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removed pipe was taken to one of petitioner's storage facilities.
The pipe has not been reused and remains in inventory.
Petitioner did not retire the removed pipe, nor did it remove the
undepreciated cost of that pipe from its books and records. The
original 1968 pipe on either side of the newly installed 1991
pipe was unaffected by the Route 83 relocation.
Prior to, during, and following the Route 83 relocation,
petitioner's pipeline complied with all existing regulatory
requirements at the Route 83 location site. The Route 83
relocation was performed by petitioner solely to comply with its
contractual obligations under its permit from IDOT and in order
to continue the use of its pipeline in the ordinary and normal
course of its business; it was not performed in response to any
regulatory order, regulation, or other regulatory requirement of
IDOT or any other regulatory agency. Relocation expenses such as
those incurred by petitioner are ordinary and necessary incidents
of petitioner's business, are commonly and ordinarily incurred in
the pipeline business, and are necessary to enable a pipeline to
operate in the normal course of business.
The Route 83 relocation was not performed as part of a
general plan of rehabilitation or refurbishment. It was not
intended to, and did not, adapt the pipeline to a new or
different use. It did not result in any change in use of
petitioner's pipeline system. Prior to, during, and following
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Last modified: May 25, 2011