UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
In the Matter of
TENTH
NATIONAL FUEL GAS COMPANY CERTIFICATE
HORIZON ENERGY DEVELOPMENT, INC. PURSUANT TO
RULE 24
File No. 70-8649
(Public Utility Holding Company Act of 1935)
THIS IS TO CERTIFY, pursuant to Rule 24, that certain transactions
proposed by National Fuel Gas Company (National) and its subsidiary, Horizon
Energy Development, Inc. (Horizon) in its Application-Declaration on Form U-1,
as amended (File No. 70-8649), have been carried out in accordance with the
terms and conditions of said Application-Declaration and the Order (HCAR No.
35-26364, dated August 29, 1995) of the Securities and Exchange Commission (the
Commission) with respect thereto, and that the following information for the
quarter ended December 31, 1997 is herein provided:
1a) Horizon's balance sheet at December 31, 1997 is attached as
Exhibit 1.
1b) National's balance sheet at December 31, 1997 is included in
National's Form 10-Q for the quarter ending December 31, 1997,
which has been filed with the Commission on February 17, 1998 and
is incorporated herein by reference.
2a) Horizon's income statement for the quarter ended December 31, 1997
is attached as Exhibit 2.
2b) National's income statement for the quarter ended December 31,
1997 is included in National's Form 10-Q for the quarter ending
December 31, 1997, which was filed with the Commission on February
17, 1998 and is incorporated herein by reference.
<PAGE>
3) Recourse and non-recourse debt securities issued to third parties
by Intermediate Companies during the quarter ended December 31,
1997:
None.
4) A general description of the activities of the Applicants for
the quarter ended December 31, 1997, and of the projects in which
they or their subsidiary companies have an ownership interest:
The Project Activities (as such term is defined in the aforesaid
Application-Declaration) that National and Horizon, and
subsidiaries of Horizon, were engaged in pursuant to File No.
70-8649, as of December 31, 1997, are as follows:
Horizon, through its wholly owned subsidiary, Beheer-En
Beleggingsmaatschappij Bruwabel, B.V. ("Bruwabel"), continues to
own 100% of the capital stock of each of Power International
s.r.o. (now, Horizon Energy Development s.r.o.), ("HED") and Power
Development s.r.o. ("PD"). PD in turn continues to own 100% of the
capital stock of Teplarna Kromeriz a.s. ("TK"). These entities
continue to engage in power development and related activities in
the Czech Republic and eastern Europe.
The only material asset of HED, PD and TK is the district heating
system of TK, which sells steam heat to its residential commercial
customers in the city of Kromeriz, Czech Republic. TK continues to
investigate ways to convert the existing steam plant into a
cogeneration facility, or otherwise to generate electricity at the
site. If progress is made in this endeavor, Horizon, or its
subsidiaries, will file for electric wholesale generator ("EWG")
or foreign utility company ("FUCO") status, as appropriate, at the
appropriate time.
Bruwabel owns approximately 71% of the capital stock of
Severoceske Teplarny, a.s. ("SCT"). SCT is a power and heating
utility located in the northern part of the Czech Republic.
Bruwabel, as a shareholder of SCT, has received, and expects to
continue to receive, dividends from its investment in the SCT
shares. Furthermore, Bruwabel and SCT will pursue efforts by which
SCT might develop additional electrical generation capacity. In
the event any such efforts proceed, the appropriate entity will
file for EWG or FUCO status, as appropriate, at the appropriate
time.
5) Information on intercompany service transactions (including those
provided at cost and at market rates) involving affiliated
Intermediate Companies during the quarter ended September 30,
1997:
Neither Horizon nor National engaged in any intercompany
service transactions with affiliate Intermediate Companies.
<PAGE>
March 2, 1998 NATIONAL FUEL GAS COMPANY
By: /s/ Philip C. Ackerman
----------------------------------
Philip C. Ackerman
Senior Vice President
HORIZON ENERGY DEVELOPMENT,
INC.
By: /s/ Ronald J. Tanski
----------------------------------
Ronald J. Tanski
Secretary and Treasurer
Exhibit 1
HORIZON ENERGY DEVELOPMENT, INC.
BALANCE SHEET
(Unaudited)
At December 31, 1997
--------------------
ASSETS
Current Assets:
Cash $ 6,332,736
Accounts Receivable - Net 5,682,221
Unbilled Utility Revenue 1,572,237
Materials & Supplies 3,605,423
Prepaid Expenses 605,852
------------
Total Current Assets 17,798,469
------------
Property, Plant & Equipment 74,152,271
Less: Reserve for DDA 22,729,020
------------
51,423,251
------------
Other Assets: 7,702,823
------------
Total Assets $ 76,924,543
============
LIABILITIES AND STOCKHOLDERS EQUITY Capital Stock $1 Par:
Shares Authorized, Issued and Outstanding: 1,250 $ 1,250
Paid-in Capital 3,248,750
Retained Earnings (13,285,626)
Cumulative Translation Adjustment (4,388,407)
------------
Total Stockholders Equity (14,424,033)
------------
Long-Term Debt, Net of Current Portion 4,837,496
Long-Term Debt - Intercompany 10,000,000
------------
Total Long-Term Debt 14,837,496
------------
Minority Interest in Foreign Subsidiaries 20,798,865
------------
Current and Accrued Liabilities:
Notes Payable - Intercompany 45,400,000
Accounts Payable 4,473,405
Accounts Payable - Intercompany 1,335,607
Federal Income Taxes Payable (517,739)
Other Accrued Liabilities 4,103,027
------------
Total Current and Accrued Liabilities 54,794,300
------------
Deferred Credits:
Accumulated Deferred Income Taxes (121,936)
Other Deferred Credits 1,039,851
------------
Total Deferred Credits 917,915
------------
Total Liabilities and Stockholders Equity $ 76,924,543
============
Exhibit 2
HORIZON ENERGY DEVELOPMENT, INC.
INCOME STATEMENT
(Unaudited)
Three Months Ended
December 31, 1997
------------------
Operating Revenues $ 11,588,701
-------------
Operating Expenses:
Operation Expense 9,636,714
Maintenance Expense 515,695
Property, Franchise and Other Taxes 2,142
Depreciation, Depletion and Amortization 548,680
-------------
Total Operating Expenses 10,703,231
-------------
Operating Income 885,470
-------------
Other Income 26,441
-------------
Interest Charges 614,161
-------------
Income Before Income Taxes 297,750
-------------
Income Taxes - Current 231,004
- Deferred (12,316)
-------------
218,688
-------------
Minority Interest in Foreign Subsidiaries (426,657)
-------------
Net Loss $ (347,595)
=============
