C001683 2022-01-01 2022-09-30 C001683 2022-09-30 C001683 2021-01-01 2021-09-30 C001683 2021-09-30 C001683 2022-06-30 C001683 2022-07-01 2022-09-30 C001683 2021-07-01 2021-09-30 C001683 2021-12-31 C001683 2022-07-01 2022-07-31 C001683 2022-08-01 2022-08-31 C001683 2022-09-01 2022-09-30 C001683 2020-12-31 C001683 ferc:GasUtilityMember 2022-09-30 C001683 ferc:GasUtilityMember ferc:TransmissionPlantMember 2022-01-01 2022-09-30 C001683 ferc:GasUtilityMember ferc:GeneralPlantMember 2022-01-01 2022-09-30 C001683 ferc:GasUtilityMember 2022-01-01 2022-09-30 C001683 1 2022-01-01 2022-09-30 C001683 1 2022-06-30 C001683 1 2022-07-01 2022-09-30 C001683 1 2022-09-30 C001683 1 2022-01-01 2022-09-30 C001683 1 2022-06-30 C001683 1 2022-07-01 2022-09-30 C001683 1 2022-09-30 C001683 1 2022-01-01 2022-09-30 C001683 1 2022-07-01 2022-07-31 C001683 1 2022-08-01 2022-08-31 C001683 1 2022-09-01 2022-09-30 C001683 2 2022-01-01 2022-09-30 C001683 2 2022-07-01 2022-07-31 C001683 2 2022-08-01 2022-08-31 C001683 2 2022-09-01 2022-09-30 C001683 3 2022-01-01 2022-09-30 C001683 3 2022-07-01 2022-07-31 C001683 3 2022-08-01 2022-08-31 C001683 3 2022-09-01 2022-09-30 C001683 4 2022-01-01 2022-09-30 C001683 4 2022-07-01 2022-07-31 C001683 4 2022-08-01 2022-08-31 C001683 4 2022-09-01 2022-09-30 C001683 5 2022-01-01 2022-09-30 C001683 5 2022-07-01 2022-07-31 C001683 5 2022-08-01 2022-08-31 C001683 6 2022-01-01 2022-09-30 C001683 6 2022-08-01 2022-08-31 C001683 6 2022-09-01 2022-09-30 C001683 7 2022-01-01 2022-09-30 C001683 7 2022-07-01 2022-07-31 C001683 7 2022-08-01 2022-08-31 C001683 7 2022-09-01 2022-09-30 C001683 8 2022-01-01 2022-09-30 C001683 8 2022-07-01 2022-07-31 C001683 8 2022-08-01 2022-08-31 C001683 8 2022-09-01 2022-09-30 C001683 9 2022-01-01 2022-09-30 C001683 ferc:DiscountedRateMember 2022-07-01 2022-07-31 C001683 ferc:NegotiatedRateMember 2022-07-01 2022-07-31 C001683 ferc:RecourseRateMember 2022-07-01 2022-07-31 C001683 ferc:DebitedMember 2022-07-01 2022-07-31 C001683 ferc:CreditedMember 2022-07-01 2022-07-31 C001683 44 2022-07-01 2022-07-31 C001683 49 2022-07-01 2022-07-31 C001683 ferc:DiscountedRateMember 2022-08-01 2022-08-31 C001683 ferc:NegotiatedRateMember 2022-08-01 2022-08-31 C001683 ferc:RecourseRateMember 2022-08-01 2022-08-31 C001683 ferc:DebitedMember 2022-08-01 2022-08-31 C001683 ferc:CreditedMember 2022-08-01 2022-08-31 C001683 44 2022-08-01 2022-08-31 C001683 49 2022-08-01 2022-08-31 C001683 ferc:DiscountedRateMember 2022-09-01 2022-09-30 C001683 ferc:NegotiatedRateMember 2022-09-01 2022-09-30 C001683 ferc:RecourseRateMember 2022-09-01 2022-09-30 C001683 ferc:DebitedMember 2022-09-01 2022-09-30 C001683 ferc:CreditedMember 2022-09-01 2022-09-30 C001683 44 2022-09-01 2022-09-30 C001683 49 2022-09-01 2022-09-30 C001683 Stagecoach Pipeline & Storage Company LLC 2022-01-01 2022-09-30 C001683 Stagecoach Pipeline & Storage Company LLC 2022-07-01 2022-09-30 C001683 16 Stagecoach Pipeline & Storage Company LLC 2022-01-01 2022-09-30 C001683 16 Stagecoach Pipeline & Storage Company LLC 2022-07-01 2022-09-30 C001683 17 Stagecoach Pipeline & Storage Company LLC 2022-01-01 2022-09-30 C001683 17 Stagecoach Pipeline & Storage Company LLC 2022-07-01 2022-09-30 C001683 32 Stagecoach Pipeline & Storage Company LLC 2022-01-01 2022-09-30 C001683 32 Stagecoach Pipeline & Storage Company LLC 2022-07-01 2022-09-30 C001683 33 Stagecoach Pipeline & Storage Company LLC 2022-01-01 2022-09-30 C001683 33 Stagecoach Pipeline & Storage Company LLC 2022-07-01 2022-09-30 C001683 34 Stagecoach Pipeline & Storage Company LLC 2022-01-01 2022-09-30 C001683 34 Stagecoach Pipeline & Storage Company LLC 2022-07-01 2022-09-30 C001683 35 Stagecoach Pipeline & Storage Company LLC 2022-01-01 2022-09-30 C001683 35 Stagecoach Pipeline & Storage Company LLC 2022-07-01 2022-09-30 C001683 ferc:GasUtilityMember 2021-01-01 2021-09-30 C001683 1 2022-01-01 2022-09-30 C001683 1 2021-01-01 2021-09-30 C001683 1 2022-01-01 2022-09-30 C001683 1 2021-01-01 2021-09-30 C001683 2 2022-01-01 2022-09-30 C001683 2 2021-01-01 2021-09-30 C001683 3 2022-01-01 2022-09-30 C001683 3 2021-01-01 2021-09-30 C001683 1 2022-01-01 2022-09-30 C001683 1 2022-01-01 2022-09-30 C001683 1 2021-01-01 2021-09-30 C001683 1 2022-01-01 2022-09-30 C001683 1 2022-01-01 2022-09-30 xbrli:pure iso4217:USD utr:dth 543990012 264799495 649979 223541 544639991 265023036 544639991 544639991 544639991 544639991 20032 20032 544660023 544660023 265023036 265023036 279636987 279636987 265023036 265023036 265023036 265023036 15545532 15545532 20596 20596 15566128 15566128 Deferred Income Tax Rate Adjustment (amortized through May 2036) 151486 411.1 2721 148765 151486 2721 148765 1 FERC Annual Charge Adjustment 12 months ending September 30 Pursuant to 18 CFR 154.402 (a) and 18 CFR 382.202 184732 1070756 928 184732 1070756 184732 1070756 184732 1070756 1 1 <div><p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">1<font style="font-size: 18pt;">. None.</font></font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 18pt;">2. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 18pt;">3. