Badger Pipe Line Company - Page 5

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          company paid the expense of relocating its own pipelines.  Of               
          petitioner's $288,597 in expenditures on the Route 83 relocation,           
          $23,111 represents the cost of the new pipe and pipe bends                  
          installed, and $3,196 represents the cost of the pipe coating.              
          The remainder of $262,290 represents expenditures for labor,                
          miscellaneous supplies, and the removal and restoration of                  
          Jackson Street.                                                             
               When performing a relocation of the foregoing type, it is              
          not feasible to stop the flow of product through the pipeline for           
          the duration of time necessary to complete the relocation.                  
          Consequently, petitioner had to dig new trenches, install                   
          replacement pipe, test the pipe, and then divert the product flow           
          to the relocated portion of the pipeline.  The existing pipe was            
          then removed.  Completing the relocation in this manner                     
          interrupts product flow for only a few hours and the supply of              
          product to users only marginally.  Accordingly, petitioner was              
          able to continue its business operations in the normal course,              
          with only a minor interruption.  The foregoing procedure is a               
          common and ordinary occurrence in petitioner's business.                    
               The less than 1,000 feet of pipeline at issue in this case             
          is part of the approximately 25-mile section of 16-inch Badger              
          pipeline originally installed and placed in service in 1968 (the            
          1968 pipe).  The entire 1968 pipe runs between pumping stations             
          located at Canal Junction and Des Plaines, Illinois, and                    

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Last modified: May 25, 2011