Financial Reporting System

FORM EIA-28
• FINANCIAL REPORTING SYSTEM •
Sch 5111
Sch 5110
EIA-28
Financial Reporting System
Sch 5100 -- Page 1 of 1

Instructions
2006 Reporting Year

December 2006

EIA-28 Survey Instructions

Contents
Page
I. General Instructions ................................................................................................................................................................1
A. Purpose and Legislative Authority.....................................................................................................................................1
B. Filing Requirements...........................................................................................................................................................1
C. Other Filing Requirements.................................................................................................................................................1
D. Confidentiality ...................................................................................................................................................................1
E. Sanctions ............................................................................................................................................................................1
F. Data Entry ..........................................................................................................................................................................2
G. Use of Exhibits ..................................................................................................................................................................2
H. Amendments to FRS Reported Data..................................................................................................................................3
II. FRS Overview.........................................................................................................................................................................4
A. Relation to Reporting Company's Accounting Principles..................................................................................................4
B. FRS Segments and FAS 14................................................................................................................................................4
C. Eliminations at More Than One Level...............................................................................................................................4
D. FRS Segment Allocations and Nontraceable Columns......................................................................................................5
E. One-Line Consolidations....................................................................................................................................................5
F. Income Tax Expense ..........................................................................................................................................................5
G. Petroleum Operations .........................................................................................................................................................7
H. Coal, Nuclear and Non-conventional LOB Operations .....................................................................................................9
I. Downstream Natural Gas LOB Operations .......................................................................................................................11
J. Electric Power LOB Operations........................................................................................................................................12
K. Nonenergy Operations .....................................................................................................................................................13
L. Allocating Amounts to Geographic Areas .......................................................................................................................13
M. Significance Standards (Materiality)...............................................................................................................................14
N. Operating Statistics and Financial Data ...........................................................................................................................14
O. Corporate Acquisitions and Dispositions.........................................................................................................................14
P. Discontinued Operations ..................................................................................................................................................14
III. Schedule Instructions...........................................................................................................................................................15
Schedule 5110 .......................................................................................................................................................................15
Schedule 5111 .......................................................................................................................................................................16
Schedule 5112 .......................................................................................................................................................................17
Schedule 5120 .......................................................................................................................................................................18
Schedule 5131 .......................................................................................................................................................................19
Schedule 5150 .......................................................................................................................................................................20
Schedule 5210 .......................................................................................................................................................................21
Schedule 5211 .......................................................................................................................................................................22
Schedule 5212 .......................................................................................................................................................................25
Schedule 5241 .......................................................................................................................................................................26
Schedule 5242 .......................................................................................................................................................................26
Schedule 5245 .......................................................................................................................................................................27
Schedule 5246 .......................................................................................................................................................................27
Schedule 5250 .......................................................................................................................................................................28
Schedule 5710 .......................................................................................................................................................................28
Schedule 5711 .......................................................................................................................................................................29
Schedule 5712 .......................................................................................................................................................................30
Schedule 5741 .......................................................................................................................................................................31
Schedule 5810 .......................................................................................................................................................................31
Schedule 5811 .......................................................................................................................................................................32
Schedule 5812 .......................................................................................................................................................................33
Schedule 5841 .......................................................................................................................................................................33
Glossary..................................................................................................................................................................................... 39
Index.......................................................................................................................................................................................... 59

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EIA-28 Survey Instructions

I. General Instructions
A. Purpose and Legislative Authority
The legislative authority for the Energy Company
Financial Reporting System (FRS), Form EIA-28, is
provided by Section 205(h) of the Department of
Energy Organization Act of 1977 (Public Law 9591).
The data collected include revenues, profits, funds
flows, and investments in total, as well as by type of
energy (e.g., petroleum: coal, nuclear and nonconventional; downstream natural gas, electric
power; and non-energy) by function (e.g., producing,
refining/marketing, pipelines, and wholesale/retail
operations), and by geographic area. The data are
used to evaluate the competitive environment within
which energy products are supplied and developed
and to analyze the nature of institutional
arrangements as they relate to energy resource
development, supply, and distribution.
The
information is published annually in the report,
entitled Performance Profiles of Major Energy
Producers.

B. Filing Requirements
The FRS schedules are designed to collect
information for reporting periods that coincide with
the fiscal years of individual reporting companies.

Requests For Exception From Reporting
Requirements
Requests for exception from reporting requirements
should be made with the FRS program office at the
address on the following page. Appeals of FRS
program office decisions may be filed with the Office
of Hearings and Appeals, Department of Energy, in
accordance with the provisions of 10 CFR 205 (D).

Filing Due Dates
Reporting companies must file the form for the most
recent fiscal year by May 15th of each year.

C. Other Filing Requirements
Who Must File
The Administrator of the Energy Information Administration
has designated the major energy companies required to report.
Respondents have been notified of their reporting
requirements.

Certification
The FRS Certification Statement, on each of the submitted
copies, must be signed by an officer of the reporting company,
or a designee of an officer of the reporting company.

Where to File
Submit two (2) copies of the completed Form EIA-28,
supporting documentation and exhibits to the following
address:
U.S. Department of Energy
Financial Reporting System, EI-62
Forrestal Building, Rm 2G-090
1000 Independence Avenue, S.W.
Washington, D.C. 20585

D. Confidentiality
Prior to conducting each annual FRS (Form EIA-28) survey,
companies are selected based on criteria established by EIA
that are applied to publicly available information. The
selection criteria can be viewed on the EIA Web site at
http://www.eia.doe.gov/emeu/perfpro/appenda.html#criteria.
The names of the companies selected in this manner are not
confidential and will be publicly released.
The information you provide will be used for statistical
purposes only. In accordance with the Confidential
Information Protection provisions of Title 5, Subtitle A, Public
Law 107-347 and other applicable Federal laws, your
responses will be kept confidential and will not be disclosed in
identifiable form to anyone other than employees or agents
without your consent. By law, every EIA employee as well as
every agent is subject to a jail term, a fine of up to $250,000 or
both if he or she makes public ANY identifiable information
about you.

E. Sanctions
Extensions of Time To File:
If the entire FRS form is not expected to be
completed by the due date, requests for a two week
extension will be considered if the Team Leader of
the Financial Reporting System has been notified in
writing at least one month in advance of the due date.
Such notification letter must detail why the due date
cannot be met.

The timely submission of Form EIA-28 by those required to
report is mandatory under Section 13 (b) of the Federal
Energy Administration Act of 1974 (FEAA) (Public Law 93275), as amended. Failure to respond may result in a civil
penalty of not more than $2,750 per day for each violation, or
a fine of not more than $5,000 per day for each willful
violation. The government may bring a civil action to prohibit
reporting violations that may result in a temporary restraining
order or a preliminary or permanent injunction without bond.
In such civil action, the court may also issue mandatory

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EIA-28 Survey Instructions

injunctions commanding any person to comply with
these reporting requirements.

Agency or Department of the United States any false,
fictitious, or fraudulent statements as to any matter within its
jurisdiction.

Title 18 U.S.C. 1001 makes it a criminal offense for
any person knowingly and willingly to make to any

F. Data Entry
Rounding
All dollar amounts must be rounded to the nearest
million. All physical amounts (including barrels,
cubic feet, tons, acres, pounds, MW, Mwh, etc.) must
be rounded to the nearest thousand and expressed in
thousands of units unless otherwise noted on the
reporting schedule. The specific requirements are
indicated on each schedule.
In rounding, for
example, 2,533,500 tons must be reported as 2,534 M
tons; similarly, 57,498,680,000 cubic feet must be
reported as 57,499 MMCF. Quantities of wells are
not rounded, but are expressed to the nearest tenth of
a well. Miles of transmission and distribution assets
should be rounded to the nearest whole mile.

Estimates
Where the reporting company's records cannot
produce data in the fashion required by FRS, use of
estimates is encouraged if the respondent feels a
meaningful estimate can be made without significant
distortion of results. Where estimates are used,
attach an explanation as part of Exhibit B identifying
where estimates are used and indicating how such
estimates were made. If there is any doubt, contact
the FRS staff.

Sign Conventions (Use of Brackets)
Except for the instances noted below, all amounts
entered should be positive (i.e., not bracketed),
regardless of whether they are revenues, expenses,
assets or liabilities. Brackets should be used to
indicate when an item is the opposite of what is
indicated on the line's title. For example, the line on
the income statements entitled "income tax expense"
would be bracketed only if the tax
were negative (e.g., a credit), such as in the case of a
net operating loss in one of the segments.
The exceptions to this rule are as follows:
The eliminations columns on the income statements
(5110, 5210, 5710 and 5810) must be bracketed.
In the income statements (5110, 5210, 5710 and
5810) items reported under the caption "other
revenue and expense" are bracketed if they are debits,
and un-bracketed if they are credits. This particular
exception is indicated on the face of the schedule.
Items in the cash flow statement (5131) are
bracketed, if they are decreases in cash flow, and unbracketed, if they are increases.

2

The investment tax credit and foreign tax credits reported on
5112/02, 14, 27 & 28/A will be bracketed, as well as line 29,
statutory depletion. Effects of the Alternative Minimum Tax
(AMT) on 5112/3, 15, & 30/A will be bracketed if the effect is
a reduction in income tax expense.
In the statistical schedules, where movements between
beginning of year and end of year balances are reported, those
items representing reductions in the opening balances should
be bracketed. Examples are sales of minerals in place,
capacity reductions, and downward revisions of previous
estimates.

G. Use of Exhibits
The following information must be attached as exhibits:
Exhibit A.
Background information on the company's
accounting and financial reporting practices should include the
following:
If equity income is recognized in accounts other than line
07.00 of Schedule 5110, see the section of the instructions
entitled "FRS Overview: One-Line Consolidations," and
provide a complete explanation of the amounts and financial
statement accounts involved.
Exhibit B. Supplemental analysis of items appearing in the
financial schedules where required, if there is insufficient
room on the bottom margin of the particular schedule.
Specific information which should be included in Exhibit B is
described throughout the instructions.
Exhibit C. Summaries and explanations of eliminations made
in FRS consolidations, not covered on Schedule 5150 and
5250.
Exhibit D. Explain the nature of amounts included in the
non-traceable columns.
Exhibit E. The reporting company's SEC Form l0-K and two
copies of its audited financial statements are requested.
Exhibit F.
Any other information or explanations the
reporting company believes are needed to understand its
reported FRS data.
Each exhibit must be clearly labeled to indicate the specific
item of data (schedule, line, and column) for which a supplementary explanation is provided. Also, mark an "X" in the
"footnote" column on each schedule to indicate that a supple-

EIA-28 Survey Instructions

mentary explanation has been provided for an item of
data on that line.

unusual circumstances exist. If a significant burden is
foreseen, consultation with the FRS staff is recommended at
the beginning.

H. Amendments to FRS Reported Data
Circumstances
An amended FRS report must be filed if: (a) there
has been a determination that information previously
filed is materially inaccurate or misleading (see the
section of the instructions entitled "FRS Overview-Significance Standards"), or (b) financial or statistical
reporting standards are changed, rendering prior
reports non-comparable to current reports.
In the case of changes in statistical reporting
standards imposed by the Federal Government,
amendments must be filed for the year of the change
and one preceding year.

Due Date
In the case of (a) above, the amendment is due within 90 days
of such determination. In the case of (b) above, the
amendment is due at the time of filing the first report
embodying the new reporting principle(s).
Each exhibit must be clearly labeled to indicate the specific
item of data (schedule, line, and column) for which a supplementary explanation is provided. Also, mark an "X" in the
"footnote" column on each schedule to indicate that a supplementary explanation has been provided for an item of data on
that line.

If an amended filing is required, submit only those
pages affected. Identify the change(s) on each page
by circling the changed or new data elements. In
addition, the letter accompanying the amendment
should provide the reason(s) for the change(s).

Since an FRS filing covers only 1 year, sufficient
reports must be filed to amend all prior years
affected. This will be limited to 5 years, unless

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EIA-28 Survey Instructions

II. FRS Overview
A. Relation to Reporting Company's
Accounting Principles
In completing the FRS schedules, reporting
companies should follow the accounting principles
they currently use to prepare their annual certified
financial statements. However, there are some
exceptions covered in the following sections. (See
especially section N, if you have acquired a company
or if the FRS reporting company has itself been
acquired during the reporting period.)
All of the detailed FRS financial schedules aggregate
up into Schedule 5110. Specifically, Schedules 5110
and 5120 contain a "consolidated" column,
representing the reporting company's certified
consolidated financial statements. However, there
may be some differences between the FRS line items
in this column and the classifications in the reporting
company's published financial statements. Such
differences must be explained and reconciled on a
separate sheet of paper attached as part of Exhibit B.

B. FRS Lines of Business/Segments and
Financial Accounting Standard (FAS) 131
The FRS is designed to present a company's
operations as separate functional “lines of business”
and “segments” within a “line of business (LOB),” as
though each were a separate entity, entering into
transactions with other LOBs, segments and third
parties.
In FRS, the reporting company's
consolidated financial statements are disaggregated to
separate financial statements for each applicable
"functional line of business."
Although similar to FAS 131, the FRS goes beyond
FAS 131 in that the FRS segments are often further
disaggregations of a line of business defined pursuant
to FAS 131. In all other respects, the principles
outlined in FAS 131 should be followed for FRS
purposes.

C. Eliminations at More Than One Level
The reporting company may not have a separate
entity for consolidation purposes corresponding to
each of the FRS LOBs. Therefore, to complete the
FRS schedules, it may be necessary to disaggregate
information from specific operations within the
reporting company's consolidation into the FRS functional lines of business and then perform a new
consolidation based on the FRS LOBs , including
appropriate eliminations at each level of sub-

4

consolidation (schedules 5210, 5710, and 5810) as required.
See Schedule 5150 that summarizes the major inter-LOB
eliminations.
In preparing FRS eliminations, two factors must be kept in
mind. First, the FRS LOBs are not consolidated all at once.
For example, the three foreign petroleum segments are first
consolidated on Schedule 5210, page 2 of 2 and then these
consolidated foreign petroleum segments are consolidated
with the consolidated domestic petroleum segments on the
same schedule, page 1 of 2. Finally, the consolidated
petroleum LOB is consolidated with the other lines of business
of the reporting company on Schedule 5110.
Therefore, there are three levels of consolidation for petroleum
and other LOB financial statements; eliminations must be
developed separately for each level of consolidation.
In establishing segments and determining appropriate eliminations, the second factor to keep in mind is that certain FRS
rules for defining what business functions are within each of
the defined segments must be observed.
Some examples of where to report eliminations are as follows:
Eliminations reported on Schedule 5110 in column B are only
the eliminations arising from transactions between Petroleum,
Coal, Nuclear and Non-conventional, Downstream Natural
Gas, Electric Power, and Nonenergy (Schedule 5110 columns
D through H, respectively). Eliminations arising from
transactions within these columns must be reported on the
appropriate schedule (i.e., 5210, 5710, 5810).
Within the Petroleum LOB, eliminations arising from
transactions between the Domestic Production Segment
(column E), the Domestic Refining/ Marketing Segment
(column F), and the Domestic Pipeline Segment (column G)
must be reported on Schedule 5210 in column D.
Within the Petroleum LOB, eliminations arising from
transactions between the Foreign Production Segment
(Column J), the Foreign Refining/Marketing segment (column
K) and the International Marine segment (Column L) must be
reported on Schedule 5210 in Column I.
Within the Petroleum LOB, eliminations arising from
transactions between the total Consolidated Domestic
operations (column C) and the total Consolidated Foreign
operations (column H) must be reported on Schedule 5210 in
column B.
Eliminations arising from transactions between the domestic
segments within the Downstream Natural Gas LOB must be
reported on Schedule 5710 in column D, and eliminations
between foreign and domestic are reported in column B.
Eliminations arising from transactions between segments
within the Electric Power LOB must be reported on Schedule

EIA-28 Survey Instructions

5810, column D for domestic, and eliminations
between foreign and domestic are reported in column
B.
Eliminations arising from transactions between the
Downstream Natural Gas LOB and the Electric
Power LOB must be reported on Schedule 5110 in
column B.
Eliminations arising from transactions between the
Electric Power LOB (column G) and the Non-energy
LOB (column H) must be reported on Schedule 5110
in column B.
Eliminations arising from transactions between the
Petroleum LOB and the Downstream Natural Gas
LOB must be reported on Schedule 5110 in column
B.

D. FRS LOB/Segment Allocations and
Non-traceable Columns
In disaggregating consolidated financial statements
for FRS, most items of revenue and expense can be
readily assigned to a particular functional line of
business and/or segments. However, there will be
some items (such as general corporate items) that
may be more difficult to assign to a particular
LOB/segment.
If, on the basis of operating realities, these items
cannot be assigned, they should be reported as non-traceable. It is the function of an item and not its
geographic location that determines how it should be
reported (i.e., within an FRS LOB/segment or as nontraceable). That is, some expenses occurring at the
corporate office location may in fact be assignable to
a particular FRS LOB/segment and therefore should
be assigned appropriately.

E. One-Line Consolidations
In the absence of a specific FRS staff interpretation to
the contrary (companies have been individually
notified
of
these
exceptions),
"one-line"
consolidations of equity in affiliate earnings should
be reflected in FRS submissions in the same way they
are reflected in the reporting company's published
financial statements. For example, if such equity in
earnings is reflected as a reduction in cost of raw
materials acquired, then it should be reflected as such
in the FRS income statements and in any supporting
schedules.
A detailed description of the method(s) of accounting
for such affiliates must be provided as a part of
Exhibit A. This description of accounting method(s)
must identify the specific account(s) and amounts in
both the consolidated and segment financial

statements that are reflected by the "one-line" consolidation
and the dollar amounts involved.

F. Income Tax Expense
Schedule 5112 – Analysis of Income Taxes
Schedule 5112 includes a complete analysis of income taxes at
the corporate level, not by functional line of business or
segments within an LOB. The amount reported on line 19,
column A (Income Tax Expense) is equal to the amount
reported on schedule 5110, line 16. This income tax expense is
also required for each LOB and each segment within an LOB.
A separate schedule should be completed in order to determine
these amounts.
LOB/Segment Income Tax Expense Assignment
Income tax expense is a very significant item of corporate
expense and is determined to a great degree by the operations
of particular LOB/segment. That is, items such as operating
profits and losses, investment tax credits, and foreign tax
credits can each be identified with individual LOBs/segments.
It is an objective of FRS to show the tax impacts of such items
within each LOB/segment. Each segment reporting an
operating profit or loss must also report an income tax expense
or benefit.
Therefore, the basic principle underlying the determination of
income tax expense for individual FRS LOBs/segments is that
each and every component of consolidated income tax
expense must either be identified with and allocated to a
particular LOB/segment or be classified as non-traceable. The
objective is to achieve an income tax expense for each
individual LOB/segment that reflects the benefits accruing to
the consolidated entity in the LOB/segment where the benefits
are generated.
In general, the following steps will be necessary to determine
income tax expense for each LOB/segment:
Classify the permanent differences according to the
LOB/segment in which they originate. For tax calculation
purposes, the non-traceable classifications are considered a
unique LOB/segment and should be assigned amounts that
cannot be associated with the operating LOB/segments.
Ascertain taxable income for each LOB/segment.
Allocate a pro-rata portion of consolidated U.S. income tax
expense before credits to each LOB/segment on the basis of
the ratio that a particular LOB/segment's taxable income bears
to the consolidated entity's taxable income.
If a
LOB/segment's taxable income is negative and the
consolidated entity has a positive tax expense, the
LOB/segment must reflect a negative tax expense.
Apply the tax credits that are utilized by the consolidated
entity against the tax expense of the LOB/segments where
they are generated. Tax credits generated that cannot be

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EIA-28 Survey Instructions

utilized by the consolidated entity due to limitations
are carried forward. If and when recognized by the
consolidated entity, they must be reflected as a tax
benefit in the LOB/segment where they were
originally generated.

Foreign income tax expense will usually be attributable to a
subsidiary that is in a single FRS LOB/segment. If not, an
allocation will have to be made based on the applicable
taxable income of the subsidiary split on a LOB/segment
basis.

As part of Exhibit B, provide a reconciliation to the
statutory rate for each domestic LOB/segment where
the effective tax rate is more than 5 percentage points
different from the statutory (U.S.) rate.

If unusual circumstances occur which would generate
LOB/segment income tax results that are unreasonable,
contact the FRS staff to discuss the matter.

Below are listed some additional principles which
apply to the allocation of tax expense to the
LOB/segments:
None of the tax expense allocation principles are
intended to affect consolidated income tax expense.
If, however, there appears to be some conflict caused
by these principles, include a note explaining the
conflict as part of Exhibit F and/or contact the FRS
staff to discuss the matter.
Year # 1:

The Corporate Alternative Minimum Tax (AMT) amount
should not be allocated. Net alternative minimum tax (AMT
less the effect of AMT on deferred taxes) normally should be
$0. However, if this computation results in a value other than
$0, this amount should be reported in the nontraceable
ssegment.
The following example illustrates
LOB/segment income tax expense.

FRS

treatment

Tax Allocation Example

Pre-tax income (loss).........

Consolidated
(a)
80.0

Nontraceable
(b)
(20.0)

Petroleum
(c)
200.0

Coal
(d)
(100.0)

Income tax expense:
Before tax credit ..................
Tax credit recognized ..............
Net income tax expense ....
Net income (loss) ...........

40.0
20.0
20.0
60.0

(10.0)
-.
(10.0)
(10.0)

100.0
6.6
93.4
106.6

(50.0)
13.4
(63.4)
(36.6)

Tax credit:
Generated .................
Recognized ................
Carried forward ...........

30.0
20.0
10.0

10.0
6.6
3.4

20.0
13.4
6.6

-.
-.
-.

Year # 2:
Pre-tax income (loss) .......

180.0

(20.0)

250.0

(50.0)

Income tax expense:
Before tax credit ..................
Tax credit recognized ..............
Net income tax expense ....
Net income (loss) ...........

90.0
45.0
45.0
135.0

(10.0)
2.7
(12.7)
(7.3)

125.0
27.4
97.6
152.4

(25.0)
14.9
(39.9)
(10.1)

3.0
2.7
0.3
-.
-.
-.

27.0
24.0
3.0
3.4
3.4
-.

10.0
8.3
1.7
6.6
6.6
-.

Tax credit:
Generated .................
40.0
Used this year ............
35.0
Carried forward to next year .....
5.0
Carried forward from previous year ......
10.0
Utilized this year* .......
10.0
Carried forward to next year ...............
-.
*Amounts of tax credit recognized this year, which
are carried forward from a previous year, are
recognized pro-rata based on amounts originally
generated.

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EIA-28 Survey Instructions

G. Petroleum Line of Business
The Petroleum Line of Business includes the
exploration, development, and production of raw
materials; refining and marketing of raw materials
and refined products, and the transportation of these
products.

there are no foreign refining operations;
all foreign purchases of raw materials and refined products are
for domestic import; and
all foreign equity production of the company is for domestic
import.
In such cases a foreign refining/marketing segment need not
be established for FRS. However, Schedule 5245 must be
completed in any case.

Segments
To ensure the collection of comparable data for the
FRS, standardized petroleum segments are
established with rules to govern inter-segment
transactions. This is necessary because of the
diversity in the ways companies organize their raw
material and refined product supply and distribution
functions.
The segments established in FRS to reflect petroleum
operations are:
Domestic:
Domestic Production Segment
Domestic Refining/Marketing Segment
Pipelines Segment
Foreign:
Foreign Production Segment
Foreign Refining/Marketing Segment
International Marine Segment
The production segments include exploration,
development, and production operations up to and
including the lease tank but excluding the natural gas
processing plants as these are reported in the
Downstream Natural Gas line of business.
Thereafter, begin the refining/ marketing segments,
in that transportation operations, except pipelines
(interstate and intrastate) and international marine,
are classified by FRS as refining/marketing. Pipelines
include crude oil and refined product pipelines.
Natural gas pipelines and natural gas liquids pipelines
are reported in the downstream natural gas line of
business.
The refining/marketing segments (foreign and
domestic) each contain a supply and distribution
function, and handle all the buying, selling, trading
and refining done in their respective domestic and
foreign areas. Therefore reporting companies having
foreign operations in the foreign sector must report
an FRS foreign refining/marketing segment--but
there is an exception.

General Rules
The segments within the Petroleum line of business are
separate profit centers and buy and sell products and services
according to FRS definition.
Raw materials are classified as crude oil, natural gas liquids,
natural gas, and other petroleum raw materials. See Glossary
for detailed definitions.

Refined products are classified as motor gasoline, distillate
fuels, and other refined products. See Glossary for detailed
definitions.
Transfers (i.e., sales) of raw materials and refined products
between segments are valued at arms-length market prices or,
if there are no comparable arms-length transactions, at field
posted prices. However, if any third-party sales of particular
raw material streams are made at prices below posted prices,
then the lower prices should be used.
Supply, trading, and transportation (as noted above) operations
are downstream activities, i.e., they are included within the
Domestic Refining/Marketing segment and the Foreign
Refining/Marketing Segment.
Transportation expenses are incurred by the purchasing
segment. For example, the Domestic Refining/Marketing
Segment must value the raw material or refined product it
acquires from the Foreign Refining/Marketing Segment at its
f.o.b. shipping point cost and report this amount as a part of
purchases on Schedule 5212.
An export sale from the U.S. is a sale shipped f.o.b.
destination to a foreign location, i.e., if a sale is made f.o.b.
destination to a domestic location, it is a domestic sale even
though the goods may ultimately be shipped overseas by the
purchaser.
A domestic purchase is a purchase made from domestic
sources, even though the purchased goods may be of foreign
origin; the point of purchase and not the source of production
is the determining factor.

The exception to this rule occurs when all of the
following three conditions are present:

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EIA-28 Survey Instructions

The production segment includes exploration,
development, and production operations up to and
including the lease tank but excluding the natural gas
processing plants as these are reported in the
Downstream Natural Gas line of business.

The refining/marketing segments, include transportation
operations, except pipelines (interstate and intrastate) and
international marine. Pipelines include crude oil and refined
product pipelines. Natural gas pipelines and natural gas liquids
pipelines are reported in the downstream natural gas line of
business.

The domestic and foreign production segments
produce crude oil, natural gas liquids, natural gas,
and other raw materials. Total production is reported
on Schedule 5246, with crude oil and natural gas
liquid combined on Line 06.00 and natural gas on
Line 17.00.

All domestic crude oil and refined product purchases from
third parties and unconsolidated affiliates must be made by the
Domestic Refining/Marketing Segment of the Petroleum Line
of Business. The Domestic Refining/Marketing Segment
cannot purchase natural gas or natural gas liquids from third
parties.

All domestic crude oil production (except for own
production used for production purposes) must be
sold by the Domestic Production Segment to the
Domestic Refining/Marketing Segment of the
Petroleum Line of Business; the Domestic Production
Segment cannot sell crude oil to third parties.

With the exception (noted above) of companies: (a) having no
foreign refining, (b) importing all foreign purchases, and (c)
importing domestically all foreign equity production, the
following rules must be observed:

Production Segment Rules

All natural gas and natural gas liquids production
must be sold to the processing, marketing/trading, or
distribution segment of the Natural gas line of
business. Any natural gas or natural gas liquids which
will be used by the company in refining operations
must be sold from the production segment to the
refining/marketing segment of the petroleum line of
business. This is the only time in which the
refining/marketing segment is allowed to purchase
natural gas and natural gas liquids from the
production segment.

