Okla. Admin. Code § 165:75-5-4

Current through Vol. 42, No. 7, December 16, 2024

Section 165:75-5-4 - Replacements/additions

(a) The Commission shall be notified of destruction, material damage by fire, or tornado, or other causes of all gin utilities provided that nothing herein shall prevent the owner or operator of a gin so damaged or destroyed to replace said ginning facilities prior to the beginning of the next cotton ginning season. If the gin cannot be repaired or rebuilt within the above designated period, the owner or operator shall seek relief under 165:75-3-5.

(b) Additions, replacements, betterments, and repairs in respect to cotton gin plants shall be so defined and classified as follows:

(1) Additions are structures, facilities, equipment, and other property added to those in service at any given time and not taking the place of any property of like kind previously held by the owner or operator and taken into the property accounts. Such additions to the cotton gin utility shall be taken into the property account and shown in the next annual report in the details and particulars and on blanks authorized by the Commission.

(2) Replacements are those installations of plant and equipment which have for their purpose the substitution of one (1) building, structure, piece of equipment, machine or mechanical part for another, which it has become necessary to retire; the substitute, having substantially no greater capacity than the building, structure, piece of equipment, machine or mechanical part retired, shall be credited to the accounts in which it is carried and the cost of the substitute so installed shall be charged to the appropriate accounts.

(3) If such replaced substitute shall be greater capacity or efficiency than the building, structure, piece of equipment, machine, or mechanical part replaced at the time of the latter's previously installation, the excess of cost of such substitute, if any, over the first cost of that removed shall be carried as cost of betterment, and such increase of capacity or efficiency shall be regarded as betterment and the residue of such cost as replacement cost, and all such shall be shown in the annual report of such cotton gin utility in such detail and particulars and upon such blanks as may be authorized by the Commission.

(4) For the purpose of determining what shall constitute repairs, the major parts of all cotton gin utilities, such as gin stands, et cetera, shall be regarded as equipment and each part of such equipment known in the cotton gin trade as a "unit" shall be regarded as divided into a class having determine function in such unit, such as gin frame, gin breast, saw cylinder, brush cylinder, et cetera; and a class having merely contributory such as saws, et cetera; and the substitution of any unit of a mechanical part of a unit having a determinative function shall be regarded as a replacement and not as a repair, and shall be carried, with the determined betterment, if any, under the paragraph (3); but the replacement or correction of any of the merely contributory parts shall be regarded as a repair and be charged to the appropriate operating expense account. Mechanical parts for such substitutes shall be regarded as replacement line and center shafting, line shaft and pulleys, idlers, fan jacks, fans, complete airlines, droppers, separators, vacuum boxes, cleaners, extractor machine distributors, feeders, gin breast, complete saw cylinder, complete brush, gin frames, complete lint flues, condensers, packers, lint cleaners, complete press boxes, ram cylinder, rams, press screws, pumps, scales, complete conveyor elevators, main drive belting, bull extractors, unloaders, generators, motors, boilers, heaters, engines, engine flywheels, engine cylinders, crank shafts, engine frames or bases. The substitution or repair of any of the minor parts of the foregoing shall be regarded as repair and other mechanical parts not enumerated shall be regarded according the same rule or principle. In the matter of buildings, complete roofs, partitions, complete floors, complete walls, foundations, platforms, and decks and other outside annexes and wells, tanks and complete water lines, etc.; shall be regarded as replacements and that minor corrections or repairs of any one of these and painting shall be regarded as repairs.

Okla. Admin. Code § 165:75-5-4

Amended at 10 Ok Reg 2661, eff 6-25-93