Kentucky
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61-0458329
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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3617 Lexington Road, Winchester, Kentucky
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40391
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(Address of principal executive offices)
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(Zip code)
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Title of each class
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Name of each exchange on which registered
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Common Stock $1 Par Value
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NASDAQ
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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes
£
No
x
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Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15 (d) of the Act. Yes
£
No
x
|
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes
x
No
£
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Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes
x
No
£
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Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (Section 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
£
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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer", "accelerated filer", and "smaller reporting company” in Rule 12b-2 of the Exchange Act.
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Large accelerated filer
£
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Accelerated filer
x
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Non-accelerated filer
£
(Do not check if a smaller reporting company)
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Smaller reporting company
£
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
£
No
x
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State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recent completed second fiscal quarter. $94,303,419.
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DOCUMENTS INCORPORATED BY REFERENCE
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|
The Registrant’s definitive proxy statement, to be filed with the Commission not later than 120 days after June 30, 2010, is incorporated by reference in Part III of this Report.
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Page Number
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|||
Item 1
.
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Business
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2
|
|
Item 1A
.
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Risk Factors
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9
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Item 1B
.
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Unresolved Staff Comments
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11
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Item 2
.
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Properties
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12
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Item 3
.
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Legal Proceedings
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12
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Item 4
.
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Submission of Matters to a Vote of Security Holders
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12
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Item 5
.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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13
|
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Item 6
.
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Selected Financial Data
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15
|
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Item 7
.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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16
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Item 7A
.
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Quantitative and Qualitative Disclosures About Market Risk
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25
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Item 8
.
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Financial Statements and Supplementary Data
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26
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Item 9
.
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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26
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Item 9A
.
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Controls and Procedures
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26
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Item 9B
.
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Other Information
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29
|
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Item 10
.
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Directors, Executive Officers and Corporate Governance of the Registrant
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29
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Item 11
.
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Executive Compensation
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29
|
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Item 12
.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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30
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Item 13
.
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Certain Relationships and Related Transactions, and Director Independence
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30
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Item 14
.
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Principal Accountant Fees and Services
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30
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Item 15
.
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Exhibits and Financial Statement Schedules
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31
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34
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Consolidated Statistics
|
|||||||||||
For the Years Ended June 30,
|
2010
|
2009
|
2008
|
2007
|
2006
|
||||||
Average Retail Customers Served
|
|||||||||||
Residential
|
30,575
|
30,881
|
31,520
|
31,941
|
32,601
|
||||||
Commercial
|
4,957
|
5,009
|
5,107
|
5,128
|
5,154
|
||||||
Industrial
|
46
|
49
|
54
|
59
|
59
|
||||||
Total
|
35,578
|
35,939
|
36,681
|
37,128
|
37,814
|
||||||
Operating Revenues ($000)
(a)
|
|||||||||||
Residential sales
|
23,783
|
33,774
|
30,742
|
28,648
|
35,240
|
||||||
Commercial sales
|
15,894
|
24,125
|
21,171
|
19,339
|
24,081
|
||||||
Industrial sales
|
1,075
|
1,769
|
1,707
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1,676
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2,356
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||||||
Total regulated sales (b)
|
40,752
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59,668
|
53,620
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49,663
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61,677
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||||||
On-system transportation (b)
|
4,421
|
4,118
|
4,461
|
4,258
|
4,371
|
||||||
Off-system transportation (b)
|
3,650
|
3,786
|
3,864
|
2,979
|
2,543
|
||||||
Non-regulated sales
|
30,746
|
41,159
|
54,438
|
44,669
|
51,904
|
||||||
Other
|
294
|
333
|
293
|
242
|
250
|
||||||
Eliminations for intersegment
|
(3,441
|
)
|
(3,427
|
)
|
(4,019
|
)
|
(3,643
|
)
|
(3,498
|
)
|
|
Total
|
76,422
|
105,637
|
112,657
|
98,168
|
117,247
|
||||||
System Throughput (Million Cu. Ft.)
(a)
|
|||||||||||
Residential sales
|
1,756
|
1,721
|
1,695
|
1,801
|
1,764
|
||||||
Commercial sales
|
1,331
|
1,346
|
1,286
|
1,345
|
1,313
|
||||||
Industrial sales
|
111
|
113
|
121
|
136
|
146
|
||||||
Total regulated sales
|
3,198
|
3,180
|
3,102
|
3,282
|
3,223
|
||||||
On-system transportation
|
4,533
|
4,215
|
4,975
|
5,161
|
5,322
|
||||||
Off-system transportation
|
11,039
|
11,908
|
12,623
|
9,774
|
8,789
|
||||||
Non-regulated sales
|
4,787
|
4,219
|
5,394
|
4,921
|
4,398
|
||||||
Eliminations for intersegment
|
(4,692
|
)
|
(4,135
|
)
|
(5,276
|
)
|
(4,822
|
)
|
(4,313
|
)
|
|
Total
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18,865
|
19,387
|
20,818
|
18,316
|
17,419
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||||||
Average Annual Consumption Per
|
|||||||||||
Average Residential Customer
|
|||||||||||
(Thousand Cu. Ft.)
|
57
|
56
|
54
|
56
|
54
|
||||||
Lexington, Kentucky Degree Days
|
|||||||||||
Actual
|
4,782
|
4,651
|
4,464
|
4,419
|
4,309
|
||||||
Percent of 30 year average
|
104
|
101
|
96
|
95
|
92
|
||||||
(a)
|
Additional financial information related to our segments can be found in Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 14 of the Notes to Consolidated Financial Statements.
|
(b)
|
We implemented new regulated base rates, as approved by the Kentucky Public Service Commission in October, 2007, which were designed to generate additional annual revenue of $3,920,000.
|
·
|
merging with another entity,
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·
|
selling a material portion of our assets other than in the ordinary course of business,
|
·
|
issuing stock which in the aggregate exceeds thirty-five percent (35%) of our outstanding shares of common stock, and
|
·
|
having any person hold more than twenty percent (20%) of our outstanding shares of common stock.
|
·
|
assuming additional mortgage indebtedness in excess of $5,000,000, and
|
·
|
paying dividends on our common stock unless our consolidated shareholders’ equity minus the value of our intangible assets exceed $25,800,000.
|
Range of Stock Prices ($)
|
Dividends
|
||||||
High
|
Low
|
Per Share ($)
|
|||||
Quarter
|
|||||||
Fiscal 2010
|
|||||||
First
|
26.54
|
22.80
|
.325
|
||||
Second
|
29.80
|
25.34
|
.325
|
||||
Third
|
30.00
|
27.96
|
.325
|
||||
Fourth
|
30.00
|
28.43
|
.325
|
||||
Fiscal 2009
|
|||||||
First
|
28.60
|
11.70
|
.32
|
||||
Second
|
26.00
|
18.01
|
.32
|
||||
Third
|
26.86
|
18.68
|
.32
|
||||
Fourth
|
24.21
|
18.46
|
.32
|
||||
Comparison of Five-Year Cumulative Total Shareholder Return
|
2005
|
2006
|
2007
|
2008
|
2009
|
2010
|
||||||||
Delta
|
100.0
|
99.36
|
109.38
|
116.58
|
106.37
|
141.15
|
|||||||
Standard & Poor’s 500 Stock Index
|
100.0
|
108.63
|
131.00
|
113.81
|
83.98
|
99.89
|
|||||||
Dow Jones Utilities Index
|
100.0
|
110.75
|
137.53
|
148.26
|
106.42
|
111.39
|
|||||||
($000)
|
2010
|
2009
|
2008
|
||||
Provided by operating activities
|
17,600
|
15,434
|
6,592
|
||||
Used in investing activities
|
(5,052
|
)
|
(7,956
|
)
|
(5,266
|
)
|
|
Used in financing activities
|
(8,031
|
)
|
(7,605
|
)
|
(1,264
|
)
|
|
Increase (decrease) in cash and cash equivalents
|
4,517
|
(127
|
)
|
62
|
Payments Due by Fiscal Year
|
||||||||||||||||
($000)
|
2011
|
2012-2013
|
2014-2015
|
After 2015
|
Total
|
|||||||||||
Interest payments (a)
|
$
|
3,782
|
$
|
7,354
|
$
|
7,212
|
$
|
24,368
|
$
|
42,716
|
||||||
Long-term debt (b)
|
1,200
|
2,400
|
2,400
|
52,312
|
58,312
|
|||||||||||
Pension contributions (c)
|
1,000
|
1,000
|
1,000
|
8,334
|
11,334
|
|||||||||||
Gas purchases (d)
|
474
|
—
|
—
|
—
|
474
|
|||||||||||
Capital Expenditures
|
1,443
|
—
|
—
|
—
|
1,443
|
|||||||||||
Total contractual obligations (e)
|
$
|
7,899
|
$
|
10,754
|
$
|
10,612
|
$
|
85,014
|
$
|
114,279
|
||||||
|
(a)
|
Our long-term debt, notes payable, customers’ deposits and unrecognized tax positions all require interest payments. Interest payments are projected based on fiscal 2010 interest payments until the underlying obligation is satisfied. Interest on notes payable represents interest payments expected on the bank line of credit which extends through June 30, 2011. As of June 30, 2010, we have accrued $30,000 of interest related to uncertain tax positions. This amount has been excluded from the above table of contractual obligations as the timing of such payments is uncertain.