Refining/Marketing Segment Rules
The refining/marketing segments (foreign and
domestic) each contain a supply and distribution
function, and handle all the buying, selling, trading
and refining done in their respective domestic and
foreign areas. Therefore reporting companies having
foreign operations in the foreign sector must report
an FRS foreign refining/marketing segment--but
there is an exception.
The exception to this rule occurs when all of the
following three conditions are present:
There are no foreign refining operations;
All foreign purchases of raw materials and refined
products are for domestic import; and
All foreign equity production of the company is for
domestic import.
In such cases a foreign refining/marketing segment
need not be established for FRS. However, Schedule
5245 must be completed in any case.

8

All foreign crude oil production (except for own production
used for production purposes) must be sold by the Foreign
Production Segment to the Foreign Refining/Marketing
Segment of the Petroleum Line of Business; and the Foreign
Production Segment cannot sell crude oil to third parties.
All foreign crude oil and refined product purchases from third
parties and unconsolidated affiliates must be made by the
Foreign Refining/Marketing Segment of the Petroleum Line of
Business. The Foreign Refining/Marketing Segment cannot
purchase natural gas or natural gas liquids from third parties.

All domestic source crude oil and refined products to be sold
abroad must first be reported as a sale from the Domestic
Refining/Marketing
Segment
to
the
Foreign
Refining/Marketing Segment, and then as a sale by the
Foreign Refining/Marketing Segment to the actual foreign
purchaser.
All foreign source crude oil and refined products to be sold in
the U.S. must first be reported as a sale from the Foreign
Refining/Marketing
Segment
to
the
Domestic
Refining/Marketing Segment, and then as a sale by the
Domestic Refining/Marketing Segment to the actual domestic
purchasers.

Natural Gas and Natural Gas Liquids Rules
See Section I, Downstream Natural Gas operations.

Pipeline Segment Rules
FRS establishes a pipeline segment. The pipelines included in
this segment are all crude oil and refined product pipeline
operations (interstate and intrastate), which are included in the
reporting company's consolidated financial statements. Natural
gas and natural gas liquids pipelines are part of the
downstream natural gas line of business. The Pipeline

EIA-28 Survey Instructions

segment is a transport service only and never takes
possession of the petroleum product(s).

Equity Affiliate Reporting Requirements
Those companies that publicly disclose Financial
Accounting Standard (FAS) 69 supplementary oil
and gas information for the total of their equity
investments'
upstream
expenditures,
drilling
activities, reserves, and production, are required to
report this information on a subset of Form EIA-28
by the geographical regions of Schedules 5211, 5241,
and 5246. The survey form instructions for the
equity affiliate schedules are the same as contained
herein.

H. Other Energy LOB Operations
The other energy line of business includes coal,
nuclear, non-conventional oil (synfuels), and other
(geothermal, solar, biomass energy conversion, other
energy activities not reported elsewhere).

Coal Operations
Report consolidating results of domestic and foreign
coal operations as recorded in the company's certified
financial statements. Refer to the Glossary for
definition of activities considered as domestic or
foreign.
Some companies have Coal mining operations,
whose principal activity is the production of coal for
commercial sales to unconsolidated affiliates and
unaffiliated third parties. Other companies have Coal
mines that are integrated into their other operations
(e.g., electric generation and steel manufacturing);
the coal produced is used principally to support and
fuel these other operations. For FRS, coal operations
are profit centers (one domestic and one foreign) and
must be reported in the coal, nuclear, and nonconventional line of business and on Schedule 5341.
"Sales" of coal to a company's own steel segment, for
example, must be priced at an estimated market price.
Operating Revenues. Report all operating revenues
of the Coal segment on schedule 5110. The amount
reported must not be reported net of items such as
royalties, Federal levies for reclamation and black
lung, and severance taxes. Provide as part of Exhibit
F a reconciliation of any differences between the
amount reported here and the amount reported in the
company's certified financial statements.
Include the value of coal purchased and resold
(brokerage sales). Do not include the value of coal
production used during the production process. Do
include the value of coal sales netted against
capitalized development expenditures.

Report as other operating revenues items such as cash
royalties, rentals, delay rentals, and fees from contract mining
and processing.
General Operating Expenses. Report expenses incurred
during the production and processing stage. Include all
royalties and other payments out of production.
Do not include the amortization of prior period production and
processing costs. The amortization of these items must be
reported as DD&A on Schedule 5110, line 03.00.
Production expenses include labor, extensions of mining
facilities and equipment, maintenance and repairs, operating
supplies, expenditures for tracks, conveyors, electric cables,
drainage, ventilation shafts, and access roads, if expensed.
Include the cost of coal produced by others for own account
and the expenses incurred to produce and process coal for the
account of others.
Include all expenses associated with the preparation and
processing of coal. Include costs incurred to crush, sort, clean,
or otherwise process coal to the point of shipment.
Report the cost of coal purchased for resale from domestic and
foreign sources.
Report all other general operating expenses not included
above. Include: selling expense (e.g., the general operating
expenses of consolidated sales subsidiaries); long distance
transportation expenses incurred for delivering coal f.o.b.
destination if such expenses are recognized by the company;
carrying costs of undeveloped properties; exploration and
development; reclamation expenses; black lung benefits;
severance and other taxes.
Refer to the instructions for Schedule 5110 for definitions
applicable to the remaining lines.

Nuclear and Non-conventional Energy
Operations
Report income statement information on the company's
domestic and foreign operations in the following industries on
schedule 5110:
•

Non-conventional energy operations consists of the
nuclear fuel operations, the synfuels segment, and the
geothermal and other energy segment.

•

Synfuels includes oil shale, tar sands, and coal
gasification/liquefaction.

•

Geothermal and other includes geothermal energy
production, solar energy, biomass energy conversion,
and other energy sources not elsewhere reported.

9

EIA-28 Survey Instructions

The FRS reporting convention for nuclear fuel
operations within other energy covers the following
nuclear fuel cycle activities:
Uranium exploration and development
Uranium mining
Milling
Conversion
Enrichment
Fabrication
Reprocessing
Spent fuel storage
Refer to glossary for specific terms.
Refer to the Glossary for definition of activities
considered as domestic or foreign.
Operating Revenues. Report the revenues from oil
shale, tar sands, coal liquefaction/ gasification,
geothermal, solar, nuclear fuel products and services,
and other energy sources not elsewhere reported
according to the categories specified below.
Report the revenues of nuclear fuel products sales
according to the following categories.
Include sales to domestic and foreign unconsolidated
affiliates and unaffiliated third parties.
Nuclear fuel products transferred by the Domestic
Nuclear Fuel Segment to other domestic and foreign
segments of the reporting company must be valued at
market prices.
Report sales of uranium ore, including uranium from
solution (in situ) mining.
Report all other nuclear sales. Include sales of all
other uranium-bearing materials such as mill tailings.
Include the service fees of nuclear fuel services sold.
Include nuclear fuel services sold to domestic and
foreign unconsolidated affiliates and unaffiliated
third parties. Nuclear fuel services provided by the
Domestic Nuclear Fuel Segment to other domestic
and foreign segments of the reporting company must
be valued at market prices.
Include sales of mining services, including solution
(in situ)
mining; milling services, including
conventional milling of ore to produce U3O8
concentrate, leaching of mill tailings, and U3O8
recovery from other uranium-bearing materials;
conversion services; enrichment services (e.g.,
service fees earned operating enrichment facilities for
the U.S. Government); fabrication services; reprocessing services; spent fuel storage services; and all
other sales of services associated with the nuclear
fuel cycle.

10

General Operating Expense. Report the expenses incurred
for exploratory drilling and other costs of exploration.
Include expenses incurred for drilling in search of new mineral
deposits or extensions to known ore deposits and for drilling at
the location of a discovery up to the time that the company
decides that sufficient ore reserves are present to justify
commercial exploitation.
Include direct drilling expenses and all expenses incident to
exploratory drilling such as drill roads, site preparation,
geological and other technical support, and sampling and drill
hole logging.
Do not include capitalized exploratory or development drilling
expenditures.
Report the expenses incurred to mine uranium ore.
Report the production expenses for open-pit mining,
underground mining, and (in-situ) mining.
Include expenses for labor, extensions of mining facilities and
equipment, backfilling excavated areas, maintenance and
repairs, operating supplies, expenditures for tracks, conveyors,
electric cables, drainage, ventilation shafts, and access roads
(if expensed), and royalties and other payments out of production.
Include expenses for hauling uranium ore to the mill.
Include the cost of uranium ore mined by others for own
account and the expenses incurred to mine uranium ore for the
account of others.
Include in production expenses the expenses incurred to
process and treat uranium-bearing materials to produce U3O8.
Include the expenses associated with the production of U3O8
concentrate from conventional milling, leaching of mill
tailings, and U3O8 recovery from phosphoric acid, copper
dumps, and other uranium-bearing materials.
Include expenses for labor and materials; weighing, sampling
and assaying the uranium-bearing material received; processing of the material for treatment in the plant; treating,
extracting, and recovering the uranium; and drying and
packaging.
Include the costs of milling done by others for own account
and the expenses incurred for toll milling (i.e., milling for the
account of others).
Include the costs of nuclear fuel products purchased.
Include the costs of products purchased for resale and products
purchased for processing.

EIA-28 Survey Instructions

Include purchases of uranium ore, U308 concentrate,
uranium hexafluoride, enriched uranium, nuclear fuel
assemblies, and other uranium-bearing materials.
Report all other general operating expenses not
included above. Include selling expenses (e.g., the
general operating expenses of consolidated sales
subsidiaries). Include: long distance transportation
expenses incurred for delivering products f.o.b.
destination, if recognized by the company; inventory
changes; and taxes other than income taxes.
Refer to the instructions for Schedule 5110 for
definitions applicable to the remaining lines.

I. Downstream Natural Gas LOB
Operations
Segments
To ensure the collection of comparable data for the
FRS, standardized downstream natural gas segments
are established with rules to govern inter-segment
transactions. The segments established in FRS to
reflect downstream natural gas operations are:
Domestic and Foreign:
Processing and Gathering Segment
Marketing/Trading Segment
Transmission Segment
Distribution Segment
Note that on Schedules 5710 through 5712, foreign
operations are reported on a consolidated basis in the
Consolidated Foreign segment.
Relationship to Production Segments of the
Petroleum Line of Business. All domestic natural
gas and natural gas liquids production (except that
used for production purposes) must be sold by the
Domestic Production Segment of the Petroleum line
of business to the segments of the Downstream
Natural Gas line of business, unless the products will
be used in the company’s refining operations. Natural
gas liquids and natural gas used by the company in
refining operations may be sold by the Domestic
Production
Segment
to
the
Domestic
Refining/Marketing Segment of the Petroleum line of
business. Note that the Domestic Refining/Marketing
Segment cannot sell natural gas or natural gas liquids
and can only purchase natural gas or natural gas
liquids used in the refining operations. The Domestic
Production segment cannot sell natural gas or natural
gas liquids to third parties and unconsolidated
affiliates or purchase natural gas or natural gas
liquids from third parties and unconsolidated
affiliates.

All foreign natural gas and natural gas liquids production
(except that used for production purposes) must be sold by the
Foreign Production Segment of the Petroleum line of business
to the Consolidated Foreign segment of the Downstream
Natural Gas line of business, unless the natural gas or natural
gas liquids will be used in the foreign refining operations.
Natural gas and natural gas liquids used in foreign refining
operations must be purchased by the Foreign
Refining/Marketing Segment from the Foreign Production
Segment. The Foreign Refining/Marketing Segment cannot
sell natural gas or natural gas liquids and can only purchase
that which is expected to be used in foreign refining
operations. The Foreign Production segment cannot sell
natural gas or natural gas liquids to third parties and
unconsolidated affiliates or purchase natural gas or natural gas
liquids from third parties and unconsolidated affiliates.
Companies with domestic natural gas production that would
otherwise not report in a domestic segment of the Downstream
Natural Gas line of business should report natural gas sales
from Schedule 5212 as a sale to the Domestic
Marketing/Trading segment of the Downstream Natural Gas
line of business.
Companies with foreign natural gas production that would
otherwise not report in a foreign segment of the Downstream
Natural Gas line of business should report natural gas sales
from Schedule 5210 as a sale to the Consolidated Foreign
segment of the Downstream Natural Gas line of business.

Processing Segment
Domestic natural gas liquids production operations are
included in the Domestic Processing segment of the
Downstream Natural Gas line of business. Foreign natural gas
liquids production operations are included in the Consolidated
Foreign segment of the Downstream Natural Gas line of
business. Natural gas liquids transport and storage operations
are included in the Processing segment.
Domestic marine-based liquefied natural gas operations are
included in the Domestic Processing segment of the
Downstream Natural Gas line of business. Foreign marinebased liquefied natural gas operations are included in the
Consolidated Foreign segment of the Downstream Natural Gas
line of business.
If the company’s domestic natural gas processing operation is
a profit center, then this operation should be included in the
Domestic Processing segment of the Downstream Natural Gas
line of business. If the company’s foreign natural gas
processing operation is a profit center, then this operation
should be included in the Consolidated Foreign segment of the
Downstream Natural Gas line of business.

Transmission Segment
The Domestic Transmission segment of the Downstream
Natural Gas line of business includes U.S. interstate and
intrastate natural gas pipeline transport and associated storage

11

EIA-28 Survey Instructions

operations. The Domestic Transmission segment
cannot buy and sell natural gas. Foreign transmission
operations are included in the Consolidated Foreign
segment of the Downstream Natural Gas line of
business.

Distribution Segment
The Domestic Distribution segment of the
Downstream Natural Gas line of business includes
the purchase, resale and delivery of natural gas and
natural gas liquids. Unbundled local natural gas
delivery services are included in this segment.
Foreign natural gas distribution operations are
included in the Consolidated Foreign segment of the
Downstream Natural Gas line of business.

Marketing/Trading Segment
The Domestic Marketing/Trading segment of the
Downstream Natural Gas line of business includes
the purchase and resale of natural gas and natural gas
liquids apart from the Domestic Distribution
segment. Trading activity is reported only in the
Domestic Marketing/Trading segment of the
Downstream Natural Gas line of business.
Transactions that are settled other than with
commodity deliveries are to be reported on a net
basis as “Trading/Derivatives” revenue (Schedule
5710, line 5). Operating revenues for natural gas and
natural gas liquids apply only to transactions with
physical delivery. Foreign purchase and resale of
natural gas and natural gas liquids are included in the
Consolidated Foreign segment of the Downstream
Natural Gas line of business. Transactions that are
settled other than with commodity deliveries are to be
reported on a net basis as “Trading/Derivatives”
revenue (Schedule 5710, line 5). Operating revenues
for natural gas and natural gas liquids apply only to
transactions with physical delivery.

Reporting Guidelines for Natural Gas
and Natural Gas Liquids
The following FRS reporting guidelines have been
established for the downstream natural gas and
natural gas liquids segment operations:
The Domestic Processing segment can buy natural
gas and natural gas liquids from consolidated
affiliates, unconsolidated affiliates, or third parties.
The Domestic Processing segment can sell natural
gas and natural gas liquids directly to consolidated
affiliates, unconsolidated affiliates, or third parties.
Marketing/Trading operations can buy natural gas
and natural gas liquids from consolidated affiliates,
unconsolidated affiliates, and third parties. It can sell
natural gas and natural gas liquids to consolidated
affiliates, unconsolidated affiliates, or third parties.

12

The Transmission segment within downstream natural gas
operations never takes ownership of natural gas nor natural
gas liquids products. Transmission is purely a delivery and
storage segment. The Transmission segment can sell services
to consolidated affiliates, to unconsolidated affiliates, or to
third parties.
The Distribution segment can buy natural gas and natural gas
liquids from consolidated affiliates, unconsolidated affiliates,
and third parties for resale and distribution. The Distribution
segment can only sell natural gas and natural gas liquids to
third parties.
All downstream natural gas and natural gas liquid operating
results are reported in the 5700 series of schedules.
Transactions with consolidated affiliates should be reported as
intersegment
transactions,
and
transactions
with
unconsolidated affiliates should be reported as third party
transactions.

J. Electric Power LOB Operations
Segments
To ensure the collection of comparable data for the FRS,
standardized electric power segments are established with
rules to govern inter-segment transactions. The segments
established in FRS to reflect electric power operations are:
Domestic and Foreign:
Generation Segment
Marketing/Trading Segment
Transmission Segment
Distribution Segment
Note that on Schedules 5810 through 5812, foreign operations
are reported on a consolidated basis in the Consolidated
Foreign segment.
Generation Segment
The Generation segment of the Electric Power line of business
includes electricity generation operations in which rates are
regulated by a utility commission through rulemaking and
adjudication, and electricity generation operations for which
sale prices are market based. All foreign generation is
considered to be non-regulated for FRS reporting purposes. In
Schedules 5810 through 5812, foreign electricity generation
operations are included in the Consolidated Foreign segment
of the Electric Power line of business.
Electricity generation and cogeneration facilities that primarily
provide electricity to the company’s other businesses (e.g., oil
and natural gas production, petroleum refining, chemical
manufacturing) rather than for sale to third parties, do not need
to be reported in the Electric Power line of business.

EIA-28 Survey Instructions

Transmission Segment

considered to be non-regulated for FRS reporting purposes.

The Domestic Transmission segment of the Electric
Power line of business includes electricity
transmission operations. The Domestic Transmission
segment cannot buy and sell electricity. In Schedules
5810 through 5812, foreign transmission operations
are included in the Consolidated Foreign segment of
the Electric Power line of business.

The Marketing/Trading segment can buy electricity from nonregulated Generation affiliates, from regulated Generation
affiliates, from unconsolidated affiliates, or from third parties.
It can sell electricity to consolidated affiliates, unconsolidated
affiliates, or third parties.

Distribution Segment
The Domestic Distribution segment of the Electric
Power line of business includes the purchase, resale
and delivery of electricity. Unbundled local
electricity delivery services are included in this
segment. In Schedules 5810 through 5812, foreign
electricity distribution operations are included in the
Consolidated Foreign segment of the Electric Power
line of business.

Marketing/Trading Segment
The Domestic Marketing/Trading segment of the
Electric Power line of business includes the purchase
and resale of electricity apart from the Domestic
Distribution segment. Trading activity is reported
only in the Domestic Marketing/Trading segment of
the Electric Power line of business. Transactions that
are settled other than with electricity deliveries are to
be reported on a net basis as “Trading/Derivatives”
revenue (Schedule 5810, line 4). Operating revenues
for electricity apply only to transactions with physical
delivery. Foreign purchase and resale of electricity
are included in the Consolidated Foreign segment of
the Electric Power line of business. Foreign
transactions that are settled other than with
commodity deliveries are to be reported on a net
basis as “Trading/Derivatives” revenue (Schedule
5810, line 4). Foreign operating revenues for
electricity apply only to transactions with physical
delivery.

The Transmission segment never takes possession of the
Electric Power product. Transmission provides purely a
delivery service. The Transmission segment can sell services
to consolidated affiliates, to unconsolidated affiliates, or to
third parties.
The Distribution segment can buy electricity from
consolidated affiliates, unconsolidated affiliates, and third
parties for resale and distribution. The Distribution segment
can sell distribution services to consolidated affiliates,
unconsolidated affiliates, or third parties.
All electric power-operating results are reported in the 5800
series of schedules.
Transactions with consolidated affiliates should be reported as
intersegment
transactions,
and
transactions
with
unconsolidated affiliates should be reported as third party
transactions.

K. Non-energy Operations
Report Income Statement information on the company's
operations in the following industries:
Non-energy Industries (including chemical, petrochemical,
and all industries other than petroleum; coal, nuclear and nonconventional; downstream natural gas; and electric power.).
This segment also includes products that are manufactured to
be used in the Energy business, such as Windmills, Solar
Panels, etc.
Refer to the Glossary for definitions of specific terms.

Reporting Guidelines for Electric Power

L. Allocating Amounts to Geographic Areas

The following FRS reporting conventions have been
established for the Electric Power segments:

Within the LOB categories of Petroleum; Coal, Nuclear and
Non-conventional; Downstream Natural Gas; Electric Power;
and Non-energy, the FRS requires a breakdown of certain
information between domestic and foreign. Domestic and
foreign data (e.g., expenditures and asset holdings) are
sometimes further broken down geographically:

The Generation segment can purchase fuel from
consolidated affiliates, unconsolidated affiliates, or
third parties. The Generation segment cannot
purchase electric power for resale. The non-regulated
part of the Domestic Generation segment can sell
electricity (at market prices) to consolidated
affiliates, unconsolidated affiliates, or third parties.
The regulated part of the Domestic Generation
segment can sell electricity (at regulated prices) to
consolidated affiliates, unconsolidated affiliates, or
third parties. Electricity provided by regulated
Generation to its integrated Distribution segment
customers should be reported as an intersegment sale
using a regulated price. All foreign generation is

Domestic: onshore and offshore for Petroleum, power grid
region for Electric Power (East, West and
ERCOT)
Foreign: Canada, OECD Europe, Africa, Middle East, Former
Soviet Union (FSU) and East Europe, Other Eastern
Hemisphere (Asian land mass and other), and Other Western
Hemisphere.

13

EIA-28 Survey Instructions

Refer to the Glossary for specific definitions of these
geographic areas.

M. Significance Standards (Materiality)
Significance standards must be established with the
ultimate use of the data in mind, but since it is not
possible to describe in advance all the possible uses
of each FRS data item or all the possible
combinations in which they might be used with other
data, only general guidelines can be given.
A definition of "material" is contained in Rule 1-02
of Securities and Exchange Commission Regulation
S-X (and in Rule 405 under the Securities Act and
Rule 12b-2 under the Exchange Act). However, this
definition is based on a "prudent man" principle,
which is of limited practical help in deciding many
questions of materiality for FRS purposes.
A 5-percent significance standard is established for
FRS reporting. This standard should be used to test
the materiality of any item within its immediate
category. The test should be made on both a vertical
(line) and horizontal (row) basis.
For example, Schedule 5211 requires separate
disclosure of depreciation in support equipment and
facilities. Some companies may not now have such a
category stated separately. In accordance with FRS
significance standards, such depreciation need not be
stated separately if less than a 5-percent overstatement or understatement would be caused in the
depreciation accounts where this amount would
normally be reported.
The 5-percent threshold may seem to be excessively
rigid in some cases. In such a case, please consult the
FRS staff informally by phone.

N. Operating Statistics and Financial
Data
Operating statistics will be used in conjunction with
financial data to compare, among other things, effort
with results. For this reason:
Unless otherwise stated, only operating statistics
from consolidated operations must be reported on
Schedules 5241 through 5246, 5341, 5741, and 5841
so that the statistical data parallel the financial data.
Selected operating data for unconsolidated affiliates
are reported on designated lines in these schedules.
Operating statistics for discontinued operations
should be included on these schedules.

O. Corporate Acquisitions and
Dispositions
Where the reporting company buys or sells:

14

In the context of FRS, generally accepted accounting
principles used to account for corporate acquisitions and
dispositions do not always yield the desired result. If during
the year the reporting company has had major transactions,
involving exchanges of common shares, please consult the
FRS staff before preparing the Form EIA-28.
Where the reporting company is the acquired company:
FRS companies were selected for reporting to the EIA on the
basis of the interests in domestic energy reserves and
production held by all members of a consolidated group. The
highest level of the domestic based consolidated group is the
company named to file the Form EIA-28.
Therefore, should a controlling interest (50 percent or more)
of an FRS reporting company be acquired by another U.S.
based enterprise and consolidated in that enterprise's financial
statements, the acquiring enterprise will then be named as an
FRS reporting company.
In preparing the Form EIA-28 in the year of acquisition, it will
actually appear as though the acquiring company (the new
FRS reporter) acquired the old FRS reporter parent. This is
necessary to show the process of integration (merger) of the
two enterprises, one of which is an FRS reporter in prior years.
We suggest an FRS staff consultation in such a case.

P. Discontinued Operations
In order to maintain comparability in income measures, the
results of discontinued operations should be separated from
the results of continuing operations. A line is provided on
Schedules 5110, 5210, 5710, and 5810 to report the after-tax
results of discontinued operations. If the certified financial
statement presents the results of discontinued operations on a
pre-tax basis, then the amounts reported in the financial
statement for gain (loss) on disposals, pre-tax income, and
income tax expense (including the amounts reported in
Schedule 5112, Analysis of Income Taxes) may need to be
adjusted for FRS reporting purposes. Any reconciliation
between the amounts reported for FRS and the amounts
reported in the certified financial statement should be
presented in Exhibit B. Although, the results of discontinued
operations should be separated from continuing operations on
Schedules 5110, 5210, 5710, and 5810, the operating statistics
for discontinued operations should be included on Schedules
5212, 5712, and 5812). In some instances reporting operating
statistics of discontinued operations may result in unusual
relationships between operating statistics and operating
revenue or expenses. For instance, if a company’s marketing
operations are discontinued, refined products sales volumes
(5210/8/C) may not be consistent with refined products sales
(5210/2/F) since the refined product sales would be a
component of discontinued operations (5210/18/F).

EIA-28 Survey Instructions

III. Schedule Instructions
Reporting Company
Consolidating Statement of Income
Schedule 5110
General
Report consolidated results of operations for the
period in column A. Reported amounts must agree
with the company's certified consolidated income
statement except for reclassifications needed to
complete the required line items. Itemize these
reclassifications on a separate sheet of paper and
attach as part of Exhibit B. This itemized
reconciliation should provide a detailed explanation
of the variance between the amount reported on
Schedule 5110 and the amount disclosed in the
consolidated income statement.
Report amounts directly assignable (See "FRS
Overview" section of the instructions) to Petroleum:
Coal, Nuclear, & Non-conventional; Downstream
Natural Gas; Electric Power; and Non-energy in
columns D through H.
Report amounts not directly assignable (see "FRS
Overview" section of the instructions) to Petroleum,
Coal, Nuclear, & Non-Conventional, Downstream
Natural Gas, Electric Power, and Non-energy as
Nontraceable in column C. Provide a detailed
explanation of amounts classified as Non-traceable
on a separate sheet of paper and attach as part of
Exhibit D.
Provide a breakdown of column B, reported
eliminations, on Schedule 5150. These eliminations
reflect the sales and purchases among the lines of
business. For example, purchases of natural gas
liquid by the downstream natural gas line of business
from the production segment of the petroleum line of
business should be eliminated by decreasing general
operating expenses of the downstream natural gas
line of business and decreasing operating revenues of
the petroleum line of business.
Amounts reported in column D should equal the
amounts reported on schedule 5210, while amounts
reported in columns F and G should equal amounts
reported on schedules 5710 and 5810, respectively.
DO NOT allocate line items 08.00 and 10.00 through
13.00 to the segments. Report these items only in
columns A and C.
Line 01.00--Operating Revenues. Report operating
revenues as defined in the glossary. Do not include
excise taxes collected on behalf of governments.

