reduction in par value to create a surplus
which is to be paid to Columbia as a dividend.
Section 12(b) and Rule 45 are applicable to the capital
contributions to Columbia Coal and Development. Section 12(c) and Rule 42
might be considered applicable to the reacquisition of the Installment Notes
thus contributed.
INTASYSTEM FINANCING:
Subject to the applicability of Rule 52 as discussed below, Sections 6, 7
and 12(b) and Rule 43 are applicable to the issuance and sale of common stock,
Installment Notes and short-term advances by the Subsidiaries and Sections 9,
10 and 12(b) and Rule 45 are applicable to the acquisition by Columbia of such
securities.
The State of Maryland does not regulate the issue of securities by
Columbia of Maryland. Therefore the Commission is requested to issue its order
authorizing the issue by Columbia of Maryland and the acquisition by Columbia
of short-term borrowings, common stock and Installment Notes.
As set forth in Part (a) of Item 4 of this Application-Declaration,
certain state regulatory commissions having jurisdiction will have authorized
the sale of securities described herein. The acquisition by Columbia and the
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issuance by Columbia Ohio, Columbia Pennsylvania, Columbia Kentucky and
Commonwealth Services of common stock will be exempt from Sections 6, 7, 9 and
10 under the terms of Rule 52.
Rule 52 does not apply to short-term borrowings since such borrowings are
exempt from state commission approval by provision of state law if certain
criteria are met. These criteria will be met except in the state of Virginia
where the short-term borrowings will exceed 5% of Commonwealth Services' total
capitalization. The Commission is requested to issue an order authorizing the
issue of short-term advances by Columbia Kentucky, Columbia Ohio and Columbia
Pennsylvania.
Rule 52 also does not currently apply to the issue of Installment Notes
because the interest rate proposed to be charged does not parallel the terms of
a parent security. Since Columbia has no borrowings currently except for those
stayed pursuant to the Code, a benchmark rate is being charged to subsidiaries.
The Commission is requested to issue an order approving the issuance of
Installment Notes by Columbia Ohio, Columbia Kentucky and Columbia
Pennsylvania, subject to the issuance by the respective state commission of an
order authorizing the issuance of Installment Notes, copies of which orders
shall be field with quarterly Rule 24 certificates. The State Corporation
Commission of Virginia exercises jurisdiction over the acquisition of both
short-term borrowings and of Installment Notes by Columbia. Therefore the
Commission is requested to reserve jurisdiction over the issuance of short-term
borrowings and Installment Notes by Commonwealth Services until the file is
completed by filing a copy of the state commission order.
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The Intrasystem Money Pool transactions are subject to
Sections 6, 7, 9, 10 and 12(b) and (f) of the Act and Rule 45 thereunder. The
requirements of such sections of the Act and Rule will be complied with if the
Commission permits this Application-Declaration to become effective.
If is further requested that authority be granted to file
certificates under Rule 24 on a quarterly basis with respect to the proposed
transactions hereafter consummated pursuant to this Application-Declaration,
not later than 25 days following the end of each quarter.
To the extent that the transactions which are the subject
matter of this Application-Declaration are considered by the Commission to
require authorization, approval or exemption under any section of the Act or
provision of the rules and regulations other than those specifically referred
to herein, request for such authorization, approval or exemption is hereby
made.
Columbia does not own, operate or is not an equity participant
in any Exempt Wholesale Generator or any Foreign Utility Company and will not
be a company that owns, operates or has an equity participation in an Exempt
Wholesale Generator or Foreign Utility Company as a result of the approvals
requested herein. Columbia does not have any rights, nor will it have any
rights or obligations under a service, sales or construction contract with an
Exempt Wholesale Generator or Foreign Utility Company as a result of the
proposed transactions.
(b) If any person to whom fees or commissions have been or are
to be paid in connection with the proposed transaction is an associate company
or an affiliate of any applicant or declarant, or is an affiliate of an
associate company, set forth the facts with respect thereto.
Not Applicable
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Item 4. Regulatory Approval
-------------------
(a) State the nature and extent of the jurisdiction of any
State commission or any Federal commission (other than the Securities and
Exchange Commission) over the proposed transaction.
The State Corporation Commission of Virginia has jurisdiction
over the acquisition by Columbia and the sale by Commonwealth Services of
short-term and long-term debt securities.** Regulatory Commissions in the
states of Kentucky, Ohio and Pennsylvania exercise jurisdiction over the
issuance and sale of common stock and Installment Notes by Columbia Kentucky,
Columbia Ohio and Columbia Pennsylvania, but do not exercise jurisdiction over
the acquisition of those securities by Columbia.
(b) Describe the action taken or proposed to be taken before
any commission named in answer to paragraph (a) of this item in connection with
the proposed transaction.
An application will be made by the aforementioned subsidiary
companies to their respective state regulatory commissions as set forth in
answer to Item 3(a) above.
- ----------------------------------
**Under Virginia law, the issuance of short term debt is exempt from
commission approval so long as the amount to be issued is less than 5% of
total capitalization.
<PAGE> 20
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Item 5. Procedure.
----------
(a) State the date when Commission action is requested. If
the date is less than 40 days from the date of the original filing, set forth
the reasons for acceleration.
It is requested that the Commission issue its Notice by
September 30, 1994 and its order on or before December 15, 1994 as the existing
intrasystem financing authorization expires December 31, 1994.
(b) State (i) whether there should be a recommended decision
by a hearing officer, (ii) whether there should be a recommended decision by
any other responsible officer of the Commission, (iii) whether the Division of
Investment Management may assist in the preparation of the Commission's
decision, and (iv) whether there should be a 30-day waiting period between the
issuance of the Commission's order and the date on which it is to become
effective.
Applicants hereby (i) waive a recommended decision by a
hearing officer, (ii) waive a recommended decision by any other responsible
officer or the Commission, (iii) consent that the Division of Investment
Management may assist in the preparation of the Commission's decision, and (iv)
waive a 30-day waiting period between the issuance of the Commission's order
and the date on which it is to become effective.
Item 6. Exhibits and Financial Statements.
----------------------------------
(a) Exhibits
<TABLE>
<S> <C>
A-1 Form of Installment Note for all Subsidiaries.
A-2 Form of Subsidiary common stock certificate (Exhibit A-2 to
Joint Application-Declaration (File No. 70-7276) is hereby
incorporated by reference).
A-3 Form of Money Pool Evidence of Deposit.
A-4 Form of Subsidiary Money Pool Short-Term Grid Note.
</TABLE>
<PAGE> 21
Page 21
<TABLE>
<S> <C>
D-1 Bankruptcy Court Motion and Order approving recapitalization.
D-2 Order of Virginia State Corporation Commission (to be filed by Post-Effective Amendment).
F Opinion of Counsel for Columbia and Subsidiaries (to be filed by Amendment).
G Financial Data Schedule (incorporated herein as Exhibit No. 27).
H Proposed Notice.
I List of Acronyms used in exhibits and financial statements.
J Description of the Columbia Gas Intrasystem Money Pool.
</TABLE>
(b) Financial Statements
The Columbia Gas System, Inc. and Subsidiaries
(1) Condensed Statements of Capitalization as
of June 30, 1994 Actual and Pro Forma.
(2) Condensed Statements of Income for the
Twelve months ended June 30, 1994 Actual
and Pro Forma.
(3) Pro Forma Entries.
There have been no material changes, not in the ordinary
course of business, since the date of the financial statements filed herewith.
Item 7. Information as to Environmental Effects.
----------------------------------------
(a) Describe briefly the environmental effects of the proposed
transaction in terms of the standards set forth in Section 102(2)(C) of the
National Environmental Policy Act (42 U.S.C. 4232(2)(C)). If the response to
this term is a negative statement as to the applicability of Section 102(2)(C)
in connection with the proposed transaction, also briefly state the reasons for
that response.
As more fully described in Item 1, the proposed transactions
subject to the jurisdiction of this Commission relate only to the means of
<PAGE> 22
Page 22
financing activities. The proposed transactions subject to the jurisdiction of
this Commission have no environmental impact in and of themselves.
(b) State whether any other federal agency has prepared or is
preparing an environmental impact statement ("EIS") with respect to the
proposed transaction. If any other federal agency has prepared or is preparing
an EIS, state which agency or agencies and indicate the status of that EIS
preparation.
No federal agency has prepared or, to Columbia's knowledge, is
preparing an EIS with respect to the proposed transaction.
<PAGE> 23
Page 23
SIGNATURE
Pursuant to the requirements of the Public Utility Holding
Company Act of 1935, the undersigned companies have duly caused this
Declaration to be signed on their behalf by the undersigned thereunto duly
authorized.
The signatures of the applicants and of the persons signing on
their behalf are restricted to the information contained in this application
which is pertinent to the application of the respective companies.
THE COLUMBIA GAS SYSTEM, INC.
Date: September , 1994 By:
-- ----------------------------
L. J. Bainter
Treasurer
COLUMBIA GAS OF OHIO, INC.
COLUMBIA GAS OF PENNSYLVANIA, INC.
COLUMBIA GAS OF KENTUCKY, INC.
COLUMBIA GAS OF MARYLAND, INC.
COMMONWEALTH GAS SERVICES, INC.
COLUMBIA GULF TRANSMISSION COMPANY
COLUMBIA GAS DEVELOPMENT CORPORATION
COLUMBIA PROPANE CORPORATION
COMMONWEALTH PROPANE, INC.
COLUMBIA GAS SYSTEM SERVICE CORPORATION
COLUMBIA NATURAL RESOURCES, INC.