|
|
(b)
|
See Note 10 of the Notes to Consolidated Financial Statements for a description of this debt. The cash obligations represent the maximum annual amount of redemptions to be made to certain holders or their beneficiaries through the debt maturity date. Our long-term debt does not have any sinking fund requirements.
|
|
(c)
|
This represents currently projected contributions to the defined benefit plan through 2020, as recommended by our actuary.
|
|
(d)
|
As of June 30, 2010, we had ten contracts which have minimum purchase obligations. These contracts have various terms with the last contract expiring November, 2010. The remainder of our gas purchase contracts are requirements-based contracts, or if a minimum purchase obligation exists the contract does not extend for a time period greater than one month.
|
|
(e)
|
We have other long-term liabilities which include deferred income taxes ($32,462,000), regulatory liabilities ($1,664,000), asset retirement obligations ($2,201,000) and deferred compensation ($373,000). Based on the nature of these items their expected settlement dates cannot be estimated.
|
·
|
Dividend payments cannot be made unless consolidated shareholders' equity of other Company exceeds $25,800,000 (thus no retained earnings are restricted); and
|
·
|
we may not assume any additional mortgage indebtedness in excess of $5,000,000 without effectively securing all Debentures and Insured Quarterly Notes equally to such additional indebtedness.
|
·
|
operational plans,
|
·
|
the cost and availability of our natural gas supplies,
|
·
|
capital expenditures,
|
·
|
sources and availability of funding for our operations and expansion,
|
·
|
anticipated growth and growth opportunities through system expansion and acquisition,
|
·
|
competitive conditions that we face,
|
·
|
production, storage, gathering, transportation and marketing activities,
|
·
|
acquisition of service franchises from local governments,
|
·
|
pension fund costs and management,
|
·
|
contractual obligations and cash requirements,
|
·
|
management of our gas supply and risks due to potential fluctuation in the price of natural gas,
|
·
|
revenues, income, margins and profitability,
|
·
|
efforts to purchase and transport locally produced natural gas,
|
·
|
recovery of regulatory assets,
|
·
|
regulatory and legislative matters, and
|
·
|
dividends.
|
($000)
|
2010 compared
to 2009
|
2009 compared
to 2008
|
|||||
Increase (decrease) in gross margins
|
|||||||
Regulated segment
|
|||||||
Gas sales
|
(297
|
)
|
404
|
||||
On-system transportation
|
303
|
(343
|
)
|
||||
Off-system transportation
|
(136
|
)
|
(78
|
)
|
|||
Other
|
(38
|
)
|
39
|
||||
Intersegment elimination (a)
|
(14
|
)
|
592
|
||||
Total
|
(182
|
)
|
614
|
||||
Non-regulated segment
|
|||||||
Gas sales
|
(1,094
|
)
|
(2,145
|
)
|
|||
Other
|
25
|
(93
|
)
|
||||
Intersegment elimination (a)
|
14
|
(592
|
)
|
||||
Total
|
(1,055
|
)
|
(2,830
|
)
|
|||
Increase (decrease) in consolidated gross margins
|
(1,237
|
)
|
(2,216
|
)
|
|||
Percentage increase (decrease) in volumes
|
|||||||
Regulated segment
|
|||||||
Gas sales
|
1
|
3
|
|||||
On-system transportation
|
8
|
(15
|
)
|
||||
Off-system transportation
|
(7
|
)
|
(6
|
)
|
|||
Non-regulated segment
|
|||||||
Gas sales
|
13
|
(22
|
)
|
(a)
|
Intersegment eliminations represent the transportation fee charged by the regulated segment to the non-regulated segment.
|
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE
|
PAGE
|
Report of Independent Registered Public Accounting Firm
|
35
|
Consolidated Statements of Income for the years ended June 30, 2010, 2009 and 2008
|
36
|
Consolidated Statements of Cash Flows for the years ended June 30, 2010, 2009 and 2008
|
37
|
Consolidated Balance Sheets as of June 30, 2010 and 2009
|
39
|
Consolidated Statements of Changes in Shareholders’ Equity for the years ended June 30, 2010, 2009 and 2008
|
41
|
Notes to Consolidated Financial Statements
|
42
|
Schedule II - Valuation and Qualifying Accounts for the years ended June 30, 2010, 2009 and 2008
|
60
|
Delta Natural Gas Company, Inc.
|
|
Attn: John B. Brown
|
|
3617 Lexington Road
|
|
Winchester, KY 40391
|
|
(859) 744-6171
|
|
Column A
|
Column B
|
Column C
|
||
Number of securities to be issued upon exercise of outstanding options, warrants and rights
|
Weighted-average exercise price of outstanding options, warrants and rights
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in Column A)
|
||
—
|
—
|
500,000
|
(a)
|
Financial Statements, Schedules and Exhibits
|
|
(1)
|
Financial Statements
See Index at Item 8
|
|
(2)
|
Financial Statement Schedules
See Index at Item 8
|
|
(3)
|
Exhibits
|
|
Exhibit No.
|
3(i)
|
Registrant’s Amended and Restated Articles of Incorporation (dated November 16, 2006) are incorporated herein by reference to Exhibit 3(i) to Registrant’s Form 10-K/A (File No. 000-08788) for the period ended June 30, 2007.
|
|
3(ii)
|
Registrant’s Amended and Restated By-Laws (dated May 10, 2010) are incorporated herein by reference to Exhibit 3.1 to Registrant's Form 8-K (File No. 000-8788) dated May 13, 2010.
|
|
4(a)
|
The Indenture dated March 1, 2006 in respect of 5.75% Insured Quarterly Notes due April 1, 2021, is incorporated herein by reference to Exhibit 4(d) to Delta’s Form S-3 (Reg. No. 333-132322) dated March 10, 2006.
|
|
4(b)
|
The Indenture dated January 1, 2003 in respect of 7% Debentures due February 1, 2023, is incorporated herein by reference to Exhibit 4(d) to Delta’s Form S-2 (Reg. No. 333-100852) dated October 30, 2002.
|
|
10(a)
|
Gas Sales Agreement, dated May 1, 2005, by and between the Registrant and Atmos Energy Marketing, LLC is incorporated herein by reference to Exhibit 10(c) to the Registrant's Form 10-K (File No. 000-08788), for the period ended June 30, 2005.
|
|
10(b)
|
Gas Sales Agreement, dated May 1, 2003, by and between the Registrant and Atmos Energy Marketing, LLC is incorporated herein by reference to Exhibit 10(d) to the Registrant's Form 10-K (File No. 000-08788) for the period ended June 30, 2003.
|
|
10(c)
|
Base Contract for Short-Term Sale and Purchase of Natural Gas, dated January 1, 2002, by and between M & B Gas Services, Inc. and Registrant, is incorporated herein by reference to Exhibit 10(n) to Registrant’s Form S-2 (Reg. No. 333-104301) dated April 4, 2003.
|
|
10(d)
|
Gas Transportation Agreement (Service Package 9069), dated December 19, 1994, by and between Tennessee Gas Pipeline Company and Registrant is incorporated herein by reference to Exhibit 10(e) to Registrant’s Form S-2/A (Reg. No. 333-100852) dated December 13, 2002.
|
|
10(e)
|
Agreement to transport natural gas between Registrant and Nami Resources Company L.L.C. is incorporated herein by reference to Exhibit 10(a) to Registrant’s Form 8-K (File No. 000-08788) dated March 23, 2005.
|
|
10(f)
|
Amendment, dated July 22, 2010, of agreement to transport natural gas between Registrant and Nami Resources Company, L.L.C., filed herewith.
|
|
10(g)
|
GTS Service Agreements, dated November 1, 1993 (Service Agreement Nos. 37,813, 37,814 and 37,815), and Appendix A to respective Service Agreements, effective November 1, 2010, by and between Columbia Gas Transmission Corporation and Registrant, filed herewith.
|
|
10(h)
|
FTS1 Service Agreements, dated October 4, 1994, (Service Agreement Nos. 43,827, 43,828 and 43,829), and Appendix A to respective Service Agreements, effective November 1, 2010, by and between Columbia Gulf Transmission Corporation and Registrant, filed herewith.
|
|
10(i)
|
Gas Storage Lease, dated October 4, 1995, by and between Judy L. Fuson, Guardian of Jamie Nicole Fuson, a minor, and Lonnie D. Ferrin and Assignment and Assumption Agreement, dated November 10, 1995, by and between Lonnie D. Ferrin and Registrant is incorporated herein by reference to Exhibit 10(j) to Registrant’s Form S-2 (Reg. No. 333-104301) dated April 4, 2003.
|
|
10(j)
|
Gas Storage Lease, dated November 6, 1995, by and between Thomas J. Carnes, individually and as Attorney-in-fact and Trustee for the individuals named therein, and Registrant, is incorporated herein by reference to Exhibit 10(k) to Registrant’s Form S-2 (Reg. No. 333-104301) dated April 4, 2003.
|
|
10(k)
|
Deed and Perpetual Gas Storage Easement, dated December 21, 1995, by and between Katherine M. Cornelius, William Cornelius, Frances Carolyn Fitzpatrick, Isabelle Fitzpatrick Smith and Kenneth W. Smith and Registrant is incorporated herein by reference to Exhibit 10(l) to Registrant’s Form S-2 (Reg. No. 333-104301) dated April 4, 2003.