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 18pt;">4. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 18pt;">5. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 18pt;">6. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 18pt;">7. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 18pt;">8. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 18pt;">9. See page 122.1, Notes to Financial Statements, Note 6 "Litigation and Environmental."</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 18pt;">10. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 18pt;">11. </font><font style="font-family: arial, helvetica, sans-serif; font-size: 24px;">See page 122.1, Notes to Financial Statements, Note 5 "Rate and Regulatory Matters."</font></p> <p><font style="font-size: 18pt;"><font style="font-family: Arial, sans-serif;">12. Changes made during the nine months ended September 30, 2022:</font></font></p> <p><font style="font-size: 18pt;"><font style="font-family: Arial, sans-serif;">Appointments:</font></font></p> <p style="padding-left: 30px;"><font style="font-size: 18pt;"><font style="font-family: Arial, sans-serif;">Thomas P. <font style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">Otjen</font> - Vice President</font></font></p> <p style="padding-left: 30px;"><font style="font-size: 18pt;"><font style="font-family: Arial, sans-serif;">Vicki A. Phillips - Vice President</font></font></p> <p><font style="font-size: 18pt;"><font style="font-family: Arial, sans-serif;">Resignations:</font></font></p> <p style="padding-left: 30px;"><font style="font-size: 18pt;"><font style="font-family: Arial, sans-serif; border: 1pt none windowtext; padding: 0in;">Meli</font><font style="font-family: Arial, sans-serif;"> Armstrong - Vice President</font></font></p> <p style="font-variant-ligatures: normal; font-variant-caps: normal; orphans: 2; text-align: start; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; word-spacing: 0px; padding-left: 30px;"><font style="font-size: 18pt;"><font style="font-family: Arial, sans-serif; color: black;">Jorge Torres - Vice President</font></font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 18pt;">13. N/A.</font></p> <p> </p></div> 1 108579453 68334305 37764606 24100860 108579453 68334305 9719914 12572860 4475594 2712505 9719914 12572860 435712 429220 243449 -549561 435712 429220 15566128 15513700 5187253 5166758 15566128 15513700 4115807 4426135 1411597 1648917 4115807 4426135 14046287 4344300 4722318 2431380 14046287 4344300 6462515 1611700 2172469 1179927 6462515 1611700 1511726 875385 504189 610018 1511726 875385 8163 5887 2721 5887 8163 5887 51849926 39767413 18714148 13194057 51849926 39767413 56729527 28566892 19050458 10906803 56729527 28566892 1171 585 1171 585 -1171 -585 87 87 87 87 56728356 28566805 19049873 10906716 56728356 28566805 19049873 10906716 28566805 56728356 Distributions of Earnings to Member 211 -56728356 -28566805 1 Change in prepayments -1606344 -1742384 Change in miscellaneous deferred debits -268027 Current income taxes 20442445 5956000 18836101 3945589 1 2 3 Change in customer advances for construction -8391340 -8391340 1 2160420 1518843 3679263 -735320 66440 6195538 6261978 4472501 1154466 1154466 60855 460434 66440 3620649 248474 65963 710564 37950 7494 5278823 179437 252309 3966 435712 5714535 5714535 972 967736 23204 839477 185709 137081 273208 543259 189078 126901 3285653 3285653 0 0 56728356 28566805 0 0 0 0 154738 1035400 1035400 155000 1027450 1027450 436 436 55318283 66322 11975270 12041592 53468898 61985 11810865 11872850 50434689 58049 11728829 11786878 55473021 66322 13010670 13076992 53623898 61985 12838315 12900300 50434689 58049 11729265 11787314 2062850 309738 2062850 309738 436 104997324 480870853 1518843 108579453 FTS 15439674 17419 3037064 3054483 14932827 18528 3063812 3082340 13083627 17919 3047594 3065513 FTS-2 34067720 39918 7788446 7828364 32907242 40904 7872135 7913039 31527762 36059 7768243 7804302 FWS 4511461 4271 891024 895295 4470685 4303 897436 901739 4624000 4380 899341 903721 ITS 1262800 1457 60696 62153 1158070 1515 63140 64655 1199300 1390 57903 59293 ITS-2 36628 53 4431 4484 44 3663 3707 IWS 74 1 7 8 FSS 37709 37709 37709 37709 37709 37709 ESTIMATE 3205 155900 159105 -3309 -127030 -130339 -1700 -81968 -83668 1 2 3 4 5 6 7 8 9 53088 28586 54449 136123 326725 175929 335102 837756 See Footnote 4430 4430 27264 27264 53088 28586 58879 140553 326725 175929 362366 865020 279 151 286 716 1716 929 1760 4405 854 810 992 992 6105 6105 819 810 279 151 1278 1708 1716 929 7865 10510 243 131 250 624 1498 806 1536 3840 84 45 94 223 522 276 576 1374 various 812 327 176 344 847 2020 1082 2112 5214 38672 20823 39663 99158 238001 128154 244103 610258 813 812 38672 20823 39663 99158 238001 128154 244103 610258 13810 7436 14156 35402 84988 45764 87127 217879 3438 3438 21159 21159 13810 7436 17594 38840 84988 45764 108286 239038 13810 7436 17594 38840 84988 45764 108286 239038 174 806 Other Dispositions 13810 7436 17594 38840 84988 45764 108286 239038 Gas due from shippers 51211 27575 52525 131311 399648 215193 409900 