COLUMBIA ATLANTIC TRADING CORPORATION
COLUMBIA COAL GASIFICATION CORPORATION
COLUMBIA LNG CORPORATION
COLUMBIA ENERGY SERVICES CORPORATION
TRISTAR VENTURES CORPORATION
TRISTAR CAPITAL CORPORATION
Dated: September , 1994 By:
-- ----------------------------
L. J. Bainter
Vice President
<PAGE> 24
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(1)
CONDENSED STATEMENTS CAPITALIZATION Page 1 of 4
ACTUAL AND PRO FORMA
AS OF JUNE 30, 1994
($000)
<TABLE>
<CAPTION>
CGS * CG CS CGD CGT
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ACTUAL CAPITALIZATION
Common Stock Equity
Common Stock........................... 505,592 505,592 13,000 141,912 149,449
Additional Paid in Capital ............ 601,759 601,759 - 27,550 -
Retained Earnings ..................... 372,346 372,346 180 (126,854) 10,521
Unearned Employee Compensation ........ (69,966) (69,966) - - -
---------- ---------- ---------- ---------- ----------
Total Common Stock Equity ............... 1,409,731 1,409,731 13,180 42,608 159,970
---------- ---------- ---------- ---------- ----------
Long-Term Debt
Existing Installment Notes and Other
Long-Term Debt ...................... 4,486 - 16,121 112,626 3,368
Additional Installment Notes .......... - - - - -
---------- ---------- ---------- ---------- ----------
Total Long-Term Debt .................... 4,486 - 16,121 112,626 3,368
---------- ---------- ---------- ---------- ----------
TOTAL CAPITALIZATION .................... 1,414,217 1,409,731 29,301 155,234 163,338
========== ========== ========== ========== ==========
=======================================================================================================
ADJUSTMENTS TO CAPITALIZATION
Common Stock Equity
Common Stock........................... - - 10,000 25,000 (89,669)
Additional Paid in Capital ............ - - - 62,000 33,190
Retained Earnings ..................... - - (268) 2,609 (14,811)
Unearned Employee Compensation ........ - - - - -
---------- ---------- ---------- ---------- ----------
Total Common Stock Equity ............... - - 9,732 89,609 (71,290)
---------- ---------- ---------- ---------- ----------
Long-Term Debt
Existing Installment Notes and Other
Long-Term Debt ...................... - - - (62,000) -
Additional Installment Notes .......... - - 5,000 25,000 80,000
---------- ---------- ---------- ---------- ----------
Total Long-Term Debt .................... - - 5,000 (37,000) 80,000
---------- ---------- ---------- ---------- ----------
TOTAL CAPITALIZATION .................... - - 14,732 52,609 8,710
========== ========== ========== ========== ==========
=======================================================================================================
PRO FORMA CAPITALIZATION
Common Stock Equity
Common Stock........................... 505,592 505,592 23,000 166,912 59,780
Additional Paid in Capital ............ 601,759 601,759 - 89,550 33,190
Retained Earnings ..................... 372,346 372,346 (88) (124,245) (4,290)
Unearned Employee Compensation ........ (69,966) (69,966) - - -
---------- ---------- ---------- ---------- ----------
Total Common Stock Equity ............... 1,409,731 1,409,731 22,912 132,217 88,680
---------- ---------- ---------- ---------- ----------
Long-Term Debt
Existing Installment Notes and Other
Long-Term Debt ...................... 4,486 - 16,121 50,626 3,368
Additional Installment Notes .......... - - 5,000 25,000 80,000
---------- ---------- ---------- ---------- ----------
Total Long-Term Debt .................... 4,486 - 21,121 75,626 83,368
---------- ---------- ---------- ---------- ----------
TOTAL CAPITALIZATION .................... 1,414,217 1,409,731 44,033 207,843 172,048
========== ========== ========== ========== ==========
=======================================================================================================
</TABLE>
* Consolidated Statement of Capitalization
<PAGE> 25
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(1)
CONDENSED STATEMENTS CAPITALIZATION Page 2 of 4
ACTUAL AND PRO FORMA
AS OF JUNE 30, 1994
($000)
<TABLE>
<CAPTION>
CES CPC TVC TCC CGC
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ACTUAL CAPITALIZATION
Common Stock Equity
Common Stock........................... 4,172 3,900 15,293 1,575 48,475
Additional Paid in Capital ............ 1,361 - 42,802 - -
Retained Earnings ..................... 6,953 69 (22,612) (246) (52,826)
Unearned Employee Compensation ........ - - - - -
---------- ---------- ---------- ---------- ----------
Total Common Stock Equity ............... 12,486 3,969 35,483 1,329 (4,351)
---------- ---------- ---------- ---------- ----------
Long-Term Debt
Existing Installment Notes and Other
Long-Term Debt ...................... - 2,442 - - 14,322
Additional Installment Notes .......... - - - - -
---------- ---------- ---------- ---------- ----------
Total Long-Term Debt .................... - 2,442 - - 14,322
---------- ---------- ---------- ---------- ----------
TOTAL CAPITALIZATION .................... 12,486 6,411 35,483 1,329 9,971
========== ========== ========== ========== ==========
=======================================================================================================
ADJUSTMENTS TO CAPITALIZATION
Common Stock Equity
Common Stock........................... - - - 100 -
Additional Paid in Capital ............ - - - - 12,000
Retained Earnings ..................... - - - - 814
Unearned Employee Compensation ........ - - - - -
---------- ---------- ---------- ---------- ----------
Total Common Stock Equity ............... - - - 100 12,814
---------- ---------- ---------- ---------- ----------
Long-Term Debt
Existing Installment Notes and Other
Long-Term Debt ...................... - - - - (12,000)
Additional Installment Notes .......... - - - - -
---------- ---------- ---------- ---------- ----------
Total Long-Term Debt .................... - - - - (12,000)
---------- ---------- ---------- ---------- ----------
TOTAL CAPITALIZATION .................... - - - 100 814
========== ========== ========== ========== ==========
=======================================================================================================
PRO FORMA CAPITALIZATION
Common Stock Equity
Common Stock........................... 4,172 3,900 15,293 1,675 48,475
Additional Paid in Capital ............ 1,361 - 42,802 - 12,000
Retained Earnings ..................... 6,953 69 (22,612) (246) (52,012)
Unearned Employee Compensation ........ - - - - -
---------- ---------- ---------- ---------- ----------
Total Common Stock Equity ............... 12,486 3,969 35,483 1,429 8,463
---------- ---------- ---------- ---------- ----------
Long-Term Debt
Existing Installment Notes and Other
Long-Term Debt ...................... - 2,442 - - 2,322
Additional Installment Notes .......... - - - - -
---------- ---------- ---------- ---------- ----------
Total Long-Term Debt .................... - 2,442 - - 2,322
---------- ---------- ---------- ---------- ----------
TOTAL CAPITALIZATION .................... 12,486 6,411 35,483 1,429 10,785
========== ========== ========== ========== ==========
=======================================================================================================
</TABLE>
<PAGE> 26
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(1)
CONDENSED STATEMENTS CAPITALIZATION Page 3 of 4
ACTUAL AND PRO FORMA
AS OF JUNE 30, 1994
($000)
<TABLE>
<CAPTION>
CKY COH CMD CPA COS
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ACTUAL CAPITALIZATION
Common Stock Equity
Common Stock........................... 15,806 119,240 7,092 68,628 24,305
Additional Paid in Capital ............ 174 - - - 2,969
Retained Earnings ..................... 35,060 255,277 10,170 114,532 43,881
Unearned Employee Compensation ........ - - - - -
---------- ---------- ---------- ---------- ----------
Total Common Stock Equity ............... 51,040 374,517 17,262 183,160 71,155
---------- ---------- ---------- ---------- ----------
Long-Term Debt
Existing Installment Notes and Other
Long-Term Debt ...................... 36,472 233,739 12,590 115,593 71,154
Additional Installment Notes .......... - - - - -
---------- ---------- ---------- ---------- ----------
Total Long-Term Debt .................... 36,472 233,739 12,590 115,593 71,154
---------- ---------- ---------- ---------- ----------
TOTAL CAPITALIZATION .................... 87,512 608,256 29,852 298,753 142,309
========== ========== ========== ========== ==========
=======================================================================================================
ADJUSTMENTS TO CAPITALIZATION
Common Stock Equity
Common Stock........................... 2,000 44,000 3,000 16,500 26,000
Additional Paid in Capital ............ - - - - -
Retained Earnings ..................... (681) (4,923) (295) (1,802) (869)
Unearned Employee Compensation ........ - - - - -
---------- ---------- ---------- ---------- ----------
Total Common Stock Equity ............... 1,319 39,077 2,705 14,698 25,131
---------- ---------- ---------- ---------- ----------
Long-Term Debt
Existing Installment Notes and Other
Long-Term Debt ...................... - - - - -
Additional Installment Notes .......... 12,700 91,800 5,500 33,600 16,200
---------- ---------- ---------- ---------- ----------
Total Long-Term Debt .................... 12,700 91,800 5,500 33,600 16,200
---------- ---------- ---------- ---------- ----------
TOTAL CAPITALIZATION .................... 14,019 130,877 8,205 48,298 41,331
========== ========== ========== ========== ==========
=======================================================================================================
PRO FORMA CAPITALIZATION
Common Stock Equity
Common Stock........................... 17,806 163,240 10,092 85,128 50,305
Additional Paid in Capital ............ 174 - - - 2,969
Retained Earnings ..................... 34,379 250,354 9,875 112,730 43,012
Unearned Employee Compensation ........ - - - - -
---------- ---------- ---------- ---------- ----------
Total Common Stock Equity ............... 52,359 413,594 19,967 197,858 96,286
---------- ---------- ---------- ---------- ----------
Long-Term Debt
Existing Installment Notes and Other
Long-Term Debt ...................... 36,472 233,739 12,590 115,593 71,154
Additional Installment Notes .......... 12,700 91,800 5,500 33,600 16,200
---------- ---------- ---------- ---------- ----------
Total Long-Term Debt .................... 49,172 325,539 18,090 149,193 87,354
---------- ---------- ---------- ---------- ----------
TOTAL CAPITALIZATION .................... 101,531 739,133 38,057 347,051 183,640
========== ========== ========== ========== ==========
=======================================================================================================
</TABLE>
<PAGE> 27
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(1)
CONDENSED STATEMENTS CAPITALIZATION Page 4 of 4
ACTUAL AND PRO FORMA
AS OF JUNE 30, 1994
($000)
<TABLE>
<CAPTION>
CPI CAT CNR
---------- ---------- ----------
<S> <C> <C> <C>
ACTUAL CAPITALIZATION
Common Stock Equity
Common Stock........................... 2,000 82 125,716
Additional Paid in Capital ............ 398 - -
Retained Earnings ..................... 7,133 (774) 46,987
Unearned Employee Compensation ........ - - -
---------- ---------- ----------
Total Common Stock Equity ............... 9,531 (692) 172,703
---------- ---------- ----------
Long-Term Debt
Existing Installment Notes and Other
Long-Term Debt ...................... 5,151 - 32,047
Additional Installment Notes .......... - - -
---------- ---------- ----------
Total Long-Term Debt .................... 5,151 - 32,047
---------- ---------- ----------
TOTAL CAPITALIZATION .................... 14,682 (692) 204,750
========== ========== ==========
===============================================================================
ADJUSTMENTS TO CAPITALIZATION
Common Stock Equity
Common Stock........................... - - -
Additional Paid in Capital ............ - - -
Retained Earnings ..................... (241) - (2,682)
Unearned Employee Compensation ........ - - -
---------- ---------- ----------
Total Common Stock Equity ............... (241) - (2,682)
---------- ---------- ----------
Long-Term Debt
Existing Installment Notes and Other
Long-Term Debt ...................... - - -
Additional Installment Notes .......... 4,500 - 50,000
---------- ---------- ----------
Total Long-Term Debt .................... 4,500 - 50,000
---------- ---------- ----------
TOTAL CAPITALIZATION .................... 4,259 - 47,318
========== ========== ==========
===============================================================================
PRO FORMA CAPITALIZATION
Common Stock Equity
Common Stock........................... 2,000 82 125,716
Additional Paid in Capital ............ 398 - -
Retained Earnings ..................... 6,892 (774) 44,305
Unearned Employee Compensation ........ - - -
---------- ---------- ----------
Total Common Stock Equity ............... 9,290 (692) 170,021
---------- ---------- ----------
Long-Term Debt
Existing Installment Notes and Other
Long-Term Debt ...................... 5,151 - 32,047
Additional Installment Notes .......... 4,500 - 50,000
---------- ---------- ----------
Total Long-Term Debt .................... 9,651 - 82,047
---------- ---------- ----------
TOTAL CAPITALIZATION .................... 18,941 (692) 252,068
========== ========== ==========
===============================================================================
</TABLE>
<PAGE> 28
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(2)
CONDENSED STATEMENTS OF INCOME Page 1 of 4
ACTUAL AND PRO FORMA
TWELVE MONTHS ENDED JUNE 30, 1994
($000)
<TABLE>
<CAPTION>
CGS * CG CS CGD CGT
--------- --------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ACTUAL
Operating Income (Loss) ................. 406,661 (7,123) 5,463 7,804 17,106
--------- --------- --------- ---------- ----------
Other Income (Deductions)
Interest income and other, net ........ 22,604 279,820 1,866 2,509 (1,791)
Interest expense and related charges .. (76,486) (757) (3,386) (13,386) (1,864)
Reorganization items, net ............. 18,627 (2,632) - - -
--------- --------- --------- ---------- ----------
Total Other Income (Deductions) ......... (35,255) 276,431 (1,520) (10,877) (3,655)
--------- --------- --------- ---------- ----------
Income before Income Taxes and
Cummulative Effect of Change in
Accounting for Postemployment
Benefits .............................. 371,406 269,308 3,943 (3,073) 13,451
Income Taxes ............................ 168,345 71,847 1,418 (3,938) 7,462
--------- --------- --------- ---------- ----------
Income before Cummulative Effect
of Change in Accounting for
Postemployment Benefits ............... 203,061 197,461 2,525 865 5,989
Cummulative Effect of Change in
Accounting for Postemployment Benefits (5,644) (44) (548) (183) (966)
--------- --------- --------- ---------- ----------
NET INCOME .............................. 197,417 197,417 1,977 682 5,023
========= ========= ========= ========== ==========
