Logistic

Section: Transmission Pipelines

Document Number 5.1.1

Pipelines Subject: General Rules

Summary

Description

Replacement Cost New

This section describes the formulas, rules and principles for determining the assessed value of transmission pipelines.

A pipeline is a line of pipe used for the transportation of petroleum, petroleum products, gas or any substance prescribed in the Regulations of a municipal Act. The line of pipe must be located on or under a continuing strip of land or pipeline right-of- way.

Transmission Pipeline

A transmission pipeline receives petroleum, petroleum products, or gas from a battery, satellite, gas plant, compressor station, or other facility at which the oil or gas is prepared for pipeline transport.

A primary transmission pipeline is the largest diameter line of pipe on or under a continuing strip of land or pipeline right-of-way.

A secondary transmission pipeline is any other line of pipe on or under a continuing strip of land or pipeline right-of-way occupied by a primary transmission pipeline.

An idle pipeline is a transmission pipeline that has not been used to transport petroleum, petroleum products, or gas during the period January 1 to December 31 of the year immediately preceding the year to which the assessment roll relates.

The replacement cost new of the pipeline shall be determined using the unit-in-place method. The unit-in-place base rates account for all direct and indirect costs. No additional adjustments shall be made to the unit-in-place base rate.

Unit-In-Place Method

The replacement cost new shall be determined as follows:

1. Determine the type of pipeline using the rating guide.

2. Determine the features requiring adjustment.

3. Calculate the replacement cost new of the pipeline by adjustment of the base rate by the adjustment factors and applying the adjusted base rate to the number of units of pipeline....