Badger Pipe Line Company - Page 12

                                       - 12 -                                         

          ordinary and normal course of petitioner's business; (2)                    
          relocation expenses, such as petitioner incurred, are commonly              
          and ordinarily incurred in the pipeline business and are                    
          necessary in the operation of that business; (3) the relocation             
          was not part of a general plan of rehabilitation and did not                
          adapt the pipeline to a new use; and (4) the pressure, capacity,            
          and use of the pipeline were the same before and after the                  
          relocation.  They disagree as to the differences in quality                 
          between the 1991 pipe and the 1968 pipe it replaced, and the                
          impact of those differences on the useful life and the effect on            
          the overall value of the pipeline.                                          
               The Route 83 relocation involved less than 1,000 feet of               
          pipeline out of 25 miles of 16 inch pipeline, which was part of a           
          335-mile system.  See Fire Companies Bldg. Corp. v. Burnet, 57              
          F.2d 943, 944 (D.C. Cir. 1932) (this "is not a case of replacing            
          a few feet of iron piping with brass piping, but rather the                 
          replacing of all iron piping in the hot-water system with a much            
          more expensive material, which appreciably added to the value of            
          the property.").  Regardless of whether the 1991 pipe is of                 
          better quality or has a longer life than the materials used in              
          constructing the 1968 pipeline, we are satisfied that the Route             
          83 relocation, given its limited scope, did not materially add to           
          the value of the pipeline or appreciably prolong the life of the            
          1968 pipe.  We are not persuaded otherwise by the analysis of               

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011