=======================================================================================================
ADJUSTMENTS
Operating Income (Loss) ................ - - - - -
--------- --------- --------- ---------- ----------
Other Income (Deductions)
Interest income and other, net ........ 6,798 - - -
Interest expense and related charges .. - (412) 4,014 (6,600)
Reorganization items, net ............. - - - -
--------- --------- --------- ---------- ----------
Total Other Income (Deductions) ......... - 6,798 (412) 4,014 (6,600)
--------- --------- --------- ---------- ----------
Income before Income Taxes and
Cummulative Effect of Change in
Accounting for Postemployment
Benefits .............................. - 6,798 (412) 4,014 (6,600)
Income Taxes ............................ - 6,798 (144) 1,405 (2,310)
--------- --------- --------- ---------- ----------
Income before Cummulative Effect
of Change in Accounting for
Postemployment Benefits ............... - - (268) 2,609 (4,290)
Cummulative Effect of Change in
Accounting for Postemployment Benefits - - - - -
--------- --------- --------- ---------- ----------
NET INCOME .............................. - - (268) 2,609 (4,290)
========= ========= ========= ========== ==========
=======================================================================================================
PRO FORMA
Operating Income (Loss) ................ 406,661 (7,123) 5,463 7,804 17,106
--------- --------- --------- ---------- ----------
Other Income (Deductions)
Interest income and other, net ........ 22,604 286,618 1,866 2,509 (1,791)
Interest expense and related charges .. (76,486) (757) (3,798) (9,372) (8,464)
Reorganization items, net ............. 18,627 (2,632) - - -
--------- --------- --------- ---------- ----------
Total Other Income (Deductions) ......... (35,255) 283,229 (1,932) (6,863) (10,255)
--------- --------- --------- ---------- ----------
Income before Income Taxes and
Cummulative Effect of Change in
Accounting for Postemployment
Benefits .............................. 371,406 276,106 3,531 941 6,851
Income Taxes ............................ 168,345 78,645 1,274 (2,533) 5,152
--------- --------- --------- ---------- ----------
Income before Cummulative Effect
of Change in Accounting for
Postemployment Benefits ............... 203,061 197,461 2,257 3,474 1,699
Cummulative Effect of Change in
Accounting for Postemployment Benefits (5,644) (44) (548) (183) (966)
--------- --------- --------- ---------- ----------
NET INCOME .............................. 197,417 197,417 1,709 3,291 733
========= ========= ========= ========== ==========
=======================================================================================================
</TABLE>
* Consolidated Statement of Income
<PAGE> 29
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(2)
CONDENSED STATEMENTS OF INCOME Page 2 of 4
ACTUAL AND PRO FORMA
TWELVE MONTHS ENDED JUNE 30, 1994
($000)
<TABLE>
<CAPTION>
CES CPC TVC TCC CGC
--------- --------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ACTUAL
Operating Income (Loss) ................. 1,855 1,073 (1,620) (23) 3,086
--------- --------- --------- ---------- ----------
Other Income (Deductions)
Interest income and other, net ........ 255 (85) 1,907 (161) 886
Interest expense and related charges .. 461 (324) (979) - (2,078)
Reorganization items, net ............. - - - - -
--------- --------- --------- ---------- ----------
Total Other Income (Deductions) ......... 716 (409) 928 (161) (1,192)
--------- --------- --------- ---------- ----------
Income before Income Taxes and
Cummulative Effect of Change in
Accounting for Postemployment
Benefits .............................. 2,571 664 (692) (184) 1,894
Income Taxes ............................ 1,023 334 (105) (60) 690
--------- --------- --------- ---------- ----------
Income before Cummulative Effect
of Change in Accounting for
Postemployment Benefits ............... 1,548 330 (587) (124) 1,204
Cummulative Effect of Change in
Accounting for Postemployment Benefits - (151) - - -
--------- --------- --------- ---------- ----------
NET INCOME .............................. 1,548 179 (587) (124) 1,204
========= ========= ========= ========== ==========
=======================================================================================================
ADJUSTMENTS
Operating Income (Loss) ................ - - - - -
--------- --------- --------- ---------- ----------
Other Income (Deductions)
Interest income and other, net ........ - - - - -
Interest expense and related charges .. - - - - 1,253
Reorganization items, net ............. - - - - -
--------- --------- --------- ---------- ----------
Total Other Income (Deductions) ......... - - - - 1,253
--------- --------- --------- ---------- ----------
Income before Income Taxes and
Cummulative Effect of Change in
Accounting for Postemployment
Benefits .............................. - - - - 1,253
Income Taxes ............................ - - - - 439
--------- --------- --------- ---------- ----------
Income before Cummulative Effect
of Change in Accounting for
Postemployment Benefits ............... - - - - 814
Cummulative Effect of Change in
Accounting for Postemployment Benefits - - - - -
--------- --------- --------- ---------- ----------
NET INCOME .............................. - - - - 814
========= ========= ========= ========== ==========
=======================================================================================================
PRO FORMA
Operating Income (Loss) ................ 1,855 1,073 (1,620) (23) 3,086
--------- --------- --------- ---------- ----------
Other Income (Deductions)
Interest income and other, net ........ 255 (85) 1,907 (161) 886
Interest expense and related charges .. 461 (324) (979) - (825)
Reorganization items, net ............. - - - - -
--------- --------- --------- ---------- ----------
Total Other Income (Deductions) ......... 716 (409) 928 (161) 61
--------- --------- --------- ---------- ----------
Income before Income Taxes and
Cummulative Effect of Change in
Accounting for Postemployment
Benefits .............................. 2,571 664 (692) (184) 3,147
Income Taxes ............................ 1,023 334 (105) (60) 1,129
--------- --------- --------- ---------- ----------
Income before Cummulative Effect
of Change in Accounting for
Postemployment Benefits ............... 1,548 330 (587) (124) 2,018
Cummulative Effect of Change in
Accounting for Postemployment Benefits - (151) - - -
--------- --------- --------- ---------- ----------
NET INCOME .............................. 1,548 179 (587) (124) 2,018
========= ========= ========= ========== ==========
=======================================================================================================
</TABLE>
<PAGE> 30
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(2)
CONDENSED STATEMENTS OF INCOME Page 3 of 4
ACTUAL AND PRO FORMA
TWELVE MONTHS ENDED JUNE 30, 1994
($000)
<TABLE>
<CAPTION>
CKY COH CMD CPA COS
--------- --------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ACTUAL
Operating Income (Loss) ................. 11,635 57,325 2,791 42,482 18,805
--------- --------- --------- ---------- ----------
Other Income (Deductions)
Interest income and other, net ........ 651 2,728 12 1,027 210
Interest expense and related charges .. (3,312) (12,189) (957) (12,780) (6,673)
Reorganization items, net ............. - - - - -
--------- --------- --------- ---------- ----------
Total Other Income (Deductions) ......... (2,661) (9,461) (945) (11,753) (6,463)
--------- --------- --------- ---------- ----------
Income before Income Taxes and
Cummulative Effect of Change in
Accounting for Postemployment
Benefits .............................. 8,974 47,864 1,846 30,729 12,342
Income Taxes ............................ 3,698 20,246 650 14,583 4,120
--------- --------- --------- ---------- ----------
Income before Cummulative Effect
of Change in Accounting for
Postemployment Benefits ............... 5,276 27,618 1,196 16,146 8,222
Cummulative Effect of Change in
Accounting for Postemployment Benefits - - (20) - (76)
--------- --------- --------- ---------- ----------
NET INCOME .............................. 5,276 27,618 1,176 16,146 8,146
========= ========= ========= ========== ==========
=======================================================================================================
ADJUSTMENTS
Operating Income (Loss) ................ - - - - -
--------- --------- --------- ---------- ----------
Other Income (Deductions)
Interest income and other, net ........ - - - - -
Interest expense and related charges .. (1,048) (7,574) (454) (2,772) (1,337)
Reorganization items, net ............. - - - - -
--------- --------- --------- ---------- ----------
Total Other Income (Deductions) ......... (1,048) (7,574) (454) (2,772) (1,337)
--------- --------- --------- ---------- ----------
Income before Income Taxes and
Cummulative Effect of Change in
Accounting for Postemployment
Benefits .............................. (1,048) (7,574) (454) (2,772) (1,337)
Income Taxes ............................ (367) (2,651) (159) (970) (468)
--------- --------- --------- ---------- ----------
Income before Cummulative Effect
of Change in Accounting for
Postemployment Benefits ............... (681) (4,923) (295) (1,802) (869)
Cummulative Effect of Change in
Accounting for Postemployment Benefits - - - - -
--------- --------- --------- ---------- ----------
NET INCOME .............................. (681) (4,923) (295) (1,802) (869)
========= ========= ========= ========== ==========
=======================================================================================================
PRO FORMA
Operating Income (Loss) ................ 11,635 57,325 2,791 42,482 18,805
--------- --------- --------- ---------- ----------
Other Income (Deductions)
Interest income and other, net ........ 651 2,728 12 1,027 210
Interest expense and related charges .. (4,360) (19,763) (1,411) (15,552) (8,010)
Reorganization items, net ............. - - - - -
--------- --------- --------- ---------- ----------
Total Other Income (Deductions) ......... (3,709) (17,035) (1,399) (14,525) (7,800)
--------- --------- --------- ---------- ----------
Income before Income Taxes and
Cummulative Effect of Change in
Accounting for Postemployment
Benefits .............................. 7,926 40,290 1,392 27,957 11,005
Income Taxes ............................ 3,331 17,595 491 13,613 3,652
--------- --------- --------- ---------- ----------
Income before Cummulative Effect
of Change in Accounting for
Postemployment Benefits ............... 4,595 22,695 901 14,344 7,353
Cummulative Effect of Change in
Accounting for Postemployment Benefits - - (20) - (76)
--------- --------- --------- ---------- ----------
NET INCOME .............................. 4,595 22,695 881 14,344 7,277
========= ========= ========= ========== ==========
=======================================================================================================
</TABLE>
<PAGE> 31
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(2)
CONDENSED STATEMENTS OF INCOME Page 4 of 4
ACTUAL AND PRO FORMA
TWELVE MONTHS ENDED JUNE 30, 1994
($000)
<TABLE>
<CAPTION>
CPI CAT CNR
--------- --------- ---------
<S> <C> <C> <C>
ACTUAL
Operating Income (Loss) ................. 6,008 (93) 31,194
--------- --------- ---------
Other Income (Deductions)
Interest income and other, net ........ 585 - 1,963
Interest expense and related charges .. (673) 96 (3,248)
Reorganization items, net ............. - - -
--------- --------- ---------
Total Other Income (Deductions) ......... (88) 96 (1,285)
--------- --------- ---------
Income before Income Taxes and
Cummulative Effect of Change in
Accounting for Postemployment
Benefits .............................. 5,920 3 29,909
Income Taxes ............................ 2,239 1 17,942
--------- --------- ---------
Income before Cummulative Effect
of Change in Accounting for
Postemployment Benefits ............... 3,681 2 11,967
Cummulative Effect of Change in
Accounting for Postemployment Benefits (176) - (361)
--------- --------- ---------
NET INCOME .............................. 3,505 2 11,606
========= ========= =========
==============================================================================
ADJUSTMENTS
Operating Income (Loss) ................ - - -
--------- --------- ---------
Other Income (Deductions)
Interest income and other, net ........ - - -
Interest expense and related charges .. (371) - (4,125)
Reorganization items, net ............. - - -
--------- --------- ---------
Total Other Income (Deductions) ......... (371) - (4,125)
--------- --------- ---------
Income before Income Taxes and
Cummulative Effect of Change in
Accounting for Postemployment
Benefits .............................. (371) - (4,125)
Income Taxes ............................ (130) - (1,443)
--------- --------- ---------
Income before Cummulative Effect
of Change in Accounting for
Postemployment Benefits ............... (241) - (2,682)
Cummulative Effect of Change in
Accounting for Postemployment Benefits - - -
--------- --------- ---------
NET INCOME .............................. (241) - (2,682)
========= ========= =========
==============================================================================
PRO FORMA
Operating Income (Loss) ................ 6,008 (93) 31,194
--------- --------- ---------
Other Income (Deductions)
Interest income and other, net ........ 585 - 1,963
Interest expense and related charges .. (1,044) 96 (7,373)
Reorganization items, net ............. - - -
--------- --------- ---------
Total Other Income (Deductions) ......... (459) 96 (5,410)
--------- --------- ---------
Income before Income Taxes and
Cummulative Effect of Change in
Accounting for Postemployment
Benefits .............................. 5,549 3 25,784
Income Taxes ............................ 2,109 1 16,499
--------- --------- ---------
Income before Cummulative Effect
of Change in Accounting for
Postemployment Benefits ............... 3,440 2 9,285
Cummulative Effect of Change in
Accounting for Postemployment Benefits (176) - (361)
--------- --------- ---------
NET INCOME .............................. 3,264 2 8,924
========= ========= =========
==============================================================================
</TABLE>
<PAGE> 32
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(3)
PRO FORMA ENTRIES Page 1 of 3
DEBIT (CREDIT)
($000)
<TABLE>
<CAPTION>
CGS CG CS CGD CGT
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Cash .......................................... (383,900) 15,000 50,000 13,000
Investments in Subsidiaries -
Capital Stock ............................... 126,600
Investments in Subsidiaries -
Notes and Loans ............................. 257,300
Common Stock .................................. (10,000) (25,000)
Long-Term Debt ................................ (5,000) (25,000) (13,000)
To reflect the issuance of long-term
installment notes and common stock.