Line 02.00--General Operating Expenses. Report general
operating expenses. Include selling expenses. Operating
expenses should be reported as a positive amount.
General operating expenses include all expenses related to
unaffiliated third-party sales, and inter-LOB/segment sales or
transfers.
Line 03.00--Depreciation, Depletion, and Amortization
(DD&A) Report total DD&A, including DD&A of support
equipment and facilities. Asset and lease impairments should
be included as DD&A.
Line 04.00--General and Administrative Report general
and administrative expenses. DO NOT include selling
expenses, which should be reported as a general operating
expense on line 02.00 above.
Line 05.00--Total Operating Expenses
Total lines 02.00 through 04.00.
Line 06.00--Operating Income Line 01.00 less line 05.00.
Line 07.00--Equity in Earnings of Unconsolidated
Affiliates. Report equity in earnings of unconsolidated
affiliates recorded during the period. Include equity in
earnings of joint venture companies in accordance with the
company's normal reporting practices. Include the effect, if
any, of adjustments due to impairment of value to investments
carried at equity. If the company reports investments and
advances to unconsolidated affiliates on Schedule 5120,
earnings should be reported on Schedule 5110.
Equity in earnings of unconsolidated affiliates, which operate
in more than one FRS LOB, should be reported in the LOB
corresponding to the affiliate's primary business activity,
unless data from corporate records are available to make an
allocation among the applicable FRS LOBs.
Include in line 07.00 the dividend income recognized from
unconsolidated affiliates accounted for on the cost basis.
Line 08.00--Other Dividend and Interest Income
Report other dividend income (i.e., portfolio dividends) and
interest income for the period. Only include dividends
received from marketable securities. DO NOT assign other
dividend and interest income to the LOBs in columns D
through H.
Line 09.00--Gain(Loss) on Disposition of Property, Plant,
and Equipment Report the net gain or loss recognized for the
period on disposition of property, plant, and equipment
(PP&E). If such gains or losses are not significant (see FRS 5percent significance standard, II.L. of FRS Overview) and are
classified otherwise, no reclassification need be made.
Miscellaneous charges or credits to DD&A reserve accounts
for normal asset retirements need not be adjusted. The gain
(loss) on disposal of discontinued operations should be
included on line 18.00, but not on line 9.00.

15

EIA-28 Survey Instructions

Line 10.00--Interest Expense and Financial
Charges
Report all interest expense and financial charges,
including interest expense for capitalized leases. DO
NOT assign interest expenses and financial charges
to the LOBs in columns D through H.
Line 11.00--Minority Interest in Income
Report minority interest in income of consolidated
affiliates in accordance with the company's normal
reporting practice. Amounts should be reported net
of income taxes. DO NOT assign this item to the
LOBs in columns D through H.
Line 12.00--Foreign Currency Transaction Gains
(Losses)
Report the gain (loss) from currency trading and from
transactions with foreign entities as disclosed in
certified financial statements. DO NOT assign this
item to the LOBs in columns D through H.
Line 13.00--Other Revenue and (Expense) Report
all other non-operating income and expenses
recognized during the period for certified financial
statement reporting purposes and not reflected
elsewhere on this schedule. DO NOT assign these
incomes and expenses to the LOBs in columns D
through H. Amount reported in column C must not
include inter-LOB transactions.
If the amount reported on this line exceeds 5 percent
of the amount on line 15.00, provide a detailed
breakdown of line 13.00. The unexplained amount
should be less than 5 percent of line 15.00. Include
the detailed breakdown as part of Exhibit B.
Line 14.00--Total (Lines 7.00-13.00)
Line 15.00--Pre-Tax Income Total lines 06.00 and
14.00.
Line 16.00--Income Tax Expense Report total
income tax expense in column A as reported in or
reconciled to the company's certified financial
statements. With respect to columns B through H,
allocate tax expenses as described in the "FRS
Overview" section of the instructions under "Income
Tax Expense." Also, see Schedule 5112, which
gathers details about taxes.
Please note that income tax expense is not bracketed,
but a negative expense (i.e., credit) is bracketed.
Line 17.00--Income Before Lines 18.00 and 19.00
Line 15.00 minus 16.00.

16

Line 18.00--Discontinued Operations
Report the sum of income (loss) from discontinued operations,
less applicable income taxes, and the gain (loss) on disposal of
discontinued operations, less applicable income taxes.
Line 19.00--Extraordinary Items and Cumulative Effects
of Accounting Changes Report the sum of extraordinary
items and cumulative effects of accounting changes if
applicable.
Line 20.00--Net Income Total lines 17.00, 18.00, and 19.00.

Reporting Company
Research and Development Funding and
Expenditures
Schedule 5111
General
Report research and development (R&D) funds and
expenditures for the period. See Glossary for definitions.
Lines 04.00 and 18.00 are equal.

Source of R&D Funds
Line 01.00--Federal Government Report receipts from the
U.S. Federal Government for work done by the company on
R&D contracts or subcontracts and R&D portions of
procurement contracts and subcontracts.
Line 02.00--Internal Company Report funds provided by
the company for research and development performed by
deducting non-company sources of R&D funds from total
R&D expenditures.
Line 03.00--Other Sources Report receipts of funds from all
other sources for R&D work done by the company. Include
grants from nonprofit organizations and any other third
parties.
Line 04.00--Total Sources Total lines 01.00 through 03.00.

Breakdown of R&D Expenditures
Classify total R&D expenditures by type of expenditure on
lines 05.00-17.00. Line 18.00 must equal line 04.00.

EIA-28 Survey Instructions

Line 23.00--U.S. State and Local Income Taxes
Enter U.S. State and local income taxes included in
consolidated income tax expense.

Reporting Company
Analysis of Income Taxes
Schedule 5112
General
This schedule is designed principally to provide a
disaggregation of consolidated income tax
information. The purpose of this disaggregation and
the principles to be used in performing the
disaggregation are described in the "FRS Overview"
section of the instructions under "Income Tax
Expense."

Income subject to U.S. tax may also be subject to foreign tax
(see line 21.00 above). In computing the amount of U.S.
Federal tax due, the taxpayer elected to classify the foreign
taxes either as a deduction or a credit. Therefore, the amount
reported on this line is the elected deduction taken.
Line 25.00--Pre-Tax Income Subject to U.S. Tax
Enter the net of line 22.00 minus the sum of lines 23.00 and
24.00.

Income Taxes (as per Financial
Statements)
Lines 01.00 through 19.00
These lines provide details of consolidated income
tax expense per the reporting company's financial
statements. For each domestic segment reporting
pre-tax income on Schedules 5110, 5210, 5710 and
5810, Line 15.00, corresponding income tax expense
should be reported on Line 16.00. The current year
deferred tax provision reported on Line 18.00 should
agree with the deferred tax amount reported on
Schedule 5131 Line 05.00. Schedule 5110, 5210,
5710 and 5810, Line19.00 corresponds to Schedule
5110, column A, line 16.00.

Reconciliation of Accrued U.S. Federal
Income Tax Expense to Statutory Rate
Line 20.00--Consolidated Pre-Tax Income (Loss)
Enter consolidated pre-tax income or (loss) per
Schedule 5110/15/A.
Line 21.00--Foreign Source Income not Subject to
U.S. Tax Enter the portion of foreign source income
not subject to U.S. Federal income tax. Foreign
source income is earned by both U.S. corporations
(those incorporated in the U.S.) and by foreign
corporations (those incorporated in a foreign
country). The earnings of the latter are not subject to
U.S. income tax until remitted to the U.S. Therefore,
enter on this line income earned by foreign
corporations, reduced by earnings remitted to the
U.S., and Sub-part F income of foreign corporations
included in the consolidation.
Line 22.00--Income Subject to U.S. Tax
20.00 less line 21.00.

Line 24.00--Applicable Foreign Income Taxes Deducted
Enter on this line the amount of foreign ncome taxes deducted
as an expense in arriving at taxable income for the U.S.
Federal tax accrual.

Line

Line 26.00--"Expected" Tax Provision Enter the amount
arrived at by multiplying the amount on line 25.00 by the
statutory U.S. Federal income tax rate.
Line 27.00--Foreign Tax Credits Recognized Enter the
amount of foreign tax credit recognized in arriving at the
current year's income tax expense. Normally, foreign tax
credits are less than the amount of foreign income taxes
reported on Line 11.00.
Line 28.00--U.S. Federal Investment Tax Credit
Recognized Enter the amount of U.S. Federal investment tax
credits that were recognized in arriving at the current year's
Federal income tax expense.
Line 29.00--Statutory Depletion Enter the amount of tax
savings recognized due to statutory depletion.
Line 30.00--Effect of Alternative Minimum Tax Enter the
increase (decrease) in income tax expense due to the corporate
alternative minimum tax.
The effect of AMT should
approximate the sum of the effect of AMT on current and
deferred taxes reported on Lines 03.00 and 15.00.
Line 31.00—Other Enter any other items needed to complete
this reconciliation. If the amount on this line exceeds 5
percent of the amount of line 32.00, provide a detailed
breakdown of line 31.00 so that the unexplained amount is less
than 5 percent of line 32.00. Attach the detailed breakdown
on a separate sheet of paper as part of Exhibit B.
Line 32.00-Actual U.S. Federal Tax Provision/(Refund)
Enter the amount of the U.S. Federal tax provision that will
equal the net of lines 01.00, 02.00, and 03.00, plus the net of
lines 13.00, 14.00, and 15.00 above. If the company is not
subject to income taxes, the expected tax amount should be
determined and reported on Line 26.00. This amount should
be multiplied by (-1) and reported as other expected
reconciling item on Line 31.00, in order to properly reflect a
zero amount as the U.S. Federal tax provision on Line 32.00.

17

EIA-28 Survey Instructions

Lines 33.00 through 44.00--Domestic Taxes other
than Income Taxes These lines are intended to
gather the broad spectrum of taxes imposed on
reporting companies, classified by line of business.
Reasonable estimates are encouraged where company
records do not readily produce the required data at
the consolidated domestic level.
Report only
domestic total amounts for lines 38.00 through 41.00.
If motor gasoline sales to retailers or resellers are
reported on Schedule 5212, excise taxes should be
reported on Line 43.00.
Reconciliation to Statutory Rate
For domestic segments where the effective tax rate
(e.g., tax expense divided by pre-tax income) is more
than 5 percentage points different from the statutory
rate, a reconciliation from the statutory rate to the
actual rate is required as a part of exhibit B.

Reporting Company
Selected Consolidating Balance Sheet
Data
Schedule 5120
General
On page 1 of this schedule, report the selected
consolidated balance sheet data as of the end of the
period. Reported amounts must agree with the
company's certified consolidated balance sheet,
except for reclassifications needed to complete the
required line items. Itemize these reclassifications on
a separate sheet of paper and attach as part of Exhibit
B.
On pages 2 – 5, report amounts directly assignable to
the Petroleum; Other Energy (Coal, Nuclear & Nonconventional); Downstream Natural Gas; Electric
Power; and Non-energy LOBs .
Report amounts not directly assignable (see "FRS
Overview" section of the instructions) to particular
LOBs as Non-traceable on line 98.00. Do not
allocate costs of assets maintained for general
corporate purposes to particular LOBs. Provide a
detailed explanation of amounts classified as Nontraceable on a separate sheet of paper and attach as a
part of Exhibit D.
If the amounts on line 18.00 and 19.00 exceed 5
percent of the amount on line 21.00, provide a
detailed breakdown of lines 18.00 and 19.00. The
unexplained amounts should be less than 5 percent of
line 21.00. Include the detailed breakdown as part of
Exhibit B.

18

Memo-Line 26.00, Page 1 of 4
Report on this line the amount of the cumulative foreign
currency translation adjustment at year-end. This amount
should be equal to the amount reported for foreign currency
translation adjustment in the stockholder's equity section of
the balance sheet.
Memo-Line 27.00, Page 1 of 4
Report on this line the foreign currency translation adjustment
for the current year. This amount should be equal to the
difference between this year's cumulative foreign currency
translation adjustment and the prior year's cumulative foreign
currency translation adjustment.
Pages 2 – 5:
Columns A-F
Report year-end balances and activity during the reporting
period as indicated by the column headings. All amounts are
based on historical cost. Additions to property, plant and
equipment must include all drilling and equipping costs for
wells, except for exploratory dry holes (in the case of
"successful efforts" companies). Additions to property, plant
and equipment should be reported as a positive amount.
Since there is no "other" column for reclassifications and
adjustments, the year-end net amount, column C, will not
cross foot precisely with the prior year balance. Major
adjustments and reclassifications should be explained in a
note. For "successful efforts" companies, the write off of dry
holes from PP&E will be one major item not appearing in any
of the columns. This item, however, need not be explained,
since the amount is provided elsewhere in the form.
The effect of an acquisition in excess of $50 million on PP&E
and/or investment and advances should be disclosed in Exhibit
B. In addition, the effect of a disposal in excess of $50 million
on the book value of disposals should also be disclosed on
Schedule 5120.
Book value of disposals should always be reported as a
positive amount. It is not possible for Schedule 5120 to
capture all transactions related to PP&E. The effect of certain
transactions, such as the transfer of PP&E between segments
and the reversal of a prior year write-off, should be omitted
from Schedule 5120. Reporting companies are encouraged to
describe these transactions in Exhibit B if they are significant
to Schedule 5120.
Columns G & H--Investments and Advances to
Unconsolidated Affiliates
Report investments and advances to unconsolidated affiliates
and additions thereto during the period as recorded on the
company's financial records.
Investments and advances to unconsolidated affiliates that
operate in more than one FRS LOB should be reported in the
LOB corresponding to the affiliate's primary business activity,

EIA-28 Survey Instructions

unless data from corporate records are available to
make an allocation among the applicable FRS LOBs.
If the current year-end balance does not equal the
prior year ending balance plus this year's additions,
include a detailed breakdown of the difference as part
of Exhibit B.
Investments in unconsolidated affiliates reported on
Schedule 5120 should have corresponding earnings
reported on Schedule 5110, 5210, 5710 or 5810.
If an investment balance in an upstream equity
affiliate is reported on Schedule 5120, column G, the
supplemental Form EIA-28 for upstream equity
affiliates should be completed.

Reporting Company
Consolidated Statement of Cash Flows
Schedule 5131
General
Report consolidated statement of cash flows (line
01.00 through 27.00) for the reporting company.
Amounts must agree with certified financial
statement reporting, except for reclassifications
needed to complete the required line items. Itemize
these reclassifications on a separate sheet of paper
attached as part of Exhibit B. For example, cash
flows from operations in FRS entails adding dry hole
expense back to net income, which may be at
variance with a reporting company's public reporting
practice. In such a case a reconciling item will be
necessary in comparing the FRS to the published
financial statement in Exhibit B.
Note that certain line items are cross referenced to
Schedules 5110, 5112, and 5120 and that additions to
PP&E on Schedules 5120 and 5131 exclude
exploratory dry hole expense (for "successful efforts"
companies).
Schedule 5131 has been designed to conform
generally to Financial Accounting Standard (FAS) 95
utilizing the indirect method to report cash flows
from operations. However, Schedule 5131 differs
from FAS 95 in reporting mergers and acquisitions.
Also described below is the reporting of dry hole
expense.
Line 10.00-Other Cash Items, Net
Report all other cash items recognized during this
period for certified financial statement reporting

purposes and not reflected elsewhere on this schedule. If the
amount on this line exceeds 5 percent of the amount on line
11.00, provide a detailed breakdown of line 10.00. The
unexplained amount should be less than 5 percent of line
11.00. Include the detailed breakdown as part of Exhibit B.
Line 12.00-Additions to PP&E Due to Mergers and
Acquisitions
Addition to PP&E due to mergers and
acquisitions should be reported as a negative amount.
Additions to PP&E as a result of a contribution of PP&E by a
parent or other affiliate should be reported as an addition due
to mergers and acquisitions with an offsetting amount reported
as other investing activities on Line 17.00. The effect on
PP&E as a result of the contribution of PP&E by a parent or
other affiliate should be disclosed and allocated to the various
segments on Schedule 5120.
Line 17.00-Other Investment Activities, Net
Report the cash effect of all other investment activities
recognized during the period for certified financial statement
reporting purposes and not reflected elsewhere on this
schedule. If the amount on this line exceeds 5 percent of the
amount on line 18.00, provide a detailed breakdown of line
17.00. The unexplained amount should be less than 5 percent
of line 18.00. Include the detailed breakdown as part of
Exhibit B.
Line 24.00-Other Financing Activities, Including Net
Change in Short-Term Debt
Report the cash effect of all other financing activities
recognized during the period for certified financial statement
reporting purposes and not reflected elsewhere on this
schedule. If the amount on this line exceeds 5 percent of the
amount on line 25.00, provide a detailed breakdown of line
24.00. The unexplained amount should be less than 5 percent
of line 25.00. Include the detailed breakdown as part of
Exhibit B.

Mergers and Acquisitions
Within the framework of FAS 95, only the cash effects of an
acquisition on cash flows from investing activities need to be
recognized. However, statistical considerations and the
mandated objectives of the FRS require that all components of
an acquisition be included in Schedule 5131. Consequently,
the additions to property, plant, and equipment (consistent
with Schedule 5120 of Form EIA-28), incurrence of debt
and/or assumption of debt, working capital affects, equity
security issues, and any other effects associated with an
acquisition or merger should be included on the appropriate
lines of Schedule 5131. The inclusion of these data should not
affect the net change in cash and cash equivalents reported on
line 27.00 which should be equal to the value to this item
reported in the certified financial statement.
In order to accurately report the effect of mergers and
acquisitions on investment patterns, the allocation of the
amount reported on line 12.00 of Schedule 5131 (Cash Flows
from Investing Activities: Due to Mergers and Acquisitions)

19

EIA-28 Survey Instructions

to the LOBs of Schedule 5120, column D, should be
disclosed in Exhibit B.

amount of cash and other consideration paid not at the effect
on PP&E and/or investments and advances.

Dry Hole Expense

For each acquisition transaction in excess of $50 million, the
following items must be disclosed in Exhibit B:
Name of asset acquired.
Date of transaction.
Value of the transaction (cash and other consideration paid).
The effect of the transaction on PP&E and/or investment and
advances by the segments of Schedule 5120.

For "successful efforts" companies, the expense of
exploratory dry holes (worldwide) completed in the
reporting year, consistent with drilling and equipping
expenditures reported in Schedule 5211, should be
reported on line 04.00 of Schedule 5131. The
difference between dry hole expense recognized in
the certified financial statement and the amount
reported on line 04.00 should be included in the
amount reported on line 09.00. The amount reported
for dry hole expense should be less than the amount
reported as exploration expenditures on Schedule
5211, Line 26.00.

Reserve Swaps
Reserve swaps with a value in excess of $50 million
should be reported as a disposal on Line 28.00 and as
an acquisition on Line 29.00. The details of the
reserve swap must be included in Exhibit B.
Memo-Line 28.00
Report on this line the amount of funds (cash or
other) generated from the disposal of properties or
subsidiaries in transactions/valued in excess of $50
million. Disposals of properties or subsidiaries
reported on Line 28 should represent single
transactions valued in excess of $50 million.
Collective groups of transactions which in total
exceed $50 million should not be included on Line
28. These transactions should be valued at the
amount of cash or other consideration generated from
the disposal not at the effect on book value of
disposals.
For each disposal transaction in excess of $50
million, the following items must be disclosed in
Exhibit B:
Name of the entity sold.
Date of the transaction.
Value of the transaction (cash and other consideration
received).
The effect of the transaction on the book value of the
disposals reported in column F of Schedule 5120.
Memo-Line 29.00
Report on this line the amount of funds (cash and
other) utilized in purchases of existing assets (e.g.,
plant and equipment, proved reserves) in transactions
valued in excess of $50 million. Acquisitions of
existing assets, such as plant and equipment and
proved reserves, reported on Line 29 should represent
single purchases valued in excess of $50 million
only. Collective groups of transactions which in total
exceed $50 million should not be included on Line
29. These transactions should be valued at the

20

Note for Lines 28.00 and 29.00:
For the purposes of Exhibit B, value of transaction includes
cash received or utilized as well as other consideration, such
as debt assumed by purchaser or equity securities transferred
by seller. Transactions in which cash received or utilized is
less than $50 million should be reported in Exhibit B if the
value of the transaction, cash and other consideration, is in
excess of $50 million.

Reporting Company
Eliminations in Consolidation
Schedule 5150
General
This schedule summarizes the eliminations required for the
5110 income statement, which is the schedule that contains
numerous inter-LOB eliminations. Report only elimination
amounts on this schedule.
Compiling the correct eliminations required to consolidate the
FRS LOBs requires an understanding of the FRS LOB
definitions and the rules governing inter-LOB transactions.
For background on this see the Chapter II, "FRS Overview,"
sections B, C, G, H, I and J.
The hatched out areas are provided to indicate inter-LOB
transactions which are not permitted under the FRS rules or
which would not conceptually be possible in any case.
Columns A through G represent inter-LOB sales, while lines
01.00 through 07.00 represent the inter-LOB purchases. An
example of an elimination that should be reported on Schedule
5150 is the sale of natural gas from the production segment of
the domestic or foreign petroleum line of business to the
downstream natural gas line of business. This sale would be
eliminated on Line 04.00 in column C.

Line 7, column A
The amount reported on line 07.00, column A will be the
Operating Revenue and Operating Expense elimination
required on Schedule 5110, column B.

EIA-28 Survey Instructions

reporting company's own goods. These costs should be
reported in the Refining/Marketing Segment (column K).

Domestic and Foreign Petroleum
Segments
Consolidating Statement of Income
Schedule 5210

Operating Revenues
Report all operating revenues included on Schedule 5110 (line
01.00, column D) in the categories indicated on lines 01.00
through 06.00 (domestic and foreign) as follows:

General
Report the consolidating results of operations
assignable to domestic and foreign petroleum
segments.
Refer to the Glossary for definitions of activities considered as domestic or foreign.
Refer to the Glossary for definitions of raw materials
(i.e., crude oil, natural gas, natural gas liquids, and
other petroleum raw materials) and refined products
(i.e., motor gasoline, distillate fuels, residual fuels,
and other refined products).
In general, revenues and expenses should
associated with costs incurred within a segment,
refer to Chapter II, "FRS Overview," of
instructions for more detailed explanations of
FRS segments.

be
but
the
the

Columns E and J -- Production
Report as raw materials revenues (1) the value of
production transferred to the Refining/Marketing
Segment and (2) the sales of natural gas and plant
products to the consolidated affiliate downstream
natural gas segments, to unconsolidated affiliates or
to third parties. . Do not include the value of
production used for production purposes, e.g., reinjected gas and crude burned on the lease.
Column G -- Pipelines
Classify operations in this segment only if they are
associated with rate-regulated (interstate and
intrastate) crude oil and refined product pipeline
operations. Natural gas and natural gas liquids
pipelines are part of the downstream natural gas line
of business.
Column L -- International Marine
Classify operations in this segment that are associated
with high seas transportation activities serving a
foreign port (i.e., exclude Jones Act shipping).
Include revenues and expenses for voyages by
company-owned, leased, or chartered vessels
carrying cargo for others as well as for the company's
own use.
Do not include foreign transportation charges paid to
third parties for shipments or deliveries of the

Lines 01.00 & 02.00--Raw Materials Sales & Refined
Products Sales
Report the value of the sale or inter-segment transfer of raw
materials and refined products by the domestic and foreign
segments. Include the company's royalty interest in other's
production. Domestic Production and Refining/Marketing
Segment sales of raw materials and refined products must
agree with Schedule 5212, column D, lines 04 and 08
(Refining/Marketing), and 11 (Production).

Line 03.00—Transportation Revenues
Report all revenues derived from Pipeline Segment operations
in column G.
Report all revenues derived from International Marine
Segment operations in column L.
Report all other transportation revenues under the appropriate
column heading.
Line 04.00--Management and Processing Fees
Report all management and processing fee revenues, domestic
and foreign. Include amounts paid to the consolidated
reporting company for processing crude oil or other raw
materials for the accounts of third parties. Management fees
include only those fees for operating oil and gas facilities for
host country governments or their agencies. These fees need
not be reported here, if it is the company's practice in their
public financial statements to net such fees against costs of
operations.
Line 05.00--Other
Report all other domestic and foreign operating revenues not
included on lines 01.00 through 04.00. Include all revenues
derived from tire, battery, and accessory (TBA), anti-freeze,
undercoating, groceries, beverages, and other sales from
Marketing.
Line 06.00--Total Operating Revenues
Total lines 01.00 through 05.00. Elimination amounts reported
on line 06.00, column D (domestic) and I (foreign) should
equal the amounts reported on schedule 5250, line 04.00,
column A (domestic) and line 08.00, column E (foreign).
Line 07.00 through 20.00
Refer to the instructions for Schedule 5110 for definitions
applicable to these lines on Schedule 5210. Amounts reported

21

EIA-28 Survey Instructions

in column A must agree with amounts reported in
column D on Schedule 5110.

be included in refinery operating expenses or, as appropriate,
in other marketing expenses.

Line 07.00, column D (domestic) and column I
(foreign) should equal the amounts reported on
schedule 5250, line 04.00, column A (domestic) and
line 08.00, column E (foreign). In addition, details of
line07.00 operating expenses are reported on
schedule 5211, pages 1 – 4.

Do not include the expense of petrochemical operations since
such operations must be included in the Chemical Segment reported in Non-energy Operations.

Eliminations
Eliminations reported in Column I represent
transactions among the foreign petroleum segments.
Column D represents transactions among the
domestic petroleum segments. Transactions between
the domestic and foreign petroleum segments are
reported in Column B.

Domestic and Foreign Petroleum
Segments
Refining/Marketing Operations and
Production Operations
Expenditure and Operating Expense
Detail
Schedule 5211
General
This schedule contains general operating expense
details for domestic refining/marketing operations
(lines 01.00-18.00, Page 1 of 4) and expenditure
details as well as general operating expense totals for
domestic (onshore and offshore) exploration and
production operations (lines 19.00-45.00, pages 2 &
3 of 4) and
foreign (by geographic region, page 4 of 4).

Domestic Refining/Marketing Segment
(Page 1 of 4)
This
schedule
breaks
total
Domestic
Refining/Marketing Segment expenses into three
parts-- net Raw Material Supply (meaning the cost
of raw materials sold, e.g., not refined), Refining
operations, and Marketing operations.
The marketing function includes the operation of
terminals, bulk plants, retail outlets, and
transportation facilities used for delivering refined
products. Canning plant operations (e.g., blending,
compounding, and canning lube oil products) should

22

Line 01.00--Raw Material Purchases
Report purchases by the Domestic Refining/Marketing
Segment of crude oil, natural gas, natural gas liquids, and
other petroleum raw materials as reported on Schedule 5212,
line 04.00, column B. Natural gas and natural gas liquids
should only be purchased for use in refining operations.
Line 02.00--Other Raw Material Supply Expense
Report all other domestic raw material supply expenses not
included in line 01.00. Include: raw material transportation,
raw material exchange differentials, and inventory change.
Line 03.00--Total Raw Material Supply Expense
Total lines 01.00 and 02.00.
Line 04.00--Less: Cost of Raw Materials Input to Refining
Report the value of total raw materials input to domestic
refining. This related volume is reported on 5245, line 11.00,
column B.
Line 05.00--Net Raw Material Supply
Line 03.00 minus line 04.00.
Line 06.00--Raw Materials Input to Refining
Report the value of total raw materials input to domestic
refining. This amount must agree with the amount reported on
line 04.00 above.
Line 07.00--Less: Raw Material Used As Refinery Fuel
Report as reduction (credit) the value of raw material input to
domestic refining (line 04.00) that was subsequently used as
refinery fuel.
Line 08.00--Refinery Process Energy Expense
Report all domestic refinery process energy expenses,
including cost of own fuel, purchased fuel, electricity, and
steam used in the process of refining. Include amounts
reported on line 07.00.
Line 09.00--Other Refining Operating Expenses
Report all other domestic refining operating expenses. Include
purchases of non-petroleum blending stocks such as lead
additives. Also include any canning and blending operation
expenses not assigned to other marketing expenses (line
14.00).
Line 10.00--Refined Product Purchases
Report domestic refined product purchases as reported on
Schedule 5212, line 08.00, column B.