1024741 3792 3792 29592 29592 51211 27575 56317 135103 399648 215193 439492 1054333 296 296 2310 2310 819 810 296 296 2310 2310 109 59 112 280 849 458 871 2178 22 12 25 59 170 92 198 460 various 812 131 71 137 339 1019 550 1069 2638 63741 34322 65376 163439 497430 267847 510185 1275462 813 812 63741 34322 65376 163439 497430 267847 510185 1275462 -12661 -6818 -12988 -32467 -98802 -53204 -101354 -253360 3496 3496 27282 27282 -12661 -6818 -9492 -28971 -98802 -53204 -74072 -226078 Other Dispositions 12661 6818 9492 28971 98802 53204 74072 226078 806 174 Gas due from shippers 12661 6818 9492 28971 98802 53204 74072 226078 Stagecoach Pipeline & Storage Company LLC 469634752 159221870 12996944 3875651 3336595 1689194 2271668 879771 9326168 843141 244117 326541 163858 System Supply - Net Park & Loan 8601212 5734313 Deliveries of Contract Storage 29201580 29201580 536538601 201010354 309738 309738 480870853 159221870 29201580 8467754 1169682 -1012646 2271668 879771 44273 -177274 Other Gas Used 611 348 Net Park & Loan 8601212 5734313 Gas of Others Received for Contract Storage 12996944 12996944 TBO Fuel 7188 2216 535473749 186423034 1064852 1064852 536538601 187487886 16 17 32 33 34 35 544639991 544625538 60324 544685862 249502578 295183284 279636987 295183284 11625922 7622065 1166 194 76505 256084 3322501 1716157 3021668 18225009 9414533 554197 2802795 1166565 41814 43819 3915365 1764581 301777361 306362398 286603780 301143048 286603780 301143048 492777 773943 46020 18389 7875 76342 8485 856711 742079 1479725 1542896 8515844 156928 5029247 3519526 13693856 3676454 301777361 306362398 Distributions to Member 93221795 47884799 93221795 47884799 1 15566128 15513700 1503563 869498 6948048 1336147 256084 -147203 402490 516559 84766254 47961935 19831 77136 -8371509 77136 84032 8455541 -77136 -93221795 -47884799 0 0 William E. Morgan Vice President, Operational Controller /s/ William E. Morgan 2022-11-29 2/3-Q Stagecoach Pipeline & Storage Company LLC C001683 2022 Q3 1001 Louisiana Street, Suite 1000, Houston, TX 77002 James M. Brossett Director, Financial Reporting 2 North Nevada Avenue, Colorado Springs, CO 80903 719-520-4721 O 2022-09-30 <div><p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; line-height: normal;"><strong><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">1. General</font></strong></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Organization</font></em></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">We are a New York limited liability company formed in 2001. When we refer to "us", "we", "our", "the Company", or "Stagecoach Pipeline" we are describing Stagecoach Pipeline &amp; Storage Company, LLC. Stagecoach Pipeline is an indirect wholly-owned subsidiary of Kinder Morgan, Inc. (KMI) which, on July 8, 2021, acquired Stagecoach Pipeline and certain other assets from Stagecoach Gas Services LLC (Stagecoach Gas), a joint venture equally owned by a wholly-owned subsidiary of Crestwood Midstream Partners, LP (Crestwood Midstream) and a wholly-owned subsidiary of Consolidated Edison, Inc. (Consolidated Edison).</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">For purposes of this report, references to Respondent mean Stagecoach Pipeline solely in its capacity as the owner and operator of the North-South and Marc I Projects (described below). The financial statements and results of operations reported herein for the Respondent relate exclusively to the North-South and Marc I Projects. References to Stagecoach Pipeline mean Stagecoach Pipeline in its capacity as a legal entity, thus capturing all of the company's assets and operations (including the North-South and Marc I Projects).</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Description of Operations</font></em></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Stagecoach Pipeline owns natural gas storage and natural gas transportation facilities that are regulated by the Federal Energy Regulatory Commission (FERC). The Stagecoach natural gas storage facility provides storage services to customers under market-based rate authority granted by the FERC. The Stagecoach South Lateral is an approximate 21-mile 30" pipeline that connects the Stagecoach Central Compressor Station in Tioga County, New York to Tennessee Gas Pipeline's (TGP) 300 Line in Bradford County, Pennsylvania. The Stagecoach North Lateral is an approximate 10-mile 20" pipeline that connects the Stagecoach Central Compressor Station to the Millennium Pipeline in Tioga County, New York.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">The Respondent offers firm wheeling services through its North and South Laterals to/from <font style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">TGP's</font> 300 Line and the Millennium Pipeline and various points in between. Firm wheeling shippers are able to wheel gas on a firm basis up to their maximum daily firm wheeling quantity between primary contracted receipt and delivery points on the North and/or South Laterals and the Respondent derives revenues from the natural gas transportation services provided to its customers using the North-South facilities.