|
|
10(l)
|
Underground Gas Storage Lease and Agreement, dated March 9, 1994, by and between Equitable Resources Exploration, a division of Equitable Resources Energy Company, and Lonnie D. Ferrin and Amendment No. 1 and Novation to Underground Gas Storage Lease and Agreement, dated March 22, 1995, by and between Equitable Resources Exploration, Lonnie D. Ferrin and Registrant, is incorporated herein by reference to Exhibit 10(m) to Registrant’s Form S-2 (Reg. No. 333-104301) dated April 4, 2003.
|
|
10(m)
|
Oil and Gas Lease, dated July 19, 1995, by and between Meredith J. Evans and Helen Evans and Paddock Oil and Gas, Inc.; Assignment, dated June 15, 1995, by Paddock Oil and Gas, Inc., as assignor, to Lonnie D. Ferrin, as assignee; Assignment, dated August 31, 1995, by Paddock Oil and Gas, Inc., as assignor, to Lonnie D. Ferrin, as assignee; and Assignment and Assumption Agreement, dated November 10, 1995, by and between Lonnie D. Ferrin and Registrant, is incorporated herein by reference to Exhibit 10(o) to Registrant’s Form S-2 (Reg. No. 333-104301) dated April 4, 2003.
|
|
10(n)
|
Loan Agreement, dated October 31, 2002, by and between Branch Banking and Trust Company and Registrant is incorporated herein by reference to Exhibit 10(i) to Registrant’s Form S-2/A (Reg. No. 333-100852) dated December 13, 2002.
|
|
10(o)
|
Promissory Note, in the original principal amount of $40,000,000, made by Registrant to the order of Branch Banking and Trust Company, is incorporated herein by reference to Exhibit 10(a) to Registrant’s Form 10-Q (File No. 000-08788) for the period ended September 30, 2002.
|
|
10(p)
|
Modification Agreement extending to October 31, 2004 the Promissory Note and Loan Agreement dated October 31, 2002 between the Registrant and Branch Banking and Trust Company, is incorporated herein by reference to Exhibit 10(a) to the Registrant's Form 10-Q (File No. 000-08788) for the period ended September 30, 2003.
|
|
10(q)
|
Modification Agreement extending to October 31, 2005 the Promissory Note and Loan Agreement dated October 31, 2002 between the Registrant and Branch Banking and Trust Company, is incorporated herein by reference to Exhibit 10(a) to the Registrant's Form 10-Q (File No. 000-08788) for the period ended September 30, 2004.
|
|
10(r)
|
Modification Agreement extending to October 31, 2007 the Promissory Note and Loan Agreement dated October 31, 2002 between the Registrant and Branch Banking and Trust Company, is incorporated herein by reference to Exhibit 10(a) to the Registrant's Form 8-K (File No. 000-08788) dated August 19, 2005.
|
|
10(s)
|
Modification Agreement extending to October 31, 2009 the Promissory Note and Loan Agreement dated October 31, 2002 between the Registrant and Branch Banking and Trust Company, is incorporated herein by reference to Exhibit 10(a) to Registrant’s Form 10-Q (File No. 000-08788) for the period ended September 30, 2007.
|
|
10(t)
|
Modification Agreement extending to June 30, 2011 the Promissory Note and Loan Agreement dated October 31, 2002 between the Registrant and Branch Banking and Trust Company, is incorporated herein by reference to Exhibit 10(a) to the Registrant's Form 8-K (File No. 000-08788) dated June 30, 2009.
|
|
10(u)
|
Employment agreements between Registrant and three officers, those being John B. Brown, Johnny L. Caudill, and Glenn R. Jennings, are incorporated herein by reference to Exhibit 10(k) to Registrant’s Form 10-Q (File No. 000-08788) for the period ended March 31, 2000.
|
|
10(v)
|
Employment agreement between Registrant and Brian S. Ramsey is incorporated herein by reference to Exhibit 10(a) to Registrant's Form 8-K (File No. 000-08788) dated November 21, 2008.
|
|
10(w)
|
Supplemental retirement benefit agreement and trust agreement between Registrant and Glenn R. Jennings is incorporated herein by reference to Exhibit 10(a) to Registrant’s Form 8-K (File No. 000-08788) dated February 25, 2005.
|
|
10(x)
|
Registrant's Amended and Restated Dividend Reinvestment and Stock Purchase Plan, dated November 17, 2005, is incorporated herein by reference to Exhibit 99(b) to Registrant’s S-3D (Reg. No. 333-130301) dated December 14, 2005.
|
|
10(y)
|
Registrant's Incentive Compensation Plan, dated January 1, 2008, is incorporated herein by reference to Exhibit 4.1 to Registrant’s S-8 (Reg. No. 333-165210) dated March 4, 2010.
|
|
10(z)
|
Notices of Performance Shares Award between Registrant and four officers, those being John B. Brown, Johnny L. Caudill, Glenn R. Jennings, and Brian S. Ramsey, are incorporated herein by reference to Exhibits 10.3, 10.4, 10.5 and 10.6 of Registrant’s Form 8-K (File No. 000-8788) dated August 20, 2010.
|
|
12
|
Computation of the Consolidated Ratio of Earnings to Fixed Charges.
|
|
21
|
Subsidiaries of the Registrant.
|
|
23
|
Consent of Independent Registered Public Accounting Firm.
|
|
31.1
|
Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
31.2
|
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
32.1
|
Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
32.2
|
Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
DELTA NATURAL GAS COMPANY, INC.
|
|
By:
/s/Glenn R. Jennings
|
|
Glenn R. Jennings
|
|
Chairman of the Board, President and Chief
Executive Officer
|
(i) Principal Executive Officer:
|
||
/s/Glenn R. Jennings
|
Chairman of the Board, President
|
September 3, 2010
|
(Glenn R. Jennings)
|
and Chief Executive Officer
|
|
(ii)Principal Financial Officer and Principal Accounting Officer:
|
||
/s/John B. Brown
|
Chief Financial Officer,
|
September 3, 2010
|
(John B. Brown)
|
Treasurer and Secretary
|
|
(iii) A Majority of the Board of Directors:
|
||
/s/Linda K. Breathitt
|
Director
|
September 3, 2010
|
(Linda K. Breathitt)
|
||
/s/Lanny D. Greer
|
Director
|
September 3, 2010
|
(Lanny D. Greer)
|
||
/s/Michael J. Kistner
|
Director
|
September 3, 2010
|
(Michael J. Kistner)
|
||
/s/Lewis N. Melton
|
Director
|
September 3, 2010
|
(Lewis N. Melton)
|
||
/s/Arthur E. Walker, Jr.
|
Director
|
September 3, 2010
|
(Arthur E. Walker, Jr.)
|
||
/s/Michael R. Whitley
|
Director
|
September 3, 2010
|
(Michael R. Whitley)
|
||
Delta Natural Gas Company, Inc.
|
||||||||||
Consolidated Statements of Income
|
||||||||||
For the Years Ended June 30,
|
2010
|
2009
|
2008
|
|||||||
Operating Revenues
|
$
|
76,422,068
|
$
|
105,636,824
|
$
|
112,657,117
|
||||
Operating Expenses
|
||||||||||
Purchased gas
|
$
|
44,100,329
|
$
|
72,077,631
|
$
|
76,882,387
|
||||
Operation and maintenance
|
13,456,449
|
15,030,287
|
14,128,620
|
|||||||
Depreciation and amortization
|
3,941,353
|
3,855,099
|
4,171,145
|
|||||||
Taxes other than income taxes
|
2,019,443
|
1,880,607
|
1,811,229
|
|||||||
Total operating expenses
|
$
|
63,517,574
|
$
|
92,843,624
|
$
|
96,993,381
|
||||
Operating Income
|
$
|
12,904,494
|
$
|
12,793,200
|
$
|
15,663,736
|
||||
Other Income and Deductions, Net
|
$
|
108,800
|
$
|
(46,418
|
)
|
$
|
83,521
|
|||
Interest Charges
|
||||||||||
Interest on long-term debt
|
$
|
3,606,086
|
$
|
3,648,243
|
$
|
3,677,983
|
||||
Other interest
|
175,843
|
492,151
|
705,240
|
|||||||
Amortization of debt expense
|
387,263
|
387,263
|
387,266
|
|||||||
Total interest charges
|
$
|
4,169,192
|
$
|
4,527,657
|
$
|
4,770,489
|
||||
Income Before Income Taxes
|
$
|
8,844,102
|
$
|
8,219,125
|
$
|
10,976,768
|
||||
Income Tax Expense
|
$
|
3,192,285
|
$
|
3,008,396
|
$
|
4,146,900
|
||||
Net Income
|
$
|
5,651,817
|
$
|
5,210,729
|
$
|
6,829,868
|
||||
Basic and Diluted Earnings Per Common Share
|
$
|
1.70
|
$
|
1.58
|
$
|
2.08
|
||||
Weighted Average Number of Common Shares
Outstanding (Basic and Diluted)
|
3,326,160
|
3,306,026
|
3,285,464
|
|||||||
Dividends Declared Per Common Share
|
$
|
1.30
|
$
|
1.28
|
$
|
1.24
|
Delta Natural Gas Company, Inc.