EIA-28 Survey Instructions

Line 11.00--Other Refined Product Supply
Expenses
Report all other domestic refined product supply
general operating expenses not included on lines
06.00 through 10.00. Include all taxes applicable to
refined product supply (other than income taxes and
consumer excise taxes). Include refined product
exchange differentials, inventory changes, and
transportation. DO NOT include any amounts
incurred in rate regulated pipeline operations.
Line 12.00--Total
Total lines 06.00 through 11.00.
Line 13.00--Cost of Other Products Sold
Report domestic purchases of other products held for
resale, including tires, batteries, and accessories
(TBA) and other merchandise. Include inventory
change.
Line 14.00--Other Marketing Expenses
Report all other domestic marketing operation
expenses not included on line 13.00. Include
expenses of any canning and blending operations that
might be assigned to the marketing function. Include
advertising and credit card operating expenses.
Line 15.00--Total Marketing Expenses
Total lines 13.00 and 14.00.
Lines 16.00--Expenses of Transport Services for
Others
Report all domestic transportation expenses
applicable to the transportation revenues reported on
Schedule 5210, line 03.00, column F. This expense
represents the cost of transporting goods for third
parties and unconsolidated affiliates.
Line 18.00--Total Domestic Refining/Marketing
Segment General Operating Expenses
Total of lines 05.00, 12.00, and 17.00. This amount
must agree with the amount reported on Schedule
5210, line 07.00, column F.

Exploration and Production Operations
(Pages 2-4 of 4)
Cost
of
property
acquisition,
exploration,
development and production (lifting), reported on
lines 21, 29, 37 and 42 respectively, should agree
with amounts reported in your company annual report
pursuant to FAS Number 19, except for royalty
expense reported on line 39.00.
Segregate reported amounts by the indicated
domestic onshore or offshore operations. Refer to the
Glossary for detailed definitions.
Include only costs and expenses assignable to the
Production Segment. Allocations performed at the

district or field level as part of the company's normal reporting
system are acceptable and need not be adjusted for this
schedule.
Lines 19.00-21.00--Acquisition of Unproved and Proved
Acreage
Report the net company interest in direct domestic
expenditures incurred for acquiring unproved acreage.
Include lease bonuses; options to purchase or lease properties;
title costs; recording; broker, and legal fees; advance initial
royalties; and any other direct outlays necessary to acquire
leases, mineral rights, and fee lands incident to oil and gas
exploration.
Include the purchase value of proved properties acquired in
mergers and acquisitions as an acquisition of proved acreage.
Purchases of minerals-in-place should be reported on Schedule
5246 for proved acreage acquisition costs reported on
Schedule 5211, line 20.
Lines 24.50-26.00--Drilling and Equipping of Wells:
Completed Well Costs
On line 24.50 report cumulative domestic expenditures for
drilling and equipping exploratory wells completed (i.e.,
finished) during the period, reduced by the amount of outside
cash contributions such as bottom hole or dry hole
contributions.
Include all expenditures for the drilling and equipping of wells
incurred since the inception of drilling.
Include expenditures for casing, tubing, and other equipment,
including equipment installed for development of successful
exploratory wells, such as down-hole pumping equipment,
platforms, and the wellhead assembly, as well as the costs of
roads, grading, etc.
Do not include costs related to equipment beyond the
christmas tree, as these should be reported as lease equipment
on line 35.00 below.
Reduce costs of exploratory dry holes by salvage of equipment
capable of re-use.
On line 25.00, report the increase (or decrease) in expenditures
capitalized for drilling and equipping domestic exploratory
wells-in-progress between the beginning and end of the
reporting period.
On line 26.00, report the total of lines 24.50 and 25.00. This
amount must equal the expenditures during the current period.

Line 27.00--Geological and Geophysical
Report all geological and geophysical expenditures including,
but not limited to, costs incurred for salaries, equipment and
supplies for scouts, and geological and geophysical crews.

23

EIA-28 Survey Instructions

Include cost of surface and subsurface studies and
geo-chemical analyses.
Line 28.00--Other, Including Direct Overhead
Report all other expenses, including direct overhead
costs assigned at the field or district level, directly
associated with exploration activities.
Include
carrying costs of undeveloped properties (lease
rents); test hole contributions; and land development,
leasing, and scouting.
Line 29.00--Total Exploration
Total of lines 26.00, 27.00, and 28.00.

Domestic Development
Line 32.50--Drilling and Equipping of Wells:
Completed Well Costs
For line 32.50 report cumulative domestic expenditures for drilling and equipping development wells
(reduced by the amount of outside cash contributions
such as bottom hole of dry hole) completed (i.e.,
finished) during the period. This same breakdown
was used on the Bureau of the Census Form MA13K
until it was discontinued in 1983. Include all
expenditures since the inception of these completed
wells.
Include casing, tubing, and wellhead fittings
associated with development wells, costs of roads
and grading, costs of drilling platforms, and all cost
incident to development drilling.
Include cost of old wells drilled deeper, re-drilled
wells, and re-completions.
Exclude costs of service wells, which should be
reported on line 35.00, and exclude costs of well
workovers.Reduce the cost by salvage value of
equipment capable of re-use.
Line 33.00--Work-in-Progress Adjustment
Report the increase or (decrease) in expenditures
capitalized for drilling and equipping domestic
development
wells-in-progress
between
the
beginning and end of the reporting period.
Line 34.00--This Year's Expenditures
Total of lines 32.50 and 33.00. This must equal the
expenditures incurred during the current period.
Line 35.00--Lease Equipment
Report the net company interest in capitalized
domestic expenditures for primary recovery
programs.
Line 36.00--Other Development Costs
Include all other domestic development costs,
including: gas processing facilities, access facilities

24

to district installation (as opposed to individual wells) such as
roads, bridges, canals, and other improvements; camp and
district facilities; fuel gas systems; observation wells, salt
water disposal wells, and water supply wells, directly
assignable and other overhead costs; and expenditures for
capital equipment used for development not otherwise
accounted for. Exclude costs of equipment and buildings used
by personnel engaged in general producing activities as
distinguished from development operations.
Line 37.00--Total Development Costs
Total of lines 34.00, 35.00, and 36.00.
Line 38.00--Subtotal
Total of lines 21.00, 29.00, and 37.00.
Lines 39.00-42.00--Production (Lifting) Costs
Refer to the Glossary for definitions of production costs.
Report lifting and other expenses that can be assigned to the
production of oil and gas. Exclude costs of exploratory and
development activities.
Production costs include labor, supervision in the field, repair
and maintenance (see below for workovers), fuel, power, and
water, small tools and supplies, cost of treating oil, teaming
and trucking, insurance, taxes other than income taxes,
buildings, lease or field facilities, and other property used in
production operations, bailing, shooting, fracturing, and
acidizing (when not part of original completion work),
abandonments, and expenditures for maintaining field offices.
Include all expenses of cleaning out and working over wells
for the purpose of restoring or increasing the production from
the same producing horizon.
Report all expenses for operations and maintenance of fluid
injection and other improved recovery programs, including
well operations and maintenance for improved recovery wells.
Include workovers of improved recovery wells.
Include the value of all materials used, except the reporting
companys own raw material production used on the lease.
Line 39.00--Royalty Expenses
Report royalty expense classified as an expense in the company's financial statements.
Line 40.00--Taxes Other Than Income Taxes
Include all expenses for ad valorem taxes on producing properties, equipment, buildings, lease or field facilities, and
other property used in production operations. Exclude ad
valorem taxes on undeveloped properties and on buildings and
equipment used for exploratory purposes. (Include these items
in other exploration costs on line 28.00 above.)
Include payments of production or severance taxes to State
and local governments. Do not reduce the revenues from
crude oil or natural gas produced at the wellhead by such
amounts.

EIA-28 Survey Instructions

Include tax expense attributable to the Crude Oil
Windfall Profits Tax Act of 1980.
Line 41.00--Other Production Costs
Report overhead expense, especially at the district
and field levels, and other expenses not included
elsewhere, which are assigned to the production
function. Include domestic royalty expenses and
costs of operation and maintenance of gas processing
facilities classified as costs of oil and gas producing
activities in the company's financial statements.
Line 42.00--Total Production Costs
Total of lines 39.00 through 41.00.
Line 43.00--Total Costs Incurred
Total of lines 38.00 and 42.00.
Lines 44.00 and 45.00--Support Equipment and
Facilities (Memo)
On line 44.00, report the amount of depreciation of
support equipment and facilities. Such amount
would already be included as a part of exploration,
development, and production costs reported above.
On line 45.00, report the amount of new investment
in support equipment and facilities for the year. Such
amounts are not included as a component of
exploration, development, or production costs
reported above, since the depreciation is allocated to
these functions pursuant to SFAS Number 19.

Domestic Petroleum Segments
Purchases and Sales of Raw Materials
and Refined Products
Schedule 5212
General
This schedule gathers volume and value data for
purchases and sales of raw materials and refined
products. The "FRS Overview" section of the
instructions concerning petroleum operations should
be consulted before completing this schedule.
Volumes and values reported on Schedule 5212
should not include trading activities in which the
transactions were not settled in physical quantities.
Classify aviation gasoline and jet fuel with gasoline
and distillate fuels, respectively. Exclude consumer
excise taxes. Report petroleum volumes in thousands
of barrels and natural gas volumes in millions of
cubic feet.

Lines 01.00-04.00--Domestic Refining/Marketing
Purchases and Sales of Raw Materials
Report for the Domestic Refining/Marketing Segment the
volumes and values of raw materials purchased and sold.
Schedule 5212, line 01.00, column A, represents the volume
of crude oil and NGL purchased. The volume of NGL
purchased should only include that purchased for use in the
refining operations of the company. All other NGL should be
purchased by the Downstream Natural Gas Line of Business.
The volume of crude oil purchased should agree with
Schedule 5245, line 09.00, column B. The volume of NGL
purchased for the company’s use should not be included on
Schedule 5245. Schedule 5212, line 01.00, column C,
represents the volume of crude oil sold and should agree with
Schedule 5245, line 14.00, column B. There should be no
NGL sold by Refining/Marketing. Schedule 5212, line 2,
column A, represents the volume of natural gas purchased for
use by the company in refining operations only. All other
natural gas is sold to the Downstream Natural Gas Line of
Business. Also, schedule 5212, line 04.00, column D, Total
(raw material sales), should agree with 5210, line 01.00,
column F.
Lines 05.00-08.00--Domestic Refining/Marketing Segment
Purchases and Sales of Refined Products
Report for the Domestic Refining/Marketing Segment the
volumes and values of refined products purchased and sold.
Schedule 5212, line 08.00, column D, total refined product
sales, should agree with 5210, line 02.00, column F. Also, a
rough relationship should exist between the Total (refined
product volumes sold), 5212, line 08.00, column C, and the
sum of refinery runs, 5242, line 05.00, column B, and refined
product purchases, 5212, line 08.00, column A. Such
comparisons would be expected to hold true on a product level
comparison also.
Lines 09.00-11.00--Domestic Production Segment Purchase
and Sales of Raw Materials
Report for the Domestic Production Segment the volumes and
values of raw materials purchased and sold. Note that
pursuant to the FRS trading rules, the Domestic Production
Segment is not permitted to purchase crude oil, so only NGL's
should be reported on 5212, line 09.00, columns A & B (see
the FRS Overview section of the instructions). Schedule
5212, line 9, column C, should reflect the volume of crude oil
sold to Refining/Marketing, and the volume of NGL sold to
the Refining/Marketing and Downstream Natural Gas lines of
business. The volume of NGL should be the sum of the
volume sold to Refining/Marketing for the company’s own
use and the volume sold to Downstream Natural Gas.
Likewise, the volume of natural gas sold on line 10, column C,
should be the sum of the volume sold to Refining/Marketing
for the company’s own use and the volume sold to
Downstream Natural Gas.
Lines 12.00-21.00--Domestic Dispositions of Refined
Products
This section is a further breakdown of the totals appearing
above in 52l2, line 08.00, columns C & D, and therefore line

25

EIA-28 Survey Instructions

18.00, columns B through G, should agree with lines
05.00 through 08.00, columns C & D, above.
Report in column H, lines 19.00, 20.00, and 21.00,
the number of active automotive outlets at period end
classified as "company operated," "lessee dealers," or
"open dealers." See the Glossary entry, "Company
Automotive (Retail) Outlet" for definitions.
Please note that the volumes and values reported on
lines 14.00 and 15.00, columns B and C, should be
for the outlets reported in column H, except that there
will be some volumes and values associated with
outlets closed during the year. In other words, except
for the outlets closed during the year, only report
outlets in column H for which volumes and values
are reported in columns B and C. Outlets for which
the company has made the decision to close prior to
year end, but were not officially closed before the
end of the year, should be reported in column H.
Outlets which are part of operations reported as
discontinued at year-end should still be reported on
Schedule 5212
Report on line 13.00 sales to parties known to be
wholesaler-resellers, including other petroleum
companies. Report on lines 14.00 & 15.00 sales to
consumers through company automotive (retail)
outlets (see Glossary). Report on line 16.00 sales not
classified elsewhere, including primarily industrial
and commercial sales, and other sales at retail
(marinas, airports, etc.).
Purchase and sales values reported on Schedule 5212
should include transportation costs.

Domestic and Foreign Petroleum
Segments
Exploration, Development, and
Production Statistics
Schedule 5241

foreign geographic areas listed in column headings F - L.
Acreage is considered developed when development has been
completed.
Note that information on the number of wells completed
should not reflect an end-of-period well count, but instead
should reflect the wells completed (i.e., finished) at any time
during the period, regardless of when drilling was initiated.
The number of wells refers to the number of holes drilled.
(Round to the nearest tenth of a well.)
Note that information on drilling footage (reported on lines
19.00-26.00) should reflect cumulative footage drilled for
wells completed at any time during the reporting period.
Footage should be reported in the same period as the
completed well. Corresponding costs should also be reported
in the same period on Schedule 5211.
"Gross" acreage refers to the total number of acres for all
properties in which the company has a working interest.
"Net" acreage, wells, and drilling footage refer to the
company's share of the total working interest.

Domestic and Foreign Petroleum Segments
Petroleum Refining Statistics
Schedule 5242
General
Report refining/marketing statistics for domestic and foreign
petroleum segments as indicated.
Reported amounts must relate only to the reporting company
and its consolidated affiliates.
Refineries and related
operating statistics which are reported as discontinued
operations at year-end should still be reported on Schedule
5242.
Report the company's share of runs to stills on a calendar day
basis for the period. Condensate may be included in volumes
reported. Include runs to fractionators.

Reported amounts must relate only to the reporting
company and its consolidated affiliates.

Lines 01.00-02.00--Number of Refineries
Report the number of operable petroleum refineries l00%
owned by the company and by its consolidated affiliates (line
01.00), the number of consolidated refineries less than 100%
owned (line 02.00). DO NOT include natural gas processing
or petrochemical plants. The number of refineries should be
the number owned or partially owned at year end. Include in
the total those refineries which the company has agreed, prior
to year end, to close or sell, but were still owned by the
company at year end.

Acreage, Wells, and Drilling (lines 01.00-26.00)
Report information pertaining to acreage, wells, and
drilling as indicated. Refer to the Glossary for
definitions of all line items and for definitions of the

Line 03.00--Runs to Stills at Own Refineries
Report volumes run for the company at the refineries included
in line 01.00 and 02.00. Include volumes processed for
company use or sale and volumes processed for others.

General
Report exploration, development, and production
statistics for domestic and foreign petroleum
operations as indicated.

26

EIA-28 Survey Instructions

Line 04.00--Runs to Stills at Refineries of Others
Report volumes processed for the company's account
by refineries not included in line 01.00.
Line 05.00--Total Runs to Stills
Total of lines 03.00 and 04.00.
Lines 05.50-11.00--Refinery Output at Own
Refineries
Report refinery output by product type for the period.
The product slate should relate to the total runs for
the company's account (line 03.00). Refer to the
Glossary for product definitions.
Lines 11.50-17.00--Total Refinery Output at
Other's Refineries
Report refinery output of others for the reporting
company's account by product type for the period.
The product slate should relate to the total runs by
others for the company's account (line 04.00).
Line 18.00--Total Refinery Output
Total of lines 11.00 and 17.00.
Lines 19.00-23.00--Capacity--Barrels Per
Calendar Day Basis
Report the company's share of total refinery capacity
and changes in capacity during the year on a barrels
per calendar day basis (see Glossary) for the
refineries reported in lines 01.00 and 02.00.

Report transfers of raw materials from the Production
Segment to the Refining/Marketing Segment as purchases by
the Refining/ Marketing Segment as explained in the "FRS
Overview" section of the instructions concerning petroleum
operations.
Include inter-segment transactions. Report inter-segment
transfers of refined products between Domestic and Foreign
Refining/ Marketing on line 16.00. Note that inter-segment
transfers between Domestic and Foreign Refining/Marketing
net to -0- in the total column.
Include sales to unconsolidated affiliates on line 12.00, which
is entitled "unaffiliated third parties." Note the amount of
sales to unconsolidated affiliates in a footnote at the bottom of
the schedule, if available.
Acquisitions from the production segment reported on line
01.00 represents crude oil purchases only.

Domestic and Foreign Petroleum Segments
Proved Petroleum Reserves
Schedule 5246
General
Report proved reserves of crude oil (and natural gas liquids)
and natural gas (and changes therein) by the indicated
categories and geographic areas. Natural gas and natural gas
liquid reserves should be reported on an "as sold" basis. Refer
to the Glossary for definitions.

Beginning of period capacity reported on line 19.00
must agree with the prior year capacity at end of
period reported on Schedule 5242 line 23.00.

Reported amounts must relate only to the reporting company
and its consolidated affiliates, except for proportional interest
in investee reserves. Report amounts as of the end of the
reporting period unless otherwise indicated.

Domestic and Foreign Petroleum
Segments
Sources and Dispositions of Crude and
Natural Gas Liquids
Schedule 5245

Please note that amounts for "production" and "sales of
minerals in place" should be bracketed, pursuant to the
instructions pertaining to sign conventions on page 3.

General
Read the "FRS Overview" Chapter of the instructions
concerning petroleum operations before completing
this schedule.
Report acquisitions (domestic and foreign volumes)
of raw materials as specified.
Report all volumes in thousands of 42 U.S. gallon
barrels (MB).

Beginning of period reserves reported on lines 01.00 and
12.00 must agree with the end of period reserves reported on
the prior year’s Form EIA-28. If prior year ending reserves
have been restated, the prior year Schedule 5246 will need to
be amended.
If the company acquired reserves through a non-cash
transaction (i.e. reserve swap), the value of the transaction and
the quantities involved should be reported as part of Exhibit B.
The same procedure should be followed if the company paid
for reserves during the reporting year but did not take
possession until the following year, creating a timing
difference.

Report domestic and foreign volumes for
purchase/sale agreements and brokerage activities in
accordance with the company's normal accounting
practices. Do not report exchanges.

27

EIA-28 Survey Instructions

Domestic and Foreign Petroleum
Segments
Eliminations in Consolidation
Schedule 5250
General
This schedule summarizes the eliminations required
for the schedule 5210 income statement, which is the
petroleum schedule that contains numerous intersegment eliminations. Report only elimination
amounts on this schedule.
Compiling the correct eliminations required to
consolidate the petroleum segment requires an
understanding of the petroleum segment definitions
and the rules governing segment transactions. For
background on this see the "FRS Overview" chapter
of the instructions, sections B, C, and G.
The hatched out areas are provided to indicate intersegment transactions which are not permitted under
the FRS rules or which would not conceptually be
possible in any case.
Line 8.00, column A
The total of these transactions (line 08.00, column A)
will be the Operating Revenue and General Operating
Expense elimination amounts required on Schedule
5210, column B.

Domestic and Foreign Downstream
Natural Gas Segments
Consolidating Statements of Income
Schedule 5710
General
Report consolidating results of operations assignable
to domestic and foreign downstream natural gas
segments.
Refer to Section I of Chapter II for definitions of
segments
(Processing,
Marketing/Trading,
Transmission, and Distribution) included in the
domestic and foreign downstream natural gas line of
business.
In general, revenues and expenses should be
associated with costs incurred within a segment, but
refer to Chapter II, "FRS Overview," section I of the
instructions for more detailed explanations of the
FRS segment reporting rules.

28

Column A -- Consolidated
Column A contains the totals for downstream natural gas
operations, after all eliminations, and should equal amounts
reported on Schedule 5110, column F.
Column E -- Processing
Classify operations in this segment that are associated with all
of the revenue and expense transactions involved in natural
gas liquids production, transport, storage, and sales; natural
gas processing; and marine-based liquefied natural gas
operations.
Column F -- Marketing/Trading
Classify operations in the segment that are associated with the
purchase and resale of natural gas and natural gas liquid
products apart from Distribution segment operations.
Column G -- Transmission
Classify operations in this segment that are associated with the
bulk/wholesale delivery of natural gas. Do not include the cost
of natural gas/natural gas liquid products in this segment;
include only those revenue and expense transactions
associated with wholesale delivery services.
Column H -- Distribution
Classify operations in this segment that are associated with the
purchase, resale and delivery of natural gas and natural gas
liquids, and local natural gas delivery services.
Column I -- Consolidated Foreign
Foreign operations in processing and gathering,
marketing/trading, transmission, and distribution are reported
on a consolidated basis in this column.

Operating Revenues and Expenses
All operating revenues included on Schedule 5110 (line 01.00,
column F) should equal line 08.00, column A of Schedule
5710.
Lines 01.00 -- 02.00—Natural Gas and NGL Sales
Report the value of the sale or inter-segment transfer of retail
natural gas and natural gas liquid products by the domestic
and foreign segments.
Inter-segment transfers will be
eliminated and shown in columns B and D. The amounts
reported on lines 01.00 – 02.00 are supported by Schedule
5712, lines 13, 17, and 21.
Line 03.00 -- Transportation Sales
Report all revenues derived from delivery services of the
Transmission and Distribution segment operations, columns
G, H, and I. Report all other transportation revenues under the
appropriate column heading.
Line 04.00 -- Other Product Sales
Report all sales of products and services associated with the
downstream natural gas operations, other than natural gas,
natural gas liquids, processing, gathering, and transport.

EIA-28 Survey Instructions

Line 05.00 -- Trading/Derivatives
Report revenues on a net basis associated with the
wholesale brokering of natural gas and natural gas
liquid products. Do not include the revenue
associated with the actual product, as this is reported
on lines 01.00 and 02.00.
Line 06.00 -- Management and Processing Fees
Report all management and processing fee revenues
for each applicable segment, domestic and foreign.

this will be an offset/reduction from lines 01.00 and 02.00.
Report on line 04.00 the cost of energy consumed in the
production of NGL at the plant.
Report on line 05.00 the cost of storage of both natural gas to
be used in NGL production and the storage of the finished
NGL product. Also include any other storage and supply
expenses that support or are ancillary to the inventory.
Report any other NGL plant operating expenses on line 06.00.

Line 07.00 -- Other Revenues
Report all other domestic and foreign operating
revenues not included on lines 01.00 through 06.00.
Line 08.00 -- Total Operating Revenues
Total of lines 01.00 through 07.00.
Lines 09.00 through 22.00
Refer to the instructions for Schedule 5110 for
definitions applicable to these lines on Schedule
5710. Amounts reported in column A must agree
with amounts reported in column F on Schedule
5110. The amounts reported on line 09.00, General
Operating Expenses, are further detailed on Schedule
5711.

Eliminations
Report in column D the domestic inter-segment
eliminations. Report in column B eliminations
between domestic and foreign transactions/transfers.

Domestic Downstream Natural Gas
Segments
General Operating Expense Detail
Schedule 5711
General

Report on line 07.00 any other expenses included in the
Processing sub-segment that would not have been applicable
to lines 01.00 – 06.00.
Report on line 08.00 expenses for marine-based liquefied
natural gas operations.
Line 09.00 (the sum of lines 01.00 – 08.00), Total Processing,
should equal the amount reported on Schedule 5710, line
09.00, column E.
Lines 10.00 - 13.00 -- Marketing/Trading
Lines 10.00 – 13.00 include the cost of brokering volumes of
natural gas and natural gas liquids.
Lines 10.00 and 11.00 represent the cost of the product
purchased from consolidated affiliates, unconsolidated
affiliates and/or third parties.
Line 12.00 includes all other costs associated with
marketing/trading activity.
Line 13.00 Total Trading, is the sum of lines 10.00 – 12.00.
Line 13.00 should equal the amount reported on Schedule
5710, line 09.00, column F.
Lines 14.00 – 17.00 -- Transmission
Line 14.00 includes the cost of the delivery of wholesale
volumes of natural gas.

This schedule contains general operating expense
details for domestic downstream natural gas
operations.

Report on line 15.00 the operating cost of any transmissionowned storage facilities for natural gas.
Include in line 16.00, the amount of any other transmission
related expense.

Lines 01.00 - 09.00 -- Processing
Lines 01.00 through 06.00 pertain to the production
of natural gas liquids.

Line 17.00 is the sum of lines 14.00 – 16.00. The amount
reported on line 17.00 should equal the reported amount on
Schedule 5710, line 09.00, column G.

Report all cost associated with the purchase of
natural gas specifically for the production of natural
gas liquids on line 01.00 which should equal the
amount reported on Schedule 5712, line 05.00,
column B and the amount on line 02.00 should equal
the amount reported on 5712, line 09.00, column B.

Lines 18.00 – 23.00 -- Distribution
Lines 18.00 and 19.00 include the cost of the purchases of
volumes of natural gas and natural gas liquids for resale by
local distribution operations. Any cost of delivering the gas
should be included in line 20.00.

Report all natural gas and natural gas liquids used as
NGL plant fuel (own consumption) on line 03.00,

Report on line 21.00 the operating cost of any distributionowned storage facilities for natural gas and natural gas liquids.

29

EIA-28 Survey Instructions

Include in line 22.00, the amount of any other
distribution related expense.
Line 23.00 is the sum of lines 18.00 – 22.00. The
amount reported on line 23.00 should equal the
reported amount on Schedule 5710, line 09.00,
column H.

Line 09.00 (the sum of lines 06.00 - 08.00), column B should
equal the total of the amounts reported on Schedule 5711,
lines 02.00 + 11.00 + 19.00.
Lines 10.00-13.00 – Natural Gas Sales
Line 10.00 report volumes and values of sales to other
company segments, including any sales to petroleum line of
business consolidated affiliates.

Downstream Natural Gas Segments
Purchases and Sales of Natural Gas and
NGLs
Schedule 5712

On line 11.00 report volumes and values of sales to third
parties known to be wholesale/resellers including direct sales
to end-use customers requiring large volumes of product.

General

Sales to unconsolidated affiliates are included with third-party
sales.

This schedule gathers volume and value data for
purchases and sales of domestic and foreign natural
gas and natural gas liquids. Section I of Chapter II of
the instructions concerning downstream natural gas
operations should be consulted before completing
this schedule. All volumes and values reported on
this schedule should be prior to any inter-segment
elimination.
Exclude consumer excise taxes. Report natural gas
volumes in millions of cubic feet and natural gas
liquids volumes in thousands of barrels.
Lines 01.00-05.00 – Natural Gas Purchases
On lines 01.00 - 03.00 the volumes and values
purchased, for domestic and foreign operations. Line
01.00 reports the volumes and value of the transfers
from upstream petroleum consolidated affiliates.
Line 02.00 reports volumes and values of transfers
between foreign and domestic operations.
Line
03.00 reports volumes and values of liquefied natural
gas. Line 04.00 is used for the volumes and values of
purchased from third parties. Any purchases from
unconsolidated affiliates should be included in lines
03.00 and 04.00.
Line 05.00 (the sum of lines 01.00 - 04.00), column
B should equal the total of the amounts reported on
Schedule 5711, lines 01.00 + 03.00 + 10.00 + 18.00.
Lines 06.00-09.00 – Natural Gas Liquids
Purchases
On lines 06.00 - 09.00 the volumes and values
purchased for domestic and foreign operations. Line
06.00 reports the volumes and value of the transfers
from upstream petroleum consolidated affiliates.
Line 07.00 reports volumes and values of transfers
between foreign and domestic operations. Line 08.00
is used for the volumes and values of purchased from
third parties.