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">The Marc I Project facilities consist of a 39-mile, 30-inch interstate natural gas pipeline that extends from the Respondent's Stagecoach South Lateral interconnect with <font style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">TGP's</font> 300 Line and Transcontinental Gas Pipeline Corporation's <font style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">Leidy</font> Line.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Stagecoach Pipeline provides natural gas storage services at market-based rates, and the Respondent provides firm wheeling services and firm transport services at negotiated rates (subject to cost-of-service recourse rates). See the basis of presentation below for important notes regarding the presentation of the financial statements.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><strong><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">2. Summary of Significant Accounting Policies</font></strong></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; line-height: normal;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Basis of Presentation</font></em></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">The Respondent&#8217;s financial statements are prepared in accordance with the accounting requirements of the FERC as set forth in its applicable Uniform System of Accounts and published accounting releases, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. In management&#8217;s opinion, these financial statements reflect normal and recurring adjustments that are necessary for a fair presentation of Respondent&#8217;s financial results for the interim periods presented, and adequate disclosures have been made to make the information presented not misleading. These interim financial statements should be read along with the financial statements and related notes included in our 2021 Annual Report of Non-Major Natural Gas Companies on Form No. 2A.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Management has evaluated subsequent events through November 29, 2022, the date the financial statements were available to be issued.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">The Respondent's financial statements are inclusive of only a portion of Stagecoach Pipeline's financial results, representing the results exclusively of the North-South and Marc I Projects. As such, these financial statements do not reflect the financial position and results of operations of Stagecoach Pipeline as a legal entity.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">The Respondent has included the revenues (firm wheeling services, firm transportation services and interruptible transportation services) related to the North-South and Marc I Projects only; storage-related revenues are not included in the results of operations in these financial statements. Expenses are directly assigned to the cost-based transportation services whenever possible and expenses that are specifically unique to providing market-based storage services have been excluded for the periods presented. Where direct assignment of costs is not possible, costs are allocated to the Marc I facilities and the North-South Lateral facilities based on gross plant balances for each. The North-South Lateral allocation is further broken down between cost-based and market-based activities on the laterals based on the percentage of contract demand for cost-based services relative to total contract demand on the laterals. The expenses allocated to market-based activities and services as described above are excluded for the periods presented.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><strong><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">3. Income Taxes</font></strong></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">We are a limited liability company and are not subject to federal or state income taxes. However, our approved rates include an allowance for income taxes, and the FERC requires that we reflect such taxes in our financial statements. Prior to July 8, 2021, the accompanying financial statements include an allowance for income taxes based on the weighted average composite tax rate of Consolidated Edison (the parent company of Con Edison Gas Pipeline and Storage Northeast LLC, which owned a 50% interest in the joint venture parent of the Respondent). The composite tax rates of the unit holders of Crestwood Equity Partners (the parent company of Crestwood Midstream, which owned the other 50% interest in the joint venture parent of the Respondent) were not included in the calculation of income taxes in accordance with the <font style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">FERC's</font> revised policy on income taxes that disallows an entity organized as a Master Limited Partnership (MLP) from recovering an income tax allowance in its cost of service rates. The weighted average composite tax rate used to calculate income taxes was approximately 13% for the six months ended June 30, 2021. KMI is a taxable C-corporation; therefore, effective with the July 8, 2021 acquisition of Stagecoach Pipeline by KMI, the allowance for income taxes is calculated on Respondent's total reported operations as if it was a taxable corporation. The allowance for current income taxes for the nine months ended September 30, 2022 and 2021 is settled as a part of distributions to Members.