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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM U-9C-3
QUARTERLY REPORT PURSUANT TO RULE 58 OF
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
For the Calendar Quarter Ended March 31, 1999
Consolidated Natural Gas Company
(Name of registered holding company)
CNG Tower
625 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3199
(Address of principal executive offices
Table of Contents
Page
____
Item 1. Organization Chart 2
Item 2. Issuance and Renewals of Securities
and Capital Contributions 2
Item 3. Associate Transactions 3
Item 4. Summary of Aggregate Investment 4
Item 5. Other Investments 5
Item 6. Financial Statements and Exhibits 5
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ITEM 1 - ORGANIZATION CHART
Name of Energy or Date of State of %of voting Nature
Reporting Gas Related Organiz- Incorpor- Securities of
Company Company ation ation Held Business
_________ ___________ ________ _________ __________ ________
Consolidated
Natural Gas
Company ("CNG")
CNG Field Gas Related 03/23/77 Delaware 100% (a)
Services
Company
("Field
Services")
(a) Field Services, formerly CNG Storage Service Company, was originally
formed to engage in the business of providing natural gas storage
facilities and services and other activities related to the operations
and functions of a full service gas storage business. See HCAR No.
25311, dated May 13, 1991. Field Services in July of 1998 entered
into activities involving Appalachian natural gas supply, including
the administration of supply contracts transferred from CNG Energy
Services Corporation, a former subsidiary of CNG.
ITEM 2 - ISSUANCES AND RENEWALS OF SECURITIES AND CAPITAL CONTRIBUTIONS
Company Company
Contributing Receiving Type and Amount of
Capital Capital Capital Infusion
____________ _________ __________________
(b)
(b) Field Services participates in the CNG System Money Pool ("Money
Pool"). During the calendar quarter, Field Services contributed
$31,207,000 to, and withdrew $19,735,000 from, the Money Pool. It had
a balance of $8,994,000 in the Money Pool at March 31, 1999.
Additionally, as of March 31, 1999 there were outstanding $14,718,000
in CNG guarantees of Field Services obligations.
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ITEM 3 - ASSOCIATE TRANSACTIONS
Part I - Transactions Performed by Reporting Companies on Behalf of
Associate Companies
Reporting Associate
Company Company Types of Direct Indirect Cost Total
Rendering Receiving Services Costs Costs or Amount
Service Service Rendered Charged Charged Capital Billed
_________ _________ ________ _______ ________ _______ ______
None(c)
(c) As per Rules 80 and 81, natural gas supply, storage or transportation
capacity transactions are not reported hereunder.
Part II - Transactions Performed by Associate Companies on Behalf of
Reporting Companies(d)
Associate Reporting
Company Company Types of Direct Indirect Cost Total
Rendering Receiving Services Costs Costs of Amount
Services Service Rendered Charged Charged Capital Billed
_________ _________ ________ ________ ________ _______ ________
CNG Trans- Field Adminis- $162,969 $162,969
mission Services trative
Corporation
(d) CNG Storage Service Company in 1991 had entered into standard at-cost
service agreements with Consolidated Natural Gas Service Company, Inc.
Information with respect to transactions under such agreement is not
provided in this report, but is provided by Form U-13-60.
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ITEM 4 - SUMMARY OF AGGREGATE INVESTMENT
Investments in energy-related companies (in thousands):
Total consolidated capitalization as
of March 31, 1999 $3,868,127 Line 1
Total capitalization multiplied by 15%
(Line 1 multiplied by 0.15) 580,219 Line 2
Greater of $50 million or line 2 580,219 Line 3
Total current aggregate investment:
(categorized by major line of
energy-related business) None Line 4
Difference between the greater of $50
million or 15% of capitalization and
the total aggregate investment of the
registered holding system
(line 3 less line 4) 580,219
Investments in gas-related companies
(in thousands):
Total current aggregate investment:
(categorized by major line of
gas-related business)
Gas sales and storage services $ 21,063
==========
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ITEM 5 - OTHER INVESTMENTS
Major Line of Other Invest- Other Invest- Reason for
Energy-Related ment in Last ment in this Difference in
Business U-9C-3 Report U-9C-3 Report Other Investment
______________ _____________ _____________ ________________
None
ITEM 6 - FINANCIAL STATEMENTS AND EXHIBITS
A. Financial Statements
Balance sheet as of March 31, 1999 and income statements for the three
months ending March 31, 1999 of Field Services.
(Filed under confidential treatment pursuant to Rule 104(b))
B. Exhibits
A copy of the service agreement, dated May 22, 1991, between CNG
Storage Service Company and CNG Transmission Corporation is attached
hereto as Exhibit A.
The certificate as to filing with interested state commissions is
attached hereto as Exhibit B.
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SIGNATURE
The undersigned registered holding company has duly caused this
quarterly report to be signed on its behalf by the undersigned officer
thereunto duly authorized pursuant to the requirements of the Public
Utility Holding Company Act of 1935.
CONSOLIDATED NATURAL GAS COMPANY
By: N. F. Chandler
Assistant Secretary
May 28, 1999
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Exhibit A
May 22, 1991
CNG Storage Service Company
445 West Main Street
Clarksburg, West Virginia 26301
Attention: W. A. Fox
Vice President
Gentlemen:
CNG Storage Service ("Storage Company") expects to become active in the
Appalachian operating area of CNG Transmission Corporation's
("Transmission Corporation"), particularly in the purchasing of natural
gas for use as base gas in the North Summit Storage Pool located in
Fayette County, Pennsylvania. Because these new operations in Appalachia
will, or may, require certain services not available through the use of
its own personnel, Storage Company has requested that Transmission
Corporation provide it with certain services which it may from time to
time require in the conduct of its Apalachian business. Transmission
Corporation has agreed to provide such services to Storage Company, upon
the terms and conditions hereinafter provided.
Accordingly, in consideration of the mutual promises herein
contained, Storage Company and Transmission Corporation agree as follows:
1. Upon oral or written request by Storage Company, Transmission
Corporation will provide such operating, administrative, legal,
engineering, purchasing, and related services as are deemed necessary or
desirable. In so doing, Transmission Corporation may arrange for and
provide the services of its own qualified personnel or it may, after
consultation with Storage Company, arrange for and provide the services of
such qualified, non-affiliated personnel as Transmission Corporation, in
its own opinion, deems necessary or appropriate.
2. All services rendered under and in accordance with this agreement
shall be provided at cost. The cost of rendering such services shall
include: (1) a portion of the salaries and wages of employees of the
Engineering and Operations Services, Field Operations and other
departments of Transmission Corporation determined according to the time
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devoted by such employees to the performance of services hereunder for
Storage Company; (2) the costs of employee benefits, payroll taxes and
compensated absences attributable to salaries and wages directly billed
under (1) above, as determined in accordance with Transmission
Corporation's Treasury Department Memorandum entitled "Labor Additives and
Administrative Overhead Percentages Applied to Billing Jobs"
("Memorandum"), as revised from time to time; (3) all other out-of-pocket
operating costs, including expenses incurred by Transmission Corporation
or its employees in connection with the performance of services under this
agreement; (4) the actual costs of materials and supplies furnished by
Transmission Corporation in connection with the performance of services
under this agreement; (5) the costs of supervision of field employees, as
determined in accordance with the Memorandum; and (6) administrative and
general costs attributable to services performed under this agreement
(including reasonable amounts for general office maintenance and
depreciation, amortization, return and related taxes on Transmission
Corporation's general plant investment), determined in accordance with the
Memorandum.
3. Transmission Corporation shall render monthly statements to
Storage Company for services supplied or to be supplied to Storage Company
in the manner set forth above. Such statements shall include the costs of
all services supplied hereunder during the preceding calendar month, and
may include estimated amounts attributable to services which Transmission
Corporation anticipates it will supply during the next succeeding calendar
month. All statements so tendered will be due and payable ten (10) days
after receipt hereof.
This agreement shall become effective as of July 1, 1991 and shall
continue in force and effect for a term of one (1) year from said date and
thereafter until terminated by either party upon sixty (60) days' written
notice of termination; provided, however, that this agreement shall be
subject to termination or modification at any time to the extent that its
performance may conflict with the provisions of the Public Utility Holding
Company Act of 1935, as amended, or any rule, regulation, or order of the
Securities and Exchange Commission adopted or promulgated prior or
subsequent to the making of this agreement; and provided, further, that
this agreement shall by subject to the approval of any state or federal
regulatory body or agency the approval of which is, by the laws of said
state or of the United States, a legal prerequisite to the execution,
acceptance, or performance of this agreement.
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If you approve of this proposal, please indicate your acceptance by
executing both copies hereof in the space provided and return one fully-
executed copy to Transmission Corporation.
Respectfully submitted,
CNG TRANSMISSION CORPORATION
By: /s/ L. J. Timms, Jr.
___________________________
L. J. Timms, Jr.
President
Accepted and agreed to
this 3rd day of June, 1991
CNG STORAGE SERVICE COMPANY
By: /s/ W. A. Fox
________________________
W. A. Fox
Vice President
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Exhibit B
CERTIFICATE
The undersigned certifies that he is the duly designated and acting
Assistant Secretary of Consolidated Natural Gas Company, a Delaware
corporation ("CNG") and that:
CNG's Quarterly Report on Form U-9C-3 filed pursuant to Rule 58 for
the quarter ended December 31, 1998 was filed with each state commission
having jurisdiction over the retail rates of the public utility companies
that are associate companies of any of the reporting companies.
The names and addresses of such state utility commissions are:
Utilities Department
Public Utility Commission of Ohio
180 Broad Street
Columbus, OH 43266-0573
Executive Secretary
West Virginia Public Service Commission
201 Brooks Street
Charleston, WV 25301
Secretary
Pennsylvania Public Utility Commission
North Office Building
Commonwealth Avenue and North Street
Harrisburg, PA 17101
General Counsel
Virginia State Corporation Commission
1300 East Main Street
10th Floor
Richmond, VA 23219
IN WITNESS WHEREOF, I have hereunto set my hand as of the 28th day of
May, 1999.
N. F. Chandler
Assistant Secretary
Consolidated Natural Gas Company