30

On line 12.00 report volumes and values of sales to third-party
end users.

Line 13.00 is the sum of lines 10.00 – 12.00. Line 13.00,
column B equals line 01.00, column C of Schedule 5710 and
line 13.00, column D equals line 01.00, column I of Schedule
5710.
Lines 14.00-17.00 – Liquefied Natural Gas Sales
Line 14.00 report volumes and values of sales to other
company segments, including any sales to petroleum line of
business consolidated affiliates.
On line 15.00 report volumes and values of sales to third
parties known to be wholesale/resellers including direct sales
to end-use customers requiring large volumes of product.
On line 16.00 report volumes and values of sales to third-party
end users.
Sales to unconsolidated affiliates are included with third-party
sales.
Line 17.00 is the sum of lines 14.00 – 16.00. Include line
17.00, column B in line 04.00, column C of Schedule 5710,
and line 17.00, column D in line 04.00, column I of Schedule
5710.
Lines 18.00-21.00 – Natural Gas Liquids Sales
Line 18.00 report volumes and values of sales to other
company segments, including any sales to petroleum line of
business consolidated affiliates.
On line 19.00 report volumes and values of sales to third
parties known to be wholesale/resellers including direct sales
to end-use customers requiring large volumes of product.
On line 20.00 report volumes and values of sales to third-party
end users.
Sales to unconsolidated affiliates are included with third-party
sales.

EIA-28 Survey Instructions

Line 21.00 is the sum of lines 18.00 – 20.00. Line
21.00, column B equals line 02.00, column C of
Schedule 5710 and line 21.00, column D equals line
02.00, column I of Schedule 5710.

Domestic and Foreign Downstream
Natural Gas Segments
Capacity and Output Statistics
Schedule 5741
General
Report downstream natural gas and natural gas liquid
capacity and output statistics as follows:
Page 1 – Domestic and foreign capacity statistic
details for the end of the reporting period.
Page 2 – Worldwide, domestic, and foreign product
output statistics for the reporting period.
Reported amounts must relate only to the reporting
company and its consolidated affiliates.
For Page 1:
Lines 1.00 – 4.00 -- Processing
Report the natural gas capacity statistics as detailed.
Lines 05.00 – 06.00 -- LNG Import/Export
Facilities
Report the capacity statistics for marine-based LNG
import and export facilities as detailed.
Lines 07.00 – 09.00 -- Natural Gas Transmission
Report the natural gas transmission capacity statistics
as detailed.
Lines 10.00 – 12.00 -- Natural Gas Distribution
Report the natural gas distribution capacity statistics
as detailed.
Lines 13.00 – 14.00 – NGL/LPG Pipelines
Report the NGL/LPG pipeline statistics as detailed.
For Page 2:
Lines 15.00 – 17.00 -- Processing
Report the NGL and natural gas statistics as detailed.
Lines 18.00 – 20.00 -- LNG Import/Export
Facilities
Report the statistics for marine-based LNG import
and export facilities as detailed.

Lines 24.00 – 26.00 -- Natural Gas Distribution
Report the natural gas distribution statistics as detailed.

Domestic and Foreign Electric Power Segments
Consolidating Statements of Income
Schedule 5810
General
Report the consolidating results of operations assignable to
domestic and foreign electric power segments.
Refer to Section J of Chapter II of the Instructions for
definitions of segments in the Electric Power line of business
(Generation,
Marketing/Trading,
Transmission,
and
Distribution).
In general, revenues and expenses should be associated with
costs incurred within a segment, but refer to Chapter II, "FRS
Overview," of the instructions for more detailed explanations
of the FRS segment reporting rules.

Column A -- Consolidated Total
Column A represents the totals for electric power operations,
after all eliminations, and should equal amounts reported on
Schedule 5110, column G.

Column E -- Generation (Regulated and NonRegulated)
Classify operations in this segment that are associated with the
processing of fuel into electric power. This includes the cost of
the fuel as well as operating and maintaining all of the
mechanical, electrical and other plant systems required to
produce electricity and place it on the delivery grid. For
domestic generation, combine the operations associated with
regulated generation and non-regulated generation. Do not
include purchases of electric power for resale.

Column F -- Marketing/Trading
Classify operations in this segment that are associated with the
purchase and resale of the electric power product apart from
Distribution operations.

Column G -- Transmission
Classify operations in this segment that are associated with the
bulk/wholesale delivery of the electric power product. Do not
include the cost of the electric power product in this segment;
include only those revenue and expense transactions
associated with wholesale product delivery.

Lines 21.00 – 23.00 -- Natural Gas Transmission
Report the natural gas transmission statistics as
detailed.

31

EIA-28 Survey Instructions

Column H -- Distribution
Classify operations in this segment that are associated
with the purchase , resale, and delivery of the
electric power product, and local electric power
delivery services.

Column I -- Consolidated Foreign
Foreign
operations
in
Generation,
Marketing/Trading, Transmission, and Distribution
are reported on a consolidated basis in this column.

Operating Revenues and Expenses
Operating revenues included on Schedule 5110 (line
01.00, column G) should equal line 06.00, column A
of Schedule 5810.
Line 01.00 -- Power Sales
Report the value of the sale or inter-segment transfer
of electric power by the domestic and foreign
operations. Inter-segment transfers will be eliminated
and shown in columns D (domestic) and B (between
domestic and foreign). The amounts reported on line
01.00 for the applicable segments both domestic
(columns E, F, and H) and foreign (column I) should
equal sales amounts reported on Schedule 5812.
Line 02.00 -- Transportation Sales
Report all revenues derived from delivery services in
the Transmission and Distribution segment
operations (columns G, H, and I) and any transport
sales by Marketing/Trading in column F.
Line 03.00 – Other Product Sales
Report all sales of products associated with the
electric power operations, other than the electric
power itself. This could include, but not be limited to
street lighting, joint use facilities, reconnection fees,
automated meter reading devices, etc.

Line 07.00 through 20.00
Refer to the instructions for Schedule 5110 for definitions
applicable to these lines on Schedule 5810. Amounts reported
in column A must agree with amounts reported in column G
on Schedule 5110.
Amounts reported on line 07.00, General Operating Expenses
(domestic), are further detailed on Schedule 5811, lines 6, 9,
10, and 13..

Eliminations
Column D is used to eliminate inter-segment transactions for
the domestic operations.
Column B is used to eliminate transactions between the
foreign and domestic operations.

Domestic Electric Power Segments
General Operating Expense Detail
Schedule 5811
General
This schedule contains general operating expense details for
total domestic electric power operations.
Lines 01.00 – 06.00 -- Generation Expense
Lines 01.00 through 06.00 pertain to the generation of electric
power.
Report all costs associated with the purchase of fuel
specifically used for the generation of electric power on line
01.00. The amount should equal the amount reported on
Schedule 5812, line 06.00, column B.
Report all other cost of purchasing, transporting and handling
the fuel on lines 02.00 and 03.00.

Line 04.00--Trading/Derivatives
Report revenues, on a net basis, associated with the
wholesale brokering of the electric power product.
Do not include the revenue associated with the actual
product, as this is reported on line 01.00. Include all
income
associated
with
derivative
accounting/hedging contracts not included in the
price of the product.

Line 04.00 is the sum of lines 01.00 – 03.00.

Line 05.00 -- Other Revenues
Report all other domestic and foreign operating
revenues not included on lines 01.00 through 04.00.
Revenues associated with non-energy product sales
should be reported on Schedule 5110, line 01.00,
column H.

Lines 07.00 – 09.00 -- Marketing/Trading Expense
Lines 07.00 – 09.00 include the cost of brokering volumes of
electric power.

Line 06.00 --Total Operating Revenues
Total of lines 01.00 through 05.00.

32

Line 05.00 is to be used to report all other operation,
maintenance and administrative expenses for generation.
Line 06.00 is the sum of all generation operating expenses and
should equal the amount reported on Schedule 5810, line
07.00, column E.

Line 07.00 represents the cost of the product purchased from
consolidated generating affiliates, unconsolidated generating
affiliates, and/or third parties.
Line 08.00, Other Expense, reports all operating expenses
other than the purchase of electric power.

EIA-28 Survey Instructions

Line 09.00 is the sum of lines 07.00 and 08.00. Line
09, should equal the amount reported on Schedule
5810, line 07.00, column F.
Line 10.00 -- Transmission
Line 10.00 includes the cost of the delivery of
wholesale volumes of electric energy for
consolidated affiliates, unconsolidated affiliates, and
third parties.
The amount reported on line 10.00 should equal the
reported amount on Schedule 5810, line 07.00,
column G.
Lines 11.00 – 13.00 -- Distribution
Line 11.00 includes the cost of purchases of volumes
of electric power for resale. Any cost of delivering
the power should be included in line 12.00.
Line 11.00 should equal the amount reported on
Schedule 5812, line 33.00, column B.
Line 12.00 includes the cost of delivering the power
plus the amount of any other distribution related
expense.
Line 13.00 is the sum of lines 11.00 – 12.00. The
amount reported on line 13.00 should equal the
reported amount on Schedule 5810, line 07.00,
column H.

Electric Power Segments
Purchases and Sales of Fuel and Electric
Power
Schedule 5812
General
This schedule gathers domestic and foreign volume
and value data for purchases of fuel and electric
power, and sales of electric power. Section J of
Chapter II, "FRS Overview," of the instructions
concerning electric power operations should be
consulted before completing this schedule. All
volumes and values reported on this schedule should
be prior to any elimination entries.
Exclude consumer excise taxes. Report electric
power volumes in megawatt hours.
Lines 01.00-07.00 --Purchases
The generation segment purchases fuel and converts
it into electric power. Lines 01.00 - 05.00 report the
volumes and value of different types of fuel
purchased in order to generate electric power. The
volumes used on these lines should reflect the
volume measure of the purchase of the specific fuel,

such as natural Gas (mmcf), petroleum (1,000 barrels), and
coal (tons).
Line 06.00 is the sum of lines 01.00 – 05.00 and represents the
total cost of fuel purchased by generation. Line 06.00, column
B should equal the amount reported on Schedule 5811, line
01.00, column B.
Line 07.00 reports the volumes and values of electric power
purchased by the marketing/trading and distribution segments
from the generation segment, from unconsolidated affilates,
and from third-parties. Line 07.00 should equal the total of
the amounts reported on Schedule 5811, lines 07.00 and 11.00.
Lines 08.00-15.00 –Power Sales
Line 08.00 reports the amount of electric power sold by the
generation segment to other company segments and lines of
business.
On lines 09.00 – 15.00 report volumes and values of sales by
all of the electric power segments.
On line 09.00 report sales to third parties known to be
wholesale/resellers including direct sales to end-use customers
requiring large volumes of product.
On lines 10.00 – 14.00 report sales to third-party end users as
detailed. Sales to unconsolidated affiliates are included with
third-party sales.
Line 15.00, column B should equal the total of the amounts
reported on Schedule 5810, line 01.00, columns E +F+H.

Columns C and D -- Consolidated Foreign
Report the volumes and values of the different types of fuels
purchased in order to generate electric power outside the
United States. The volumes used on these lines should reflect
the volume measure of the purchase of the specific fuel, such
as natural Gas (mmcf), petroleum (1,000 barrels), and coal
(tons).
The sum of lines 06.00 and 07.00, column D, should be less
than the amount reported on Schedule 5810, line 07.00,
column I.
On line 15.00 report volume and value of electric power sales
by foreign electric power operations. Line 15.00, column D
should equal Schedule 5810, line 01.00, column I.

Electric Power Segments
Capacity and Output Statistics
Schedule 5841
General

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EIA-28 Survey Instructions

Report electric power capacity (net summer capacity)
and output statistics as follows:
Page 1 – Domestic and foreign capacity statistic
details for capacity at the end of the reporting period.
Page 2 – Domestic foreign electric power output
statistics for the reporting period.
Consolidated amounts must relate only to the
reporting company and its consolidated affiliates. In
cases of unconsolidated joint ownership of assets, the
reporting company should only report the capacity
and output of their ownership share of the asset.
For Page 1: Domestic and Foreign Balances
Lines 01.00 – 12.00 -- Generation (by Primary
Fuel Source)
Report the electric power generation capacity
statistics as detailed.
Line 13.00 -- Transmission
Report the electric transmission statistics as detailed.
Lines 14.00 -- 15.00 -- Distribution
Report the electric distribution statistics as detailed.
For Page 2: Output Statistics
Lines 16.00 - 26.00 -- Generation
Report the generation output statistics for the
domestic and total foreign operations as detailed.
Lines 27.00 – 29.00 --Transmission
Report the transmission output statistics for the total
domestic and total foreign operations as detailed.
Line 30.00 -- Distribution
Report the distribution output statistics for the total
domestic and total foreign operations as detailed.

34

EIA-28 Survey Instructions

35

EIA-28 – Financial Reporting System

Glossary
Acquisition (minerals): The procurement of the legal
right to explore for and produce discovered minerals, if
any, within a specific area; that legal right may be
obtained by mineral lease, concession, or purchase of
land and mineral rights, or of mineral rights alone.
Acquisition Costs: Direct costs and indirect costs
incurred to acquire legal rights to extract natural
resources. Direct costs include costs incurred to obtain
options to lease or purchase mineral rights and costs
incurred for the actual leasing (e.g., lease bonuses) or
purchasing of the rights. Indirect costs include such
costs as: brokers' commissions and expenses; abstract
and recording fees; filing and patenting fees; and costs
for legal examination of title and documents.
Acreage: An area, measured in acres, that is subject to
ownership or control by those holding total or fractional
shares of working interests. Acreage is considered
developed when development has been completed.
(See definition for Working Interest.) A distinction
may be made between "gross" acreage and "net"
acreage:
•

Gross. All acreage covered by any working
interest, regardless of the percentage of
ownership in the interest.

•

Net. Gross acreage adjusted to reflect the
percentage of ownership in the working
interest in the acreage.

Affiliate: An entity that is directly or indirectly owned,
operated, or controlled by another entity. See Firm.
Amortization: The depreciation, depletion, or chargeoff to expense of intangible and tangible assets over a
period of time. In the extractive industries, the term is
most frequently applied to mean either (1) the periodic
charge-off to expense of the costs associated with
nonproducing mineral properties incurred prior to the
time when they are developed and entered into
production or (2) the systematic charge-off to expense
of those costs of productive mineral properties
(including tangible and intangible costs of prospecting,
acquisition, exploration, and development) that had
been initially capitalized (or deferred) prior to the time
the properties entered into production, and thereafter
are charged off as minerals are produced.
Avg. Daily Maximum Demand: Each day, there is a
maximum amount of demand for electric power by the
end-users. An average of the daily maximums can be
calculated

for whatever period of time desired, a month, a quarter, a year,
etc.
Barrels Per Calendar Day: The amount of input that a
distillation facility can process under usual operating conditions.
The amount is expressed in terms of capacity during a 24-hour
period and reduces the maximum processing capability of all
units at the facility under continuous operation (see Barrels per
Stream Day below) to account for the following limitations that
may delay, interrupt, or slow down production.
1. the capability of downstream processing units to absorb
the output of crude oil processing facilities of a given
refinery. No reduction is necessary for intermediate
streams that are distributed to other than downstream
facilities as part of a refinery's normal operation;
2. the types and grades of inputs to be processed;
3. the types and grades of products expected to be
manufactured;
4. the environmental constraints associated with refinery
operations;
5. the reduction of capacity for scheduled downtime due
to such conditions as routine inspection, maintenance,
repairs, and turnaround; and
6. the reduction of capacity for unscheduled downtime
due to such conditions as mechanical problems, repairs,
and slowdowns.

Base (cushion) gas: The volume of gas needed as a permanent
inventory to maintain adequate reservoir pressures and
deliverability rates throughout the withdrawal season. All native
gas is included in the base gas volume.
Black Lung Benefits: In the content of the coal operation
statement of income, this term refers to all payments, including
taxes, made by the company attributable to Black Lung.
Bottom-Hole Contribution: A payment (either in cash or in
acreage) that is required by agreement when a test well is drilled
to a specified depth regardless of the outcome of the well and
that is made in exchange for well and evaluation data. (See
definitions for Dry Hole Contribution and Test Well
Contribution).
Branded Product: A refined petroleum product sold by a
refiner with the understanding that the purchaser has the right to
resell the product under a trademark, trade name, service mark,
or other identifying symbol or names owned by such refiner.
Capacity, Coal: (Same as "practical potential" used on Form
EIA-7). The highest level of output under realistic conditions.
Assume availability of labor and materials sufficient to utilize
machinery and equipment in place and ready to use during the
year.
Take into account the additional downtime for
maintenance or repair which would be required. Do not consider
added costs (additional personnel, overtime pay, materials,
repairs, etc.) to be limiting factors on potential.

39

Energy Information Administration

Capacity, Distribution: This is the capacity of the
natural gas and electric power distribution-related
delivery assets.
Capacity, Refining: The measure of capacity used on
Schedule 5242 is adopted from the Form EIA-800,
Annual Refinery Report.
Capacity Statistics: Data concerning the capacity of
energy-related assets to produce and/or deliver
products.
Carrying Costs: Costs incurred in order to retain
exploration and property rights after acquisition but
before production has occurred. Such costs include
legal costs for title defense, ad valorem taxes on nonproducing mineral properties, shut-in royalties, and
delay rentals.
Chemical Operations: All chemical operations.
Christmas Tree: The valves and fittings installed at
the top of a gas or oil well to control and direct the flow
of well fluids.
Circuit: A conductor or a system of conductors through
which electric current flows.
Circuit-Mile: The total length in miles of separate
circuits regardless of the number of conductors used per
circuit.
Coal Gasification: The process of converting coal into
gas. The basic process involves crushing coal to a
powder, which is then heated in the presence of steam
and oxygen to produce a gas. The gas is then refined to
reduce sulfur and other impurities. The gas can be used
as a fuel or processed further and concentrated into
chemical or liquid fuel.

Combined-Cycle Generation: System for generating electricity
by use of a gas turbine and a steam turbine in tandem.
Commercial Sector: An energy-consuming sector that consists
of service-providing facilities and equipment of: businesses;
Federal, State, and local governments; and other private and
public organizations, such as religious, social, or fraternal
groups. The commercial sector includes institutional living
quarters. It also includes sewage treatment facilities. Common
uses of energy associated with this sector include space heating,
water heating, air conditioning, lighting, refrigeration, cooking,
and running a wide variety of other equipment. Note: This sector
includes generators that produce electricity and/or useful thermal
output primarily to support the activities of the above-mentioned
commercial establishments.
Company Automotive (retail) Outlet: Any retail outlet selling
motor fuel under the brand name of a company reporting in the
EIA Financial Reporting System. See Company-lessee
automotive outlet, Company-open automotive outlet, and
Company-operated automotive outlet.
Company: See Firm.
Company-Lessee Automotive Outlet: One of three types of
company automotive (retail) outlets. This type of outlet is
operated by an independent marketer who leases the station and
land and has use of tanks, pumps, signs, etc. A lessee dealer
typically has a supply agreement with a refiner or a distributor
and purchases products at dealer tank wagon prices. The term
includes outlets operated by commissioned agents and is limited
to those dealers who are supplied directly by a refiner or any
affiliate or subsidiary company of a refiner.

Coal Liquefaction: A chemical process that converts
coal into clean-burning liquid hydrocarbons, such as
synthetic crude oil and methanol.

Company-Open Automotive Outlet: One of three types of
company automotive (retail) outlets. This type of outlet is
operated by an independent marketer who owns or leases (from a
third party that is not a refiner) the station or land of a retail
outlet and has use of tanks, pumps, signs, etc. An open dealer
typically has a supply agreement with a refiner or a distributor
and purchases products based on either rack or dealer tank
wagon prices.

Coal, Nuclear, and Non-conventional: An FRS Line
of Business that includes the mining/extraction of Coal,
Nuclear fuel, and other Non-conventional energy
sources.

Company-Operated Automotive Outlet: One of three types of
company automotive (retail) outlets. This type of outlet is
operated by salaried or commissioned personnel paid by the
reporting company.

Cogeneration: The production of electrical energy and
another form of useful energy (such as heat or steam)
through the sequential use of energy.

Condensate (Lease Condensate): A natural gas liquid
recovered from associated and nonassociated gas wells from
lease separators or field facilities, reported in barrels of 42 U.S.
gallons at atmospheric pressure and 60 degrees Farenheit. For
FRS reporting, condensate that is commingled with the crude oil
stream should be reported as crude (see definition for Crude
Oil), otherwise it is reported as a plant product (see Plant
Products).

Coincident Maximum Demand: The amount of
electric power demanded by electric power customers at
a specific time of day, on a specific day, within a period
of time (normally 12 months) when the demand is the
highest for the 12-month period.

40

EIA-28 – Financial Reporting System

Contribution to Net Income: The FRS segment
equivalent to net income. However, some consolidated
items of revenue and expense are not allocated to the
segments, and therefore they are not equivalent in a
strict sense. The largest item not allocated to the
segments is interest expense since this is regarded as a
corporate-level item for FRS purposes.
Crude Oil: A mixture of hydrocarbons that exists in
liquid phase in natural underground reservoirs and
remains liquid at atmospheric pressure after passing
through surface separating facilities. Depending upon
the characteristics of the crude stream, it may also
include:
1.

Small amounts of hydrocarbons that exist in
gaseous phase in natural underground
reservoirs but are liquid at atmospheric
pressure after being recovered from oil well
(casinghead) gas in lease separators and are
subsequently commingled with the crude
stream without being separately measured.
Lease condensate recovered as a liquid from
natural gas wells in lease or field separation
facilities and later mixed into the crude stream
is also included;

2.

Small amounts of nonhydrocarbons produced
with the oil, such as sulfur and various metals;

3.

Drip gases, and liquid hydrocarbons produced
from tar sands, gilsonite, and oil shale.

Liquids produced at natural gas processing plants are
excluded. Crude oil is refined to produce a wide array
of petroleum products, including heating oils; gasoline,
diesel and jet fuels; lubricants; asphalt; ethane, propane,
and butane; and many other products used for their
energy or chemical content.
DD&A: Abbreviation for depreciation, depletion, and
amortization.
Deferred Taxes: Taxes accrued and reflected as an
expense in a company's income statement, but not
payable to the taxing authority in that time period.
These taxes are accrued to compensate for an
understatement of income tax expense which would
occur if only the tax currently due to taxing authority
were reflected as the total income tax expense.
Delay Rental: A payment that commonly is required
annually by the lease contract to be paid by a lessee if
commercial production has not yet been obtained in lieu
of the lessee's performing specified work on the leased
property according to the terms of the mineral lease.
Failure to pay the delay rental normally terminates the
lease with no penalty to the lessee.

Depletion: A term for either (1) a periodic assignment to
expense of recorded amounts or (2) an allowable income tax
deduction that is related to the exhaustion of mineral reserves.
Depletion is included as one of the elements of amortization.
When used in that manner, depletion refers only to book
depletion. (See definition for Amortization.)
•

Book. The portion of the carrying value (other than the
portion associated with tangible assets) prorated in each
accounting period, for financial reporting purposes, to
the extracted portion of an economic interest in a
wasting natural resource.

•

Tax-cost. A deduction (allowance) under U.S. Federal
income taxation normally calculated under a formula
whereby the adjusting basis of the mineral property is
multiplied by a fraction, the numerator of which is the
number of units of minerals sold during the tax year and
the denominator of which is the estimated number of
units of unextracted minerals remaining at the end of
the tax year plus the number of units of minerals sold
during the tax year.

•

Tax-percentage (or Statutory).
A deduction
(allowance) allowed to certain mineral producers under
U.S. Federal income taxation calculated on the basis of
a specified percentage of gross revenue from the sale of
minerals from each mineral property not to exceed 100
percent of the taxable income from the property
computed without allowance for depletion. (There are
also other limits on percentage depletion of oil and gas
production.) The taxpayer is entitled to a deduction
representing the amount of tax-cost depletion or
percentage (statutory) depletion, whichever is higher.

•

Excess statutory depletion. The excess of estimated
statutory depletion allowable as an income tax
deduction over the amount of cost depletion otherwise
allowable as a tax deduction, determined on a total
enterprise basis.

Depreciation: See definition for Amortization.
Development: The preparation of a specific mineral deposit for
commercial production; this preparation includes construction of
access to the deposit and of facilities to extract the minerals. The
development process is sometimes further distinguished between
a preproduction stage and a current stage, with the distinction
being made on the basis of whether the development work is
performed before or after production from the mineral deposit
has commenced on a commercial scale.
Development Costs: Costs incurred to obtain access to proved
reserves and to provide facilities for extracting, treating,
gathering, and storing the oil and gas. More specifically,
development costs, and also depreciation and applicable

41

Energy Information Administration

operating costs of support equipment and facilities and
other costs of development activities, are costs incurred
to:
•

•

•

•

Gain access to and prepare well locations for
drilling, including surveying well locations for
the purpose of determining specific
development drilling sites, clearing ground,
draining, road building, and relocating public
roads, gas lines, and power lines, to the extent
necessary in developing the proved reserves;
Drill and equip development wells,
development-type stratigraphic test wells, and
service wells including the costs of platforms
and of well equipment such as casing, tubing,
pumping equipment, and the wellhead
assembly;
Acquire, construct, and install production
facilities such as lease flow lines, separators,
treaters, heaters, manifolds, measuring
devices, and production storage tanks, natural
gas cycling and processing plants, and utility
waste disposal systems; and

No. 1 Distillate: A light petroleum distillate that
can be used as either a diesel fuel (see No. 1 Diesel
Fuel) or a fuel oil. See No. 1 Fuel Oil.

•

42

•

No. 2 Diesel Fuel: A fuel that has distillation
temperatures of 500 degrees Fahrenheit at the 10percent recovery point and 640 degrees Fahrenheit at
the 90-percent recovery point and meets the
specifications defined in ASTM Specification D 975. It
is used in high-speed diesel engines, such as those in
railroad locomotives, trucks, and automobiles. See No.
2 Distillate above.

•

Low Sulfur No. 2 Diesel Fuel: No. 2 diesel fuel that
has a sulfur level no higher than 0.05 percent by
weight. It is used primarily in motor vehicle diesel
engines for on-highway use.

•

High Sulfur No. 2 Diesel Fuel: No. 2 diesel fuel that
has a sulfur level above 0.05 percent by weight.

•

No. 2 Fuel oil (Heating Oil): A distillate fuel oil that
has distillation temperatures of 400 degrees Fahrenheit
at the 10-percent recovery point and 640 degrees
Fahrenheit at the 90-percent recovery point and meets
the specifications defined in ASTM Specification D
396. It is used in atomizing type burners for domestic
heating or for moderate capacity commercial/industrial
burner units. See No. 2 Distillate above.

Provide improved recovery systems.

Distillate fuel oil: A general classification for one of
the petroleum fractions produced in conventional
distillation operations. It includes diesel fuels and fuel
oils. Products known as No. 1, No. 2, and No. 4 diesel
fuel are used in on-highway diesel engines, such as
those in trucks and automobiles, as well as off-highway
engines, such as those in railroad locomotives and
agricultural machinery. Products known as No. 1, No.
2, and No. 4 fuel oils are used primarily for space
heating and electric power generation.