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><strong><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">4. Related Party Transactions</font></strong></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Cash Management Program</font></em></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Through Stagecoach Pipeline&#8217;s cash management agreement with KMI, Respondent participates in <font style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">KMI&#8217;s</font> cash management program, which matches the short-term cash surpluses and needs of participating affiliates, thus minimizing total borrowings from outside sources. KMI uses the cash management program to settle intercompany transactions between participating affiliates. As of September 30, 2022 and December 31, 2021, Respondent had no balance with KMI or Stagecoach Pipeline under the cash management program.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Affiliate Balances and Activities</font></em></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Pursuant to a management agreement in effect prior to July 8, 2021 between Crestwood Midstream Operations LLC, a wholly owned subsidiary of Crestwood Midstream, and Stagecoach Gas, Crestwood Midstream provided managerial, administrative and financial operations, and technical support services for the Respondent. Included in the statement of income is an allocation of corporate costs involved with providing these services. The corporate cost allocation for the three months and nine months ended September 30, 2021 was $3.6 million and $6.0 million, respectively.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Subsequent to the July 8, 2021 acquisition, we are managed and operated by KMI, who provides services to us. Under KMI policies, we reimburse KMI at cost for direct and indirect costs incurred on our behalf and allocated general and administrative costs. For the three months and nine months ended September 30, 2022, Respondent's portion of these costs amounted to $0.9 million and $2.4 million, respectively.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">We have transportation agreements with Consolidated Edison which, prior to July 8, 2021 was an affiliate of Stagecoach Pipeline. The agreements provide for daily transportation rights of approximately 0.1 billion cubic feet. For the three months and nine months ended September 30, 2021, we recognized affiliate revenue of $1.5 million and $3.0 million, respectively, under these agreements.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">The following table summarizes our other balance sheet affiliate balances (in millions):</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <div align="center"> <table class="MsoNormalTable" style="width: 931.5pt; border-collapse: collapse; border: none; mso-border-alt: dashed #BBBBBB .75pt; mso-yfti-tbllook: 1184; mso-padding-alt: 0in 0in 0in 0in;" border="1" width="0" cellspacing="0" cellpadding="0"> <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes; height: 22.5pt;"> <td style="width: 94.0pt; border: solid windowtext 1.0pt; border-bottom: solid windowtext 4.5pt; padding: 0in 0in 0in 0in; height: 22.5pt;" valign="bottom" width="125"> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: center; line-height: normal;" align="center"><strong><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman';">Account</font></strong></p> </td> <td style="width: 7.0in; border: solid windowtext 1.0pt; border-left: none; padding: 0in 0in 0in 0in; height: 22.5pt;" width="672"> </td> <td style="width: 164.85pt; border-top: solid windowtext 1.0pt; border-left: none; border-bottom: solid windowtext 4.5pt; border-right: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; height: 22.5pt;" colspan="2" valign="bottom" width="220"> <p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; text-align: center; line-height: normal;" align="center"><strong><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman';">September 30, 2022</font></strong></p> </td> <td style="width: 168.65pt; border-top: solid windowtext 1.0pt; border-left: none; border-bottom: solid windowtext 4.5pt; border-right: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; height: 22.5pt;" colspan="2" valign="bottom" width="225"> <p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; text-align: center; line-height: normal;" align="center"><strong><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman';">December 31, 2021</font></strong></p> </td> </tr> <tr style="mso-yfti-irow: 1; height: 38.25pt;"> <td style="width: 94.0pt; border: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; height: 