SECTION 1. INTRODUCTION

.01 In general. This Appendix A lists the units of property and major components for non-linear natural gas transmission and distribution property to which the taxpayer applies the non-linear safe harbor method. See section 5.04 of this revenue procedure. The units of property and major components are listed for compressor stations, gas storage facilities, and measuring and regulating stations, including city gate stations. Not all the identified units of property are necessarily present at a given location; for example, an above-ground compressed natural gas storage facility will not have liquefaction equipment or a well. Each meter and regulator is a separate unit of property, wherever located. If a unit of property has major components, all the major components are identified. The treatment of the costs of non-linear property that are not specifically identified in this Appendix A (for example, tools, fixtures, furniture, computer equipment, and other miscellaneous equipment) are excluded from this revenue procedure and are determined under §§ 263(a), 263A, and other applicable authority.

.02 Instrumentation and controls. In general, instrumentation and controls are a major component of the unit of property they monitor or control. However, all the on-site instrumentation and controls for each compressor station, gas storage facility, or measuring and regulating station that are not associated with a particular unit of property are a single unit of non-linear property. As used in this revenue procedure, the term “instrumentation and controls” does not include assets that are treated as separate units of property (for example, meters and regulators).

.03 Scope. This Appendix A does not apply to determine the units of property of non-linear property or the major components of these units of property if the taxpayer does not use the safe harbor method for non-linear property.