Interest Expense .............................. 412 2,062 1,072
Intercompany Accounts Payable ................. (412) (2,062) (1,072)
Interest Income ............................... (21,227)
Intercompany Accounts Receivable .............. 21,227
Income Taxes .................................. 7,429 (144) (722) (375)
Accrued Taxes ................................. (7,429) 144 722 375
To reflect the annual interest on the new
long-term installment notes at a rate of
8.25% and a federal income tax effect
of 35%.
Common Stock .................................. 89,669
Additional Paid in Capital .................... (89,669)
To record the reduction in the par value
of CGT's common stock from $25 to $10.
Investments in Subsidiaries -
Capital Stock ............................... (56,479)
Investments in Subsidiaries -
Equity in Undistributed Retained Earnings ... (10,521)
Investments in Subsidiaries -
Notes and Loans ............................. 67,000
Retained Earnings ............................. 10,521
Additional Paid in Capital .................... 56,479
Long-Term Debt ................................ (67,000)
To reflect CGT's dividend payment and
issuance of installment notes to CG.
Interest Expense .............................. 5,528
Intercompany Accounts Payable ................. (5,528)
Interest Income ............................... (5,528)
Intercompany Accounts Receivable .............. 5,528
Income Taxes .................................. 1,935 (1,935)
Accrued Taxes ................................. (1,935) 1,935
To reflect CGT's annual interest on the
new long-term installment note at a rate
of 8.25% and a federal income tax effect
of 35%.
Investments in Subsidiaries -
Capital Stock ............................... 74,000
Investments in Subsidiaries -
Notes and Loans ............................. (74,000)
Additional Paid in Capital .................... (62,000)
Long-Term Debt ................................ 62,000
To reflect CG's contribution of installment
notes to CGD's and CGC's additional
paid-in-capital.
Interest Expense .............................. (6,076)
Intercompany Accounts Payable ................. 6,076
Interest Income ............................... 7,329
Intercompany Accounts Receivable .............. (7,329)
Income Taxes .................................. (2,566) 2,127
Accrued Taxes ................................. 2,566 (2,127)
To reflect the annual interest on the
retired long-term installment notes
at an average rate of 9.80% and 10.44%
for CGD and CGC, respectively, and a
federal income tax effect of 35%.
Investments in Subsidiaries -
Equity in Undistributed Retained Earnings ... (12,628)
Income from Affiliated Equity Investments ..... 12,628
To reflect the change in CG's investment
in subsidiaries related to the
subsidiaries' pro forma loss due to
additional interest expense net of tax,
applicable to the issuance of long-term
installment notes.
</TABLE>
<PAGE> 33
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(3)
PRO FORMA ENTRIES Page 2 of 3
DEBIT (CREDIT)
($000)
<TABLE>
<CAPTION>
TCC CGC TVC CKY COH
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Cash .......................................... 100 14,700 135,800
Investments in Subsidiaries -
Capital Stock ...............................
Investments in Subsidiaries -
Notes and Loans .............................
Common Stock .................................. (100) (2,000) (44,000)
Long-Term Debt ................................ (12,700) (91,800)
To reflect the issuance of long-term
installment notes and common stock.
Interest Expense .............................. 1,048 7,574
Intercompany Accounts Payable ................. (1,048) (7,574)
Interest Income ...............................
Intercompany Accounts Receivable ..............
Income Taxes .................................. (367) (2,651)
Accrued Taxes ................................. 367 2,651
To reflect the annual interest on the new
long-term installment notes at a rate of
8.25% and a federal income tax effect
of 35%.
Common Stock ..................................
Additional Paid in Capital ....................
To record the reduction in the par value
of CGT's common stock from $25 to $10.
Investments in Subsidiaries -
Capital Stock ...............................
Investments in Subsidiaries -
Equity in Undistributed Retained Earnings ...
Investments in Subsidiaries -
Notes and Loans .............................
Retained Earnings .............................
Additional Paid in Capital ....................
Long-Term Debt ................................
To reflect CGT's dividend payment and
issuance of installment notes to CG.
Interest Expense ..............................
Intercompany Accounts Payable .................
Interest Income ...............................
Intercompany Accounts Receivable ..............
Income Taxes ..................................
Accrued Taxes .................................
To reflect CGT's annual interest on the
new long-term installment note at a rate
of 8.25% and a federal income tax effect
of 35%.
Investments in Subsidiaries -
Capital Stock ...............................
Investments in Subsidiaries -
Notes and Loans .............................
Additional Paid in Capital .................... (12,000)
Long-Term Debt ................................ 12,000
To reflect CG's contribution of installment
notes to CGD's and CGC's additional
paid-in-capital.
Interest Expense .............................. (1,253)
Intercompany Accounts Payable ................. 1,253
Interest Income ...............................
Intercompany Accounts Receivable ..............
Income Taxes .................................. 439
Accrued Taxes ................................. (439)
To reflect the annual interest on the
retired long-term installment notes
at an average rate of 9.80% and 10.44%
for CGD and CGC, respectively, and a
federal income tax effect of 35%.
Investments in Subsidiaries -
Equity in Undistributed Retained Earnings ...
Income from Affiliated Equity Investments .....
To reflect the change in CG's investment
in subsidiaries related to the
subsidiaries' pro forma loss due to
additional interest expense net of tax,
applicable to the issuance of long-term
installment notes.
</TABLE>
<PAGE> 34
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(3)
PRO FORMA ENTRIES Page 3 of 3
DEBIT (CREDIT)
($000)
<TABLE>
<CAPTION>
CMD CPA COS CPI CNR
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Cash .......................................... 8,500 50,100 42,200 4,500 50,000
Investments in Subsidiaries -
Capital Stock ...............................
Investments in Subsidiaries -
Notes and Loans .............................
Common Stock .................................. (3,000) (16,500) (26,000)
Long-Term Debt ................................ (5,500) (33,600) (16,200) (4,500) (50,000)
To reflect the issuance of long-term
installment notes and common stock.
Interest Expense .............................. 454 2,772 1,337 371 4,125
Intercompany Accounts Payable ................. (454) (2,772) (1,337) (371) (4,125)
Interest Income ...............................
Intercompany Accounts Receivable ..............
Income Taxes .................................. (159) (970) (468) (130) (1,443)
Accrued Taxes ................................. 159 970 468 130 1,443
To reflect the annual interest on the new
long-term installment notes at a rate of
8.25% and a federal income tax effect
of 35%.
Common Stock ..................................
Additional Paid in Capital ....................
To record the reduction in the par value
of CGT's common stock from $25 to $10.
Investments in Subsidiaries -
Capital Stock ...............................
Investments in Subsidiaries -
Equity in Undistributed Retained Earnings ...
Investments in Subsidiaries -
Notes and Loans .............................
Retained Earnings .............................
Additional Paid in Capital ....................
Long-Term Debt ................................
To reflect CGT's dividend payment and
issuance of installment notes to CG.
Interest Expense ..............................
Intercompany Accounts Payable .................
Interest Income ...............................
Intercompany Accounts Receivable ..............
Income Taxes ..................................
Accrued Taxes .................................
To reflect CGT's annual interest on the
new long-term installment note at a rate
of 8.25% and a federal income tax effect
of 35%.
Investments in Subsidiaries -
Capital Stock ...............................
Investments in Subsidiaries -
Notes and Loans .............................
Additional Paid in Capital ....................
Long-Term Debt ................................
To reflect CG's contribution of installment
notes to CGD's and CGC's additional
paid-in-capital.
Interest Expense ..............................
Intercompany Accounts Payable .................
Interest Income ...............................
Intercompany Accounts Receivable ..............
Income Taxes ..................................
Accrued Taxes .................................
To reflect the annual interest on the
retired long-term installment notes
at an average rate of 9.80% and 10.44%
for CGD and CGC, respectively, and a
federal income tax effect of 35%.
Investments in Subsidiaries -
Equity in Undistributed Retained Earnings ...
Income from Affiliated Equity Investments .....
To reflect the change in CG's investment
in subsidiaries related to the
subsidiaries' pro forma loss due to
additional interest expense net of tax,
applicable to the issuance of long-term
installment notes.
</TABLE>
<PAGE> 35
PAGE 1
EXHIBIT INDEX
(a) Exhibits
<TABLE>
<S> <C>
A-1 Form of Installment Note for all Subsidiaries.
A-2 Form of Subsidiary common stock certificate (Exhibit A-2 to Joint
Application-Declaration (File No. 70-7276) is hereby incorporated
by reference).
A-3 Form of Money Pool Evidence of Deposit.
A-4 Form of Subsidiary Money Pool Short-Term Grid Note.
D-1 Bankruptcy Court Motion and Order approving recapitalization.
D-2 Order of Virginia State Corporation Commission (to be filed by Post-
Effective Amendment).
F Opinion of Counsel for Columbia and Subsidiaries (to be filed by
Amendment).
G Financial Data Schedule (incorporated herein as Exhibit No. 27).
H Proposed Notice.
I List of Acronyms used in exhibits and financial statements.
J Description of the Columbia Gas Intrasystem Money Pool.
</TABLE>
<PAGE> 1
Page 1
Exhibit A-1
FORM OF INSTALLMENT PROMISSORY NOTE
% PROMISSORY NOTE
August , 1994
[Company] a Delaware
corporation (hereinafter called the Corporation), for value received, promises
to pay to THE COLUMBIA GAS SYSTEM, INC., a Delaware corporation, or order, the
principal sum of DOLLARS ($ )
in 9 equal annual installments of DOLLARS ($ )
and a final payment of DOLLARS ($ )
principal amount each, payable on April 1, 1996 and on each succeeding
April 1, to and including April 1, 2005; and to pay interest on the unpaid part
of the principal sum hereof at the rate of
( %) per annum from the date hereof, payable semiannually on April 1 and
October 1 until the principal sum hereof shall have been paid in full. Both
such annual installments and interest hereon shall be paid at the principal
office of The Columbia Gas System, Inc., in such coin or currency of the United
States of America as at the time of the payment thereof shall be legal tender
for the payment of public and private debts.
This Note may be prepaid at any time and from time to time in whole
or in part at the principal amount thereof (i.e. without premium) and accrued
interest to the date of such prepayment, provided that if any such prepayment
shall be in part, the amount of such prepayment shall be applied to the
reduction of the last remaining annual installment.
On the occurrence of any one of the following events of default:
(a) Non payment of the principal of or interest on this Note
when due,
(b) The Corporation shall admit in writing its inability to
pay its debts as they mature or shall voluntarily suspend transaction
of all or substantially all of its business or shall file a
voluntary petition in bankruptcy or voluntary petition seeking
reorganization or to effect a plan or other arrangement with
creditors, or shall file an answer admitting the jurisdiction of the
court and the material allegations of an involuntary petition filed
pursuant to any law relating to bankruptcy, insolvency or the relief
of debtors or shall be adjudicated a bankrupt or make an assignment
for the benefit of creditors or to an agent (authorized to liquidate
any substantial amount of its assets) or shall apply for or consent to
the appointment of any receiver or trustee for it or for all or any
substantial portion of its property, or
(c) An order shall be entered pursuant to any law relating to
bankruptcy, insolvency or the relief of debtors approving an
involuntary petition seeking reorganization of the Corporation or
for adjudication that it is a bankruptor insolvent or an order of
any court shall be entered appointing any receiver or trustee for it
or for all or any substantial portion of its property, or a writ of
execution or any similar process shall be issued or levied against
all or any substantial portion of its property and such order
approving such petition or appointing such receiver or trustee is not
vacated or stayed or such writ
<PAGE> 2
Page 2
or execution or similar process is not stayed, satisfied or vacated
within 60 days after its entry or levy.
then, and, in each and every such event, the owner: (a) may by notice in
writing to the Corporation declare the unpaid balance of this Note forthwith
due and payable without presentment, demand, protest or other notice of any
kind, all of which are hereby expressly waived, and (b) will be entitled to a
default rate equal to 2% per annum in excess of the stated rate on the unpaid
principal amount anytime payment of the principal of or interest on this note
becomes past due.
IN WITNESS WHEREOF said Corporation pursuant to due authorization has
caused this Note to be executed in its name and on its behalf by its duly
authorized officers, all as of the day and year first above written.
[Company]
---------------------------------------------------------------
Treasurer President
******************************************************************************
ENDORSEMENTS
------------------------------------------------------------------------------
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******************************************************************************
PAYMENTS ON ACCOUNT OF PRINCIPAL
------------------------------------------------------------------------------
Amount Unpaid Amount Unpaid
Date Paid Balance Date Paid Balance
-----------------------------------------------------------------------------
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<PAGE> 1
Page 1
EXHIBIT A-3
COLUMBIA GAS SYSTEM
INTRASYSTEM MONEY POOL
EVIDENCE OF DEPOSIT
$ (see attached schedule) Wilmington, Delaware
______________, 1994
The undersigned, Columbia Gas System Service Corporation, a Delaware
corporation, ("Service"), in its capacity as Agent of the funds invested in
Columbia Gas System's Intrasystem Money Pool (the "Money Pool"), hereby
acknowledges receipt of the aggregate unpaid principal amount of all
investments deposited in the Money Pool (that are posted on the schedule
annexed hereto and made a part hereof) made by the investor to the undersigned
pursuant to the short-term financing authorization approved by the Securities
and Exchange Commission.