38.25pt;" width="125"> <p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; margin-left: .1pt; text-align: center; line-height: normal;" align="center"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman';">146</font></p> </td> <td style="width: 7.0in; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; height: 38.25pt;" width="672"> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-right: 3.75pt; mso-margin-bottom-alt: auto; margin-left: .1pt; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman';">Accounts receivable from associated companies</font></p> </td> <td style="width: 22.5pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; height: 38.25pt;" width="30"> <p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; margin-left: .1pt; text-align: right; line-height: normal;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman';">$</font></p> </td> <td style="width: 142.35pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; height: 38.25pt;" width="190"> <p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; margin-left: .1pt; text-align: right; line-height: normal;" align="right"><font style="font-size: 12.0pt; font-family: 'Times New Roman',serif; mso-fareast-font-family: 'Times New Roman';">-</font></p> </td> <td style="width: 24.15pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; height: 38.25pt;" width="32"> <p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; margin-left: .1pt; text-align: right; line-height: normal;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman';">$</font></p> </td> <td style="width: 144.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; height: 38.25pt;" width="193"> <p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; margin-left: .1pt; text-align: right; line-height: normal;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman';">0.1</font></p> </td> </tr> <tr style="mso-yfti-irow: 2; height: 42.0pt;"> <td style="width: 94.0pt; border: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; height: 42.0pt;" width="125"> <p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; margin-left: .1pt; text-align: center; line-height: normal;" align="center"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman';">174</font></p> </td> <td style="width: 7.0in; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; height: 42.0pt;" width="672"> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-right: 3.75pt; mso-margin-bottom-alt: auto; margin-left: .1pt; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman';">Gas imbalances receivable from associated companies</font></p> </td> <td style="width: 22.5pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; height: 42.0pt;" width="30"> <p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; margin-left: .1pt; text-align: right; line-height: normal;" align="right"> </p> </td> <td style="width: 142.35pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; height: 42.0pt;" width="190"> <p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; margin-left: .1pt; text-align: right; line-height: normal;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman';">0.5</font></p> </td> <td style="width: 24.15pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; height: 42.0pt;" width="32"> <p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; margin-left: .1pt; text-align: right; line-height: normal;" align="right"> </p> </td> <td style="width: 144.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; height: 42.0pt;" width="193"> <p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; margin-left: .1pt; text-align: right; line-height: normal;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman';">-</font></p> </td> </tr> <tr style="mso-yfti-irow: 3; height: 42.0pt;"> <td style="width: 94.0pt; border: solid windowtext 1.0pt; border-top: none; padding: 0in 5.4pt 0in 5.4pt; height: 42.0pt;" width="125"> <p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; margin-left: .1pt; text-align: center; line-height: normal;" align="center"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman';">186</font></p> </td> <td style="width: 7.0in; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; height: 42.0pt;" width="672"> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-right: 3.75pt; mso-margin-bottom-alt: auto; margin-left: .1pt; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman';">Advance of deferred income taxes to Member</font></p> </td> <td style="width: 22.5pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; height: 42.0pt;" width="30"> </td> <td style="width: 142.35pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; height: 42.0pt;" width="190"> <p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; margin-left: .1pt; text-align: right; line-height: normal;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman';">2.7</font></p> </td> <td style="width: 24.15pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; height: 42.0pt;" width="32"> </td> <td style="width: 144.