•

and portable outdoor heaters. See No. 1 Distillate
above.
No. 2 Distillate: A petroleum distillate that can be used as
either a diesel fuel (see No. 2 Diesel Fuel definition below)
or a fuel oil. See No. 2 Fuel oil below.

No. 1 Diesel Fuel: A light distillate fuel oil
that has distillation temperatures of 550
degrees Fahrenheit at the 90-percent point and
meets the specifications defined in ASTM
Specification D 975. It is used in high-speed
diesel engines, such as those in city buses and
similar vehicles. See No. 1 Distillate above.
No. 1 Fuel Oil: A light distillate fuel oil that
has distillation temperatures of 400 degrees
Fahrenheit at the 10-percent recovery point
and 550 degrees Fahrenheit at the 90-percent
point and meets the specifications defined in
ASTM Specification D 396. It is used
primarily as fuel for portable outdoor stoves

No. 4 Fuel: A distillate fuel oil made by blending distillate
fuel oil and residual fuel oil stocks. It conforms with ASTM
Specification D 396 or Federal Specification VV-F-815C and
is used extensively in industrial plants and in commercial
burner installations that are not equipped with preheating
facilities. It also includes No. 4 diesel fuel used for low- and
medium-speed diesel engines and conforms to ASTM
Specification D 975.
•

No. 4 Diesel Fuel and No. 4 Fuel Oil: See No. 4 Fuel
above.

Distribution: The delivery of energy to customers.
Domestic Operations: Domestic operations are those operations
located in the United States.
The United States is defined as the 50 States, including their
offshore territorial waters, the District of Columbia, U.S.
commonwealth territories, and protectorates.
Downstream Natural Gas: An FRS Line of Business that
begins with the procurement of natural gas, processes and
gathers natural gas, produces natural gas liquids, imports

EIA-28 – Financial Reporting System

liquefied natural gas, markets and trades natural gas and
natural gas liquids, and delivers wholesale and retail
volumes of natural gas and natural gas liquids.
Drilling: The act of boring a hole (1) to determine
whether minerals are present in commercially
recoverable quantities and (2) to accomplish production
of the minerals (including drilling to inject fluids).
•

Exploratory. Drilling to locate probable
mineral deposits or to establish the nature of
geological structures; such wells may not be
capable of production if minerals are
discovered.

Eastern Interconnect: Composed of the following Regional
Reliability Councils (as defined by the North American Electric
Reliability Council): East Central Area Reliability Coordination
Agreement (ECAR), Florida Reliability Coordinating Council
(FRCC), Mid-Atlantic Area Council (MAAC), Mid-America
Interconnected Network (MAIN), Mid-Continent Area Power
Pool (MAPP), Northeast Power Coordinating Council (NPCC),
Southeastern Electric Reliability Council (SERC), and Southwest
Power Pool (SPP).
Electric Power: An FRS Line of Business involved in the
production, transmission, delivery, and customer service for the
electric power product.

•

Developmental. Drilling to delineate the
boundaries of a known mineral deposit to
enhance the productive capacity of the
producing mineral property.

Eliminations:
Revenues and expenses resulting from
transactions between segments. Consolidated company accounts
do not include inter-segment revenues and expenses. Therefore,
such inter-segment transactions must be eliminated in
consolidation.

•

Directional. Drilling that is deliberately made
to depart significantly from the vertical.

End User: A firm or individual that purchases products for its
own consumption and not for resale (i.e., an ultimate consumer).

Drilling and Equipping of Wells: The drilling and
equipping of wells through completion of the
"Christmas tree."

Energy Reserves: Estimated quantities of energy sources that
are demonstrated to exist with reasonable certainty on the basis
of geologic and engineering data (proved reserves) or that can
reasonably be expected to exist on the basis of geologic evidence
that
supports
projections
from
proved
reserves
(probable/indicated reserves). Knowledge of the location,
quantity, and grade of probable/indicated reserves is generally
incomplete or much less certain than it is for proved energy
reserves. Note: This term is equivalent to "Demonstrated
Reserves" as defined in the resource/reserve classification
contained in the U.S. Geological Survey Circular 831, 1980.
Demonstrated reserves include measured and indicated reserves
but exclude inferred reserves.

Drilling Arrangement: A contractual agreement under
which a working interest owner (the assignor) assigns a
part of a working interest in a property to another party
(the assignee) in exchange for which the assignee
agrees to develop the property. The term may also be
applied to an agreement under which an operator
assigns fractional shares in production from a property
to participants for cash considerations as a means of
acquiring cash for developing the property. Under a
"disproportionate cost" drilling arrangement, the
participants normally pay a greater total share of costs
than the total value of the fractional shares of the
property received in the arrangement.
Dry Hole Charge: The charge-off to expense of a
previously capitalized cost upon the conclusion of an
unsuccessful drilling effort.
Dry Hole Contribution: A payment (either in cash or
in acreage) that is required by agreement only if a test
well is unsuccessful and that is made in exchange for
well test and evaluation data. (See definitions for
Bottom Hole Contribution and Test Well
Contribution.)
Dual-Fired Unit: A generating unit that can produce
electricity using two or more input fuels. In some of
these units, only the primary fuel can be used
continuously; the alternate fuel(s) can be used only as a
start-up fuel or in emergencies.

Equity in Earnings of Unconsolidated Affiliates: A company's
proportional share (based on ownership) of the net earnings or
losses of an unconsolidated affiliate. For FRS reporting, costbasis dividends are included.
Exploration: Exploration involves (1) identifying areas that
may warrant examination and (2) examining specific areas that
are considered to have prospects of containing oil and gas
reserves, including drilling exploratory wells and exploratorytype stratigraphic test wells. Exploration costs may be incurred
both before acquiring the related property (sometimes referred to
in part as prospecting costs) and after acquiring the property.
Exploration Costs: Costs, including depreciation and applicable
operating costs of support equipment and facilities and other
costs directly identifiable with exploration activities, such as:
•

Costs of topographical, geological, and geophysical
studies, rights of access to properties to conduct those
studies, and salaries and other expenses of geologists,
geophysical crews, and others conducting those studies.

43

Energy Information Administration

Collectively, these costs are sometimes
referred to as geological and geophysical or
"G&G" costs.

stratigraphic condition. There may be two or more reservoirs in
a field that are separated vertically by intervening impervious
strata or laterally by local geologic barriers, or by both.

•

Costs of carrying and retaining undeveloped
properties, such as delay rentals, ad valorem
taxes on the properties, legal costs for title
defense, and the maintenance of land and
lease records.

Financial Accounting Standards Board (FASB): An
independent board responsible, since 1973, for establishing
generally accepted accounting principles. Its official
pronouncements are called "Statements of Financial Accounting
Standards" and "Interpretations of Financial Accounting
Standards."

•

Dry hole contributions and bottom hole
contributions.

•

Costs of drilling and equipping exploratory
wells.

•

Costs of drilling exploratory-type stratigraphic
test wells.

Extractive Industries: Industries involved in the
activities of (1) prospecting and exploring for wasting
(non-regenerative) natural resources, (2) acquiring
them, (3) further exploring them, (4) developing them,
and (5) producing (extracting) them from the earth.
The term does not encompass the industries of forestry,
fishing, agriculture, animal husbandry, or any others
that might be involved with resources of a regenerative
nature.
Extraordinary Item: Income and expense items
associated with events and transactions that possess a
high degree of abnormality and are of a type that would
not reasonably be expected to recur in the foreseeable
future. An example would be losses resulting from an
earthquake, expropriation, or a prohibition under a
newly enacted law.
Farm-out (-in) Arrangement: An arrangement, used
primarily in the oil and gas industry, in which the
owner or lessee of mineral rights (the first party)
assigns a working interest to an operator (the second
party), the consideration for which is specified
exploration and/or development activities. The first
party retains an overriding royalty or other type of
economic interest in the mineral production. The
arrangement from the viewpoint of the second party is
termed a "farm-in arrangement."
Fee Interest: The absolute, legal possession and
ownership of land, property, or rights, including
mineral rights. A fee interest can be sold (in its entirety
or in part) or passed on to heirs or successors.
FERC: The Federal Energy Regulatory Commission.
Field: An area consisting of a single reservoir or
multiple reservoirs all grouped on, or related to, the
same individual geological structural feature and/or

44

Firm: An association, company, corporation, estate, individual,
joint venture, partnership, or sole proprietorship, or any other
entity, however organized, including: (a) charitable or
educational institutions; (b) the Federal Government, including
corporations, departments, Federal agencies, and other
instrumentalities; and State and local governments. A firm may
consist of (1) a parent entity, including the consolidated and
unconsolidated entities (if any) that it directly or indirectly
controls; (2) a parent and its consolidated entities only; (3) an
unconsolidated entity; or (4) any part or combination of the
above.
Footage Drilled: Total footage for wells in various categories,
as reported for any specified period, includes (1) the deepest total
depth (length of well bores) of all wells drilled from the surface,
(2) the total of all bypassed footage drilled in connection with
wells, and (3) all new footage drilled for directional "sidetrack"
wells. Footage reported for directional "sidetrack" well does not
include footage in the common bore which is reported as footage
for the original well. In the case of old wells drilled deeper, the
reported footage is that which was drilled below the total depth
of the old well.
•

Bypassed Footage. Bypassed footage is the footage in
that section of hole that is abandoned as the result of
remedial sidetrack drilling operations.

•

Deepest Total Depth. The deepest total depth of a
given well is the distance from a surface reference point
(usually the Kelly bushing) to the point of deepest
penetration measured along the well bore. If a well is
drilled from a platform or barge over water, the depth of
the water is included in the total length of the well bore.

•

Depth of Deepest Production. The depth of the
deepest production is the length of the well bore
measured (in feet) from the surface reference point to
the bottom of the open hole or the deepest perforation
in the casing of a producing well.

•

Plugged-Back Footage. Under certain conditions,
drilling operations may be continued to a greater depth
than that at which a potentially productive formation is
found. If production is not established at the greater
depth, the well may be completed in the shallower
formation. Except in special situations, the length of

EIA-28 – Financial Reporting System

the well bore from the deepest depth at which
the well is completed to the maximum depth
drilled is defined as "plugged-back footage."
Plugged-back footage is included in total
footage drilled but is not reported separately.
•

Redrill Footage. Occasionally, a hole is lost
or junked and a second hole may be drilled
from the surface in close proximity to the first.
Footage drilled for the second hole is defined
as "redrill footage." Under these circumstances, the first hole is reported as a dry hole
(exploratory or developmental) and the total
footage is reported as dry hole footage. The
second hole is reported as an oil well, gas
well, or dry hole according to the result. The
redrill footage is included in the appropriate
classification of total footage but is not
reported as a separate classification.

•

Sidetrack Drilling. This is a remedial
operation that results in the creation of a new
section of well bore for the purpose of (1)
detouring around junk, (2) redrilling lost hole,
or (3) straightening key seats and crooked
holes. Directional "sidetrack" wells do not
include footage in the common bore which is
reported as footage for the original well.

•

Surface Drilling Footage (Uranium).
Includes both exploration and development
drilling:
o Exploration drilling includes (1) drilling in
search of new ore deposits or extensions to
known deposits, and (2) drilling at the
location of a discovery up to the time the
company decides sufficient ore reserves are
present to justify commercial exploitation.
o

Development drilling includes all drilling
of an ore deposit to determine more
precisely size, grade, and configuration
subsequent to the time that commercial
exploitation is deemed feasible.

Foreign Access: Refers to proved reserves of crude,
condensate, and natural gas liquids applicable to longterm supply agreements with foreign governments or
authorities in which the company or one of its affiliates
acts as producer.
Foreign Currency Transaction Gains and Losses:
Gains or losses resulting from the effect of exchange
rate changes on transactions denominated in currencies
other than the functional currency (for example, a U.S.
enterprise may borrow Swiss francs or a French
subsidiary may have a receivable denominated in
pounds from a U.K. customer). Gains and losses on

those foreign currency transactions are generally included in
determining net income for the period in which exchange rates
change unless the transaction hedges a foreign currency
commitment or a net investment in a foreign entity.
Intercompany transactions of a long-term investment nature are
considered part of a parent's net investment and hence do not
give rise to gains or losses.
Foreign Currency Translation Effects: Gains or losses
resulting from the process of expressing amounts denominated or
measured in one currency in terms of another currency by use of
the exchange rate between the two currencies. This process is
generally required to consolidate the financial statements of
foreign affiliates into the total company financial statements and
to recognize the conversion of foreign currency or the settlement
of a receivable or payable denominated in foreign currency at a
rate different from that at which the item is recorded. Translation
adjustments are not included in determining net income, but are
disclosed as separate components of consolidated equity.
Foreign Operations: These are operations that are located
outside the United States. (See definition for Domestic
Operations.) Determination of whether an enterprise's mobile
assets, such as offshore drilling rigs or ocean-going vessels,
constitute foreign operations should depend on whether such
assets are normally identified with operations located outside the
United States.
Foreign operations are segregated into the following areas for
FRS reporting purposes:
Europe: Includes Austria, Belgium, Albania, Bosnia and
Herzegovina, Bulgaria, Croatia, Czech Republic, Denmark,
Faroe Islands, Finland, France, Germany, Gibraltar, Greece,
Hungary, Iceland, Ireland, Italy, Luxembourg, Macedonia,
Malta, Netherlands, Norway, Poland, Portugal, Romania, Serbia
and Montenegro, Slovakia, Slovenia, Spain, Sweden,
Switzerland, Turkey, and the United Kingdom.
Eurasia: Includes Armenia, Azerbaijan, Belarus, Estonia,
Georgia, Kazakhstan, Kyrgystan, Latvia, Lithuania, Moldova,
Russia, Tajikstan, Turkmenistan, Ukraine, and Uzbekistan.
Middle East: Includes Bahrain, Cyprus, Iran, Iraq, Israel, Jordan,
Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, United
Arab Emirates and Yemen.
Canada.
Africa (the African continent).
Other Eastern Hemisphere: Areas eastward of the Greenwich
prime meridian to 178E
longitude and not included in other specified domestic or foreign
classifications.

45

Energy Information Administration

Other Western Hemisphere: Areas westward of the
Greenwich prime meridian to 178E longitude not
included in other domestic or foreign classifications.
Gas Turbine Plant: A plant in which the prime mover
is a gas turbine. A gas turbine consists typically of an
axial-flow air compressor and one or more combustion
chambers where liquid or gaseous fuel is burned and
the hot gases are passed to the turbine and where the
hot gases expand drive the generator and are then used
to run the compressor.
Gathering System: A network of small pipelines that
connect producing wells with a transmission system.
Generally accepted accounting principles (GAAP):
Defined by the FASB as the conventions, rules, and
procedures necessary to define accepted accounting
practice at a particular time, includes both broad
guidelines and relatively detailed practices and
procedures.
Generating unit: Any combination of physically
connected generators, reactors, boilers, combustion
turbines, and other prime movers operated together to
produce electric power.
Generation, net: The amount of gross generation less
the electrical energy consumed at the generating
station(s) for station service or auxiliaries. Note:
Electricity required for pumping at pumped-storage
plants is regarded as electricity for station service and is
deducted from gross generation.
Generation, Regulated: The production of electric
power for which rates are regulated by a government
commission through rulemaking and adjudication.
Generation, Non-regulated: The production of electric
power that is sold at market–based prices.
Generator capacity: The maximum output, commonly
expressed in megawatts (MW), that generating
equipment can supply to system load, adjusted for
ambient conditions. See Generator nameplate
capacity, Net summer capacity
Generator nameplate capacity (installed): The
maximum rated output of a generator, prime mover, or
other electric power production equipment under
specific conditions designated by the manufacturer.
Installed generator nameplate capacity is commonly
expressed in megawatts (MW) and is usually indicated
on a nameplate physically attached to the generator.
Geological and Geophysical (G&G) Costs: Costs
incurred in making geological and geophysical studies,
including, but not limited to, costs incurred for salaries,

46

equipment, obtaining rights of access, and supplies for scouts,
geologists, and geophysical crews.
Hydrocarbon: An organic chemical compound of hydrogen and
carbon in either the gaseous, liquid, or solid phase. The
molecular structure of hydrocarbon compounds varies from the
simplest (e.g., methane, a constituent of natural gas) to the very
heavy and very complex.
Hydroelectric power: The use of flowing water to produce
electrical energy.
Improved recovery: Extraction of crude oil or natural gas by
any method other than those that rely primarily on natural
reservoir pressure, gas lift, or a system of pumps.
Industrial Sector: An energy-consuming sector that consists of
all facilities and equipment used for producing, processing, or
assembling goods The industrial sector encompasses the
following types of activity: manufacturing (NAICS codes 31-33);
agriculture, forestry, fishing and hunting (NAICS code 11);
mining, including oil and gas extraction (NAICS code 21);
natural gas distribution (NAICS code 2212); and construction
(NAICS code 23). Overall energy use in this sector is largely for
process heat and cooling and powering machinery, with lesser
amounts used for facility heating, air conditioning, and lighting.
Fossil fuels are also used as raw material inputs to manufactured
products. Note: This sector includes generators that produce
electricity and/or useful thermal output primarily to support the
above-mentioned industrial activities.
Intangible Drilling and Development Costs (IDC): Costs
incurred in preparing well locations, drilling and deepening
wells, and preparing wells for initial production up through the
point of installing control valves. None of these functions,
because of their nature, have salvage value. Such costs would
include labor, transportation, consumable supplies, drilling tool
rentals, site clearance, and similar costs.
Investments and Advances to Unconsolidated Affiliates: The
balance sheet account representing the cost of investments and
advances to unconsolidated affiliates. Generally, affiliates which
are less than 50 percent owned by a company may not be
consolidated into the company's financial statements.
Kilovolt-Ampere (kVa): A unit of apparent power, equal to
1,000 volt-amperes; the mathematical product of the volts and
amperes in an electrical circuit.
Kilowatt (kW): One thousand watts.
Kilowatthour (kWh): A measure of electricity defined as a unit
of work or energy, measured as 1 kilowatt (1,000 watts) of power
expended for 1 hour. One kWh is equivalent to 3,412 Btu.
KWH Delivered: The volume of electric power in kilowatthours
delivered to wholesale/resellers.

EIA-28 – Financial Reporting System

Lease Bonus: An amount paid by a lessee to a lessor
as consideration for granting a lease, usually as a lump
sum; this payment is in addition to any rental or royalty
payments.
Lease condensate: A mixture consisting primarily of
pentanes and heavier hydrocarbons which is recovered
as a liquid from natural gas in lease separation facilities.
This category excludes natural gas plant liquids, such as
butane and propane, which are recovered at
downstream natural gas processing plants or facilities.
Lease Equipment: All equipment located on the lease
except the well to the point of the "Christmas tree."
Lifting Costs: The costs associated with the extraction
of a mineral reserve from a producing property. (See
definition for Production Cost.)
Line Miles, Natural Gas Transmission: The miles of
natural gas transmission pipeline installed and used to
deliver wholesale volumes of product.
Liquefied natural gas (LNG): Natural gas (primarily
methane) that has been liquefied by reducing its
temperature to -260 degrees Fahrenheit at atmospheric
pressure.
Mains: A system of pipes for transporting gas within a
distributing gas utility's retail service area to points of
connection with consumer service pipes.
Marketing/Trading: An FRS segment that engages in
the buying of natural gas and natural gas liquids and
selling of wholesale and retail volumes of natural gas
and natural gas liquids in the downstream natural gas
line of business and electric power in the electric power
line of business.

Milling: The grinding or crushing of ore, concentration, and
other benefication, including the removal of valueless or harmful
constituents and preparation for market.
Milling Capacity: The maximum rate at which a mill is capable
of treating ore or producing concentrate.
Mineral: Any of the various naturally occurring inorganic
substances, such as metals, salt, sand, stone, sulfur, and water,
usually obtained from the earth. Note: For reporting on the
Financial Reporting System the term also includes organic nonrenewable substances that are extracted from the earth such as
coal, crude oil, and natural gas
Mineral Interests In Properties: (Hereinafter referred to as
Properties). These include fee ownership or a lease, concession,
or other contractual interest representing the right to extract
minerals subject to such terms as may be imposed by the
conveyance of these interests. Properties also include royalty
interests, production payments payable in oil or gas, and other
non-operating interests in properties operated by others.
Properties include those agreements with foreign governments or
authorities under which an enterprise participates in the operation
of the related properties or otherwise serves as "producer" of the
underlying reserves, but properties do not include other supply
agreements or contracts that represent the right to purchase (as
opposed to extract) oil and gas.
Mineral Lease: An agreement wherein a mineral interest owner
(lessor) conveys to another party (lessee) the rights to explore
for, develop, and produce specified minerals. The lessee
acquires a working interest and the lessor retains a non-operating
interest in the property, referred to as the royalty interest, each in
proportions agreed upon.
Mineral Resource Assets: The costs shown on the balance
sheet representing assets that are directly associated with and
which derive value from mineral reserves. For the oil and gas
industry these costs may include:

Maximum demand: The greatest of all demands of the
load that has occurred within a specified period of time.

•

Intangible drilling and development costs.

Mcf: One thousand cubic feet.

•

Capitalized nonproductive costs, delay rentals, and
overhead and similar costs.

•
•

Producing and non-producing leasehold costs.
Down-hole equipment.

•

Well-head equipment.

•

Lease production facilities:
tanks, flow-lines,
separators, above-ground pumps, compressors, etc.

•

Gas cycling plants.

•

Processing facilities located in a field in which the
company owns interests in producing leases.

Megawatt (MW): One million watts of electricity.
Megawatthour (MWh): One thousand kilowatt-hours
or 1 million watt-hours.
Methane: A colorless, flammable, odorless
hydrocarbon gas (CH4) which is the major component
of natural gas. It is also an important source of
hydrogen in various industrial processes.
Miles of Distribution Mains: The miles of natural gas
distribution pipeline installed and used to deliver
products to customers.

47

Energy Information Administration

•

Support facilities: power plants, field living
quarters, etc.

•

Gathering systems to the point of market in
the field.

•

Offshore platforms.

All costs that involve processing, transportation,
refining, distribution, and marketing are not classified
as mineral resource assets. Examples may include:
•

Refineries.

•

Transportation equipment and facilities
beyond the point of market in the field-including pipelines, barges, and truck
equipment.

For the mining industry, these costs may include:
•

Capitalized costs related to acquisitions of
mineral rights, leases, or properties;
exploration; and development of ore bodies.

•

All assets employed in the extraction and
conversion process that are necessary to
produce mineral product or products that are
commercially marketable.

•

Processing assets located at or dedicated
solely to a mine or mines in which the
company has an economic interest, which are
designed with specific regard to the particular
physical or chemical characteristics of the ores
being mined or the scale of operation, and
which, by their nature, would have only
nominal economic value in the absence of the
ores they were designed to treat.

•

Supportive facilities such as power generating
and distribution facilities, mine transportation
facilities, townsites, other infrastructure, etc.,
which derive value solely because of the
existence of the ore body.

All costs that involve processing, manufacturing, and
fabricating facilities that are not directly associated
with, nor derive value from, a particular mineral deposit
in which the company has an economic interest, e.g.,
smelters and refineries, which obtain their feed from
outside shippers, are not mineral resource assets.
Mineral Rights: The ownership of the minerals
beneath the earth's surface with the right to remove
them. Mineral rights may be conveyed separately from
surface rights.

48

Mining: An energy-consuming subsector of the industrial sector
that consists of all facilities and equipment used to extract energy
and mineral resources.
Minority Interest in Income: The proportional share of the
minority ownership's interest (less than 50 percent) in the
earnings or losses of the consolidated subsidiary. Subsidiaries
are generally fully consolidated when a share of ownership
between 51 percent and 100 percent is held by the parent. In
consolidation, 100 percent of revenues, expenses, assets, etc. are
included in the financial statements even though, for example,
the subsidiary is only 78 percent owned by the parent company.
In such cases, the consolidated balance sheet must have a caption
on the right-hand side titled something like "minority interests in
consolidated affiliates," and the income statement must have a
similar line to reduce net income to the pro rata (78 percent in
this example) share of the consolidated subsidiary's net income.
Motor Gasoline (finished): A complex mixture of relatively
volatile hydrocarbons with or without small quantities of
additives, blended to form a fuel suitable for use in spark-ignition
engines. Motor gasoline, as defined in ASTM Specification D
4814 or Federal Specification W-G-1690C, is characterized as
having a boiling range of 122 to 158 degrees Fahrenheit at the 10
percent recovery point to 365 to 374 degrees Fahrenheit at the 90
percent recovery point. Motor Gasoline includes conventional
gasoline; all types of oxygenated gasoline, including gasohol;
and reformulated gasoline, but excludes aviation gasoline. Note:
Volumetric data on blending components, such as oxygenates,
are not counted in data on finished motor gasoline until the
blending components are blended into the gasoline.
Motor Gasoline, Finished Gasohol. A blend of finished motor
gasoline (leaded or unleaded) and alcohol (generally ethanol but
sometimes methanol), limited to 10 percent by volume of
alcohol.
Motor Gasoline, Finished Leaded. Contains more than 0.05
gram of lead per gallon or more than 0.005 gram of phosphorus
per gallon. Premium and regular grades are included, depending
on the octane rating. Includes leaded gasohol. Blendstock is
excluded until blending has been completed. Alcohol that is to
be used in the blending of gasohol is excluded.
Motor Gasoline, Finished Unleaded. Contains not more than
0.05 gram of lead per gallon and not more than 0.005 gram of
phosphorus per gallon. Premium and regular grades are
included, depending on the octane rating. Includes unleaded
gasohol. Blend stock is excluded until blending has been
completed. Alcohol that is to be used in the blending of gasohol
is also excluded.
MTBE (Methyl tertiary butyl ether) (CH3 )3COCH3. An ether
intended for motor gasoline blending as described in
“Oxygenates.”
Natural gas: A gaseous mixture of hydrocarbon compounds, the
primary one being methane (see definition above). Note: The

EIA-28 – Financial Reporting System

Energy Information Administration measures wet
natural gas and its two sources of production,
associated/dissolved natural gas and nonassociated
natural gas, and dry natural gas, which is produced
from wet natural gas.
Natural Gas, Dry: Natural gas which remains after: 1)
the liquefiable hydrocarbon portion has been removed
from the gas stream (i.e., gas after lease, field, and/or
plant separation); and 2) any volumes of nonhydrocarbon gases have been removed where they
occur in sufficient quantity to render the gas
unmarketable. Note: Dry natural gas is also known as
consumer-grade natural gas. The parameters for
measurement are cubic feet at 60 degrees Fahrenheit
and 14.73 pounds per square inch absolute.
Natural Gas,Wet: A mixture of hydrocarbon
compounds and small quantities of various nonhydrocarbons existing in the gaseous phase or in
solution with crude oil in porous rock formations at
reservoir conditions. The principal hydrocarbons
normally contained in the mixture are methane, ethane,
propane, butane, and pentane. Typical non-hydrocarbon
gases that may be present in reservoir natural gas are
water vapor, carbon dioxide, hydrogen sulfide, nitrogen
and trace amounts of helium. Under reservoir
conditions, natural gas and its associated liquefiable
portions occur either in a single gaseous phase in the
reservoir or in solution with crude oil and are not
distinguishable at the time as separate substances. Note:
The Securities and Exchange Commission and the
Financial Accounting Standards Board refer to this
product as natural gas.
Natural gas, associated-dissolved: Natural gas that
occurs in crude oil reservoirs either as free gas
(associated) or as gas in solution with crude oil
(dissolved gas). Also see Natural Gas.
Natural gas, non-associated: Natural gas that is not in
contact with significant quantities of crude oil in the
reservoir. Also see Natural Gas.
Natural Gas Liquids (NGL): Those hydrocarbons in
natural gas that are separated from the gas as liquids
through the process of absorption, condensation,
adsorption, or other methods in gas processing or
cycling plants. Generally such liquids consist of
propane and heavier hydrocarbons and are commonly
referred to as lease condensate, natural gasoline, and
liquefied petroleum gases. Natural gas liquids include
natural gas plant liquids (primarily ethane, propane,
butane, and isobutane; see Natural Gas Plant Liquids)
and lease condensate (primarily pentanes produced
from natural gas at lease separators and field facilities;
see Lease Condensate).