Under the terms of Money Pool Borrowing, the subsidiaries pay interest
on the unpaid principal amount hereof from time to time from the date hereof at
the rate per annum equal to the Money Pool's weighted average short-term
investment rate. Should there be no Money Pool investments, the rate will be
the prior month's Federal Funds rate as published in the Federal Reserve
Statistical Release, Publication H.15 (519). Interest shall be payable monthly
in arrears and upon payment (including prepayment) in full of the unpaid
principal amount hereof. Upon demand for payment, demand will be made of the
borrowing Subsidiaries.
IN WITNESS WHEREOF said Columbia Gas System Service Corporation
pursuant to due authorization has caused this Evidence of Deposit to be
executed on behalf of Columbia's Intrasystem Money Pool by its duly authorized
officers, all as of the aforementioned Note Execution Date first above written.
(Columbia Intrasystem Money Pool)
By:
-----------------------------
Title:
<PAGE> 1
Page 1
EXHIBIT A-4
COLUMBIA GAS SYSTEM
INTRASYSTEM MONEY POOL ADVANCES
As of _____________
__________________
FOR VALUE RECEIVED, the undersigned,
__________________________________, a __________________corporation, (the
"Company"), hereby unconditionally promises to pay on demand or in any event
by _______________ to the order of Columbia Gas System Service Corporation
("Service"), in its capacity as Agent of the Columbia Gas System Intrasystem
Money Pool (the "Money Pool") and for the benefit of the Money Pool depositors,
at the Office of Service located at 20 Montchanin Road, Wilmington, Delaware
19807, in lawful money of the United States of America and in immediately
available funds, the principal amount of the aggregate unpaid principal amount
of all Loans (that are posted on the schedule annexed hereto and made a part
hereof) made by the Money Pool to the undersigned pursuant to the financing
authorization approved by the Securities and Exchange Commission.
The undersigned further agrees to pay interest in like money at such
office on the unpaid principal amount hereof from time to time from the date
hereof at the rate per annum equal to the Money Pool's weighted average
short-term investment rate. Should there be no Money Pool investments, the cost
of money will be the prior month's Federal Funds rate as published in the
Federal Reserve Statistical Release, Publication H.15 (519). Interest shall be
payable monthly in arrears and upon payment (including prepayment) in full of
the unpaid principal amount hereof. If applicable, a default rate equal to 2%
per annum above the pre-default rate on the unpaid principal amount will be
assessed if any interest or principal payment becomes past due.
This Note shall be governed by, and construed and interpreted in
accordance with, the Laws of the State of Delaware without regard to conflicts
of laws principles, except as preempted by Federal law.
IN WITNESS WHEREOF said ______________________________ pursuant to due
authorization has caused this Note to be executed in its name and on its
behalf by its duly authorized officers, all as of the aforementioned Note
Execution Date first above written.
--------------------------
Company
By:
--------------------------
Title:
<PAGE> 1
Page 1
EXHIBIT D-1
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
In re ) Chapter 11
)
THE COLUMBIA GAS SYSTEM, INC. and )
COLUMBIA GAS TRANSMISSION CORPORATION ) Case Nos. 91-803
) 804
Debtors. )
MOTION FOR AN ORDER AUTHORIZING THE
RECAPITALIZATIONS OF VARIOUS NON-DEBTOR
SUBSIDIARIES OF THE COLUMBIA GAS SYSTEM, INC.
TO: THE HONORABLE HELEN S. BALICK
UNITED STATES BANKRUPTCY JUDGE
The Columbia Gas System, Inc. ("CG" or "Debtor") hereby files this
motion (the "Motion") for an Order authorizing the recapitalizations of three
of its non-debtor subsidiaries, Columbia Gulf Transmission Company ("Columbia
Gulf"), Columbia Coal Gasification Corporation ("Columbia Coal"), and
Columbia Gas Development Corporation ("Columbia Development," and together
with Columbia Gulf and Columbia Coal, the "Subsidiaries"), and respectfully
represents as follows:
INTRODUCTION
1. On July 31, 1991, CG and one of its wholly-owned subsidiaries,
Columbia Gas Transmission Corporation ("TCO" and together with CG, the
"Debtors") filed petitions for reorganization under Chapter 11 of
<PAGE> 2
Page 2
Title 11 of the United States Code (the "Bankruptcy Code") with this Court and
were thereupon continued in the management of their respective businesses and
possession of their respective properties as debtors-in-possession pursuant to
Sections 1107 and 1108 of the Bankruptcy Code. No trustee or examiner has been
appointed in these cases, except a fee examiner has been appointed by order of
this Court.
2. On August 12, 1991, the United States Trustee appointed
Official Committees of Unsecured Creditors for CG and TCO. On September 30,
1991, the United States Trustee appointed an Official Committee of Customers
for TCO, and on October 18, 1991, the United States Trustee appointed an
Official Committee of Equity Security Holders for CG.
3. This Court has jurisdiction over this application pursuant
to 28 U.S.C. Sections 157 and 1334. Venue of these proceedings and the within
application in this district is proper pursuant to 28 U.S.C. Sections 1408 and
1409. The statutory predicates for the relief sought herein are Sections 105,
363 and 1108 of the Bankruptcy Code.
4. The Debtors and their affiliates comprise one of the largest
natural gas systems in the United States, composed of CG, a public utility
holding company registered as such under the Public Utility Holding Company Act
of 1935, as amended ("PUHCA"), a service company and eighteen other operating
subsidiaries, including TCO. The subsidiaries of CG are primarily engaged in
the exploration and production, purchase, storage, transmission, marketing and
distribution of natural gas at wholesale and retail, as well as related resource
development.
<PAGE> 3
Page 3
BACKGROUND
5. The Subsidiaries are each wholly-owned by CG and have current
capital structures consisting of unsecured debt and equity securities, all of
which are held by CG. The Subsidiaries have no secured creditors.
6. As part of its financial-planning process, CG seeks to
establish capital structures that generally conform to its subsidiaries'
expectations for growth, profitability and their capital requirements. In
accordance with this planning process, CG has reviewed the capital structures
for the Subsidiaries.
7. Columbia Gulf operates an interstate pipeline that extends
from offshore Louisiana to Kentucky where it interconnects with the pipeline
facilities of TCO. Columbia Gulf's current capital structure consists of
approximately $8 million in debt and $159 million in equity for 5% debt and 95%
equity ratios. Over the years, Columbia Gulf has generated sufficient net
income to meet its operational needs and debt repayments, thereby creating a
current capital structure with an equity component that is much higher than is
necessary given Columbia Gulf's current and anticipated business climate.
8. Columbia Coal was originally formed to develop and operate
coal mines, with part of the coal to be used in a coal gasification plant.
Changes in the industrial energy markets, which resulted in a negative
competitive and economic climate for synthetic fuels, and uneconomic mining
operations caused Columbia Coal to alter its business plan. Currently,
Columbia Coal leases some of its coal mineral interests and receives royalty
payments based upon the coal produced from these leased properties. Columbia
Coal's current capital structure consists of approximately $16 million in debt
<PAGE> 4
Page 4
and $5 million in negative equity yielding a negative equity ratio. Columbia
Coal's distorted capital structure results from operating losses in connection
with its original business plan.
9. Columbia Development conducts oil and gas operations in the
Gulf of Mexico and the continental United States, excluding the Appalachian
region. Columbia Development's current capital structure consists of
approximately $132 million in debt and $41 million in equity for 76% debt and
24% equity ratios. Columbia Development's profitability has been adversely
affected by depressed oil and gas commodity prices. Because of full-cost
accounting rules, the true value of Columbia Development's oil and gas
reserves may not be reflected on Columbia Development's books. Further,
write-downs in connection with declining oil and gas prices have resulted in
significant losses to Columbia Development and reductions in Columbia
Development's equity ratio in recent periods.***
RELIEF REQUESTED
10. CG seeks, by this Motion, to recapitalize the Subsidiaries in
order to establish capital structures more appropriate for the Subsidiaries'
current and prospective business and economic environments.
- ----------------------------------
*** On November 12, 1992 this Court issued an Order authorizing
CG to recapitalize Columbia Development, through a capital contribution to
Columbia Development's net common equity of unsecured debt previously issued by
Columbia Development and held by CG, to the extent necessary to increase
Columbia Development's net common equity to $40 million. This
recapitalization was in response to Federal Offshore Oil Pollution
Compensation Fund regulations which required that Columbia Development have
at least $35 million of equity to qualify as a self-insured operator.
<PAGE> 5
Page 5
11. CG believes the most effective means to establish such a
capital structure for Columbia Gulf would be to increase Columbia Gulf's
long-term debt by $67 million. This would be accomplished by amending Columbia
Gulf's certificate of incorporation to revise the par value of its common stock
from $25 per share to $10 per share, thereby creating a balance of approximately
$90 million in its additional paid-in capital account. Columbia Gulf would then
issue $67 million of installment promissory notes to CG. The proceeds from the
installment promissory notes would be used by Columbia Gulf to pay out of
surplus a dividend of $67 million to CG. This approach is designed to
accomplish a tax free recapitalization. As a result, Columbia Gulf's capital
structure would be 55% equity and 45% debt. CG believes that the increase in
Columbia Gulf's debt, and the corresponding increase in debt service to CG, is
appropriate given Columbia Gulf's current operations and future business
prospects.
12. CG believes the most effective means to establish a capital
structure for Columbia Coal that is appropriate given its current expectations
for growth, profitability and capital requirements would be for CG to increase
Columbia Coal's common equity percentage to 60%. This would be effectuated
through a tax-free capital contribution to Columbia Coal's net common equity of
$12 million of installment promissory notes previously issued by Columbia Coal
and held by CG. Such amount would include accrued interest on the effective
date of the recapitalization. Columbia Coal's common equity would be increased
to approximately a positive $7 million, and, as a result, its capital structure
would be 60% equity and 40% debt. CG believes that the reduction in Columbia
Coal's debt, and the corresponding reduction in debt
<PAGE> 6
Page 6
service to CG, is appropriate given Columbia Coal's current and future
operations and business prospects.
13. CG believes the most effective means to establish a capital
structure for Columbia Development that is appropriate given its current
business prospects and operations would be for CG to increase Columbia
Development's common equity percentage to 60%. This would be effectuated
through a tax-free capital contribution to Columbia Development's net common
equity of $62 million of installment promissory notes previously issued by
Columbia Development and held by CG. Such amount would include accrued interest
on the effective date of the recapitalization. Columbia Development's common
equity would be increased to $103 million, and, as a result, its capital
structure would be 60% equity and 40% debt.
14. After the proposed recapitalizations, CG would still hold 100%
of the Subsidiaries' capital in the form of common equity and unsecured debt.
Since the proposed recapitalizations would require no new investment, no cash
infusion from CG would be necessary.
15. Approval of the proposed recapitalizations by the U.S.
Securities and Exchange Commission (the "SEC") under PUHCA will be sought
shortly. CG is currently negotiating substantial amendments to the Secured
Revolving Credit Agreement dated September 23, 1991, as amended (the "Credit
Agreement"), approved pursuant to this Court's Final Order (dated September 10,
1991) Authorizing The Columbia Gas System, Inc. to (i) Borrow Monies (ii) Grant
Senior and Junior Liens and Superpriority Administrative Expense Claims Pursuant
to 11 U.S.C. Sec. 364(c). The proposed amendments to the Credit Agreement will
eliminate various restrictive covenants that currently
<PAGE> 7
Page 7
prohibit, among other things, CG's purchase of equity securities of its
subsidiaries and will only provide for letters of credit. The amendments will
also enable CG to purchase both debt and equity securities of its subsidiaries.
CG will seek this Court's approval upon completion of the amendments to the
Credit Agreement.