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; height: 42.0pt;" width="193"> <p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; margin-left: .1pt; text-align: right; line-height: normal;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman';">1.2</font></p> </td> </tr> <tr style="mso-yfti-irow: 5; mso-yfti-lastrow: yes;"> <td style="width: 94.0pt; border: dashed #BBBBBB 1.0pt; border-top: none; mso-border-top-alt: dashed #BBBBBB .75pt; mso-border-alt: dashed #BBBBBB .75pt; padding: 0in 0in 0in 0in;" width="125"> </td> <td style="width: 7.0in; border-top: none; border-left: none; border-bottom: dashed #BBBBBB 1.0pt; border-right: dashed #BBBBBB 1.0pt; mso-border-top-alt: dashed #BBBBBB .75pt; mso-border-left-alt: dashed #BBBBBB .75pt; mso-border-alt: dashed #BBBBBB .75pt; padding: 0in 0in 0in 0in;" width="672"> </td> <td style="width: 22.5pt; border-top: none; border-left: none; border-bottom: dashed #BBBBBB 1.0pt; border-right: dashed #BBBBBB 1.0pt; mso-border-top-alt: dashed #BBBBBB .75pt; mso-border-left-alt: dashed #BBBBBB .75pt; mso-border-alt: dashed #BBBBBB .75pt; padding: 0in 0in 0in 0in;" width="30"> </td> <td style="width: 142.35pt; border-top: none; border-left: none; border-bottom: dashed #BBBBBB 1.0pt; border-right: dashed #BBBBBB 1.0pt; mso-border-top-alt: dashed #BBBBBB .75pt; mso-border-left-alt: dashed #BBBBBB .75pt; mso-border-alt: dashed #BBBBBB .75pt; padding: 0in 0in 0in 0in;" width="190"> </td> <td style="width: 24.15pt; border-top: none; border-left: none; border-bottom: dashed #BBBBBB 1.0pt; border-right: dashed #BBBBBB 1.0pt; mso-border-top-alt: dashed #BBBBBB .75pt; mso-border-left-alt: dashed #BBBBBB .75pt; mso-border-alt: dashed #BBBBBB .75pt; padding: 0in 0in 0in 0in;" width="32"> </td> <td style="width: 144.5pt; border-top: none; border-left: none; border-bottom: dashed #BBBBBB 1.0pt; border-right: dashed #BBBBBB 1.0pt; mso-border-top-alt: dashed #BBBBBB .75pt; mso-border-left-alt: dashed #BBBBBB .75pt; mso-border-alt: dashed #BBBBBB .75pt; padding: 0in 0in 0in 0in;" width="193"> </td> </tr> </table> </div> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Other Affiliate Agreement</font></em></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">KMI and substantially all of its wholly owned domestic subsidiaries, including us, are a party to a cross guarantee agreement whereby each party to the agreement unconditionally guarantees, jointly and severally, the payment of specified indebtedness of each other party to the agreement.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; line-height: normal;"><strong><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">5. Rate and Regulatory Matters</font></strong></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; line-height: normal;"> </p> <p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal; text-align: justify;"><font style="font-family: Arial, sans-serif; font-size: 16pt; text-align: justify;">On September 22, 2022, we were notified by the FERC of the commencement of a rate proceeding against us pursuant to Section 5 of the Natural Gas Act. This proceeding sets the matter for hearing to determine whether our current cost-based rates for transportation and firm wheeling services remain just and reasonable. A proceeding under Section 5 of the Natural Gas Act is prospective in nature such that a change in rates charged to customers, if any, would likely only occur after the FERC has issued a final order. Unless a settlement is reached sooner, an initial Administrative Law Judge decision is anticipated in the fourth quarter of 2023, with a final FERC decision anticipated in 2024. We are required to file a cost-and-revenue study by December 6, 2022, and expect to begin active settlement discussions in conjunction with that filing. We do not believe that the ultimate resolution of this proceeding will have a material adverse impact to our business.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; line-height: normal;"><strong><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">6. Litigation and Environmental</font></strong></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Legal Matters</font></em></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">We are party to various legal, regulatory and other matters arising from the day-to-day operations of our business that may result in claims against the Company. Although no assurance can be given, we believe, based on our experiences to date and taking into account established reserves, that the ultimate resolution of such items will not have a material adverse impact on our business. We believe we have meritorious defenses to the matters to which we are a party and intend to vigorously defend the Company. When we determine a loss is probable of occurring and is reasonably estimable, we accrue an undiscounted liability for such contingencies based on our best estimate using information available at that time. If the estimated loss is a range of potential outcomes and there is no better estimate within the range, we accrue the amount at the low end of the range. We disclose contingencies where an adverse outcome may be material, or in the judgment of management, we conclude the matter should otherwise be disclosed.