Natural gas plant liquids: Those hydrocarbons in natural gas
that are separated as liquids at natural gas processing plants,
fractionating and cycling plants, and, in some instances, field
facilities. Lease condensate is excluded. Products obtained
include ethane; liquefied petroleum gases (propane, butanes,
propane-butane mixtures, ethane-propane mixtures); isopentane;
and other small quantities of finished products, such as motor
gasoline, special naphthas, jet fuel, kerosene, and distillate fuel
oil.
Natural gas processing plants: Facilities designed to recover
natural gas liquids from a stream of natural gas that may or may
not have passed through lease separators and/or field separation
facilities. These facilities also control the quality of the natural
gas to be marketed. Cycling plants are classified as natural gas
processing plants.
Natural Reservoir Pressure: the energy within an oil or gas
reservoir that causes the oil or gas to rise (unassisted by other
forces) to the earth's surface when the reservoir is penetrated by
an oil or gas well. The energy may be the result of "dissolved
gas drive," "gas cap drive," or "water drive." Regardless of the
type of drive, the principle is the same: the energy of the gas or
water, creating a natural pressure, forces the oil or gas to the well
bore.
Net Investment In Place: The sum of net property, plant, and
equipment (PP&E) plus investment and advances to
unconsolidated affiliates.
Net Investment In Place, Additions to: The current year's
expenditures on additions to net investment in place. (See
definition for Net Investment In Place.)
Net Ownership Interest Reserves: Includes all reserve
quantities owned, regardless of the type of ownership, e.g.,
working interest or royalty.
Net Profits Interest: A contractual arrangement under which
the beneficiary, in exchange for consideration paid, receives a
stated percentage of the net profits from an extractive operation.
The contract specifies the items to be taken into account in
computing net profits. That type of arrangement is considered a
non-operating interest, as distinguished from a working interest,
since it does not involve the rights and obligations of operating a
mineral property (costs of exploration, development, and
operation). The net profits interest does not bear any part of net
losses.
Net Summer Capacity: The maximum output, commonly
expressed in megawatts (MW), that generating equipment can
supply to system load, as demonstrated by a multi-hour test, at
the time of summer peak demand (period of June 1 through
September 30.) This output reflects a reduction in capacity due
to electricity use for station service or auxiliaries.
Non-attainment Area: Any area that does not meet the national
primary or secondary ambient air quality standard established by

49

Energy Information Administration

the Environmental Protection Agency for designated
pollutants, such as carbon monoxide and ozone.

development; mining; milling; conversion; enrichment;
fabrication; reprocessing; and spent fuel storages.

Non-branded Product: Any refined petroleum
product that is not a branded product.

Nuclear Reactor: An apparatus in which a nuclear fission chain
reaction can be initiated, controlled, and sustained at a specific
rate. A reactor includes fuel (fissionable material), moderating
material to control the rate of fission, a heavy-walled pressure
vessel to house reactor components, shielding to protect
personnel, a system to conduct heat away from the reactor, and
instrumentation for monitoring and controlling the reactor's
systems.

Non-Conventional Energy: Energy operations not
included in Petroleum or Coal. Non-conventional
Energy includes nuclear fuel operations, oil shale, tar
sands, coal liquefaction and gasification, geothermal,
solar, and other forms of non-conventional energy.
Non-Electric: Businesses and/or products that are not
related to electric power.
Non-Energy: An FRS Line of Business that is not
related to any energy-related Line of Business, except
through company ownership.
Non-Gas Sales: Sales of products that are not related to
the natural gas or natural gas liquid products.
Non-Operating Interest: Any mineral lease interest
(e.g., royalty, production payment, net profits interest)
that does not involve the rights and obligations of
operating a mineral property.
Non-Producing: A term used in reference to a
property, well, or mine from which production of
commercially recoverable quantities of wasting natural
resources has not yet commenced.
Nontraceable: Those revenues, costs, assets, and
liabilities that cannot be directly attributed to a line of
business or that cannot be assigned to a line of business
by use of a reasonable allocation method developed on
the basis of operating level realities.
North American Industry Classification System
(NAICS): A new classification scheme, developed by
the Office of Management and Budget to replace the
Standard Industrial Classification (SIC) System, that
categorizes establishments according to the types of
production processes they primarily use.
Nuclear Electric Power (nuclear power): Electricity
generated by the use of the thermal energy released
from the fission of nuclear fuel in a reactor.
Nuclear Fuel: Fissionable materials that have been
enriched to such a composition that, when placed in a
nuclear reactor, will support a self-sustaining fission
chain reaction, producing heat in a controlled manner
for process use.
Nuclear Fuel Operations: All nuclear fuel operations,
excluding reactor and reactor component manufacturing
or containment construction. Includes: exploration and

50

Offshore: That geographic area that lies seaward of the
coastline. In general, the coastline is the line of ordinary low
water along with that portion of the coast that is in direct contact
with the open sea or the line marking the seaward limit of inland
water.
If a State agency uses a different basis for classifying onshore
and offshore areas, the State classification should be used (e.g.,
Cook Inlet in Alaska is classified as offshore; for Louisiana, the
coastline is defined as the Chapman Line, as modified by
subsequent adjudication).
Oil Shale: A sedimentary rock containing kerogen, a solid
organic material.
Operating Expenses: Segment expenses related both to revenue
from sales to unaffiliated customers and revenue from
intersegment sales or transfers, excluding loss on disposition of
property, plant, and equipment; interest expenses and financial
charges; foreign currency transaction effects; minority interest;
and income taxes.
Operating Income:
Operating revenues less operating
expenses. Excludes items of other revenue and expense such as
equity in earnings of unconsolidated affiliates, dividends, interest
income and expense, income taxes, extraordinary items, and
cumulative effect of accounting changes.
Operating Revenues: Segment revenues both from sales to
unaffiliated customers (i.e., revenue from customers outside the
enterprise as reported in the company's consolidated income
statement) and from intersegment sales or transfers, if any, of
products and services similar to those sold to unaffiliated
customers, excluding equity in earnings of unconsolidated
affiliates; dividend and interest income; gain on disposition of
property, plant, and equipment; and foreign currency transaction
effects.
Other Renewable Generation: Electricity originating from
these sources: biomass, fuel cells, geothermal heat, solar power,
waste, wind, and wood.
Other Trading Expense: Expenses incurred to maintain energy
trading resources not included in any other expense category.

EIA-28 – Financial Reporting System

Output Statistics: Data concerning the volume of
product produced and/or delivered.
Oxygenated Gasoline: Finished motor gasoline, other
than reformulated gasoline, having an oxygen content
of 2.7 percent or higher by weight and required by the
U.S. Environmental Protection Agency (EPA) to be
sold in areas designated by EPA as carbon monoxide
(CO) non-attainment areas. See Non-attainment Area.
Note: Oxygenated gasoline excludes oxygenated fuels
program reformulated gasoline (OPRG) and
reformulated gasoline blendstock for oxygenate
blending (RBOB). Data on gasohol that has at least 2.7
percent oxygen, by weight, and is intended for sale
inside CO non-attainment areas are included in data on
oxygenated gasoline. Other data on gasohol are
included in data on conventional gasoline.
Oxygenates: Substances which, when added to
gasoline, increase the amount of oxygen in that gasoline
blend. Ethanol, Methyl Tertiary Butyl Ether (MTBE),
Ethyl Tertiary Butyl Ether (ETBE), and methanol are
common oxygenates.
PP&E, Additions to: The current year's expenditures
on property, plant, and equipment (PP&E). The amount
is predicated upon each reporting company's accounting
practice. That is, accounting
practices with regard to capitalization of certain items
may differ across companies, and therefore this figure
in FRS will be a function of each reporting company's
policy.
PP&E, Net: The original cost of property, plant, and
equipment (PP&E), less accumulated DD&A.
Permanent Differences: Differences between taxable
income and pretax accounting income arising from
transactions that, under applicable tax laws and
regulations, will not be offset by corresponding
differences or "turn around" in other periods. (See
definition for Timing Differences.)
Petrochemicals: Organic and inorganic compounds
and mixtures that include but are not limited to organic
chemicals, cyclic intermediates, plastics and resins,
synthetic fibers, elastomers, organic dyes, organic
pigments, detergents, surface active agents, carbon
black, and ammonia.
Petroleum: A broadly defined class of liquid
hydrocarbon mixtures. Included are crude oil, lease
condensate, unfinished oils, refined products obtained
from the processing of crude oil, and natural gas plant
liquids. Note: Volumes of finished petroleum products
include nonhydrocarbon compounds, such as additives
and detergents, after they have been blended into the
products.

Pipeline, Distribution: A pipeline that conveys natural gas from
a transmission pipeline to its ultimate consumer.
Pipeline, Gathering: A pipeline that conveys gas from a
production well/field to a gas processing plant or transmission
pipeline for eventual delivery to end-use consumers.
Pipeline (natural gas): A continuous pipe conduit, complete
with such equipment as valves, compressor stations,
communications systems, and meters for transporting natural
and/or supplemental gas from one point to another, usually from
a point in or beyond the producing field or processing plant to
another pipeline or to points of utilization. Also refers to a
company operating such facilities.
Pipeline (petroleum): Crude oil and product pipelines used to
transport crude oil and petroleum products, respectively
(including interstate, intrastate, and intracompany pipelines),
within the 50 states and the District of Columbia.
Pipelines, Rate Regulated: FRS establishes three pipeline
segments; crude/liquid (raw materials); natural gas; and refined
products. The pipelines included in these segments are all
Federally or State rate-regulated pipeline operations, which are
included in the reporting company's consolidated financial
statements. However, at the reporting company's option, intrastate petroleum pipeline operations may be included in the U.S.
Refining/Marketing Segment if: they would comprise less than 5
percent of U.S. Refining/Marketing Segment net PP&E,
revenues, and earnings in the aggregate; and if the inclusion of
such pipelines in the consolidated financial statements adds less
than $100 million to the net PP&E reported for the U.S.
Refining/ Marketing Segment.
Pipeline, Transmission: A pipeline that conveys gas from a
region where it is produced to a region where it is to be
distributed.
Pole-Mile: A unit of measuring the simple length of an electric
transmission/distribution line/feeder carrying
electric conductors, without regard to the number of conductors
carried.
Pre-Discovery Costs: All costs incurred in an extractive
industry operation prior to the actual discovery of minerals in
commercially recoverable quantities; normally includes
prospecting, acquisition, and exploration costs, and may include
some development costs.
Pre-Production Costs: Costs of prospecting for, acquiring,
exploring, and developing mineral reserves, incurred prior to the
point when production of commercially recoverable quantities of
minerals commences.
Primary Recovery: The crude oil or natural gas recovered by
any method that may be employed to produce them where the
fluid enters the well bore by the action of natural reservoir
pressure (energy or gravity).

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Energy Information Administration

Primary Transportation: Conveyance of large
shipments of petroleum raw materials and refined
products usually by pipeline, barge, or ocean-going
vessel. All crude oil transportation is primary,
including the small amounts moved by truck. All
refined product transportation by pipeline, barge, or
ocean-going vessel is primary transportation.
Probable Energy Reserves: Estimated quantities of
energy sources that, on the basis of geologic evidence
that supports projections from proved reserves (see
definition below), can reasonably be expected to exist
and be recoverable under existing economic and
operating conditions. Site information is insufficient to
establish with confidence the location, quality, and
grades of the energy source. Note: This term is
equivalent to "Indicated Reserves" as defined in the
resource/reserve classification contained in the U.S.
Geological Survey Circular 831, 1980. Measured and
indicated reserves, when combined, constitute
demonstrated reserves. See also energy reserves.
Probable (indicated) Reserves, Coal: Reserves or
resources for which tonnage and grade are computed
partly from specific measurements, samples, or
production data and partly from projection for a
reasonable distance on the basis of geological evidence.
The sites available are too widely or otherwise
inappropriately spaced to permit the mineral bodies to
be outlined completely or the grade established
throughout. See probable energy reserves definition
above.
Processing and Gathering: The segment of the
downstream natural gas line of business that includes
natural gas liquids production operations, natural gas
liquids transport and storage operations, natural gas
gathering and/or processing operations (if they are
profit centers), and marine-based liquefied natural gas
operations.
Processing Plant: A surface installation designed to
separate and recover natural gas liquids from a stream
of produced natural gas through the processes of
condensation, absorption, adsorption, refrigeration, or
other methods and to control the quality of natural gas
marketed and/or returned to oil or gas reservoirs for
pressure maintenance, repressuring, or cycling.

•

Contract Production. Natural gas liquids accruing to
a company because of its ownership of liquids
extraction facilities that it uses to extract liquids from
gas belonging to others, thereby earning a portion of the
resultant liquids.

•

Leasehold Production. Natural gas liquids produced,
extracted, and credited to a company's interest.

•

Contract Reserves. Natural gas liquid reserves
corresponding to the contract production defined above.

•

Leasehold Reserves. Natural gas liquid reserves corresponding to the leasehold production defined above.

Production, Oil and Gas: The lifting of the oil and gas to the
surface and gathering, treating, field processing (as in the case of
processing gas to extract liquid hydrocarbons), and field storage.
The production function shall normally be regarded as
terminating at the outlet valve on the lease or field production
storage tank; if unusual physical or operational circumstances
exist, it may be more appropriate to regard the production
function as terminating at the first point at which oil, gas, or gas
liquids are delivered to a main pipeline, a common carrier, a
refinery, or a marine terminal.
•

Gross Company-Operated Production.
Total
production from all company-operated properties,
including all working and nonworking interests.

•

Net Working Interest Production. Total production
accruing to the reporting company's working interests
less royalty oil and volumes due others.

Production Costs: Costs incurred to operate and maintain wells
and related equipment and facilities, including depreciation and
applicable operating costs of support equipment and facilities
and other costs of operating and maintaining those wells and
related equipment and facilities. They become part of the cost of
oil and gas produced. The following are examples of production
costs (sometimes called lifting costs):
•

Costs of labor to operate the wells and related
equipment and facilities.

•

Repair and maintenance costs.

•

Producing Property: A term often used in reference to
a property, well, or mine that produces wasting natural
resources. The term means a property that produces in
paying quantities (that is, one for which proceeds from
production exceed operating expenses).

The costs of materials, supplies and fuel consumed, and
services utilized in operating the wells and related
equipment and facilities.

•

The costs of property taxes and insurance applicable to
proved properties and wells and related equipment and
facilities.

Production, Natural Gas Liquids: Production of
natural gas liquids is classified as follows:

•

The costs of severance taxes.

52

EIA-28 – Financial Reporting System

Depreciation, depletion, and amortization (DD&A) of
capitalized acquisition, exploration, and development
costs are not production costs but also become part of
the cost of oil and gas produced along with production
(lifting) costs identified above.
Production costs include the following sub-categories
of costs:
•
•
•
•
•
•
•

Well operations and maintenance.
Well workovers.
Operating fluid injections and improved
recovery programs.
Operating gas processing plants.
Ad valorem taxes.
Production or severance taxes.
Other, including overhead.

Production Payments: A contractual arrangement
providing a mineral interest that gives the owner a right
to receive a fraction of production or of proceeds from
the sale of production, until a specified quantity of
minerals (or a definite sum of money, including
interest) has been received. It is considered a
nonoperating interest, since the owner bears no part of
exploration, development, and operating costs.
Usually, there is no recourse if production is
insufficient to satisfy the amount of the production
paymeent.
Production payments are classified according to the
manner in which the rights are created:
• Carved-out. A production payment created
out of the working interest in a mineral
property. The working interest owner "carves
out" and transfers the production payment
contractual right to the transferee in return for
cash or other consideration but retains the
operating rights and responsibilities.
•

Retained. Production payment retained under
a contract in which the transferor divests a
working interest in the producing property to
the transferee and subsequently becomes the
recipient of production payments delivered by
the transferee.

Proportional Interest in Investee Reserves: The
reporting company's proportional interest at the end of
the year in the reserves of investees that are accounted
for by the equity method.
Prospecting: The search for an area of probable
mineralization; the search normally includes
topographical, geological, and geophysical studies of
relatively large areas undertaken in an attempt to locate
specific areas warranting detailed exploration.

Prospecting usually occurs prior to the acquisition of mineral
rights.
Prospecting Costs: Direct and indirect costs incurred to identify
areas of interest that may warrant detailed exploration. Such
costs include those incurred for: topographical, geological, and
geophysical studies; rights of access to properties in order to
conduct such studies; salaries, equipment, instruments, and
supplies for geologists, geophysical crews, and others conducting
such studies; and overhead that can be identified with those
activities.
Proved Energy Reserves: Estimated quantities of energy
sources that analysis of geologic and engineering data
demonstrates with reasonable certainty are recoverable under
existing economic and operating conditions. The location,
quantity, and grade of the energy source are usually considered
to be well established in such reserves. Note: This term is
equivalent to "Measured Reserves" as defined in the
resource/reserve classification contained in the U.S. Geological
Survey Circular 831, 1980. Measured and indicated reserves,
when combined, constitute demonstrated reserves. See also
energy reserves.
Proved (measured) Reserves, Coal: Reserves or resources for
which tonnage is computed from dimensions revealed in
outcrops, trenches, workings, and drill holes and for which the
grade is computed from the results of detailed sampling. The
sites for inspection, sampling, and measurement are spaced so
closely and the geologic character is so well defined that size,
shape, and mineral content are well established. The computed
tonnage and grade are judged to be accurate within limits that are
stated, and no such limit is judged to be different from the
computed tonnage or grade by more than 20 percent. See proved
energy reserves (above).
Purchased Power: Power purchased or available for purchase
from a source outside the system.
Reclamation Expenses: In the context of the coal operation
statement of income, refers to all payments made by the company
attributable to reclamation, including taxes.
Refined Petroleum Products: Refined petroleum products
include but are not limited to gasolines, kerosene, distillates
(including No. 2 fuel oil), liquefied petroleum gas, asphalt,
lubricating oils, diesel fuels, and residual fuels.
Reformulated Gasoline: Finished gasoline formulated for use in
motor vehicles, the composition and properties of which meet the
requirements of the reformulated gasoline regulations
promulgated by the U.S. Environmental Protection Agency under
Section 211(k) of the Clean Air Act. It includes gasoline
produced to meet or exceed emissions performance and benzene
content standards of federal-program reformulated gasoline even
though the gasoline may not meet all of the composition
requirements (e.g. oxygen content) of federal-program
reformulated gasoline. Note: This category includes Oxygenated
Fuels Program Reformulated Gasoline (OPRG). Reformulated

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Energy Information Administration

gasoline excludes Reformulated Blendstock for
Oxygenate Blending (RBOB) and Gasoline Treated as
Blendstock (GTAB).

•

Improved Recovery. Changes in reserve estimates
resulting from application of improved recovery
techniques (see definition for Improved Recovery
(above)) shall be separately shown if significant. If not
significant, such changes shall be included in revisions
of previous estimates.

•

Purchases or Sales of Minerals-in-Place. Increase or
decrease in the estimated quantity of reserves resulting
from the purchase or sale of mineral rights in land with
known proved reserves.

•

Revisions of Previous Estimates. Changes in previous
estimates of proved reserves, either upward or
downward, resulting from new information normally
obtained from development drilling and production
history or resulting from a change in economic factors.
Revisions do not include changes in reserve estimates
resulting from increases in proved acreage or from
improved recovery techniques.

Renewables: Energy sources that, through nature,
renew themselves.
Research and Development: Basic and applied
research in the sciences and engineering and the design
and development of prototypes and processes,
excluding quality control, routine product testing,
market research, sales promotion, sales service,
research in the social sciences or psychology, and other
non-technological activities or technical services.
Basic research, applied research, and development are
distinguished as follows:
•

•

•

Basic Research. Original investigations for
the advancement of scientific knowledge not
having specific known commercial objectives,
although such investigations may be in fields
of present or potential interest to the reporting
company or others.
Applied Research. Investigations directed to
the discovery of new scientific knowledge
having specific commercial objectives with
respect to products or processes. This
definition differs from that of basic research
chiefly in terms of the objectives of the
reporting company or the organization
sponsoring the activity.
Development. Technical activities of a
nonroutine nature concerned with translating
research findings or other scientific
knowledge into products or processes. This
does not include routine technical services to
customers or other activities excluded from
the above definition of research and
development.

Reserves, Change In: For FRS reporting, the
following definitions should be used for changes in
reserves.
•

54

Extensions, Discoveries, and Other
Additions. Additions to an enterprise's
proved reserves that result from (1) extension
of the proved acreage of previously
discovered (old) reservoirs through additional
drilling in periods subsequent to discovery and
(2) discovery of new fields with proved
reserves or of new reservoirs of proved
reserves in old fields.

Reserves, Coal: Quantities of un-extracted coal that comprise
the demonstrated base for future production, including both
proved and probable reserves. See proved energy reserves;
probable energy reserves; energy reserves; proved
(measured) reserves, coal; and probable (indicated) reserves,
coal.
Reserves, Net: Includes all proved reserves associated with the
company's net working interests. (See definition for Working
Interest.)
Reserves, Proved (Oil and Gas): Proved reserves for oil and
gas are the estimated quantities of crude oil, natural gas, and
natural gas liquids which geological and engineering data
demonstrate with reasonable certainty to be recoverable in future
years from known reservoirs under existing economic and
operating conditions.
Reservoirs are considered proved if economic producibility is
supported by one or more of: actual production; conclusive
formation test; core analysis; and/or electric or other log
interpretations. The
area of a reservoir considered proved includes (1) that portion
delineated by drilling and defined by gas-oil and/or oil-water
contacts, if any; and (2) the immediately adjoining portions not
yet drilled, but which can be reasonably judged as economically
productive on the basis of available geological and engineering
data. In the absence of information on fluid contacts, the lowest
known structural occurrence of hydrocarbons controls the lower
proved limited of the reservoir.
Volumes of oil and gas placed in underground storage are not to
be considered proved reserves, but should be classified as
inventory.

EIA-28 – Financial Reporting System

Reserves that can be produced economically through
application of improved recovery techniques (such as
fluid injection) are included in the "proved"
classification when successful testing by a pilot project,
or when the operation of an installed program in the
reservoir provides support for the engineering analysis
on which the project or program was based.

It is used in steam-powered vessels in government service and
inshore powerplants. No. 6 fuel oil includes Bunker C fuel oil
and is used for the production of electric power, space heating,
vessel bunkering, and various industrial purposes.

Estimates of proved reserves do not include the
following: (1) oil that may become available from
known reservoirs but is classified separately as
"indicated additional reserves"; (2) crude oil, natural
gas, and natural gas liquids, the recovery of which is
subject to reasonable doubt because of uncertainty as to
geology, reservoir characteristics, or economic factors;
(3) crude oil, natural gas, and natural gas liquids that
may occur in undrilled prospects; and (4) crude oil,
natural gas, and natural gas liquids that may be
recovered from oil shales, tar sands, coal, gilsonite, and
other such sources.

Royalty: A contractual arrangement providing a mineral interest
that gives the owner a right to a fractional share of production or
proceeds therefrom, that does not contain rights and obligations
of operating a mineral property, and that is normally free and
clear of exploration, developmental, and operating costs, except
production taxes. (See definition for Nonoperating Interest.)

Retail Power: Electric power that is sold and delivered to retail
customers.

•

Advance Royalty. A royalty required to be paid in
advance of production from a mineral property that may
or may not be recoverable from future production.

•

Basic Royalty. A guaranteed minimum amount of
royalty income that a royalty owner is to receive under
the terms of the lease agreement, regardless of the
royalty owner's share of actual proceeds from the sale
of production. A minimum royalty may or may not be
recoverable out of future production.

•

Overriding Royalty. A royalty interest, in addition to
the basic royalty, created out of the working interest; it
is, therefore, limited in its duration to the life of the
lease under which it is created.

•

Shut-In Royalty. A royalty paid by a lessee as
compensation for a lessor's loss of income because the
lessee has deferred production from a property that is
known to be capable of producing minerals. Shut in
may be caused by a lack of a ready market, by a lack of
transportation facilities, or by other reasons. A shut-in
royalty may or may not be recoverable out of future
production.

It is not necessary that production, gathering, or
transportation facilities be installed or operative for a
reservoir to be considered proved.
For natural gas, an appropriate reduction in the
reservoir gas volume is made to cover the removal of
the liquefiable portions of the gas and the exclusion of
nonhydrocarbon gases where they occur in sufficient
quantity to render the gas unmarketable. If the
liquefiable portions of the gas are not separately
estimated, they need not be separately stated for FRS
reporting purposes.
Reservoir: A porous and permeable underground
formation containing an individual and separate natural
accumulation of producible hydrocarbons (crude oil
and/or natural gas) which is confined by impermeable
rock or water barriers and is characterized by a single
natural pressure system.
Residential Sector: An energy-consuming sector that
consists of living quarters for private households.
Common uses of energy associated with this sector
include space heating, water heating, air conditioning,
lighting, refrigeration, cooking, and running a variety of
other appliances. The residential sector excludes
institutional living quarters.
Residual Fuel Oil: A general classification for the
heavier oils, known as No. 5 and No. 6 fuel oils, that
remain after the distillate fuel oils and lighter
hydrocarbons are distilled away in refinery operations.
It conforms to ASTM Specifications D 396 and D 975
and Federal Specification VV-F-815C. No. 5, a residual
fuel oil of medium viscosity, is also known as Navy
Special and is defined in Military Specification MIL-F859E, including Amendment 2 (NATO Symbol F-770).

Salt Dome: A domical arch (anticline) of sedimentary rock
beneath the earth's surface, in which the layers bend downward
in opposite directions from the crest, and that has a mass of rock
salt as its core.
Shallow Pitting: Testing a potential mineral deposit by
systematically sinking small shafts into the earth and analyzing
the material recovered.
Short Ton: A unit of weight equal to 2,000 pounds.
Shut In: Closed temporarily; wells and mines capable of
production may be shut in for repair, cleaning, inaccessibility to
a market, etc.
Support Equipment and Facilities: These include, but are not
limited to, seismic equipment, drilling equipment, construction

55

Energy Information Administration

and grading equipment, vehicles, repair shops,
warehouses, supply points, camps, and division,
district, or field offices.
Surface Drilling Expenses (Uranium): These include
drilling, drilling roads, site preparation, geological and
other technical support, sampling, and drill-hole
logging.
Surface Rights: Fee ownership in surface areas of
land. Also used to describe a lessee's right to use as
much of the surface of the land as may be reasonably
necessary for the conduct of operations under the lease.