16. The profitability of Columbia Development and Columbia Coal is
currently affected by the level of debt service payments to CG. If the proposed
recapitalizations of Columbia Development and Columbia Coal are not effectuated,
Columbia Development and Columbia Coal may have to expend resources in order to
obtain the approval of the SEC for CG to advance additional funds necessary for
these subsidiaries to service their debt to CG. Although the overall impact of
the proposed recapitalizations with respect to CG will be a minor decrease in
CG's unsecured debt investment position in the Subsidiaries by $8 million and
increase its equity investment by a like amount, CG believes that the
recapitalizations proposed for Columbia Development and Columbia Coal are better
suited to the business prospects of these companies and, in addition, such
recapitalizations will reduce the need to request additional authorization from
the SEC to fund the these subsidiaries' debt service to CG.
17. CG hereby seeks an order authorizing it to engage in a
recapitalizations of the Subsidiaries as set forth in this Motion.
<PAGE> 8
Page 8
WHEREFORE, CG respectfully requests the Court to enter an order in the
form annexed hereto authorizing it to engage in the recapitalizations described
therein, to perform its obligations thereunder and grant to CG such other and
further relief as the Court may deem just and proper.
Dated: Wilmington, Delaware
June 30, 1994
YOUNG, CONAWAY, STARGATT & TAYLOR
/s/ Robert S. Brady
----------------------------------------
James L. Patton, Jr.
Laura Davis Jones
Robert S. Brady
11th Floor - Rodney Square North
P.O. Box 391
Wilmington, Delaware 19899-0391
(302) 571-6684
STROOCK & STROOCK & LAVAN
Lewis Kruger
Robin E. Keller
Herbert Katz
Seven Hanover Square
New York, New York 10004
(212) 806-5400
CRAVATH, SWAINE & MOORE
Worldwide Plaza
825 Eighth Avenue
New York, New York 10019
(212) 474-1000
Co-Counsel for the Debtors and Debtors-in-
Possession
<PAGE> 9
Page 9
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
In re ) Chapter 11
)
THE COLUMBIA GAS SYSTEM, INC. and )
COLUMBIA GAS TRANSMISSION CORPORATION ) Case Nos. 91-803
) 804
Debtors. )
AFFIDAVIT OF LARRY J. BAINTER
STATE OF DELAWARE )
) ss.:
COUNTY OF NEW CASTLE )
Larry J. Bainter, being duly sworn, deposes and says:
1. I am the Treasurer of The Columbia Gas System, Inc. ("CG"). I make
this affidavit in support of CG's motion (the "Motion") for an Order Authorizing
the Recapitalizations of Various Non-Debtor Subsidiaries.
2. I have read the foregoing Motion, have personal knowledge as to the
facts stated therein and know them to be true and correct. If called upon to
testify as to such facts, I am qualified to competently so testify.
/s/ Larry J. Bainter
-----------------------------------
Larry J. Bainter
SWORN TO AND SUBSCRIBED before me this 30th day of June, 1994.
/s/ Ellen Patterson
-----------------------------------
Notary Public
My Commission Expires: 10/15/94
-------------
<PAGE> 10
PAGE 10
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
In re ) Chapter 11
)
THE COLUMBIA GAS SYSTEM, INC. and )
COLUMBIA GAS TRANSMISSION CORPORATION ) Case Nos. 91-803
) 804
Debtors. )
ORDER AUTHORIZING THE RECAPITALIZATION OF VARIOUS
NON-DEBTOR SUBSIDIARIES OF THE COLUMBIA GAS SYSTEM, INC.
Upon the motion of The Columbia Gas System, Inc., debtor and
debtor-in-possession ("CG") dated June 30, 1994, (the "Motion") for entry of an
Order Authorizing the Recapitalization of Various Non-Debtor Subsidiaries, as
set forth in the Motion; a hearing on the Motion having been held on July 20,
1994; and after due deliberation and sufficient cause appearing therefore, it is
hereby
ORDERED that the recapitalization of the Subsidiaries as set forth in
the Motion are hereby approved.
Dated: Wilmington, Delaware
July 20, 1994
/s/ Helen S. Balick
----------------------------------------
The Honorable Helen S. Balick
United States Bankruptcy Judge
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 1
<NAME> THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES
<MULTIPLIER> 1,000
<S> <C> <C>
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<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
<PERIOD-END> JUN-30-1994 JUN-30-1994
<BOOK-VALUE> PER-BOOK PRO-FORMA
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<COMMON> 505,592 505,592
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<RETAINED-EARNINGS> 372,346 372,346
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,409,731 1,409,731
0 0
0 0
<LONG-TERM-DEBT-NET> 4,486 4,486
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 168,345 168,345
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> 406,661 406,661
<OTHER-INCOME-NET> 41,231 41,231
<INCOME-BEFORE-INTEREST-EXPEN> 447,892 447,892
<TOTAL-INTEREST-EXPENSE> 76,486 76,486
<NET-INCOME> 197,417 197,417
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 2
<NAME> THE COLUMBIA GAS SYSTEM, INC.
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
<PERIOD-END> JUN-30-1994 JUN-30-1994
<BOOK-VALUE> PER-BOOK PRO-FORMA
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<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 0
<COMMON> 505,592 505,592
<CAPITAL-SURPLUS-PAID-IN> 601,759 601,759
<RETAINED-EARNINGS> 372,346 372,346
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,409,731 1,409,731
0 0
0 0
<LONG-TERM-DEBT-NET> 0 0
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 71,847 78,645
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> (7,123) (7,123)
<OTHER-INCOME-NET> 277,188 283,986
<INCOME-BEFORE-INTEREST-EXPEN> 270,065 276,863
<TOTAL-INTEREST-EXPENSE> 757 757
<NET-INCOME> 197,417 197,417
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 3
<NAME> COLUMBIA GAS SYSTEM SERVICE CORPORATION
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
<PERIOD-END> JUN-30-1994 JUN-30-1994
<BOOK-VALUE> PER-BOOK PRO-FORMA
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<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 0 0
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 0
<COMMON> 13,000 23,000
<CAPITAL-SURPLUS-PAID-IN> 0 0
<RETAINED-EARNINGS> 180 (88)
<TOTAL-COMMON-STOCKHOLDERS-EQ> 13,180 22,912
0 0
0 0
<LONG-TERM-DEBT-NET> 16,121 21,121
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 1,418 1,274
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> 5,463 5,463
<OTHER-INCOME-NET> 1,866 1,866
<INCOME-BEFORE-INTEREST-EXPEN> 7,329 7,329
<TOTAL-INTEREST-EXPENSE> 3,386 3,798
<NET-INCOME> 1,977 1,709
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 4
<NAME> COLUMBIA GAS DEVELOPMENT CORPORATION
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
<PERIOD-END> JUN-30-1994 JUN-30-1994
<BOOK-VALUE> PER-BOOK PRO-FORMA
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<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 0 0
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 0
<COMMON> 141,912 166,912
<CAPITAL-SURPLUS-PAID-IN> 27,550 89,550
<RETAINED-EARNINGS> (126,854) (124,245)
<TOTAL-COMMON-STOCKHOLDERS-EQ> 42,608 132,217
0 0
0 0
<LONG-TERM-DEBT-NET> 112,626 75,626
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> (3,938) (2,533)
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> 7,804 7,804
<OTHER-INCOME-NET> 2,509 2,509
<INCOME-BEFORE-INTEREST-EXPEN> 10,313 10,313
<TOTAL-INTEREST-EXPENSE> 13,386 9,372
<NET-INCOME> 682 3,291
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 5
<NAME> COLUMBIA GULF TRANSMISSION COMPANY
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
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<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 0 0
<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 0 0
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 0
<COMMON> 149,449 59,780
<CAPITAL-SURPLUS-PAID-IN> 0 33,190
<RETAINED-EARNINGS> 10,521 (4,290)
<TOTAL-COMMON-STOCKHOLDERS-EQ> 159,970 88,680
0 0
0 0
<LONG-TERM-DEBT-NET> 3,368 83,368
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 7,462 5,152
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> 17,106 17,106
<OTHER-INCOME-NET> (1,791) (1,791)
<INCOME-BEFORE-INTEREST-EXPEN> 15,315 15,315
<TOTAL-INTEREST-EXPENSE> 1,864 8,464
<NET-INCOME> 5,023 733
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 6
<NAME> COLUMBIA ENERGY SERVICES CORPORATION
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
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<BOOK-VALUE> PER-BOOK PRO-FORMA
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<TOTAL-CURRENT-ASSETS> 0 0
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 0
<COMMON> 4,172 4,172
<CAPITAL-SURPLUS-PAID-IN> 1,361 1,361
<RETAINED-EARNINGS> 6,953 6,953
<TOTAL-COMMON-STOCKHOLDERS-EQ> 12,486 12,486
0 0
0 0
<LONG-TERM-DEBT-NET> 0 0
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 1,023 1,023
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> 1,855 1,855
<OTHER-INCOME-NET> 255 255
<INCOME-BEFORE-INTEREST-EXPEN> 2,110 2,110
<TOTAL-INTEREST-EXPENSE> (461) (461)
<NET-INCOME> 1,548 1,548
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 7
<NAME> COLUMBIA PROPANE CORPORATION
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
<PERIOD-END> JUN-30-1994 JUN-30-1994
<BOOK-VALUE> PER-BOOK PRO-FORMA
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<TOTAL-CURRENT-ASSETS> 0 0
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 0
<COMMON> 3,900 3,900
<CAPITAL-SURPLUS-PAID-IN> 0 0
<RETAINED-EARNINGS> 69 69
<TOTAL-COMMON-STOCKHOLDERS-EQ> 3,969 3,969
0 0
0 0
<LONG-TERM-DEBT-NET> 2,442 2,442
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 334 334
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> 1,073 1,073
<OTHER-INCOME-NET> (85) (85)
<INCOME-BEFORE-INTEREST-EXPEN> 988 988
<TOTAL-INTEREST-EXPENSE> 324 324
<NET-INCOME> 179 179
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 8
<NAME> TRISTAR VENTURES CORPORATION
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
<PERIOD-END> JUN-30-1994 JUN-30-1994
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 0 0
<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 0 0
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 0
<COMMON> 15,293 15,293
<CAPITAL-SURPLUS-PAID-IN> 42,802 42,802
<RETAINED-EARNINGS> (22,612) (22,612)
<TOTAL-COMMON-STOCKHOLDERS-EQ> 35,483 35,483
0 0
0 0
<LONG-TERM-DEBT-NET> 0 0
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> (105) (105)
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> (1,620) (1,620)
<OTHER-INCOME-NET> 1,907 1,907
<INCOME-BEFORE-INTEREST-EXPEN> 287 287
<TOTAL-INTEREST-EXPENSE> 979 979
<NET-INCOME> (587) (587)
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
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<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 9
<NAME> TRISTAR CAPITAL CORPORATION
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
<PERIOD-END> JUN-30-1994 JUN-30-1994
<BOOK-VALUE> PER-BOOK PRO-FORMA
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<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 0 0
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 0
<COMMON> 1,575 1,675
<CAPITAL-SURPLUS-PAID-IN> 0 0
<RETAINED-EARNINGS> (246) (246)
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,329 1,429
0 0
0 0
<LONG-TERM-DEBT-NET> 0 0
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> (60) (60)
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> (23) (23)
<OTHER-INCOME-NET> (161) (161)
<INCOME-BEFORE-INTEREST-EXPEN> (184) (184)
<TOTAL-INTEREST-EXPENSE> 0 0
<NET-INCOME> (124) (124)
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 10
<NAME> COLUMBIA COAL GASIFICATION CORPORATION
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
<PERIOD-END> JUN-30-1994 JUN-30-1994
<BOOK-VALUE> PER-BOOK PRO-FORMA
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<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 0 0
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 0
<COMMON> 48,475 48,475
<CAPITAL-SURPLUS-PAID-IN> 0 12,000
<RETAINED-EARNINGS> (52,826) (52,012)
<TOTAL-COMMON-STOCKHOLDERS-EQ> (4,351) 8,463
0 0
0 0
<LONG-TERM-DEBT-NET> 14,322 2,322
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 690 1,129
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> 3,086 3,086
<OTHER-INCOME-NET> 886 886
<INCOME-BEFORE-INTEREST-EXPEN> 3,972 3,972
<TOTAL-INTEREST-EXPENSE> 2,078 825
<NET-INCOME> 1,204 2,018
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 11
<NAME> COLUMBIA GAS OF KENTUCKY, INC.