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">We had no accruals for any outstanding legal proceedings as of September 30, 2022 and December 31, 2021.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Environmental Matters</font></em></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">We are subject to environmental cleanup and enforcement actions from time to time. In particular, the Comprehensive Environmental Response, Compensation and Liability Act generally imposes joint and several liability for cleanup and enforcement costs on current and predecessor owners and operators of a site, among others, without regard to fault or the legality of the original conduct, subject to the right of a liable party to establish a "reasonable basis" for apportionment of costs. Our operations are also subject to federal, state and local laws and regulations relating to protection of the environment. Although we believe our operations are in substantial compliance with applicable environmental laws and regulations, risks of additional costs and liabilities are inherent in our operations, and there can be no assurance that we will not incur significant costs and liabilities. Moreover, it is possible that other developments could result in substantial costs and liabilities to us, such as increasingly stringent environmental laws, regulations and enforcement policies under the terms of authority of those laws, and claims for damages to property or persons resulting from our operations.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"> </p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Although it is not possible to predict the ultimate outcomes, we believe that the resolution of the environmental matters, and other matters to which we are a party, will not have a material adverse effect on our business. We had no accruals for any outstanding environmental matters as of September 30, 2022 and December 31, 2021.</font></p></div> 44503 26461 49314 120278 287613 171013 318706 777332 12041 12041 77819 77819 44503 26461 61355 132319 287613 171013 396525 855151 -2961 -173066 -3269 -179296 -19586 -711231 -21620 -752437 854 810 18 18 116 116 819 810 -2961 -173066 -3251 -179278 -19586 -711231 -21504 -752321 486 289 539 1314 3140 1867 3482 8489 24 15 27 66 158 94 175 427 various 812 510 304 566 1380 3298 1961 3657 8916 206354 309674 286227 802255 1351614 1598791 1867267 4817672 813 812 206354 309674 286227 802255 1351614 1598791 1867267 4817672 -159400 -110451 -234210 -504061 -1047713 -718508 -1530598 -3296819 12023 12023 77703 77703 -159400 -110451 -222187 -492038 -1047713 -718508 -1452895 -3219116 Other Dispositions 159400 110451 222187 492038 1047713 718508 1452895 3219116 806 174 Gas due from shippers 159400 110451 222187 492038 1047713 718508 1452895 3219116 The value of this gas is based on the current month index price and it is not adjusted to reflect a change in pricing subsequent to the month shipper supplied gas is retained. This footnote applies to all periods within the quarter. Line 14 Dekatherms do not include electric compressor stations. This footnote applies to all periods within the quarter. Gas supplied as operational gas for "Transportation by Others." This footnote applies to all periods within the quarter. This line includes operation and maintenance fuel and known losses due to blowdowns, emergency shut downs, compressor start-ups, flares, line purges, tube inspections and relief valves. This footnote applies to all periods within the quarter. Recorded pursuant to Docket No. AI93-5-000 issued on April 23, 1993 (Accounting for Income Taxes). Many of the natural gas volumes required to be reported on this page are tracked at the entity level rather than by discounted, negotiated or recourse rate contracts; therefore, the amounts reported have been allocated to discounted, negotiated or recourse rate contracts based on reasonable assumptions. A non-revenue recognition method for shipper supplied gas is used which results in accounting entries for net fuel over or under collected rather than separate revenue entries for shipper supplied gas and expenses for gas used in compressors. This footnote applies to lines 4 and 6 for all periods within the quarter. Accounts 855, 856 and 863 are debited for gas used for other operational purposes. This footnote applies to all periods within the quarter. Includes reclassification of Gas Lost & Unaccounted for, reported on Line 11 in the first quarter of 2022, to line 26. Month Dth Amount Jan (60,129) $ (229,632) Feb (52,948) (227,306) Mar (58,256) (243,161) Total (171,333) $ (700,099) January 2022 - March 2022 reclassification of Dth previously reported in the first quarter of 2022 on line 11. April 2022 - June 2022 Dth were not previously reported. Month Dth Amount Jan 60,129 $ 229,632 Feb 52,948 227,306 Mar 58,256 243,161 Apr 184,178 1,082,835 May 196,554 1,393,450 Jun 142,934 948,081 Sep 107,256 693,207 Total 802,255 $ 4,817,672