System Capacity, Distribution: The amount (volume)
of capacity that a company owns for delivering volumes
of natural gas or electricity to its customers. This is the
capacity of the entire distribution network.
System Capacity, Transmission: The amount
(volume) of capacity that a company owns for
delivering wholesale volumes of natural gas or
electricity to its customers. This is the capacity of the
entire transmission network.
Tangible Development Costs: Costs incurred during
the development stage for access, mineral-handling, and
support facilities having a physical nature. In mining,
such costs would include tracks, lighting equipment,
ventilation equipment, other equipment installed in the
mine to facilitate the extraction of minerals, and
supporting facilities for housing and care of work
forces.
In the oil and gas industry, tangible
development costs would include well equipment (such
as casing, tubing, pumping equipment, and well heads),
as well as field storage tanks and gathering systems.
Tanker and Barge: Vessels that transport crude oil or
petroleum products.
Tar sands: Naturally occurring bitumen-impregnated
sands that yield mixtures of liquid hydrocarbon and that
require further processing other than mechanical
blending before becoming finished petroleum products.
Test Well Contribution: A payment made to the
owner of an adjacent or nearby tract who has drilled an
exploratory well on that tract in exchange for
information obtained from the drilling effort. (See
definitions for Bottom Hole Contribution and Dry
Hole Contribution.)
Texas Interconnect: Composed of the Electric
Reliability Council of Texas (ERCOT) (as defined by
the North American Electric Reliability Council).

Throughput: Estimated or actual volume of natural gas that may
be carried on a pipeline over a specified period of time.
Timing Differences: Differences between the periods in which
transactions affect taxable income and the periods in which they
enter into the determination of pretax accounting income.
Timing differences originate in one period and reverse or "turn
around" in one or more subsequent periods. Some timing
differences reduce income taxes that would otherwise be payable
currently; others increase income taxes that would otherwise be
payable currently. (See definition for Permanent Differences.)
Trading/Derivatives: Net revenue associated with wholesale
trading of natural gas, natural gas liquids and electric power,
other than the product itself.
Transfer Price: The monetary value assigned to products,
services, or rights conveyed or exchanged between related
parties, including those occurring between units of a consolidated
entity.
Transmission: The assets associated with the delivery of large
(bulk) volumes of natural gas or electric power. For electric
power, the volumes for classification of transmission is 167KV
and higher.
Transportation Sales: Revenues received from the delivery of,
but not the sale of, wholesale and retail volumes of natural gas,
natural gas liquids, and electric power.
Treating plant: A plant designed primarily to remove
undesirable impurities from natural gas to render the gas
marketable.
Uncompleted Wells, Equipment, and Facilities Costs: The
costs incurred to (1) drill and equip wells that are not yet
completed, and (2) acquire or construct equipment and facilities
that are not yet completed and installed.
Undeveloped Property: Refers to a mineral property on which
development wells or mines have not been drilled or completed
to a point that would permit the production of commercial
quantities of mineral reserves.
Unfinished Oils: All oils requiring further processing, except
those requiring only mechanical blending. Unfinished oils are
produced by partial refining of crude oil and include naphthas
and lighter oils, kerosene and light gas oils, heavy gas oils, and
residuum.
Uranium Exploration, Land Held For: Types of land holdings
and acquisitions include fee land, mineral fee, leases, patented
and unpatented claims, and options to purchase mineral fee.
Excludes land acquired or held for production of uranium from
known commercial uranium deposits.
Vessel: A ship used to transport crude oil, petroleum products, or
natural gas products. Vessel categories are as follows: Ultra

56

EIA-28 – Financial Reporting System

Large Crude Carrier (ULCC), Very Large Crude
Carrier (VLCC), Other Tanker, and Specialty Ship
(LPG/LNG). See Tanker and Barge.
Wasting (non-regenerative) Natural Resources:
Naturally occurring substances that are classified as
minerals, are present in or on the earth's surface, and
are extracted therefrom by man but are not susceptible
to man's attempts to replace them in their original state
or in a similar state (although they, in a sense, may be
replaced by nature over the long term).
By that definition, these resources include, but are not
limited to: (1) crude oil and natural gas; (2) metals,
such as copper, gold, iron, nickel, platinum, silver, tin,
titanium, tungsten, uranium, and zinc; (3) coal; (4) salt;
(5) sulfur; and (6) gravel, sand, and stone.

reported to the appropriate regulatory agency.
- The date of completion of a dry hole is the
date of abandonment as reported to the
appropriate agency.
-

•

•

The natural resources excluded by this definition,
because they are susceptible to attempts to replace them
in their original state or in a similar state (being
characteristically replaced by nature as well), are those
that provide the basis for products normally associated
with the industries of forestry, fishing, agriculture, and
animal husbandry.

The date of completion of a service well is the
date on which the well is equipped to perform
the service for which it was intended.
Development Well. A well drilled within the proved
area of an oil or gas reservoir to the depth of a
stratigraphic horizon known to be productive.
Directional (Deviated) Well. A well purposely
deviated from the vertical using controlled angles to
reach an objective location other than directly below the
surface location. A directional well may be the original
hole or a directional "sidetrack" hole that deviates from
the original bore at some point below the surface. The
new footage associated with directional "sidetrack"
holes should not be confused with footage resulting
from remedial sidetrack drilling.
If there is a common bore from which two or more
wells are drilled, the first complete bore from the
surface to the original objective is classified and
reported as a well drilled. Each of the deviations from
the common bore is reported as a separate well.

Well: A hole drilled in the earth for the purpose of (1)
finding or producing crude oil or natural gas; or (2)
providing services related to the production of crude oil
or natural gas.
Note, for FRS reporting purposes, wells are classified
as (1) oil wells; (2) gas wells; (3) dry holes; (4)
stratigraphic test wells; or (5) service wells. The latter
two types of wells are not counted for FRS reporting.

•

Dry Hole. An exploratory or development well found
to be incapable of producing either oil or gas in
sufficient quantities to justify completion as an oil or
gas well.

•

Oil wells, gas wells, and dry holes are classified as
exploratory wells or development wells. Exploratory
wells are subclassified as (1) new-pool wildcats; (2)
deeper-pool tests; (3) shallow-pool tests; and (4)
outpost (extension) tests. Well classifications reflect
the status of wells after drilling has been completed.

Exploratory Well. A hole drilled: a) to find and
produce oil or gas in an area previously considered
unproductive; b) to find a new reservoir in a known
field, i.e., one previously producing oil and gas from
another reservoir, or c) to extend the limit of a known
oil or gas reservoir.

•

Free Well. A well drilled and equipped by an assignee
as consideration for the assignment of a fractional share
of the working interest, commonly under a farm-out
agreement.

•

Gas Well. A well completed for production of natural
gas from one or more gas zones or reservoirs. Such
wells contain no completions for the production of
crude oil.

•

Multiple Completion Well. A well equipped to
produce oil and/or gas separately from more than one
reservoir. Such wells contain multiple strings of tubing
or other equipment that permit production from the
various completions to be measured and accounted for
separately.

•

•

Completion.
The term refers to the
installation of permanent equipment for the
production of oil or gas. If a well is equipped
to produce only oil or gas from one zone or
reservoir, the definition of a "well" (classified
as an oil well or gas well) and the definition of
a "completion" are identical. However, if a
well is equipped to produce oil and/or gas
separately from more than one reservoir, a
"well" is not synonymous with a
"completion."
Completion Date. The date on which the
installation of permanent equipment has been
completed (for the production of oil or gas) as

57

Energy Information Administration

•

For statistical purposes, a multiple completion
well is reported as one well and classified as
either an oil well or a gas well. If one of the
several completions in a given well is an oil
completion, the well is classified as an oil
well. If all of the completions in a given well
are gas completions, the well is classified as a
gas well.

•

New Field Discovery Well. The first well
drilled on a structural feature and/or
stratigraphic condition that indicates the
presence of a commercially significant
quantity of hydrocarbons which may be
produced. The discovery well may be drilled
and abandoned without being completed to
produce.

•

Oil Well.
A well completed for the
production of crude oil from at least one oil
zone or reservoir.

•

Old Well Drilled Deeper. A previously
drilled hole which is reentered and deepened
by additional drilling. Such wells are reported
as (1) oil or gas wells if completed for the
production of oil and gas, or (2) dry holes if
sufficient quantities of oil or gas are not found
to justify completion at the greatest depth.

•

•

Old Well Worked Over. A previously
drilled hole that is reentered for the purpose of
improving or establishing production of oil or
gas, but no additional footage is drilled.
Service Well. A well drilled, completed, or
converted for the purpose of supporting
production in an existing field. Wells of this
class also are drilled or converted for the
following specific purposes:
-

58

Gas injection (natural gas, propane,
butane, or fuel-gas)

-

Water injection

-

Steam injection

-

Air injection

-

Salt water disposal

-

Water supply for injection

-

Observation

-

Injection for in-situ combustion.

•

Stratigraphic Test Well. A geologically directed
drilling effort to obtain information pertaining to a
specific geological condition that might lead toward the
discovery of an accumulation of hydrocarbons. Such
wells are customarily drilled without the intention of
being completed for hydrocarbon production. This
classification also includes tests identified as core tests
and all types of expendable holes related to
hydrocarbon exploration.

•

Water Well. A well drilled to (1) obtain a water
supply to support drilling or plant operations, or (2)
obtain a water supply to be used in connection with an
improved recovery program. Water wells of the first
type are not reported. Water wells drilled in connection
with an improved recovery program are reported as
service wells.

Wellhead Price: The value at the mouth of the well. In general,
the wellhead price is considered to be the sales price obtainable
from a third party in an arm's length transaction. Posted prices,
requested prices, or prices as defined by lease agreements,
contracts or tax regulations should be used where applicable.
Wells and Related Equipment and Facilities: Include costs
incurred to:
•

Drill and equip exploratory wells that have found
proved reserves and exploratory-type stratigraphic test
wells that have found proved reserves.

•

Obtain access to proved reserves and provide facilities
for extracting, testing, gathering, and storing the oil and
gas, including the drilling and equipping of development wells and development-type stratigraphic tests
wells (whether successful or unsuccessful) and service
wells.

Western Interconnect: Composed of the Western Electricity
Coordinating Council (WECC) (as defined by the North
American Electric Reliability Council).
Wholesale Power: Large volumes of electric power
sold/delivered to electric power resellers.
Wholesaler/Reseller: A firm that is engaged in a trade or
business that buys energy products and then sells them to a
purchaser who is not the ultimate consumer of those products.
Working (top storage) gas: The volume of gas in the reservoir
that is in addition to the cushion or base gas. It may or may not
be completely withdrawn during any particular withdrawal
season. Conditions permitting, the total working capacity could
be used more than once during any season.
Working Interest: An interest in a mineral property that entitles
the owner of that interest to all or a share of mineral production
from the property, usually subject to a royalty.

EIA-28 – Financial Reporting System

A working interest permits the owner to explore,
develop, and operate the property. The working interest
owner bears the costs of exploration, development, and
operation of the property, and in return is entitled to a
share of the mineral production from the property, or to
a share of the proceeds therefrom. It may be assigned
to another party in whole or in part, or it may be
divided into other special property interests.
Working Interest, Gross. The reporting company's
working interest plus the proportionate share of any
basic royalty interest or overriding royalty interest
related to the working interest.
Working Interest, Net. The reporting company's
working interest not including any basic royalty or
overriding royalty interests.
Yellowcake: A natural uranium concentrate that takes
its name from its color and texture. Yellowcake
typically contains 70 to 90 percent U3O8 (uranium
oxide) by weight. It is used as feedstock for uranium
fuel enrichment and fuel pellet fabrication.

59

Energy Information Administration

Index
Page
Acquisition.................................................................................................................................................................................39
Acquisition Costs .......................................................................................................................................................................39
Acreage ......................................................................................................................................................................................39
Gross ....................................................................................................................................................................................39
Net........................................................................................................................................................................................39
Affiliate......................................................................................................................................................................................39
Amortization ..............................................................................................................................................................................39
Avg. Daily Maximum Demand..................................................................................................................................................39
Base (cushion) gas .....................................................................................................................................................................39
Black Lung Benefits ..................................................................................................................................................................39
Bottom-Hole Contribution .........................................................................................................................................................39
Branded Product.........................................................................................................................................................................39
Capacity, Coal............................................................................................................................................................................39
Capacity, Distribution ................................................................................................................................................................39
Capacity, Refining .....................................................................................................................................................................39
Barrels Per Calendar Day...........................................................................................................................................................39
Capacity Statistics......................................................................................................................................................................39
Carrying Costs ...........................................................................................................................................................................39
Chemical Operations..................................................................................................................................................................40
Christmas Tree ...........................................................................................................................................................................40
Circuit ........................................................................................................................................................................................40
Circuit-Mile ...............................................................................................................................................................................40
Coal Gasification .......................................................................................................................................................................40
Coal Liquefaction.......................................................................................................................................................................40
Coal, Nuclear and Non-conventional .........................................................................................................................................40
Cogeneration ..............................................................................................................................................................................40
Coincident Maximum Demand ..................................................................................................................................................40
Combined-Cycle Generation......................................................................................................................................................40
Commercial Sector.....................................................................................................................................................................40
Company Automotive (Retail) Outlet ........................................................................................................................................40
Company....................................................................................................................................................................................40
Company-Lessee Automotive Outlet .........................................................................................................................................40
Company-Open Automotive Outlet ...........................................................................................................................................40
Company-Operated Automotive Outlet .....................................................................................................................................40
Condensate (Lease Condensate) ................................................................................................................................................40
Contribution to Net Income .......................................................................................................................................................40
Crude Oil....................................................................................................................................................................................40
DD&A........................................................................................................................................................................................41
Deferred Taxes...........................................................................................................................................................................41
Delay Rental ..............................................................................................................................................................................41
Depletion....................................................................................................................................................................................41
Book .....................................................................................................................................................................................41
Tax-cost................................................................................................................................................................................41
Tax-percentage (or Statutory)...............................................................................................................................................41
Excess statutory depletion ....................................................................................................................................................41
Depreciation...............................................................................................................................................................................41
Development ..............................................................................................................................................................................41
Development Costs ....................................................................................................................................................................41
Distillate.....................................................................................................................................................................................42
Distribution ................................................................................................................................................................................42
Domestic Operations..................................................................................................................................................................42
Downstream Natural Gas ...........................................................................................................................................................42
Drilling.......................................................................................................................................................................................42
Developmental. ....................................................................................................................................................................42

60

EIA-28 – Financial Reporting System

Directional. .......................................................................................................................................................................... 42
Exploratory. ......................................................................................................................................................................... 42
Drilling and Equipping of Wells................................................................................................................................................ 42
Drilling Arrangement................................................................................................................................................................. 42
Dry-Hole Charge ....................................................................................................................................................................... 42
Dry-Hole Contribution............................................................................................................................................................... 42
Dual-Fired Unit.......................................................................................................................................................................... 42
Eastern Interconnect .................................................................................................................................................................. 42
Electric Power............................................................................................................................................................................ 42
Eliminations............................................................................................................................................................................... 42
End User .................................................................................................................................................................................... 42
Energy Reserves ........................................................................................................................................................................ 42
Equity in Earnings of Unconsolidated Affiliates ....................................................................................................................... 43
Exploration ................................................................................................................................................................................ 43
Exploration Costs ...................................................................................................................................................................... 43
Extractive Industries .................................................................................................................................................................. 43
Extraordinary Item..................................................................................................................................................................... 43
Farm-out (-in) Arrangement ...................................................................................................................................................... 43
Fee Interest ................................................................................................................................................................................ 43
FERC ......................................................................................................................................................................................... 43
Field........................................................................................................................................................................................... 43
Financial Accounting Standards Board...................................................................................................................................... 43
Firm ........................................................................................................................................................................................... 43
Footage Drilled .......................................................................................................................................................................... 43
Bypassed Footage ................................................................................................................................................................ 44
Deepest Total Depth ............................................................................................................................................................ 44
Depth of Deepest Production ............................................................................................................................................... 44
Plugged-Back Footage ......................................................................................................................................................... 44
Redrill Footage..................................................................................................................................................................... 44
Sidetrack Drilling................................................................................................................................................................. 44
Surface Drilling Footage (Uranium) .................................................................................................................................... 44
Foreign Access .......................................................................................................................................................................... 44
Foreign Currency Transaction Gains and Losses....................................................................................................................... 44
Foreign Currency Translation Effects........................................................................................................................................ 44
Foreign Operations .................................................................................................................................................................... 44
Gas Turbine Plant ...................................................................................................................................................................... 45
Gathering System....................................................................................................................................................................... 45
Generally Accepted Accounting Rules ...................................................................................................................................... 45
Generating Unit ......................................................................................................................................................................... 45
Generation, Net.......................................................................................................................................................................... 45
Generation, Regulated ............................................................................................................................................................... 45
Generation, Non-regulated......................................................................................................................................................... 45
Generator Capacity ................................................................................................................................................................... 45
Generator Nameplate Capacity (installed) ................................................................................................................................. 45
Geological and Geophysical (G&G) Costs................................................................................................................................ 45
Hydrocarbon .............................................................................................................................................................................. 45
Hydroelectric Power .................................................................................................................................................................. 45
Improved Recovery ................................................................................................................................................................... 45
Industrial Sector......................................................................................................................................................................... 45
Intangible Drilling and Development Costs (IDC) .................................................................................................................... 45
Investments and Advances to Unconsolidated Affiliates........................................................................................................... 46
Kilovolt-Ampere (kVa).............................................................................................................................................................. 46
Kilowatt ..................................................................................................................................................................................... 46
Kilowatthour.............................................................................................................................................................................. 46
KWH Delivered......................................................................................................................................................................... 46
Lease Bonus............................................................................................................................................................................... 46
Lease Equipment ....................................................................................................................................................................... 46
Lifting Costs .............................................................................................................................................................................. 46
Line Miles, Natural Gas Transmission ...................................................................................................................................... 46

61

Liquefied Natural Gas................................................................................................................................................................46
Mains .........................................................................................................................................................................................46
Marketing/Trading .....................................................................................................................................................................46
Maximum Demand ....................................................................................................................................................................46
MCF...........................................................................................................................................................................................46
Megawatt ...................................................................................................................................................................................46
Megawatthour ............................................................................................................................................................................46
Miles of Distribution Mains .......................................................................................................................................................46
Milling .......................................................................................................................................................................................46
Milling Capacity ........................................................................................................................................................................46
Mineral.......................................................................................................................................................................................46
Mineral Interests In Properties ...................................................................................................................................................46
Mineral Lease ............................................................................................................................................................................46
Mineral Resource Assets............................................................................................................................................................46
Mineral Rights ...........................................................................................................................................................................47
Mining........................................................................................................................................................................................47
Minority Interest in Income .......................................................................................................................................................47
Motor Gasoline (Finished) .........................................................................................................................................................47
Motor Gasoline, Finished Gasohol ............................................................................................................................................47
Motor Gasoline, Finished Leaded ..............................................................................................................................................47
Motor Gasoline, Finished Unleaded ..........................................................................................................................................48
MTBE (Methyl tertiary butyl ether) (CH3)3COCH3 ...................................................................................................................48
Natural Gas, dry .........................................................................................................................................................................48
Natural Gas, wet ........................................................................................................................................................................48
Associated/Dissolved Gas..........................................................................................................................................................48
Non-Associated Gas...................................................................................................................................................................48
Natural Gas Liquids (NGL) .......................................................................................................................................................48
Natural Gas Processing Plants ...................................................................................................................................................48
Natural Reservoir Pressure.........................................................................................................................................................48
Net Investment In Place .............................................................................................................................................................48
Net Investment In Place, Additions to .......................................................................................................................................48
Net Ownership Interest Reserves ...............................................................................................................................................48
Net Profits Interest .....................................................................................................................................................................48
Net Summer Capacity ................................................................................................................................................................48
Non-attainment Area..................................................................................................................................................................48
Non-branded Product .................................................................................................................................................................48
Non-conventional Energy ..........................................................................................................................................................49
Non-electric ...............................................................................................................................................................................49
Non-energy ................................................................................................................................................................................49
Non-gas Sales ............................................................................................................................................................................49
Non-operating Interest ...............................................................................................................................................................49
Non-producing ...........................................................................................................................................................................49
Nontraceable ..............................................................................................................................................................................49
North American Industrial Classification System ......................................................................................................................49
Nuclear Electric Power ..............................................................................................................................................................49
Nuclear Fuel...............................................................................................................................................................................49
Nuclear Fuel Operations ............................................................................................................................................................49
Nuclear Reactor .........................................................................................................................................................................49
Offshore .....................................................................................................................................................................................49
Oil Shale ....................................................................................................................................................................................49
Operating Expenses ...................................................................................................................................................................49
Operating Income.......................................................................................................................................................................49
Operating Revenues ...................................................................................................................................................................49
Other Renewable Generation .....................................................................................................................................................49
Other Trading Expense ..............................................................................................................................................................49
Output Statistics .........................................................................................................................................................................49
Oxygenated Gasoline .................................................................................................................................................................50
Oxygenates.................................................................................................................................................................................50
PP&E, Additions to....................................................................................................................................................................50

62

EIA-28 – Financial Reporting System

PP&E, Net ................................................................................................................................................................................. 50
Permanent Differences............................................................................................................................................................... 50
Petrochemicals........................................................................................................................................................................... 50
Petroleum................................................................................................................................................................................... 50
Pipeline, Distribution................................................................................................................................................................. 50
Pipeline, Gathering .................................................................................................................................................................... 50
Pipeline (natural gas) ................................................................................................................................................................. 50
Pipeline (petroleum) .................................................................................................................................................................. 50
Pipelines, Rate Regulated .......................................................................................................................................................... 50
Pipeline, Transmission............................................................................................................................................................... 50
Pole-Mile ................................................................................................................................................................................... 50
Pre-Discovery Costs .................................................................................................................................................................. 50
Pre-Production Costs ................................................................................................................................................................. 50
Primary Recovery ...................................................................................................................................................................... 50
Primary Transportation .............................................................................................................................................................. 51
Probable Energy Reserves ......................................................................................................................................................... 51
Probable (indicated) Reserves, coal........................................................................................................................................... 51
Processing and Gathering .......................................................................................................................................................... 51
Processing Plant......................................................................................................................................................................... 51
Producing Property .................................................................................................................................................................... 51
Production, Natural Gas Liquids................................................................................................................................................ 51
Contract Production ............................................................................................................................................................. 51
Leasehold Production........................................................................................................................................................... 51
Contract Reserves ................................................................................................................................................................ 51
Leasehold Reserves.............................................................................................................................................................. 51
Production, Oil and Gas............................................................................................................................................................. 51
Gross Company-Operated Production.................................................................................................................................. 51
Net Working Interest Production ......................................................................................................................................... 51
Production Costs........................................................................................................................................................................ 51
Production Payments ................................................................................................................................................................. 52
Carved-out ........................................................................................................................................................................... 52
Retained . ............................................................................................................................................................................. 52
Proportional Interest in Investee Reserves................................................................................................................................. 52
Prospecting ................................................................................................................................................................................ 52
Prospecting Costs ...................................................................................................................................................................... 52
Proved Energy Reserves ............................................................................................................................................................ 52
Proved (measured) Reserves, Coal ............................................................................................................................................ 52
Purchased Power........................................................................................................................................................................ 52
Reclamation Expenses ............................................................................................................................................................... 52
Refined Petroleum Products ...................................................................................................................................................... 52
Reformulated Gasoline .............................................................................................................................................................. 52
Renewables................................................................................................................................................................................ 52
Research and Development ....................................................................................................................................................... 52
Basic Research..................................................................................................................................................................... 53
Applied Research ................................................................................................................................................................. 53
Development ........................................................................................................................................................................ 53
Reserves, Change In .................................................................................................................................................................. 53
Extensions, Discoveries, and Other Additions..................................................................................................................... 53
Improved Recovery.............................................................................................................................................................. 53
Purchases or Sales of Minerals-in-Place .............................................................................................................................. 53
Revisions of Previous Estimates .......................................................................................................................................... 53
Reserves (Coal).......................................................................................................................................................................... 53
Proved (Measured) Reserves ..................................................................................................................................................... 53
Probable (Indicated) Reserves ................................................................................................................................................... 53
Reserves, Net ............................................................................................................................................................................. 53
Reserves, Proved (Oil and Gas)................................................................................................................................................. 53
Reservoir.................................................................................................................................................................................... 54
Residential Sector ...................................................................................................................................................................... 54
Residual Fuel Oil ....................................................................................................................................................................... 54

63

Retail Power...............................................................................................................................................................................54
Royalty.......................................................................................................................................................................................54
Advance Royalty ..................................................................................................................................................................54
Basic Royalty .......................................................................................................................................................................54
Overriding Royalty...............................................................................................................................................................54
Shut-In Royalty ....................................................................................................................................................................54
Salt Dome ..................................................................................................................................................................................54
Shallow Pitting...........................................................................................................................................................................54
Short Ton ...................................................................................................................................................................................54
Shut In........................................................................................................................................................................................54
Support Equipment and Facilities ..............................................................................................................................................54
Surface Drilling Expenses (Uranium) ........................................................................................................................................54
Surface Rights............................................................................................................................................................................54
System Capacity, Distribution ...................................................................................................................................................54
System Capacity, Transmission .................................................................................................................................................55
Tangible Development Costs .....................................................................................................................................................55
Tanker and Barge.......................................................................................................................................................................55
Tar Sands ...................................................................................................................................................................................55
Test Well Contribution...............................................................................................................................................................55
Texas Interconnect .....................................................................................................................................................................55
Throughput.................................................................................................................................................................................55
Timing Differences ....................................................................................................................................................................55
Trading/Derivatives ...................................................................................................................................................................55
Transfer Price.............................................................................................................................................................................55
Transmission ..............................................................................................................................................................................55
Transportation Sales...................................................................................................................................................................55
Treating Plant.............................................................................................................................................................................55
Uncompleted Wells, Equipment, and Facilities Costs ...............................................................................................................55
Undeveloped Property................................................................................................................................................................55
Unfinished Oils ..........................................................................................................................................................................55
Units, Generation .......................................................................................................................................................................55
Uranium Exploration, Land Held For ........................................................................................................................................55
Vessel.........................................................................................................................................................................................55
Wasting (non-regenerative) Natural Resources .........................................................................................................................55
Well............................................................................................................................................................................................56
Completion...........................................................................................................................................................................56
Completion Date ..................................................................................................................................................................56
Development Well................................................................................................................................................................56
Directional (Deviated) Well .................................................................................................................................................56
Dry Hole...............................................................................................................................................................................56
Exploratory Well ..................................................................................................................................................................56
Free Well..............................................................................................................................................................................56
Gas Well...............................................................................................................................................................................56
Multiple Completion Well....................................................................................................................................................56
New Field Discovery Well ...................................................................................................................................................56
Oil Well................................................................................................................................................................................57
Old Well Drilled Deeper ......................................................................................................................................................57
Old Well Worked Over ........................................................................................................................................................57
Service Well .........................................................................................................................................................................57
Stratigraphic Test Well.........................................................................................................................................................57
Water Well ...........................................................................................................................................................................57
Wellhead Price ...........................................................................................................................................................................57
Wells and Related Equipment and Facilities..............................................................................................................................57
Western Interconnect .................................................................................................................................................................57
Wholesale Power .......................................................................................................................................................................57
Wholesaler/Reseller ...................................................................................................................................................................57
Wholesale/Trading.....................................................................................................................................................................57
Working (tops storage) Gas .......................................................................................................................................................57
Working Interest ........................................................................................................................................................................57

64

EIA-28 – Financial Reporting System

Gross Working Interest.............................................................................................................................................................. 57
Net Working Interest ................................................................................................................................................................. 58
Yellowcake (U3O8) .................................................................................................................................................................... 58

65