|
||||||||||
Consolidated Statements of Cash Flows
|
||||||||||
For the Years Ended June 30,
|
2010
|
2009
|
2008
|
|||||||
Cash Flows From Operating Activities
|
||||||||||
Net income
|
$
|
5,651,817
|
$
|
5,210,729
|
$
|
6,829,868
|
||||
Adjustments to reconcile net income to net
|
||||||||||
cash from operating activities
|
||||||||||
Depreciation and amortization
|
4,448,496
|
4,362,241
|
4,660,410
|
|||||||
Provision for inventory adjustment
|
—
|
1,350,300
|
—
|
|||||||
Deferred income taxes and investment
|
||||||||||
tax credits
|
5,015,750
|
2,135,347
|
2,095,000
|
|||||||
Gain on sale of property, plant and equipment
|
—
|
(156,023
|
)
|
(16,955
|
)
|
|||||
Unrealized (gain) loss on cash surrender value
|
||||||||||
of life insurance
|
(28,829
|
)
|
31,651
|
(18,704
|
||||||
Other, net
|
(355,141
|
)
|
(423,672
|
)
|
(219,041
|
)
|
||||
(Increase) decrease in assets
|
||||||||||
Accounts receivable
|
(845,479
|
)
|
7,334,709
|
(5,016,055
|
)
|
|||||
Gas in storage
|
3,541,037
|
3,379,325
|
(2,634,602
|
)
|
||||||
Deferred gas cost
|
(939,969
|
)
|
2,255,751
|
(1,670,877
|
)
|
|||||
Materials and supplies
|
143,764
|
(93,516
|
)
|
(38,568
|
)
|
|||||
Prepayments
|
(1,473,433
|
)
|
(2,173,506
|
)
|
(129,153
|
)
|
||||
Other assets
|
(285,347
|
)
|
(77,411
|
)
|
(56,686
|
)
|
||||
Increase (decrease) in liabilities
|
||||||||||
Accounts payable
|
1,706,121
|
(7,418,187
|
)
|
1,920,832
|
||||||
Accrued taxes
|
256,066
|
(773,761
|
)
|
890,309
|
||||||
Other current liabilities
|
761,374
|
486,664
|
(889
|
)
|
||||||
Other liabilities
|
4,084
|
3,279
|
(2,358
|
)
|
||||||
Net cash provided by operating activities
|
$
|
17,600,311
|
$
|
15,433,920
|
$
|
6,592,531
|
||||
Cash Flows From Investing Activities
|
||||||||||
Capital expenditures
|
$
|
(5,275,194
|
)
|
$
|
(8,422,433
|
)
|
$
|
(5,563,667
|
)
|
|
Proceeds from sale of property, plant and equipment
|
161,949
|
526,763
|
297,425
|
|||||||
Other
|
60,422
|
(60,000
|
)
|
—
|
||||||
Net cash used in investing activities
|
$
|
(5,052,823
|
)
|
$
|
(7,955,670
|
)
|
$
|
(5,266,242
|
)
|
|
Delta Natural Gas Company, Inc.
|
||||||||||
Consolidated Statements of Cash Flows (continued)
|
||||||||||
For the Years Ended June 30,
|
2010
|
2009
|
2008
|
|||||||
Cash Flows From Financing Activities
|
||||||||||
Dividends on common shares
|
$
|
(4,323,439
|
)
|
$
|
(4,231,239
|
)
|
$
|
(4,073,278
|
)
|
|
Issuance of common shares
|
432,610
|
520,407
|
477,155
|
|||||||
Repayment of long-term debt
|
(487,000
|
)
|
(719,000
|
)
|
(307,000
|
)
|
||||
Borrowings on bank line of credit
|
25,205,557
|
74,107,057
|
64,602,956
|
|||||||
Repayment of bank line of credit
|
(28,858,660
|
)
|
(77,282,745
|
)
|
(61,964,083
|
)
|
||||
|
||||||||||
Net cash used in financing activities
|
$
|
(8,030,932
|
)
|
$
|
(7,605,520
|
)
|
$
|
(1,264,250
|
)
|
|
Net Increase (Decrease) in Cash and Cash Equivalents
|
$
|
4,516,556
|
$
|
(127,270
|
)
|
$
|
62,039
|
|||
Cash and Cash Equivalents, Beginning of Year
|
122,589
|
249,859
|
187,820
|
|||||||
Cash and Cash Equivalents, End of Year
|
$
|
4,639,145
|
$
|
122,589
|
$
|
249,859
|
||||
Supplemental Disclosures of Cash Flow Information
|
||||||||||
Cash paid during the year for
|
||||||||||
Interest
|
$
|
3,785,630
|
$
|
4,148,311
|
$
|
4,383,367
|
||||
Income taxes (net of refunds)
|
$
|
(676,439
|
)
|
$
|
1,630,937
|
$
|
1,376,093
|
|||
Significant non-cash transactions
|
||||||||||
Accrued capital expenditures
|
$
|
460,357
|
$
|
414,385
|
$
|
423,165
|
Delta Natural Gas Company, Inc.
|
|||||||
Consolidated Balance Sheets
|
|||||||
As of June 30,
|
2010
|
2009
|
|||||
Assets
|
|||||||
Current Assets
|
|||||||
Cash and cash equivalents
|
$
|
4,639,145
|
$
|
122,589
|
|||
Accounts receivable, less accumulated allowances for doubtful
|
4,727,631
|
4,085,867
|
|||||
accounts of $273,000 and $819,000 in 2010 and 2009,
|
|||||||
respectively
|
|||||||
Gas in storage, at average cost (Notes 1 and 15)
|
6,205,731
|
9,746,768
|
|||||
Deferred gas costs (Notes 1 and 13)
|
3,296,912
|
2,356,943
|
|||||
Materials and supplies, at average cost
|
536,416
|
662,805
|
|||||
Prepayments
|
3,640,979
|
2,415,527
|
|||||
Total current assets
|
$
|
23,046,814
|
$
|
19,390,499
|
|||
Property, Plant and Equipment
|
$
|
204,248,520
|
$
|
199,254,216
|
|||
Less – Accumulated provision for depreciation
|
(73,792,601
|
)
|
(70,616,271
|
)
|
|||
Net property, plant and equipment
|
$
|
130,455,919
|
$
|
128,637,945
|
|||
Other Assets
|
|||||||
Cash surrender value of life insurance
|
|||||||
(face amount of $1,168,296)
|
$
|
450,064
|
$
|
412,661
|
|||
Regulatory assets (Note 1)
|
12,115,436
|
11,394,844
|
|||||
Unamortized debt expense and other (Notes 1 and 10)
|
2,564,187
|
2,669,346
|
|||||
Total other assets
|
$
|
15,129,687
|
$
|
14,476,851
|
|||
Total assets
|
$
|
168,632,420
|
$
|
162,505,295
|
Delta Natural Gas Company, Inc.
|
|||||||
Consolidated Balance Sheets (continued)
|
|||||||
As of June 30,
|
2010
|
2009
|
|||||
Liabilities and Shareholders’ Equity
|
|||||||
Current Liabilities
|
|||||||
Accounts payable
|
$
|
6,460,620
|
$
|
4,691,152
|
|||
Notes payable (Note 9)
|
—
|
3,653,103
|
|||||
Current portion of long-term debt (Note 10)
|
1,200,000
|
1,200,000
|
|||||
Accrued taxes
|
1,263,755
|
983,376
|
|||||
Customers’ deposits
|
535,516
|
508,209
|
|||||
Accrued interest on debt
|
854,109
|
857,810
|
|||||
Accrued vacation
|
731,869
|
712,216
|
|||||
Deferred income taxes
|
1,059,912
|
814,549
|
|||||
Other liabilities
|
417,694
|
487,925
|
|||||
Total current liabilities
|
$
|
12,523,475
|
$
|
13,908,340
|
|||
Long-Term Debt
(Note 10)
|
$
|
57,112,000
|
$
|
57,599,000
|
|||
Long-Term Liabilities
|
|||||||
Deferred income taxes
|
$
|
32,462,067
|
$
|
27,537,908
|
|||
Investment tax credits
|
113,900
|
144,500
|
|||||
Regulatory liabilities (Note 1)
|
1,664,139
|
1,710,099
|
|||||
Accrued pension
|
1,218,441
|
430,095
|
|||||
Asset retirement obligations and other (Note 4)
|
2,778,228
|
2,176,171
|
|||||
|
|||||||
Total long-term liabilities
|
$
|
38,236,775
|
$
|
31,998,773
|
|||
Commitments and Contingencies
(Note 12)
|
|||||||
Total liabilities
|
$
|
107,872,250
|
$
|
103,506,113
|
|||
Shareholders’ Equity
|
|||||||
Common shares ($1.00 par value), 20,000,000 shares authorized; 3,334,856 and 3,318,046 shares outstanding at June 30, 2010 and June 30, 2009, respectively
|
$
|
3,334,856
|
$
|
3,318,046
|
|||
Premium on common shares
|
44,881,401
|
44,465,601
|
|||||
Retained earnings
|
12,543,913
|
11,215,535
|
|||||
Total shareholders’ equity
|
$
|
60,760,170
|
$
|
58,999,182
|
|||
Total liabilities and shareholders’ equity
|
$
|
168,632,420
|
$
|
162,505,295
|
(000)
|
2010
|
2009
|
|||
Unbilled revenues ($)
|
1,120
|
1,386
|
|||
Unbilled gas costs ($)
|
333
|
519
|
|||
Unbilled volumes (Mcf)
|
53
|
55
|
($000)
|
2010
|
2009
|
|||
Regulatory assets
|
|||||
Current assets
|
|||||
Deferred gas costs
|
3,297
|
2,357
|
|||
Other assets
|
|||||
Conservation/efficiency program expenses
|
183
|
109
|
|||
Loss on extinguishment of debt
|
2,157
|
2,348
|
|||
Asset retirement obligations
|
2,000
|
1,464
|
|||
Accrued pension
|
7,557
|
7,309
|
|||
Regulatory case expenses
|
218
|
165
|
|||
Total other assets
|
12,115
|
11,395
|
|||
Total regulatory assets
|
15,412
|
13,752
|
|||
Regulatory liabilities
|
|||||
Accrued cost of removal on long-lived assets
|
381
|
304
|
|||
Regulatory liability for deferred income taxes
|
1,283
|
1,406
|
|||
Total regulatory liabilities
|
1,664
|
1,710
|
•
|
Level 1
|
– Observable inputs consisting of quoted prices in active markets for identical assets or liabilities;
|
•
|
Level 2
|
– Inputs, other than quoted prices in active markets, that are observable either directly or
indirectly; and
|
•
|
Level 3
|
– Unobservable inputs which require the reporting entity to develop its own assumptions.
|
June 30,
|
June 30,
|
||||||
($000)
|
2010
|
2009
|
|||||
Trust assets
|
373
|
281
|
June 30,
|
June 30,
|
|||||||
2010
|
2009
|
|||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||
($000)
|
Amount
|
Value
|
Amount
|
Value
|
||||
7% Debentures
|
19,460
|
18,839
|
19,659
|
18,812
|
||||
5.75% Insured Quarterly Notes
|
38,852
|
34,128
|
39,140
|
33,822
|
($000)
|
2010
|
2009
|
|||
Asset Retirement Obligations
|
|||||
Beginning of year
|
1,670
|
1,600
|
|||
Liabilities incurred
|
4
|
10
|
|||
Liabilities settled
|
(371
|
)
|
(70
|
)
|
|
Accretion
|
126
|
120
|
|||
Revisions in estimated cash flows
|
772
|
10
|
|||
End of year
|
2,201
|
1,670
|
($000)
|
2010
|
2009
|
2008
|
||||
Components of Income Tax Expense
|
|||||||
Current
|
|||||||
Federal
|
(1,709
|
)
|
560
|
1,158
|
|||
State
|
(115
|
)
|
255
|
395
|
|||
Total
|
(1,824
|
)
|
815
|
1,553
|
|||
Deferred
|
5,016
|
2,193
|
2,594
|
||||
Income tax expense
|
3,192
|
3,008
|
4,147
|
(%)
|
2010
|
2009
|
2008
|
||||
Statutory federal income tax rate
|
34.0
|
34.0
|
34.0
|
||||
State income taxes, net of federal benefit
|
4.0
|
4.0
|
4.0
|
||||
Amortization of investment tax credits
|
(0.3
|
)
|
(0.4
|
)
|
(0.3
|
)
|
|
Other differences, net
|
(1.6
|
)
|
(1.0
|
)
|
—
|
||
Effective income tax rate
|
36.1
|
36.6
|
37.7
|
($000)
|
2010
|
2009
|
|||||
Beginning Balance
|
378
|
653
|
|||||
Gross increases
|
|||||||
Tax positions in prior period
|
28
|
—
|
|||||
Gross decreases
|
|||||||
Tax positions in prior period
|
(24
|
)
|
(229
|
)
|
|||
Lapse of statute of limitations
|
(188
|
)
|
(46
|
)
|
|||
Ending Balance
|
194
|
378
|
($000)
|
2010
|
2009
|
|||||||
Change in Benefit Obligation
|
|||||||||
Benefit obligation at beginning of year
|
14,058
|
12,773
|
|||||||
Service cost
|
728
|
677
|
|||||||
Interest cost
|
855
|
810
|
|||||||
Actuarial loss
|
2,044
|
328
|
|||||||
Benefits paid
|
(1,179
|
)
|
(902
|
)
|
|||||
Change in measurement date
|
—
|
373
|
|||||||
Benefit obligation at end of year
|
16,506
|
14,059
|
|||||||
Change in Plan Assets
|
|||||||||
Fair value of plan assets at beginning of year
|
13,629
|
14,197
|
|||||||
Actual return on plan assets
|
2,338
|
(2,343
|
)
|
||||||
Employer contributions
|
500
|
2,677
|
|||||||
Benefits paid
|
(1,179
|
)
|
(902
|
)
|
|||||
Fair value of plan assets at end of year
|
15,288
|
13,629
|
|||||||
Recognized Amounts | |||||||||
Projected benefit obligation | |||||||||
Plan assets at fair value | (16,506 | ) | (14,059 | ) | |||||
Funded status | 15,288 | 13,629 | |||||||
(1,218 | ) | (430 | ) | ||||||
Net amount recognized as prepaid (accrued) benefit costs on the Consolidated Balance Sheets | |||||||||
(1,218 | ) | (430 | ) |
2010 | 2009 | ||||
Items Not Yet Recognized as a Component of Net Periodic Benefit Costs
|
|||||
Prior service cost
|
(662
|
)
|
(749
|
)
|
|
Net loss
|
8,219
|
8,058
|
|||
Amounts recognized as regulatory assets
|
7,557
|
7,309
|
($000)
|
2010
|
2009
|
2008
|
||||
Components of Net Periodic Benefit Cost
|
|||||||
Service cost
|
727
|
677
|
749
|
||||
Interest cost
|
855
|
810
|
745
|
||||
Expected return on plan assets
|
(953
|
)
|
(1,010
|
)
|
(988
|
)
|
|
Amortization of unrecognized net loss
|
497
|
217
|
250
|
||||
Amortization of prior service cost
|
(86
|
)
|
(86
|
)
|
(86
|
)
|
|
Net periodic benefit cost
|
1,040
|
608
|
670
|
||||
Weighted-Average % Assumptions Used to
Determine Benefit Obligations
|
|||||||
Discount rate
|
5.25
|
6.25
|
6.50
|
||||
Rate of compensation increase
|
4.0
|
4.0
|
4.0
|
||||
Weighted-Average % Assumptions Used to
Determine Net Periodic Benefit Cost
|
|||||||
Discount rate
|
6.25
|
6.50
|
5.80
|
||||
Expected long-term return on plan assets
|
7.0
|
7.0
|
7.0
|
||||
Rate of compensation increase
|
4.0
|
4.0
|
4.0
|
Actual Allocation
|
||||||
Target
|
June 30
|
|||||
(%)
|
Allocation
|
2010
|
2009
|
|||
Asset Class
(a)
|
||||||
Cash
|
-
|
-
|
-
|
|||
Equity Securities
|
||||||
U.S. Equity Securities
|
38
|
46
|
44
|
|||
Foreign Equity Securities
|
17
|
17
|
19
|
|||
Domestic Real Estate
|
10
|
13
|
10
|
|||
65
|
76
|
73
|
||||
Fixed Income Securities
|
35
|
24
|
27
|
|||
100
|
100
|
100
|
June 30,
|
||||||||
($000)
|
2010
|
Level 1
|
Level 2
|
Level 3
|
||||
Asset Class
(a)
|
||||||||
Cash
|
9
|
9
|
-
|
-
|
||||
Exchange Traded Mutual Funds
|
||||||||
U.S. Equity Securities
|
502
|
502
|
-
|
-
|
||||
Foreign Equity Securities
|
1,161
|
1,161
|
-
|
-
|
||||
Domestic Real Estate
|
1,916
|
1,916
|
-
|
-
|
||||
3,579
|
3,579
|
|||||||
Common Collective Trusts
|
||||||||
Short-Term Income Fund
|
224
|
-
|
224
|
-
|
||||
U.S. Fixed Income Fund
|
2,210
|
-
|
2,210
|
-
|
||||
Global Equity Growth Fund
|
1,659
|
-
|
1,659
|
-
|
||||
Global Equity Value Fund
|
798
|
-
|
798
|
-
|
||||
U.S. Equity Index Fund
|
1,394
|
-
|
1,394
|
-
|
||||
Foreign Equity Index Fund
|
1,418
|
-
|
1,418
|
-
|
||||
Blended Fund (b)
|
3,997
|
-
|
3,997
|
-
|
||||
11,700
|
11,700
|
|||||||
Total
|
15,288
|
3,588
|
11,700
|
-
|
||||
|
·
|
Dividend payments cannot be made unless consolidated shareholders’ equity of the Company exceeds $25,800,000 (thus no retained earnings were restricted); and
|
|
·
|
we may not assume any additional mortgage indebtedness in excess of $5,000,000 without effectively securing all Debentures and Insured Quarterly Notes equally to such additional indebtedness.
|
($000)
|
2010
|
2009
|
2008
|
||||
Operating Revenues
|
|||||||
Regulated
|
|||||||
External customers
|
45,676
|
64,479
|
58,219
|
||||
Intersegment
|
3,441
|
3,427
|
4,019
|
||||
Total regulated
|
49,117
|
67,906
|
62,238
|
||||
Non-regulated
|
|||||||
External customers
|
30,746
|
41,158
|
54,438
|
||||
Eliminations for intersegment
|
(3,441
|
)
|
(3,427
|
)
|
(4,019
|
)
|
|
Total operating revenues
|
76,422
|
105,637
|
112,657
|
||||
Operating Expenses
|
|||||||
Regulated
|
|||||||
Purchased gas
|
20,518
|
39,138
|
33,493
|
||||
Depreciation
|
3,823
|
3,737
|
4,053
|
||||
Other
|
15,105
|
15,246
|
14,840
|
||||
Total regulated
|
39,446
|
58,121
|
52,386
|
||||
Non-regulated
|
|||||||
Purchased gas
|
23,582
|
32,940
|
43,389
|
||||
Depreciation
|
118
|
118
|
118
|
||||
Other
|
3,813
|
5,092
|
5,119
|
||||
Total non-regulated
|
27,513
|
38,150
|
48,626
|
||||
Eliminations for intersegment
|
(3,441
|
)
|
(3,427
|
)
|
(4,019
|
)
|
|
Total operating expenses
|
63,518
|
92,844
|
96,993
|
||||
Other Income and Deductions, Net
|
|||||||
Regulated
|
108
|
(50
|
)
|
83
|
|||
Non-regulated
|
—
|
4
|
—
|
||||
Total other income and deductions
|
108
|
(46
|
)
|
83
|
|||
Interest Charges
|
|||||||
Regulated
|
4,055
|
4,305
|
4,556
|
||||
Non-regulated
|
114
|
223
|
214
|
||||
Total interest charges
|
4,169
|
4,528
|
4,770
|
($000)
|
2010
|
2009
|
2008
|
||||
Income Tax Expense
|
|||||||
Regulated
|
2,008
|
1,949
|
2,022
|
||||
Non-regulated
|
1,184
|
1,059
|
2,125
|
||||
Total income tax expense
|
3,192
|
3,008
|
4,147
|
||||
Net Income
|
|||||||
Regulated
|
3,717
|
3,479
|
3,356
|
||||
Non-regulated
|
1,935
|
1,732
|
3,474
|
||||
Total net income
|
5,652
|
5,211
|
6,830
|
||||
Assets
|
|||||||
Regulated
|
164,871
|
154,297
|
163,952
|
||||
Non-regulated
|
3,761
|
8,208
|
6,863
|
||||
Total assets
|
168,632
|
162,505
|
170,815
|
||||
Capital Expenditures
|
|||||||
Regulated
|
5,275
|
8,422
|
5,564
|
||||
Non-regulated
|
—
|
—
|
—
|
||||
Total capital expenditures
|
5,275
|
8,422
|
5,564
|
(17)
|
Share-Based Compensation
|
Quarter Ended
|
Operating
Revenues
|
Operating
Income (Loss)
|
Net Income
(Loss)
|
Basic and
Diluted
Earnings (Loss)
per Common
Share
|
|||||||||
Fiscal 2010
|
|||||||||||||
September 30
|
$
|
8,130,950
|
$
|
40,540
|
$
|
(563,004
|
)
|
$
|
(.17
|
)
|
|||
December 31
|
21,114,433
|
4,086,010
|
1,912,875
|
.58
|
|||||||||
March 31
|
36,090,839
|
7,779,167
|
4,332,078
|
1.30
|
|||||||||
June 30
|
11,085,846
|
998,777
|
(30,132
|
)
|
(.01
|
)
|
|||||||
Fiscal 2009
|
|||||||||||||
September 30
|
$
|
18,108,090
|
$
|
1,570,336
|
$
|
273,215
|
$
|
.08
|
|||||
December 31
|
33,957,969
|
3,313,510
|
(a)
|
1,229,004
|
(a)
|
.37
|
(a)
|
||||||
March 31
|
43,160,716
|
7,919,488
|
4,259,874
|
1.29
|
|||||||||
June 30
|
10,410,049
|
(10,134
|
)
|
(551,364
|
)
|
(.16
|
)
|
||||||
(a)
|
We recorded a $1,350,000 non-recurring inventory adjustment at December 31, 2008 for our gas in storage, as discussed in Note 15 of the Notes to Consolidated Financial Statements.
|
Column A
|
Column B
|
Column C
|
Column D
|
Column E
|
|||||||||||||
Additions
|
Deductions
|
||||||||||||||||
Charged to
|
|||||||||||||||||
Balance at
|
Charged to
|
Other
|
Amounts
|
||||||||||||||
Beginning of
|
Costs and
|
Accounts –
|
Charged Off
|
Balance at
|
|||||||||||||
Description
|
Period
|
Expenses
|
Recoveries
|
Or Paid
|
End of Period
|
||||||||||||
Deducted From the Asset to
Which it Applies –
Allowance for doubtful
accounts for the years ended:
|
|||||||||||||||||
June 30, 2010
|
$
|
819,000
|
$
|
(163,088
|
)
|
$
|
71,866
|
$
|
454,778
|
$
|
273,000
|
||||||
June 30, 2009
|
465,000
|
830,588
|
67,803
|
544,391
|
819,000
|
||||||||||||
June 30, 2008
|
300,000
|
599,345
|
64,139
|
498,484
|
465,000
|
||||||||||||
2010
|
2009
|
2008
|
2007
|
2006
|
||||||||||||
Earnings
|
||||||||||||||||
Net income
|
$
|
5,651,817
|
$
|
5,210,729
|
$
|
6,829,868
|
$
|
5,298,347
|
$
|
5,024,635
|
||||||
Provisions for income
|
||||||||||||||||
taxes (a)
|
3,192,285
|
3,008,396
|
4,146,900
|
3,156,700
|
2,982,900
|
|||||||||||
Fixed charges
|
4,194,192
|
4,553,657
|
4,796,489
|
4,673,261
|
5,006,608
|
|||||||||||
Total
|
$
|
13,038,294
|
$
|
12,772,782
|
$
|
15,773,257
|
$
|
13,128,308
|
$
|
13,014,143
|
||||||
Fixed Charges
|
||||||||||||||||
Interest on debt (a)
|
$
|
3,781,929
|
$
|
4,140,394
|
$
|
4,383,223
|
$
|
4,260,179
|
$
|
4,704,075
|
||||||
Amortization of debt
|
387,263
|
387,263
|
387,266
|
387,082
|
273,533
|
|||||||||||
One third of rental
|
||||||||||||||||
expense
|
25,000
|
26,000
|
26,000
|
26,000
|
29,000
|
|||||||||||
Total
|
$
|
4,194,192
|
$
|
4,553,657
|
$
|
4,796,489
|
$
|
4,673,261
|
$
|
5,006,608
|
||||||
Ratio of earnings to
|
||||||||||||||||
fixed charges
|
3.11
|
x
|
2.80
|
x
|
3.29
|
x
|
2.81
|
x
|
2.60
|
x
|
(a)
|
Interest accrued on uncertain tax positions, in accordance with Financial Accounting Standards Board Interpretation No. 48, is presented in income taxes on the 2010, 2009 and 2008 Consolidated Statements of Income. This interest has been excluded from the determination of fixed charges.
|
|
CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER
|
|
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
|
|
1.
|
I have reviewed this annual report on Form 10-K of Delta Natural Gas Company, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
DATE: September 3, 2010
|
/s/Glenn R. Jennings
|
|
Glenn R. Jennings
Chairman of the Board, President and Chief Executive Officer
|
|
1.
|
I have reviewed this annual report on Form 10-K of Delta Natural Gas Company, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
DATE: September 3, 2010
|
/s/John B. Brown
|
|
John B. Brown
Chief Financial Officer, Treasurer and Secretary
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Delta Natural Gas Company, Inc.
|
DATE: September 3, 2010
|
/s/Glenn R. Jennings
|
|
Glenn R. Jennings
Chairman of the Board, President and Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Delta Natural Gas Company, Inc.
|
DATE: September 3, 2010
|
/s/John B. Brown
|
|
John B. Brown
Chief Financial Officer, Treasurer and Secretary
|
Appendix A to Service Agreement No.
|
37813
|
Revision No. 2
|
Under Rate Schedule
|
GTS
|
|
Between (Transporter)
|
Columbia Gas Transmission, LLC
|
|
and (Shipper)
|
Delta Natural Gas Company, Inc.
Cumberland Division
|
Begin Date
|
End Date
|
Transportation Demand Dth/day
|
Storage Contract Quantity Dth
|
Annual GTS Quantity Dth/year
|
Recurrence Interval
|
|||||
November 1, 1993
|
October 31, 2010
|
5,400
|
98,200
|
1/1 – 12/31
|
||||||
July 17, 2003
|
October 31, 2010
|
5,400
|
177,662
|
98,200
|
1/1 – 12/31
|
|||||
November 1, 2010
|
October 31, 2015
|
5,400
|
177,662
|
98,200
|
1/1 – 12/31
|
Begin Date
|
End Date
|
Scheduling Point No.
|
Scheduling Point Name
|
Measuring Point No.
|
Measuring Point Name
|
Maximum Daily Quantity (Dth/Day)
|
Minimum Receipt Pressure Obligation
(psig) 1/
|
Recurrence Interval
|
||||||||
November 1, 1993
|
October 31, 2010
|
801
|
TCO – LEACH
|
1,800
|
1/1 – 12/31
|
|||||||||||
November 1, 2010
|
October 31, 2015
|
801
|
TCO - LEACH
|
801
|
TCO – LEACH
|
1,800
|
1/1 – 12/31
|
|||||||||
November 1, 1993
|
October 31, 2010
|
STOR
|
RP Storage Point TCO
|
0
|
1/1 – 12/31
|
|||||||||||
November 1, 2010
|
October 31, 2015
|
STOR
|
RP Storage Point TCO
|
0
|
1/1 – 12/31
|
|||||||||||
Appendix A to Service Agreement No.
|
37813
|
Revision No. 2
|
|||||||||||||||||
Under Rate Schedule
|
GTS
|
||||||||||||||||||
Between (Transporter)
|
Columbia Gas Transmission, LLC
|
||||||||||||||||||
and (Shipper)
|
Delta Natural Gas Company, Inc.
Cumberland Division
|
||||||||||||||||||
Primary Delivery Points
|
|||||||||||||||||||
Begin Date
|
End Date
|
Scheduling Point No.
|
Scheduling Point Name
|
Measuring Point No.
|
Measuring Point Name
|
Maximum Daily Delivery (Dth/Day) 1/
|
Minimum Delivery Pressure Obligation
(psig) 1/
|
Recurrence Interval
|
|||||||||||
November 1, 1993
|
October 31, 2010
|
34
|
Delta Natural Cumberland
|
5,400
|
1/1 – 12/31
|
||||||||||||||
November 1, 2010
|
October 31, 2015
|
34
|
Delta Natural Cumberland
|
805992
|
Manchester
|
5,100
|
265
|
1/1 – 12/31
|
|||||||||||
November 1, 2010
|
October 31, 2015
|
34
|
Delta Natural Cumberland
|
832867
|
Beattyville
|
300
|
230
|
1/1 – 12/31
|
|||||||||||
November 1, 1993
|
October 31, 2010
|
STOR
|
RP Storage Point TCO
|
0
|
1/1 – 12/31
|
||||||||||||||
November 1, 2010
|
October 31, 2015
|
STOR
|
RP Storage Point TCO
|
0
|
1/1 – 12/31
|
||||||||||||||
Appendix A to Service Agreement No.
|
37813
|
Revision No. 2
|
Under Rate Schedule
|
GTS
|
|
Between (Transporter)
|
Columbia Gas Transmission, LLC
|
|
and (Shipper)
|
Delta Natural Gas Company, Inc.
Cumberland Division
|
Appendix A to Service Agreement No.
|
37814
|
Revision No. 4
|
Under Rate Schedule
|
GTS
|
|
Between (Transporter)
|
Columbia Gas Transmission, LLC
|
|
and (Shipper)
|
Delta Natural Gas Company, Inc., Stanton Division
|
Begin Date
|
End Date
|
Transportation Demand Dth/day
|
Storage Contract Quantity Dth
|
Annual GTS Quantity Dth/year
|
Recurrence Interval
|
|||||
November 1, 1993
|
August 3, 2009
|
6,663
|
72,874
|
1/1 – 12/31
|
||||||
July 17, 2003
|
August 3, 2009
|
6,663
|
83,255
|
72,874
|
1/1 – 12/31
|
|||||
August 4, 2009
|
October 31, 2010
|
6,663
|
83,255
|
72,874
|
1/1 – 12/31
|
|||||
November 1, 2010
|
October 31, 2015
|
6,663
|
83,255
|
72,874
|
1/1 – 12/31
|
Begin Date
|
End Date
|
Scheduling Point No.
|
Scheduling Point Name
|
Measuring Point No.
|
Measuring Point Name
|
Maximum Daily Quantity (Dth/Day)
|
Minimum Receipt Pressure Obligation
(psig) 1/
|
Recurrence Interval
|
||||||||||
November 1, 1993
|
August 3, 2009
|
733075
|
Anderson Hollow
|
4,133
|
1/1 – 12/31
|
|||||||||||||
November 1, 1993
|
August 3, 2009
|
801
|
TCO – LEACH
|
843
|
1/1 – 12/31
|
|||||||||||||
August 4, 2009
|
October 31, 2010
|
801
|
TCO – LEACH
|
801
|
TCO – LEACH
|
4,976
|
||||||||||||
November 1, 2010
|
October 31, 2015
|
801
|
TCO – LEACH
|
801
|
TCO – LEACH
|
4,976
|
1/1 – 12/31
|
|||||||||||
November 1, 1993
|
August 3, 2009
|
STOR
|
RP Storage Point TCO
|
0
|
1/1 – 12/31
|
|||||||||||||
August 4, 2009
|
October 31, 2010
|
STOR
|
RP Storage Point TCO
|
0
|
1/1 – 12/31
|
|||||||||||||
November 1, 2010
|
October 31, 2015
|
STOR
|
RP Storage Point TCO
|
1/1 – 12/31
|
||||||||||||||
Appendix A to Service Agreement No.
|
37814
|
Revision No. 4
|
||||||||||||||||
Under Rate Schedule
|
GTS
|
|||||||||||||||||
Between (Transporter)
|
Columbia Gas Transmission, LLC
|
|||||||||||||||||
and (Shipper)
|
Delta Natural Gas Company, Inc., Stanton Division
|
Begin Date
|
End Date
|
Scheduling Point No.
|
Scheduling Point Name
|
Measuring Point No.
|
Measuring Point Name
|
Maximum Daily Delivery (Dth/Day) 1/
|
Minimum Delivery Pressure Obligation
(psig) 1/
|
Recurrence Interval
|
||||||||
November 1, 1993
|
August 3, 2009
|
35
|
Delta Natural Stanton
|
2,530
|
1/1 – 12/31
|
|||||||||||
August 4, 2009
|
October 31, 2010
|
35
|
Delta Natural Stanton
|
800803
|
Stanton
|
2,530
|
200
|
1/1 – 12/31
|
||||||||
November 1, 2010
|
October 31, 2015
|
35
|
Delta Natural Stanton
|
800803
|
Stanton
|
2,530
|
200
|
1/1 – 12/31
|
||||||||
November 1, 1993
|
August 3, 2009
|
801
|
TCO - Leach
|
4,133
|
1/1 – 12/31
|
|||||||||||
August 4, 2009
|
October 31, 2010
|
801
|
TCO – Leach
|
801
|
TCO – Leach
|
4,133
|
1/1 – 12/31
|
|||||||||
November 1, 2010
|
October 31, 2015
|
801
|
TCO – Leach
|
801
|
TCO – Leach
|
4,133
|
1/1 – 12/31
|
|||||||||
November 1, 1993
|
August 3, 2009
|
STOR
|
RP Storage Point TCO
|
0
|
1/1 – 12/31
|
|||||||||||
August 4, 2009
|
October 31, 2010
|
STOR
|
RP Storage Point TCO
|
0
|
1/1 – 12/31
|
|||||||||||
November 1, 2010
|
October 31, 2015
|
STOR
|
RP Storage Point TCO
|
0
|
1/1 – 12/31
|
Appendix A to Service Agreement No.
|
37814
|
Revision No. 4
|
Under Rate Schedule
|
GTS
|
|
Between (Transporter)
|
Columbia Gas Transmission, LLC
|
|
and (Shipper)
|
Delta Natural Gas Company, Inc., Stanton Division
|
Appendix A to Service Agreement No.
|
37814
|
Revision No. 4
|
Under Rate Schedule
|
GTS
|
|
Between (Transporter)
|
Columbia Gas Transmission, LLC
|
|
and (Shipper)
|
Delta Natural Gas Company, Inc., Stanton Division
|
Appendix A to Service Agreement No.
|
37815
|
Revision No. 3
|
Under Rate Schedule
|
GTS
|
|
Between (Transporter)
|
Columbia Gas Transmission, LLC
|
|
and (Shipper)
|
Delta Natural Gas Company, Inc.
|
Begin Date
|
End Date
|
Transportation Demand Dth/day
|
Storage Contract Quantity Dth
|
Annual GTS Quantity Dth/year
|
Recurrence Interval
|
|||||
November 1, 1993
|
October 31, 2010
|
4,950
|
117,101
|
1/1 – 12/31
|
||||||
September 1, 2003
|
October 31, 2010
|
4,950
|
162,857
|
117,101
|
1/1 – 12/31
|
|||||
November 1, 2010
|
October 31, 2015
|
4,950
|
162,857
|
117,101
|
1/1 – 12/31
|
|||||
Begin Date
|
End Date
|
Scheduling Point No.
|
Scheduling Point Name
|
Measuring Point No.
|
Measuring Point Name
|
Maximum Daily Quantity (Dth/Day)
|
Minimum Receipt Pressure Obligation
(psig) 1/
|
Recurrence Interval
|
||||||||
November 1, 1993
|
October 31, 2010
|
801
|
TCO – Leach
|
801
|
TCO - Leach
|
1,650
|
1/1 – 12/31
|
|||||||||
November 1, 2010
|
October 31, 2015
|
801
|
TCO - Leach
|
801
|
TCO - Leach
|
1,650
|
1/1 – 12/31
|
|||||||||
November 1, 1993
|
October 31, 2010
|
STOR
|
RP Storage Point TCO
|
0
|
1/1 – 12/31
|
|||||||||||
November 1, 2010
|
October 31, 2015
|
STOR
|
RP Storage Point TCO
|
0
|
1/1 – 12/31
|
|||||||||||
Appendix A to Service Agreement No.
|
37815
|
Revision No. 3
|
Under Rate Schedule
|
GTS
|
|
Between (Transporter)
|
Columbia Gas Transmission, LLC
|
|
and (Shipper)
|
Delta Natural Gas Company, Inc.
|
Begin Date
|
End Date
|
Scheduling Point No.
|
Scheduling Point Name
|
Measuring Point No.
|
Measuring Point Name
|
Maximum Daily Delivery Obligation (Dth/Day) 1/
|
Minimum Delivery Pressure Obligation
(psig) 1/
|
Recurrence Interval
|
||||||||
November 1, 1993
|
October 31, 2010
|
36-10
|
Delta Natural Winchester
|
803545
|
Delta - Owingsville
|
1,030
|
1/1 – 12/31
|
|||||||||
November 1, 2010
|
October 31, 2015
|
36-10
|
Delta Natural Winchester
|
803545
|
Delta - Owingsville
|
1,030
|
1/1 – 12/31
|
|||||||||
November 1, 1993
|
October 31, 2010
|
36-10
|
Delta Natural Winchester
|
803564
|
Sharpsburg Delta
|
220
|
1/1 – 12/31
|
|||||||||
November 1, 2010
|
October 31, 2015
|
36-10
|
Delta Natural Winchester
|
803564
|
Sharpsburg Delta
|
220
|
1/1 – 12/31
|
|||||||||
November 1, 1993
|
October 31, 2010
|
36-12
|
Delta Natural Winchester
|
800809
|
Kingston Terrill
|
2,270
|
200
|
1 – 12/31
|
||||||||
November 1, 2010
|
October 31, 2015
|
36-12
|
Delta Natural Winchester
|
800809
|
Kingston Terrill
|
2,270
|
200
|
1/1 – 12/31
|
||||||||
November 1, 1993
|
October 31, 2010
|
36-12
|
Delta Natural Winchester
|
803563
|
Camargo
|
340
|
1/1 – 12/31
|
|||||||||
November 1, 2010
|
October 31, 2015
|
36-12
|
Delta Natural Winchester
|
803563
|
Camargo
|
340
|
1/1 – 12/31
|
|||||||||
November 1, 1993
|
October 31, 2010
|
36-14
|
Delta Natural Winchester
|
803544
|
Frenchburg
|
280
|
150
|
1/1 – 12/31
|
||||||||
November 1, 2010
|
October 31, 2015
|
36-14
|
Delta Natural Winchester
|
803544
|
Frenchburg
|
280
|
150
|
1/1 – 12/31
|
||||||||
Appendix A to Service Agreement No.
|
37815
|
Revision No. 3
|
Under Rate Schedule
|
GTS
|
|
Between (Transporter)
and (Shipper)
|
Columbia Gas Transmission, LLC
Delta Natural Gas Company, Inc.
|
Primary Delivery Points
|
|||||||||||||||||
Begin Date
|
End Date
|
Scheduling Point No.
|
Scheduling Point Name
|
Measuring Point No.
|
Measuring Point Name
|
Maximum Daily Delivery Obligation (Dth/Day) 1/
|
Minimum Delivery Pressure Obligation
(psig) 1/
|
Recurrence Interval
|
|||||||||
November 1, 1993
|
October 31, 2010
|
47
|
Delta Natural Winchester
|
804148
|
Delta Natural Gas
|
500
|
1/1 – 12/31
|
||||||||||
November 1, 2010
|
October 31, 2015
|
47
|
Delta Natural Winchester
|
804148
|
Delta Natural Gas
|
500
|
1/1 – 12/31
|
||||||||||
November 1, 1993
|
October 31, 2010
|
53
|
Delta Natural Winchester
|
803512
|
Delta – N. Middletown
|
310
|
100
|
1/1 – 12/31
|
|||||||||
November 1, 2010
|
October 31, 2015
|
53
|
Delta Natural Winchester
|
803512
|
Delta – N. Middletown
|
310
|
100
|
1/1 – 12/31
|
|||||||||
November 1, 1993
|
October 31, 2010
|
STOR
|
RP Storage Point TCO
|
0
|
1/1 – 12/31
|
||||||||||||
November 1, 2010
|
October 31, 2015
|
STOR
|
RP Storage Point TCO
|
0
|
1/1 – 12/31
|
Appendix A to Service Agreement No.
|
37815
|
Revision No. 3
|
Under Rate Schedule
|
GTS
|
|
Between (Transporter)
|
Columbia Gas Transmission, LLC
|
|
and (Shipper)
|
Delta Natural Gas Company, Inc,
|
Appendix A to Service Agreement No.
|
43827
|
Revision No. 2
|
Under Rate Schedule
|
FTS-1
|
|
Between (Transporter)
|
Columbia Gulf Transmission Company
|
|
and (Shipper)
|
Delta Natural Gas Company, Inc., Stanton Division
|
Begin Date
|
End Date
|
Transportation Demand Dth/day
|
Recurrence Interval
|
|||
November 1, 1994
|
October 31, 2010
|
860
|
1/1 – 12/31
|
|||
November 1, 2010
|
October 31, 2015
|
860
|
1/1 – 12/31
|
|||
Begin Date
|
End Date
|
Measuring Point No.
|
Measuring Point Name
|
Maximum Daily
Quantity (Dth/Day)
|
Recurrence Interval
|
|||||
November 1, 1994
|
October 31, 2010
|
2700010
|
CGT – Rayne
|
860
|
1/1 – 12/31
|
|||||
November 1, 2010
|
October 31, 2015
|
2700010
|
CGT – Rayne
|
860
|
1/1 – 12/31
|
|||||
Begin Date
|
End Date
|
Measuring Point No.
|
Measuring Point Name
|
Maximum Daily
Quantity (Dth/Day)
|
Recurrence Interval
|
|||||
November 1, 1994
|
October 31, 2010
|
801
|
Gulf - Leach
|
860
|
1/1 – 12/31
|
|||||
November 1, 2010
|
October 31, 2015
|
801
|
Gulf - Leach
|
860
|
1/1 – 12/31
|
|||||
Appendix A to Service Agreement No.
|
43827
|
Revision No. 2
|
Under Rate Schedule
|
FTS-1
|
|
Between (Transporter)
|
Columbia Gulf Transmission Company
|
|
and (Shipper)
|
Delta Natural Gas Company, Inc., Stanton Division
|
Appendix A to Service Agreement No.
|
43828
|
Revision No. 2
|
Under Rate Schedule
|
FTS-1
|
|
Between (Transporter)
|
Columbia Gulf Transmission Company
|
|
and (Shipper)
|
Delta Natural Gas Company, Inc., Cumberland Division
|
Begin Date
|
End Date
|
Transportation Demand Dth/day
|
Recurrence Interval
|
|||
November 1, 2010
|
October 31, 2015
|
1,836
|
1/1 – 12/31
|
|||
Begin Date
|
End Date
|
Measuring Point No.
|
Measuring Point Name
|
Maximum Daily
Quantity (Dth/Day)
|
Recurrence Interval
|
|||||
November 1, 2010
|
October 31, 2015
|
2700010
|
CGT – Rayne
|
1,836
|
1/1 – 12/31
|
|||||
Begin Date
|
End Date
|
Measuring Point No.
|
Measuring Point Name
|
Maximum Daily
Quantity (Dth/Day)
|
Recurrence Interval
|
|||||
November 1, 2010
|
October 31, 2015
|
801
|
Leach
|
1,836
|
1/1 – 12/31
|
|||||
Appendix A to Service Agreement No.
|
43828
|
Revision No. 2
|
Under Rate Schedule
|
FTS-1
|
|
Between (Transporter)
|
Columbia Gulf Transmission Company
|
|
and (Shipper)
|
Delta Natural Gas Company, Inc., Cumberland Division
|
Appendix A to Service Agreement No.
|
43829
|
Revision No. 2
|
Under Rate Schedule
|
FTS-1
|
|
Between (Transporter)
|
Columbia Gulf Transmission Company
|
|
and (Shipper)
|
Delta Natural Gas Company, Inc.
|
Begin Date
|
End Date
|
Transportation Demand Dth/day
|
Recurrence Interval
|
|||
November 1, 1994
|
October 31, 2010
|
1,682
|
1/1 – 12/31
|
|||
November 1, 2010
|
October 31, 2015
|
1,682
|
1/1 – 12/31
|
|||
Begin Date
|
End Date
|
Measuring Point No.
|
Measuring Point Name
|
Maximum Daily
Quantity (Dth/Day)
|
Recurrence Interval
|
|||||
November 1, 1994
|
October 31, 2010
|
2700010
|
CGT – Rayne
|
1,682
|
1/1 – 12/31
|
|||||
November 1, 2010
|
October 31, 2015
|
2700010
|
CGT – Rayne
|
1,682
|
1/1 – 12/31
|
|||||
Begin Date
|
End Date
|
Measuring Point No.
|
Measuring Point Name
|
Maximum Daily
Quantity (Dth/Day)
|
Recurrence Interval
|
||||||
November 1, 1994
|
October 31, 2010
|
801
|
Gulf - Leach
|
1,682
|
1/1 – 12/31
|
||||||
November 1, 2010
|
October 31, 2015
|
801
|
Gulf - Leach
|
1,836
|
1/1 – 12/31
|
||||||
Appendix A to Service Agreement No.
|
43829
|
Revision No. 2
|
Under Rate Schedule
|
FTS-1
|
|
Between (Transporter)
|
Columbia Gulf Transmission Company
|
|
and (Shipper)
|
Delta Natural Gas Company, Inc.
|
Appendix A to Service Agreement No.
|
43829
|
Revision No. 2
|
Under Rate Schedule
|
FTS-1
|
|
Between (Transporter)
|
Columbia Gulf Transmission Company
|
|
and (Shipper)
|
Delta Natural Gas Company, Inc.
|
Appendix A to Service Agreement No.
|
43829
|
Revision No. 2
|
Under Rate Schedule
|
FTS-1
|
|
Between (Transporter)
|
Columbia Gulf Transmission Company
|
|
and (Shipper)
|
Delta Natural Gas Company, Inc.
|