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
<PERIOD-END> JUN-30-1994 JUN-30-1994
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 0 0
<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 0 0
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 0
<COMMON> 15,806 17,806
<CAPITAL-SURPLUS-PAID-IN> 174 174
<RETAINED-EARNINGS> 35,060 34,379
<TOTAL-COMMON-STOCKHOLDERS-EQ> 51,040 52,359
0 0
0 0
<LONG-TERM-DEBT-NET> 36,472 49,172
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 3,698 3,331
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> 11,635 11,635
<OTHER-INCOME-NET> 651 651
<INCOME-BEFORE-INTEREST-EXPEN> 12,286 12,286
<TOTAL-INTEREST-EXPENSE> 3,312 4,360
<NET-INCOME> 5,276 4,595
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 12
<NAME> COLUMBIA GAS OF OHIO, INC.
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
<PERIOD-END> JUN-30-1994 JUN-30-1994
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 0 0
<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 0 0
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 0
<COMMON> 119,240 163,240
<CAPITAL-SURPLUS-PAID-IN> 0 0
<RETAINED-EARNINGS> 255,277 250,354
<TOTAL-COMMON-STOCKHOLDERS-EQ> 374,517 413,594
0 0
0 0
<LONG-TERM-DEBT-NET> 233,739 325,539
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 20,246 17,595
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> 57,325 57,325
<OTHER-INCOME-NET> 2,728 2,728
<INCOME-BEFORE-INTEREST-EXPEN> 60,053 60,053
<TOTAL-INTEREST-EXPENSE> 12,189 19,763
<NET-INCOME> 27,618 22,695
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 13
<NAME> COLUMBIA GAS OF MARYLAND, INC.
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
<PERIOD-END> JUN-30-1994 JUN-30-1994
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 0 0
<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 0 0
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 0
<COMMON> 7,092 10,092
<CAPITAL-SURPLUS-PAID-IN> 0 0
<RETAINED-EARNINGS> 10,170 9,875
<TOTAL-COMMON-STOCKHOLDERS-EQ> 17,262 19,967
0 0
0 0
<LONG-TERM-DEBT-NET> 12,590 18,090
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 650 491
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> 2,791 2,791
<OTHER-INCOME-NET> 12 12
<INCOME-BEFORE-INTEREST-EXPEN> 2,803 2,803
<TOTAL-INTEREST-EXPENSE> 957 1,411
<NET-INCOME> 1,176 881
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 14
<NAME> COLUMBIA GAS OF PENNSYLVANIA, INC.
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
<PERIOD-END> JUN-30-1994 JUN-30-1994
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 0 0
<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 0 0
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 0
<COMMON> 68,628 85,128
<CAPITAL-SURPLUS-PAID-IN> 0 0
<RETAINED-EARNINGS> 114,532 112,730
<TOTAL-COMMON-STOCKHOLDERS-EQ> 183,160 197,858
0 0
0 0
<LONG-TERM-DEBT-NET> 115,593 149,193
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 14,583 13,613
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> 42,482 42,482
<OTHER-INCOME-NET> 1,027 1,027
<INCOME-BEFORE-INTEREST-EXPEN> 43,509 43,509
<TOTAL-INTEREST-EXPENSE> 12,780 15,552
<NET-INCOME> 16,146 14,344
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 15
<NAME> COMMONWEALTH GAS SERVICES, INC.
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
<PERIOD-END> JUN-30-1994 JUN-30-1994
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 0 0
<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 0 0
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 0
<COMMON> 24,305 50,305
<CAPITAL-SURPLUS-PAID-IN> 2,969 2,969
<RETAINED-EARNINGS> 43,881 43,012
<TOTAL-COMMON-STOCKHOLDERS-EQ> 71,155 96,286
0 0
0 0
<LONG-TERM-DEBT-NET> 71,154 87,354
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 4,120 3,652
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> 18,805 18,805
<OTHER-INCOME-NET> 210 210
<INCOME-BEFORE-INTEREST-EXPEN> 19,015 19,015
<TOTAL-INTEREST-EXPENSE> 6,673 8,010
<NET-INCOME> 8,146 7,277
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 16
<NAME> COLUMBIA PROPANE, INC.
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
<PERIOD-END> JUN-30-1994 JUN-30-1994
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 0 0
<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 0 0
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 0
<COMMON> 2,000 2,000
<CAPITAL-SURPLUS-PAID-IN> 398 398
<RETAINED-EARNINGS> 7,133 6,892
<TOTAL-COMMON-STOCKHOLDERS-EQ> 9,531 9,290
0 0
0 0
<LONG-TERM-DEBT-NET> 5,151 9,651
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 2,239 2,109
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> 6,008 6,008
<OTHER-INCOME-NET> 585 585
<INCOME-BEFORE-INTEREST-EXPEN> 6,593 6,593
<TOTAL-INTEREST-EXPENSE> 673 1,044
<NET-INCOME> 3,505 3,264
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 17
<NAME> COLUMBIA ATLANTIC TRADING CORPORATION
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
<PERIOD-END> JUN-30-1994 JUN-30-1994
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 0 0
<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 0 0
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 0
<COMMON> 82 82
<CAPITAL-SURPLUS-PAID-IN> 0 0
<RETAINED-EARNINGS> (774) (774)
<TOTAL-COMMON-STOCKHOLDERS-EQ> (692) (692)
0 0
0 0
<LONG-TERM-DEBT-NET> 0 0
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 1 1
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> (93) (93)
<OTHER-INCOME-NET> 0 0
<INCOME-BEFORE-INTEREST-EXPEN> (93) (93)
<TOTAL-INTEREST-EXPENSE> (96) (96)
<NET-INCOME> 2 2
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THE COLUMBIA GAS SYSTEM INC, AND SUBSIDIARIES Item 6(a)
ARTICLE OPUR1 Exhibit 27
FINANCIAL DATA SCHEDULES
TWELVE MONTHS ENDING JUNE 30, 1994
</LEGEND>
<SUBSIDIARY>
<NUMBER> 18
<NAME> COLUMBIA NATURAL RESOURCES, INC
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1993 DEC-31-1993
<PERIOD-START> JUL-01-1993 JUL-01-1993
<PERIOD-END> JUN-30-1994 JUN-30-1994
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 0 0
<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 0 0
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 0
<COMMON> 125,716 125,716
<CAPITAL-SURPLUS-PAID-IN> 0 0
<RETAINED-EARNINGS> 46,987 44,305
<TOTAL-COMMON-STOCKHOLDERS-EQ> 172,703 170,021
0 0
0 0
<LONG-TERM-DEBT-NET> 32,047 82,047
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 0
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 17,942 16,499
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> 31,194 31,194
<OTHER-INCOME-NET> 1,963 1,963
<INCOME-BEFORE-INTEREST-EXPEN> 33,157 33,157
<TOTAL-INTEREST-EXPENSE> 3,248 7,373
<NET-INCOME> 11,606 8,924
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
<PAGE> 1
Page 1
EXHIBIT H
SECURITIES AND EXCHANGE COMMISSION
(Release No. )
The Columbia Gas System, Inc. and Subsidiaries Notice of Proposed
Recapitalization of Certain Subsidiaries and Proposed Intrasystem Financing and
Money Pool Programs for the period January 1, 1995 through December 31, 1996.
The Columbia Gas System, Inc. ("Columbia"), a Delaware corporation and
registered holding company and subsidiaries:
COLUMBIA GAS OF OHIO, INC. ("Columbia Ohio")
COLUMBIA GAS OF PENNSYLVANIA, INC. ("Columbia Pennsylvania")
COLUMBIA GAS OF KENTUCKY, INC. ("Columbia Kentucky")
COLUMBIA GAS OF MARYLAND, INC. ("Columbia Maryland")
COMMONWEALTH GAS SERVICES, INC. ("Commonwealth Services")
200 Civic Center Drive
Columbia, Ohio 43215
COLUMBIA GULF TRANSMISSION COMPANY ("Columbia Gulf")
1700 MacCorkle Avenue, S.E.
Charleston, West Virginia 25314
COLUMBIA GAS DEVELOPMENT CORPORATION ("Development")
One Riverway
Houston, Texas 77056
COMMONWEALTH PROPANE, INC. ("Commonwealth Propane")
COLUMBIA PROPANE CORPORATION ("Columbia Propane")
800 Moorefield Park Drive
Richmond, Virginia 23236
COLUMBIA GAS SYSTEM SERVICE CORPORATION ("Service")
COLUMBIA LNG CORPORATION ("Columbia LNG")
COLUMBIA ATLANTIC TRADING CORPORATION ("Columbia Atlantic")
COLUMBIA ENERGY SERVICES CORPORATION ("Energy Services")
2581 Washington Road
Upper Saint Clair, PA 15241
TRISTAR VENTURES CORPORATION ("TriStar Ventures")
TRISTAR CAPITAL CORPORATION ("TriStar Capital")
20 Montchanin Road
Wilmington, Delaware 19807
COLUMBIA NATURAL RESOURCES, INC. ("Columbia Natural")
COLUMBIA COAL GASIFICATION CORPORATION ("Coal Gasification")
900 Pennsylvania Ave.
Charleston, West Virginia 25302
(the "Subsidiaries") have filed a joint application-declaration with this
Commission pursuant to Sections 6, 7, 9, 10, 12(b) and 12(f) under the Public
Utility Holding Company Act of 1935 (the "Act") and Rules 43 and 45 thereunder.
<PAGE> 2
Page 2
Columbia Gulf, Development and Coal Gasification plan to recapitalize on
or about December 31, 1994 in order to establish capital structures which are
more appropriate for the business and economic conditions under which these
companies currently operate. The proposed transactions are summarized as
follows:
1. To bring Columbia Gulf's long-term debt/equity ratio to 45/55,
Columbia Gulf will issue Installment Promissory Notes ("Installment Notes") to
Columbia, for cash, of up to $67 million, reduce the par value of Columbia
Gulf's common stock from $25 per share to $10 per share, declare the
approximately $90 million additional paid in capital thus created excess to the
needs of the company and pay a dividend of up to $67 million to Columbia out of
the surplus thus created.
2. To bring Development's long-term debt/equity ratio to 40/60,
Columbia will make a tax-free capital contribution of up to $62 million of
Installment Notes previously issued by Development and held by Columbia.
3. To bring Columbia Coal's long-term debt/equity ratio to 40/60,
Columbia will make a tax-free capital contribution of up to $12 million of
Installment Notes previously issued by Columbia Coal and held by Columbia.
The Subsidiaries are engaged in construction programs and gas supply
projects which will involve capital expenditures during the period January 1,
1995 through December 31, 1996. TriStar Ventures, Columbia LNG, Energy Services
and Columbia Atlantic are party to this filing only for authorization to
participate in the Intrasystem Money Pool ("Money Pool").
The other subsidiaries plan to finance part of their capital expenditure
programs with funds generated from internal sources, the balance financed
through short-term borrowings from the Money Pool, to the extent any
subsidiaries or Columbia have temporary excess funds, or the sale to Columbia,
for cash, of Common Stock at par value and/or Installment Notes up to the
amounts indicated below:
<PAGE> 3
Page 3
<TABLE>
<CAPTION>
Long Term Financing
------------------------------
Common Installment
Stock Notes Total
------ ----------- -----
$MM $MM $MM
<S> <C> <C> <C>
Columbia Kentucky . . . . . . . . . . 2.0* 12.7 14.7
Columbia Maryland . . . . . . . . . . 3.0 5.5 8.5
Columbia Ohio . . . . . . . . . . . . 44.0* 91.8 135.8
Columbia Pennsylvania . . . . . . . . 16.5* 33.6 50.1
Commonwealth Services . . . . . . . . 26.0* 16.2 42.2
Columbia Natural . . . . . . . . . . . -- 50.0 50.0
Development . . . . . . . . . . . . . 25.0 25.0 50.0
Commonwealth Propane . . . . . . . . . -- 4.5 4.5
Columbia Gulf . . . . . . . . . . . . -- 13.0 13.0
Service . . . . . . . . . . . . . . . 10.0 5.0 15.0
TriStar Capital . . . . . . . . . . . 0.1 -- 0.1
===== ===== =====
Total . . . . . . . . . . . 126.6 257.3 383.9
</TABLE>
The Installment Notes will be unsecured, will be dated the date of their
issue, and will have provisions similar to the Installment Promissory Notes
heretofore approved by the Commission. The interest rate on the Installment
Notes will be determined quarterly based upon the preceding three-month average
yield on newly issued "A" rated 25-30 year utility bonds as published in Salomon
Brothers' weekly Bond Market Roundup. The principal amount of the Installment
Notes will be repaid over a term, not exceeding thirty years. A default rate
equal to 2.00% per annum in excess of the stated rate on unpaid principal or
interest amounts will be assessed if any interest or principal payment becomes
past due. All of the Installment notes will be purchased by Columbia by
December 31, 1996.
