(a) All rail carriers and express companies receiving protective services under any contracts, agreements, or arrangements requiring approval under section 1(14) (b) of the Interstate Commerce Act shall submit for approval, on or before 120 days after the effective date of this section, new or superseding contracts covering protective services performed under contracts now on file with the Commission as well as those performed under the provisions of Division Sheet 7, "Basis of Divisions Applying in Connection with Charges for Protective Services As Published in Perishable Protective Tariff 16 or Successive Issues Thereof", and supplements thereto. The contracts required herein to be filed shall supersede all prior contracts, including Division Sheet 7, and such contracts and those filed thereafter shall conform in substance to the provisions set forth in paragraphs (b), (c), (d), (e), (f), and (g) of this section.

(b) The charge for each protective service shall yield to the person performing such service no less than the cost of performing the service, the cost to be determined as set forth in paragraph (d) (1) and (2) of this section.

(c) The charge for a protective service may include, in addition to cost, a reasonable profit not in excess of 6 percent of the book cost of the property and equipment employed in furnishing the service, less accrued depreciation, plus an allowance for working capital.

(d) (1) The cost shall be based upon the best information available, which shall include expected future increases or decreases in labor, materials, and other expenses, and may be based upon prior operations to the extent that conditions, expenses, and practices are expected to remain the same.

(2) The cost may be that incurred by the person rendering a specific protective service for a specific railroad or express company, or it may be the average cost of rendering a specific service for all railroads and express companies by such person.

(e) In the event the person rendering the protective services shall not recover costs for any item or service rendered, such person shall bill the railroads and express companies receiving those services, on a proportionate basis, for the amount of the loss. In the event the profit for any item or service received by such person exceeds a reasonable amount, the person rendering the service shall refund the excessive amount, on a proportionate basis, to the railroads and express companies involved. These adjustments are to be made as soon as practicable after the end of each calendar year. In determining the need for adjustments, each item or service for which a unit price has been charged shall be independently considered.

(f) No contract shall provide for a charge to a nonproprietary railroad or express company different from that to a proprietary railroad for the same service under substantially similar conditions.

(g) Contracts may be between one or more persons rendering protective services, on the one hand, and, on the other, one or more railroads and express companies, provided the contracts are consistent with the provisions of paragraphs (b), (c), (d), (e), and (f) of this section. (54 Stat. 901; 49 U.S.C. 1) [27 F.R. 9406, Sept. 21, 1962]

3 years.

.do...

4 years.

94

Subpart E-Pipe Line Companies [Revised]

AUTHORITY: §§ 110.80 to 110.87 issued under sec. 20, 24 Stat. 386, as amended, 49 U.S.C. 20.

SOURCE: §§ 110.80 to 110.87 appear at 26 F.R. 8618, Sept. 15, 1961.

1

1 Subpart heading amended, 23 F. R. 2128, Apr. 1, 1958.

§ 110.80 Regulations prescribed.

Effective January 1, 1962, each carrier by pipe line subject to the provisions of the Interstate Commerce Act, and each trustee, executor, administrator, or assignee of any such carrier, shall comply with the regulations in this subpart before destroying any operating, accounting, or financial papers, records, books, blanks, tickets, stubs, correspondence, or documents.

The following regulations specify the records and documents which may be destroyed and prescribe the length of time the same shall be preserved, but mention of a record or document hereinafter imposes no requirement that it shall be installed if its purpose is otherwise being adequately served. Compliance with the regulations in this subpart will not exempt a carrier from statutory requirements, other than provisions of the Interstate Commerce Act, for retention of records or documents for periods longer than those herein prescribed. § 110.82 Authority to destroy records. Carriers by

(a) General authority. pipe lines subject to the regulations in this subpart may destroy records or documents named or described in the regulations in this subpart after they have been preserved for the prescribed periods of time. Permanent records are those which may not be destroyed without special authority.

(b) Special authority. A carrier subject to the provisions of the regulations in this subpart proposing to destroy records or documents which are not named or described in the regulations in this subpart or which, if named or described, are of a character that they are no longer needed for the prescribed periods of years because of retirement of property, or the information is sufficiently available in other records to be kept for required periods of years, or other good cause, may request special authority to destroy such records or documents. Applications for such special authority shall describe in detail the records or documents to be destroyed and shall explain why their continued retention is deemed to be unnecessary.

(c) Authority to destroy certain records. The carrier's Board of Directors or executive committee at its option may by a formal corporate act of appointment delegate to a bank, trust company, or similar institution having custody of pipe line records in the normal course of business, the authority to destroy such records upon compliance with the requirements of these regulations. When documents represent debt secured by a mortgage or denture trust agreement, the record of destruction shall also be authenticated by a representative of the trustee.

(3) All other records listed in § 110.87 not included in the foregoing may be destroyed after being suitably photographed for preservation on microfilm.

(b) To be acceptable in lieu of original records, photographic copies must meet the following minimum requirements:

(1) Photographic copies shall be no less readily accessible than the original record or document as normally filed or preserved would be, and suitable means or facilities shall be available to locate, identify, read, or reproduce such photographic copies.

(2) Any significant characteristics, feature, or other attribute of the original record or document, which photography in black and white will not preserve, shall be clearly indicated before the photograph is made.

(3) The reverse side of printed forms need not be copied if nothing has been added to the printed matter common to all such forms, but an identified speciment of such form shall be on the film for reference.

(4) Film used for photographing copies shall be of permanent record type meeting in all respects the minimum specifications of the National Bureau of Standards, and all processes recommended by the manufacturer shall be observed to protect it from deterioration or accidental destruction.

§ 110.84 Supervision of destruction.

(a) Within six months after the effective date of the regulations in this subpart, or within six months after becoming subject to this provision, each carrier shall appoint an officer or other responsible employee to supervise the destruction of records and documents. Such appointment shall be by formal corporate act of the board of directors or its executive committee. An existing appointment made under prior regulations shall be recognized as being in compliance with the regulations in this subpart.

(b) If the property of a carrier is in the hands of a trustee, executor, administrator, or assignee, the officer or other responsible employee to have supervision of the destruction of records and documents shall be designated by such trustee, executor, administrator, or assignee.

(c) It is not required that a copy of the resolution or order of appointment be filed with the Commission.

§ 110.85

Record of records destroyed.

(a) The supervising officer or other designated employee shall maintain or shall cause to be maintained a record of all carrier records and documents which have been destroyed pursuant to the regulations in this subpart except those the retention of which is optional with the carrier. The record shall inIclude all records and documents destroyed, including those destroyed pursuant to § 110.82(c).

(b) The record shall be available for inspection in the office of the supervising officer and shali be in such detail that the destroyed records or documents may be identified and the time, place, and method of destruction can be established. If the destruction is by accident or at the hand of an unauthorized person not subject to the carrier's control, then the record shall include a statement of the relevant circumstances.

§ 110.86

Carriers going out of business.

The records and documents relating to operations of a carrier subject to the regulations in this subpart may be destroyed without regard to the prescribed periods of retention after carrier status is abandoned for purposes of the Interstate Commerce Act: Provided however, (a) if the carrier is a corporation being dissolved by act of the authority which created it, the records may not be destroyed until dissolution is otherwise complete, and (b) if the carrier is not incorporated or is being kept alive for purposes other than carrier operations, records relating to former carrier operations may not be destroyed until all transactions relating to such operations are completed.

§ 110.87 Prescribed periods of retention.

The following list describes the purpose for which a record is necessary and the prescribed periods shall be observed even if a record by some other name serves the described purpose. If identical copies of the same document serve more than one such described purpose, only one copy is required to be retained by the regulations in this subpart.