SECURITIES AND EXCHANGE COMMISSION
450 North Fifth Street, N. W.
Washington, D. C. 20549
-----------------
FORM U-3A-2
File No. 69-262
Statement by Holding Company Claiming Exemption Under Rule U-3A-2 From
the Provisions of the Public Utility Holding Company Act of 1935.
NATIONAL GAS & OIL COMPANY
(Name of company)
hereby files with the Securities and Exchange Commission, pursuant to Rule 2,
its statement claiming exemption as a holding company from the provisions of
the Public Utility Holding Company Act of 1935, and submits the following
information:
1. Name, state or organization, location and nature of business of claimant
and every subsidiary thereof, other than any exempt wholesale generator
(EWG) or foreign utility company in which claimant directly or indirectly
holds an interest.
National Gas & Oil Company (claimant) is incorporated in the State of Ohio and
is located at 1500 Granville Road, Newark, Ohio
43055.
Claimant is a holding company, holding:
(1) 100% of the common stock of National Gas & Oil Corporation
("National Gas") an intrastate gas public utility engaged in the
distribution of natural gas in East Central Ohio.
(2) 100% of the common stock of Producers Gas Sales, Inc. ("Producers
Gas Sales"), a company engaged in the marketing of natural gas from
off-system suppliers to off-system customers.
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(3) 100% of the common stock of NGO Development Corporation ("NGO
Development"), an oil and gas production and development company.
2. A brief description of the properties of claimant and each of its
subsidiary public utility companies used for the generation, transmission
and distribution of electric energy for sale, or for the production,
transmission and distribution of natural or manufactured gas, indicating
the location of principal generating plants, transmission lines,
producing fields, gas manufacturing plants, and electric and gas
distribution facilities, including all such properties which are outside
the State in which claimant and its subsidiaries are organized and all
transmission or pipelines which deliver or receive electric energy or gas
at the borders of such State.
The claimant was organized on March 24, 1981 for the purpose of serving
as the holding company for National Gas & Oil Corporation, National Production
Corporation, which has been merged into NGO Development Corporation, Producers
Gas Sales, Inc., NGO Development Corporation, Coshocton Energy Corporation, a
subsidiary of NGO Development which was merged into NGO Development effective
January 1, 1995, and any other future subsidiaries. It holds the shares of
stock of the above named companies, cash, intercompany notes, two office,
warehouse, shop buildings in Zanesville, Ohio and the corporate offices in
Newark, Ohio.
National Gas & Oil Corporation owns and operates a system consisting of
approximately 1,347 miles of distribution, transmission and gathering mains,
ranging in size from one inch to 16 inches in diameter. The mains are located
on easements or private rights-of-way. In addition, the Company owns and
operates seven gathering compressor stations and one distribution (main line
boost) compressor station consisting of 2,242 brake horsepower. Five of these
compressor stations are situated on lands totaling 19.77 acres owned by
National Gas.
Complementing the above pipeline and compressor station facilities,
National Gas also owns and operates three underground natural gas storage
fields. These fields have a combined estimated reservoir capacity of 5,300,000
Mcf, and consist of 44 wells and six compressors, totaling 2,650 brake
horsepower. The majority of the subsurface rights are held by lease with
955.39 acres held in fee.
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National Gas owns workhouses, garages, offices, shops and various
metering and regulating buildings in its operating area. These facilities are
located on 35.42 acres and are owned in fee.
NGO Development properties consist of 592 wholly or partly-owned
producing gas and oil wells.
3. The following information for the last calendar year with respect to
claimant and each of its subsidiary public utility companies:
(a) Number of kwh. of electric energy sold (at retail or wholesale), and
Mcf of natural or manufactured gas distributed at retail.
Distributed to retail customers 2,905,879 Mcf of natural gas in 1995.
(b) Number of kwh. of electric energy and Mcf of natural or manufactured
gas distributed at retail outside the State in which each such
company is organized.
In 1995, did not sell natural gas to any retail customers outside
the State, pursuant to Federal Energy Regulatory Commission fuel oil
displacement program 18CFR284.200 et seq.
(c) Number of kwh. of electric energy and Mcf of natural or manufactured
gas sold at wholesale outside the State in which such company is
organized, or at the State line.
Neither sold or distributed natural or manufactured gas at wholesale
outside of Ohio in 1995.
(d) Number of kwh. of electric energy and Mcf of natural or manufactured
gas purchased outside the State in which each such company is
organized or at the state line.
Purchased from its interstate suppliers at the state line or within
the boundary of Ohio, approximately 3,519,365 Mcf of natural gas.
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4. The following information for the reporting period with respect to
claimant and each interest it holds directly or indirectly in an EWG or a
foreign utility company, stating monetary amounts in United States
dollars:
(a) Name, location, business address and description of the facilities
used by the EWG or foreign utility company for the generation,
transmission and distribution of electric energy for sale or for the
distribution at retail of natural or manufactured gas.
Not applicable.
(b) Name of each system company that holds an interest in such EWG or
foreign utility company; and description of the interest held.
Not applicable.
(c) Type and amount of capital invested, directly or indirectly, by the
holding company claiming exemption; any direct or indirect guarantee
of the security of the EWG or foreign utility company by the holding
company claiming exemption; and any debt or other financial
obligation for which there is recourse, directly or indirectly, to
the holding company claiming exemption or another system company,
other than the EWG or foreign utility company.
Not applicable.
(d) Capitalization and earnings of the EWG or foreign utility company
during the reporting period.
Not applicable.
(e) Identify any service, sales or construction contract(s) between the
EWG or foreign utility company and a system company, and describe
the services to be rendered or goods sold and fees or revenues under
such agreement(s).
Not applicable.
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EXHIBIT A
A consolidating statement of income and surplus of the claimant and its
subsidiary companies for the last calendar year, together with a consolidating
balance sheet of claimant and its subsidiary companies as of the close of such
calendar year are attached hereto and made a part hereof.
EXHIBIT C
An organizational chart showing the relationship of each EWG or foreign
utility company to associate companies in the holding- company system is not
required with this filing.
SIGNATURE
The Company has caused this statement to be duly signed on its behalf by
its authorized officer in the city of Newark and State of Ohio, on the 26th
day of February, 1996.
Attest: NATIONAL GAS & OIL COMPANY
(Name of Company)
By /s/ John B. Denison
--------------------------
John B. Denison, Vice
President and Secretary
Name, title and address of officer to whom notices and correspondence
concerning this statement should be addressed: JOHN B. DENISON, VICE PRESIDENT
AND SECRETARY, 1500 GRANVILLE ROAD, P. O. BOX 4970, NEWARK, OHIO 43058-4970.
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PAGE 1
NATIONAL GAS & OIL COMPANY
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31
1994 1994 VARIATION
----------- ----------- -----------
OPERATING REVENUE ................ $48,118,835 $61,722,792 $(13,603,957)
OPERATING EXPENSE
PURCHASED GAS .................. 27,111,748 41,256,749 (14,145,001)
OPERATION & MAINTENANCE ........ 9,045,033 8,684,010 361,023
DEPRECIATION & DEPLETION ....... 3,437,538 3,318,064 119,474
GENERAL TAXES .................. 3,303,802 3,124,163 179,639
INTEREST CHARGES ............... 981,197 887,947 93,250
----------- ----------- -----------
TOTAL OPERATING EXPENSES ....... 43,879,318 57,270,933 (13,391,615)
OTHER INCOME ..................... 186,753 376,778 (190,025)
INCOME BEFORE FIT ................ 4,426,270 4,828,637 (402,367)
FEDERAL INCOME TAXES ............. 1,195,900 1,339,189 (143,289)
----------- ----------- -----------
NET INCOME ....................... $ 3,230,370 $ 3,489,448 (259,078)
=========== =========== ===========
EARNINGS PER SHARE ............... $ 0.47 $ 0.51 $ 0.04
=========== =========== ===========
AVERAGE SHARES OUTSTANDING ....... 6,860,589 6,860,589 0
=========== =========== ===========
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PAGE 2
NATIONAL GAS & OIL CORPORATION
INCOME STATEMENT
FOR PERIOD ENDED DECEMBER 31
1995 1994 VARIATION
------------ ---------- ------------
OPERATING REVENUES
GAS SALES ....................... $ 19,366,839 $21,271,055 $(1,904,216)
TRANSPORTATION .................. 6,421,691 5,932,681 489,010
------------ ----------- -----------
TOTAL OPERATING REVENUES ...... 25,788,530 27,203,736 (1,415,206)
OPERATING EXPENSE
OPERATION
PURCHASED GAS ................. 9,963,718 12,568,120 (2,604,402)
OTHER ......................... 5,450,268 4,842,162 608,106
MAINTENANCE ..................... 981,492 1,045,743 (64,251)
DEPRECIATION .................... 1,729,073 1,590,972 138,101
GENERAL TAXES ................... 3,061,753 2,937,865 123,888
------------ ----------- -----------
TOTAL OPERATING EXPENSES ...... 21,186,304 22,984,862 (1,798,558)
OPERATING INCOME .................. 4,602,226 4,218,874 383,352
OTHER INCOME AND DEDUCTIONS
INTEREST INCOME ................. 87,212 115,434 (28,222)
INTERCOMPANY INTEREST INCOME .... 90,900 99,087 (8,187)
OTHER ........................... (44,857) 99,491 (144,348)
------------ ----------- -----------
TOTAL OTHER INCOME
& DEDUCTIONS ................ 133,255 314,012 (180,757)
INCOME BEFORE INTEREST CHARGES .... 4,735,481 4,532,886 202,595
INTEREST CHARGES
SHORT-TERM DEBT ................. 38,405 40,635 (2,230)
INTERCOMPANY INTEREST CHARGES ... 0 24,251 (24,251)
LONG TERM DEBT INTEREST EXPENSE . 397,800 309,925 87,875
OTHER ........................... 27,661 25,090 2,571
------------ ----------- -----------
TOTAL INTEREST CHARGES ........ 463,866 399,901 63,965
INCOME BEFORE FEDERAL
INCOME TAX ...................... 4,271,615 4,132,985 138,630
FEDERAL INCOME TAX ................ 1,413,825 1,327,466 86,359
------------ ----------- -----------
NET INCOME ........................ $ 2,857,790 $ 2,805,519 $ 52,271
============ =========== ===========
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PAGE 3
NGO DEVELOPMENT CORPORATION
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31
1995 1994 VARIATION
------------ ---------- ------------
OPERATING REVENUE
GAS SALES ....................... $ 20,022,306 $26,460,769 $(6,438,463)
OIL SALES ....................... 566,926 638,156 (71,230)
SERVICE REVENUE ................. 36,126 102,214 (66,088)
OTHER INCOME .................... 61,888 74,450 (12,562)
------------ ----------- -----------
TOTAL OPERATING REVENUES ...... 20,687,246 27,275,589 (6,588,343)
OPERATING EXPENSES
OPERATION ....................... 1,633,573 1,744,183 (110,610)
DEPRECIATION .................... 351,845 350,702 1,143
DEPLETION ....................... 1,292,722 1,312,572 (19,850)
AMORTIZATION .................... 11,052 11,052 0
PURCHASED GAS ................... 15,521,065 21,524,667 (6,003,602)
GENERAL AND ADMINISTRATIVE ...... 844,245 947,793 (103,548)
GENERAL TAXES ................... 184,800 151,075 33,725
INTERCOMPANY INTEREST CHARGES ... 205,519 95,883 109,636
INTEREST CHARGES ................ 461,482 461,253 229
------------ ----------- -----------
TOTAL OPERATING EXPENSES ...... 20,506,303 26,599,180 (6,092,877)
INCOME FROM OPERATIONS ............ 180,943 676,409 (495,466)
INCOME FROM EQUITY INVESTMENT ..... 0 0 0
FEDERAL INCOME TAXES .............. (208,988) 5,591 (214,579)
------------ ----------- -----------
NET INCOME ........................ $ 389,931 $ 670,818 $ (280,887)
============ =========== ===========
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PAGE 4
PRODUCERS GAS SALES, INC.
INCOME STATEMENT
FOR PERIOD ENDED DECEMBER 31
1995 1994 VARIATION
------------ ---------- ------------
OPERATING REVENUES ............... $ 7,594,478 $ 14,110,188 $(6,515,710)
OPERATING EXPENSE
PURCHASED GAS .................. 7,103,549 13,435,246 (6,331,697)
TRANSPORTATION ................. 66,071 233,729 (167,658)
STORAGE EXPENSE ................ 371,888 287,262 84,626
GENERAL AND ADMINISTRATIVE ..... 131,473 124,596 6,878
GENERAL TAXES .................. 25,499 12,283 13,216
----------- ------------ -----------
TOTAL OPERATING EXPENSES ..... 7,698,480 14,093,116 (6,394,635)
INTEREST INCOME .................. 35,577 20,617 14,960
SHORT-TERM DEBT INTEREST EXPENSE . 0 300 (300)
INTERCOMPANY INTEREST EXPENSE .... 97,062 100,177 (3,115)
OTHER INCOME ..................... 5,128 2,777 2,352
----------- ------------ -----------
INCOME (Loss) BEFORE FEDERAL
INCOME TAX ..................... (160,359) (60,011) (100,348)
FEDERAL INCOME TAX ............... (54,522) (20,404) (34,118)
----------- ------------ -----------
NET INCOME (Loss) ................ $ 105,837 $ (39,607) $ 66,230
=========== ============ ===========
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PAGE 5
NATIONAL GAS & OIL COMPANY
CONSOLIDATED BALANCE SHEET
ASSETS
DECEMBER 31, 1995
NATIONAL
GAS & OIL
COMPANY
CONSOLIDATED
------------
PROPERTY, PLANT & EQUIPMENT ......................... $90,960,798
LESS ACCUMULATED DEPRECIATION ....................... 31,309,019
NET PROPERTY, PLANT & EQUIPMENT ................... 59,651,779
CURRENT ASSETS
CASH .............................................. 448,250
SHORT TERM INVESTMENTS ............................ 782,788
ACCOUNTS RECEIVABLE - NET ......................... 10,285,798
GAS IN STORAGE .................................... 2,321,552
MATERIALS & SUPPLIES .............................. 980,787
PREPAID TAXES ..................................... 2,896,527
UNRECOVERED GAS COST .............................. (141,501)
PREPAID INSURANCE & OTHER ......................... 374,663
DEFERRED TAXES .................................... 2,668
-----------
TOTAL CURRENT ASSETS ............................ 17,951,532
OTHER ASSETS
PREPAID FIT & OTHER ............................... 2,460
DUE FROM RATEPAYERS ............................... 397,668
INVESTMENT IN ALESTRA ............................. 213,973
-----------
TOTAL ASSETS .................................... $78,217,412
===========
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PAGE 5A
CAPITALIZATION & LIABILITIES
DECEMBER 31, 1995
NATIONAL
GAS & OIL
COMPANY
CONSOLIDATED
------------
CAPITALIZATION
COMMON STOCK ...................................... $ 7,018,512
CAPITAL SURPLUS ................................... 31,353,832
RETAINED EARNINGS ................................. 3,848,187
TREASURY STOCK .................................... (1,550,509)
-----------
TOTAL CAPITALIZATION ............................ 40,670,022
LONG TERM DEBT ...................................... 10,629,442
CURRENT LIABILITIES
CURRENT MATURITIES ................................ 1,327,264
SHORT TERM BANK LOANS ............................. 1,350,000
ACCOUNTS PAYABLE .................................. 5,491,004
ACCRUED TAXES ..................................... 4,318,683
RATE REFUNDS DUE CUSTOMERS ........................ 135,157
DEFERRED TAXES .................................... (328,388)
OTHER ............................................. 1,627,140
-----------
TOTAL CURRENT LIABILITIES ....................... $13,920,860
DEFERRED CREDITS
DEFERRED COMPENSATION & OTHER ..................... 3,517,511
DEFERRED TAXES .................................... 8,112,490
INVESTMENT TAX CREDITS ............................ 1,084,188
DUE TO RATEPAYERS ................................. 282,899
-----------
TOTAL DEFERRED CREDITS .......................... 12,997,088
TOTAL CAPITALIZATION & LIABILITIES .................. $78,217,412
===========
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PAGE 6
NATIONAL GAS & OIL CORPORATION
ASSETS
DECEMBER 31, 1995
NATIONAL
GAS & OIL
CORPORATION
-----------
PROPERTY, PLANT & EQUIPMENT ......................... $62,444,717
LESS ACCUMULATED DEPRECIATION ....................... 22,199,392
NET PROPERTY, PLANT & EQUIPMENT ................... 40,245,325
CURRENT ASSETS
CASH .............................................. 264,432
ACCOUNTS RECEIVABLE - NET ......................... 3,604,666
GAS IN STORAGE .................................... 1,984,892
MATERIALS & SUPPLIES .............................. 768,493
PREPAID TAXES ..................................... 2,896,527
UNRECOVERED GAS COST .............................. (141,501)
PREPAID INSURANCE & OTHER ......................... 303,270
INTERCOMPANY ACCOUNTS ............................. 1,007,923
-----------
TOTAL CURRENT ASSETS ............................ 10,688,702
OTHER ASSETS
DUE FROM RATEPAYERS ............................... 397,668
TOTAL ASSETS .................................... $51,331,695
===========
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PAGE 6A
NATIONAL GAS & OIL CORPORATION
CAPITALIZATION & LIABILITIES
DECEMBER 31, 1995
NATIONAL
GAS & OIL
CORPORATION
-----------
CAPITALIZATION
COMMON STOCK ..................................... $ 2,003,266
CAPITAL SURPLUS .................................. 4,530,743
RETAINED EARNINGS ................................ 21,993,087
-----------
TOTAL CAPITALIZATION ........................... 28,527,096
LONG TERM DEBT ..................................... 6,000,000
CURRENT LIABILITIES
SHORT TERM BANK LOANS ............................ 1,350,000
ACCOUNTS PAYABLE ................................. 979,274
ACCRUED TAXES .................................... 4,092,939
RATE REFUNDS DUE CUSTOMERS ....................... 135,157
DEFERRED TAXES ................................... (328,388)
OTHER ............................................ 1,278,734
-----------
TOTAL CURRENT LIABILITIES ...................... $ 7,507,716
DEFERRED CREDITS
DEFERRED COMPENSATION & OTHER .................... 3,460,441
DEFERRED TAXES ................................... 4,516,994
INVESTMENT TAX CREDITS ........................... 1,036,549
DUE TO RATEPAYERS ................................ 282,899
-----------
TOTAL DEFERRED CREDITS ......................... 9,296,883
TOTAL CAPITALIZATION & LIABILITIES ................. $51,331,695
===========
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PAGE 7
PRODUCERS GAS SALES, INC.
BALANCE SHEET
ASSETS
DECEMBER 31, 1995
PRODUCERS GAS
SALES, INC.
-------------
PROPERTY, PLANT & EQUIPMENT ......................... $ 0
LESS ACCUMULATED DEPRECIATION ....................... 0
LESS PROPERTY RELATED DEFERRED TAXES ................ 0
-----------
NET PROPERTY, PLANT & EQUIPMENT ................... 0
CURRENT ASSETS
CASH .............................................. 15,229
SHORT TERM INVESTMENTS ............................ 580,753
ACCOUNTS RECEIVABLE - NET ......................... 2,497,113
GAS IN STORAGE .................................... 336,660
PREPAID INSURANCE & OTHER ......................... 2,211
INTERCOMPANY ACCOUNTS ............................. 214,553
-----------
TOTAL ASSETS .................................... $ 3,646,519
===========
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PAGE 7A
PRODUCERS GAS SALES, INC.
CAPITALIZATION & LIABILITIES
DECEMBER 31, 1995
PRODUCERS GAS
SALES, INC.
-------------
CAPITALIZATION
COMMON STOCK ...................................... $ 500
CAPITAL SURPLUS ................................... 0
RETAINED EARNINGS ................................. 307,347
-----------
TOTAL CAPITALIZATION ............................ 307,847
LONG TERM DEBT ...................................... 0
CURRENT LIABILITIES
CURRENT MATURITIES ................................ 0
SHORT TERM BANK LOANS ............................. 0
ACCOUNTS PAYABLE .................................. 3,381,160
ACCRUED TAXES ..................................... (42,488)
-----------
TOTAL CURRENT LIABILITIES ....................... 3,338,672
OTHER ............................................... 0
TOTAL CAPITALIZATION & LIABILITIES .................. $ 3,646,519
===========
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PAGE 8
NGO DEVELOPMENT CORPORATION
BALANCE SHEET
ASSETS
DECEMBER 31, 1995
NGO
DEVELOPMENT
CORPORATION
-----------
PROPERTY, PLANT & EQUIPMENT ......................... $26,818,775
LESS ACCUMULATED DEPRECIATION ....................... 8,403,877
NET PROPERTY, PLANT & EQUIPMENT ................... 18,414,898
CURRENT ASSETS
CASH .............................................. 9,558
SHORT TERM INVESTMENTS ............................ 202,035
ACCOUNTS RECEIVABLE - NET ......................... 4,181,733
MATERIALS & SUPPLIES .............................. 212,294
PREPAID INSURANCE & OTHER ......................... 69,183
INTERCOMPANY ACCOUNTS ............................. (4,930,694)
-----------
TOTAL CURRENT ASSETS ............................ (255,891)
OTHER ASSETS
PREPAID FIT & OTHER ............................... 1,450
INVESTMENT IN ALESTRA ............................. 213,973
TOTAL ASSETS .................................... $18,374,430
===========
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PAGE 8A
NGO DEVELOPMENT CORPORATION
CAPITALIZATION & LIABILITIES
DECEMBER 31, 1995
NGO
DEVELOPMENT
CORPORATION
-----------
CAPITALIZATION
COMMON STOCK ...................................... $ 100,000
CAPITAL SURPLUS ................................... 2,271,826
RETAINED EARNINGS ................................. 5,383,818
-----------
TOTAL CAPITALIZATION ............................ 7,755,644
LONG TERM DEBT ...................................... 4,037,500
CURRENT LIABILITIES
CURRENT MATURITIES ................................ 1,300,000
ACCOUNTS PAYABLE .................................. 1,130,570
ACCRUED TAXES ..................................... 125,152
OTHER ............................................. 335,638
-----------
TOTAL CURRENT LIABILITIES ....................... 2,891,360
DEFERRED CREDITS
DEFERRED COMPENSATION & OTHER ..................... 57,070
DEFERRED TAXES .................................... 3,585,217
INVESTMENT TAX CREDITS ............................ 47,639
-----------
TOTAL DEFERRED CREDITS .......................... 3,689,926
TOTAL CAPITALIZATION & LIABILITIES .................. $18,374,430
===========
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