The Subsidiaries' short-term peak requirements are estimated to be
$452.0 million for the period January 1, 1995 through December 31, 1996, to be
funded through aggregated temporary surplus cash from subsidiaries and temporary
surplus cash from Columbia. All short-term borrowings will be funded through
the Money Pool and will be made pursuant to a Money Pool short-term grid note.
All short-term investments under the Money Pool will be made pursuant to a Money
Pool evidence of deposit. The cost of money on all short-term advances from the
Money Pool and the investment rate for moneys invested in the Money Pool will be
the interest rate per annum equal to the Money Pool's weighted average
short-term investment rate. Should there be no Money Pool investments, the cost
of money will be the prior month's Federal Funds rate as published in the
Federal Reserve Statistical Release, Publication H.15 (519). A default rate
equal to 2% per annum above the pre-default rate on unpaid principal or interest
amounts will be assessed if any interest or principal becomes past due.
Advances from the Money Pool will be limited to a maximum amount outstanding at
any one time for the period January 1, 1995 through December 31, 1996 for each
of the Subsidiaries as shown below:
- --------------------
*The issuance of common stock will be approved by the appropriate state
commission and is exempt from Sections 6 and 9 by virture of Rule 52.
<PAGE> 4
Page 4
<TABLE>
<CAPTION>
Short Term
Debt
----------
$MM
<S> <C>
Columbia Kentucky . . . . . . . . . . . . . . . . . . . . . . 19.0
Columbia Maryland . . . . . . . . . . . . . . . . . . . . . . 4.0
Columbia Ohio . . . . . . . . . . . . . . . . . . . . . . . . 240.0
Columbia Pennsylvania . . . . . . . . . . . . . . . . . . . . 88.0
Commonwealth Services . . . . . . . . . . . . . . . . . . . . 19.0
Columbia Gulf . . . . . . . . . . . . . . . . . . . . . . . . 19.0
Columbia Natural . . . . . . . . . . . . . . . . . . . . . . . 30.0
Development . . . . . . . . . . . . . . . . . . . . . . . . . 15.0
Columbia Propane . . . . . . . . . . . . . . . . . . . . . . . 2.0
Commonwealth Propane . . . . . . . . . . . . . . . . . . . . . 4.0
Service . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.0
Coal Gasification . . . . . . . . . . . . . . . . . . . . . . 2.0
=====
Total . . . . . . . . . . . . . . . . . . . . . . . 452.0
</TABLE>
The funds would be advanced, repaid and reborrowed, as required through the
period January 1, 1995 through December 31, 1996 with all such advances to be
fully repaid by April 30, 1997.
The Bankruptcy Court has approved the proposed recapitalizations and
authorized Columbia to fund its subsidiaries pursuant to authorizations by this
Commission. The Commission is requested to reserve jurisdiction over the
issuance of short-term borrowings and the installment promissory notes by
Commonwealth Services pending filing of the order approving the issuance of the
notes by Commonwealth Services and acquisition by Columbia. The Commission is
requested to authorize the issuance of installment promissory notes by Columbia
of Pennsylvania, Columbia of Ohio and Columbia of Kentucky subject to the
orders of the State Commissions with jurisdiction. Such orders to be filed
with certificates pursuant to Rule 24.
It is proposed that the Money Pool, which was last approved by the
Commission in File No. 70-8219, be continued through December 31, 1996.
The joint application-declaration and any amendments thereto are
available for public inspection through the commission's Office of Public
Reference. Interested persons wishing to comment or request a hearing should
submit their views in writing by December 15, 1994, to the Secretary, Securities
and Exchange Commission, Washington, D.C. 20549, and serve a copy on the
applicants-declarants at the address specified above. Proof of service (by
affidavit or, in case of an attorney-at-law, by certificate) should be filed
with the request. Any request for a hearing shall identify specifically the
issues of fact or law that are disputed. A person who so requests will be
notified of any hearing, if ordered, and will receive a copy of any notice or
order issued in this matter. After said date, the joint
application-declaration, as filed or as it may be amended, may be permitted to
become effective.
<PAGE> 5
Page 5
For the Commission, by the Division of Investment Management, pursuant
to delegated authority.
Jonathan G. Katz
Secretary
<PAGE> 1
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EXHIBIT I
LIST OF ACRONYMS FOR EXHIBITS AND FINANCIAL STATEMENTS
Company
Acronym
- --------------------------------------------------------------
The Columbia Gas System, Inc. & Subsidiaries . . . . . . . . CGS
The Columbia Gas System, Inc. . . . . . . . . . . . . . . . CG
Columbia Gas System Service Corporation . . . . . . . . . . CS
Columbia Gas Development Corporation . . . . . . . . . . . . CGD
Columbia Gulf Transmission Company . . . . . . . . . . . . . CGT
Columbia Energy Services Corporation . . . . . . . . . . . . CES
TriStar Ventures Corporation . . . . . . . . . . . . . . . . TVC
TriStar Capital Corporation . . . . . . . . . . . . . . . . TCC
Columbia LNG Corporation . . . . . . . . . . . . . . . . . . CLG
Columbia Coal Gasification Corporation . . . . . . . . . . . CGC
Columbia Gas of Kentucky, Inc. . . . . . . . . . . . . . . . CKY
Columbia Gas of Ohio, Inc. . . . . . . . . . . . . . . . . . COH
Columbia Gas of Maryland, Inc. . . . . . . . . . . . . . . . CMD
Columbia Gas of Pennsylvania, Inc. . . . . . . . . . . . . . CPA
Commonwealth Gas Services, Inc. . . . . . . . . . . . . . . COS
Commonwealth Propane, Inc. . . . . . . . . . . . . . . . . . CPI
Columbia Propane Corporation . . . . . . . . . . . . . . . . CPC
Columbia Atlantic Trading Corporation . . . . . . . . . . . CAT
Columbia Natural Resources, Inc. . . . . . . . . . . . . . . CNR
<PAGE> 1
Page 1
EXHIBIT J
Columbia Gas Intrasystem Money Pool
The Columbia Gas Intrasystem Money Pool (the "Money Pool") is a
contractual arrangement among The Columbia Gas System, Inc. ("Columbia") and its
subsidiary companies (the "Subsidiaries") (together, the "System"), approved by
the Securities and Exchange Commission (the "Commission") pursuant to the Public
Utility Holding Company Act of 1935, which permits efficient short- term
financing and investing by pooling temporary excess cash of the Subsidiaries and
Columbia. As participants in the Money Pool, Subsidiaries which have temporary
excess cash ("Investors") may deposit such funds in the Money Pool. Money Pool
funds may be invested in a portfolio of United States Treasury obligations or
lent to other Subsidiaries ("Borrowers") on a short-term basis. All companies
in the System may participate in the Money Pool, although Columbia and certain
of the Subsidiaries participate only as Investors. Each Subsidiary's daily cash
position and the resultant amounts of its deposits or required borrowings, if
any, are determined individually.
The Money Pool is administered by Columbia Gas System Service
Corporation ("Service") in its capacity as agent. Funds are consolidated
through bank accounts maintained by Service and, to the extent that the
Investors' deposits exceed the Borrowers' requirements, funds are invested in a
portfolio for the benefit of the Investors.
<PAGE> 2
Page 2
At any time when the Borrowers' requirements exceed the Investors'
temporary excess cash balances, Columbia lends to the Money Pool to satisfy
those requirements. The source of Columbia's deposits, while in bankruptcy,
will be its own excess funds. At no time does Columbia borrow from the Money
Pool or from any Subsidiary.
The interest rate charged to Borrowers from the Money Pool and paid to
Investors for deposits to the Money Pool (the "Money Pool Rate") is equal to the
Money Pool's weighted average short-term investment rate. Should there be no
Money Pool investments, the rate will be the prior month's Federal Funds rate as
published in the Federal Reserve Statistical Release, Publication H.15(519).
The specific terms of the borrowings are included in the Subsidiary
Money Pool Short-Term Grid Note attached as Attachment I.
Columbia's temporary excess funds and Money Pool funds, to the extent
that such funds exceed the requirements of the Borrowers, are invested in
accordance with Short-Term Investment Guidelines (the "Guidelines") approved by
Columbia's Chief Financial Officer. A summary of the current Guidelines is
included herewith as Attachment II. Funds deposited in the Money Pool by the
Subsidiaries are acknowledged by an Evidence of Deposit, the form of which is
attached as Attachment III.
<PAGE> 3
Page 3
When there are both Investors (including Columbia) and Borrowers in the
Money Pool at the same time, funds of each Investor are allocated pro rata to
each Borrower. All borrowings and deposits through the Money Pool are
documented in the records of the individual participants.
<PAGE> 4
Page 1
Attachment I
COLUMBIA GAS SYSTEM
INTRASYSTEM MONEY POOL ADVANCES
As of ___________
_________________
FOR VALUE RECEIVED, the undersigned,
__________________________________, a ______________________corporation, (the
"Company"), hereby unconditionally promises to pay on demand or in any event
by _____________ to the order of Columbia Gas System Service Corporation
("Service"), in its capacity as Agent of the Columbia Gas System Intrasystem
Money Pool (the "Money Pool") and for the benefit of the Money Pool depositors,
at the Office of Service located at 20 Montchanin Road, Wilmington, Delaware
19807, in lawful money of the United States of America and in immediately
available funds, the principal amount of the aggregate unpaid principal amount
of all Loans (that are posted on the schedule annexed hereto and made a part
hereof) made by the Money Pool to the undersigned pursuant to the financing
authorization approved by the Securities and Exchange Commission.
The undersigned further agrees to pay interest in like money at such
office on the unpaid principal amount hereof from time to time from the date
hereof at the rate per annum equal to the Money Pool's weighted average
short-term investment rate. Should there be no Money Pool investments, the cost
of money will be the prior month's Federal Funds rate as published in the
Federal Reserve Statistical Release, Publication H.15 (519). Interest shall be
payable monthly in arrears and upon payment (including prepayment) in full of
the unpaid principal amount hereof. If applicable, a default rate equal to 2%
per annum above the pre-default rate on the unpaid principal amount will be
assessed if any interest or principal payment becomes past due.
This Note shall be governed by, and construed and interpreted in
accordance with, the Laws of the State of Delaware without regard to conflicts
of laws principles, except as preempted by Federal law.
IN WITNESS WHEREOF said _______________________ pursuant to due
authorization has caused this Note to be executed in its name and on its behalf
by its duly authorized officers, all as of the aforementioned Note Execution
Date first above written.
-------------------------------
Company
By:
-------------------------------
<PAGE> 5
Title:
Page 1
Attachment II
Columbia Gas System
Summary of
Short-Term Investment Guidelines
A. Treasury and Agency Securities (up to one year, no maximum amount)
U.S. Governments or agencies or derivative instruments supported by
these securities
B. Repurchase Agreements
Purchased through domestic securities dealers or commercial banks with
at least "A" rated long-term debt, supported by direct pay obligations
of U.S. government or its major agencies or derivative instruments
supported by these securities, and must be "marked to market" at least
weekly.
<PAGE> 6
Page 1
Attachment III
COLUMBIA GAS SYSTEM
INTRASYSTEM MONEY POOL
EVIDENCE OF DEPOSIT
$ (see attached schedule) Wilmington, Delaware
______________, 1994
The undersigned, Columbia Gas System Service Corporation, a Delaware
corporation, ("Service"), in its capacity as Agent of the funds invested in
Columbia Gas System's Intrasystem Money Pool (the "Money Pool"), hereby
acknowledges receipt of the aggregate unpaid principal amount of all investments
deposited in the Money Pool (that are posted on the schedule annexed hereto and
made a part hereof) made by the investor to the undersigned pursuant to the
short-term financing authorization approved by the Securities and Exchange
Commission.
Under the terms of Money Pool Borrowing, the subsidiaries pay interest
on the unpaid principal amount hereof from time to time from the date hereof at
the rate per annum equal to the Money Pool's weighted average short-term
investment rate. Should there be no Money Pool investments, the rate will be
the prior month's Federal Funds rate as published in the Federal Reserve
Statistical Release, Publication H.15 (519). Interest shall be payable monthly
in arrears and upon payment (including prepayment) in full of the unpaid
principal amount hereof. Upon demand for payment, demand will be made of the
borrowing Subsidiaries.
IN WITNESS WHEREOF said Columbia Gas System Service Corporation pursuant
to due authorization has caused this Evidence of Deposit to be executed on
behalf of Columbia's Intrasystem Money Pool by its duly authorized officers, all
as of the aforementioned Note Execution Date first above written.
(Columbia Intrasystem Money Pool)
By:
------------------------------
Title:
