1
Exhibit D
Page 1 of 5
AGREEMENT FOR FILING CONSOLIDATED
FEDERAL INCOME TAX RETURN AND FOR
ALLOCATION OF LIABILITIES AND BENEFITS
ARISING FROM SUCH CONSOLIDATED
TAX RETURN BETWEEN
COLUMBIA ENERGY GROUP
AND SUBSIDIARY COMPANIES
The following members of Columbia Energy Group, affiliated group of
corporations as described in Section 1504 of the Internal Revenue Code hereby
authorize their common parent corporation, Columbia Energy Group, to make and
file a consolidated federal income tax return on behalf of the group.
Federal
Employer
Identification
Name and Address Number
-------------------------------------------------------------------------------- --------------
Columbia Energy Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Atlantic Trading Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Energy Group Service Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia LNG Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
CLNG Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Insurance Corporation, LTD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Energy Group Capital Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
TriStar Gas Technologies, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Transmission Communications Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Network Services Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
CNS Microwave, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Pipeline Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Deep Water Services Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
00000 Xxxxxx Xxxxxx Xxxx
Xxxxxxx, XX 00000
Columbia Electric Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Electric Xxxxxxx General Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
TriStar Fuel Cells Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Electric Binghamton General Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
TriStar Georgetown General Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
TriStar Georgetown Limited Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Electric Vineland General Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Electric Liberty Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Electric Xxxxxxx General Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Electric Xxxxxxx Limited Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Electric Xxxxxxx Member Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
00000 Xxxxxx Xxxxxx Xxxx
Xxxxxxx, XX 00000
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Exhibit D
Page 2 of 5
Columbia Electric Xxxxxxx Limited Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Electric Binghamton Limited Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Electric Vineland Limited Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Electric Rumford Limited Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Electric Limited Holdings Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Electric Xxxxxxx Xxxxxxxxx Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
000 Xxxxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000-0000
Columbia Gas of Kentucky, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Gas of Maryland, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Gas of Ohio, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Gas of Pennsylvania, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Gas of Virginia, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
000 Xxxxx Xxxxxx Xxxxx
Xxxxxxxx, XX 00000
Columbia Gulf Transmission Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Gas Transmission Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
00000 Xxxx Xxxxx Xxxxxxx
Xxxxxxx, XX 00000
Columbia Propane Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
0000 Xxxxxxxxx Xxxxxxx, Xxxxx 000
Xxxxxxxx, XX 00000
Columbia Energy Resources, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
000 Xxxxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000-0000
Columbia Natural Resources, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Alamco, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Hawg Hauling and Disposal, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Alamco - Delaware, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Natural Resources Canada Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
000 Xxxxxxxxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000
Columbia Energy Services Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Energy Marketing Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Service Partners, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Columbia Energy Power Marketing Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
Xxxxxx.xxx Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00-0000000
00000 Xxxxxx Xxxxxx Xxxx
Xxxxxxx, XX 00000
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Exhibit D
Page 3 of 5
The parties hereby agree to allocate liabilities and benefits arising from such
consolidated return in the manner prescribed below which is consistent with
Rule 45(c) of the Public Utility Holding Company Act of 1935:
(1) Definitions:
"Consolidated tax" is the aggregate current U.S. federal income tax
liability for a tax year, being the tax shown on the consolidated
federal income tax return and any adjustments thereto which are
thereafter determined. If, because of a consolidated net operating
loss, investment tax credit, carrybacks, etc., a refund is due, the
consolidated tax for the current year will be that refund.
"Separate return tax" is the tax on the corporate taxable income or
capital of a company including the effect of any particular feature of
the tax law, differences in tax rates, investment tax credits, etc.,
applicable to it. Separate return tax may be either positive or
negative.
(2) The consolidated tax shall be apportioned among the members of the
group utilizing the "separate return tax" method in the manner
prescribed below:
(a) Intercompany eliminations recorded by consolidation entries
which affect the consolidated tax will be assigned to the
appropriate member necessitating the intercompany elimination
for the purpose of computing separate return tax.
(b) With the exception of the parent corporation, each member of
the group having negative separate return tax will receive
current payment in an amount equal to such negative separate
return tax if that member has sufficient taxable income in
the carryback period to utilize its negative separate return
tax. A member of the group that cannot utilize its negative
separate return tax on a stand alone basis either in the
current period or the permitted carryback period will not
receive payment for their negative separate return tax until
that member generates sufficient taxable income to utilize
its losses. The benefits of the negative separate return tax
not utilized currently by the member will serve to reduce the
tax payment obligation of the positive separate return tax
members. The positive separate return tax member will record
a liability to the parent corporation for this reduction. The
parent corporation will record a liability for the negative
separate return tax to the loss member. Members with a
negative separate return tax will not participate in the
allocation of the parent corporation loss, if applicable, for
that year.
If, because of carryback or other restrictions, the aggregate
of all negative separate return taxes is not entirely usable
in the current year's return, the portion which is usable
will be apportioned among the members having negative
separate return tax in proportion thereto.
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Exhibit D
Page 4 of 5
(c) Any parent corporation gain or loss realized from its sale of
its interest in subsidiaries' securities will be assigned to
parent corporation and will not be allocated to other
members. All other parent corporation negative separate
return tax will be allocated currently to positive separate
return tax members on the ratio of their positive separate
return tax to the total positive separate return tax.
(d) Each member of the group, after intercompany eliminations,
having positive separate return tax will pay an amount equal
to its proportionate share of the consolidated tax liability
to members having negative separate return tax, for which the
separate return loss was utilized to offset consolidated
taxable income, based on the ratio of its separate return tax
to the total of the separate return taxes of members having
positive separate return tax, assuming such loss companies
meet the carryback requirement of sub-section (b) above.
(3) Carryover and other rights, if any, accrued under past regulations and
orders for which a member company has not been paid shall be accounted
for as follows: Each such member generating such benefits shall
receive payment to the earliest year in which statutory carryover
periods have not expired. Payment will be received, following
execution of this agreement, from the companies which benefited from
the prior deductions in the same ratios initially used to distribute
such benefits.
(4) In the event the consolidated return reflects a net operating loss or
excess investment tax credit and cannot be totally carried back, the
tax benefit of such net operating loss or excess shall be allowed as a
carryover to future years. In the event they cannot be fully utilized
on a consolidated basis, a proportionate allocation under Section (2)
will be made. If and when the tax benefits are realizable on a
consolidated basis in a subsequent year, such tax benefits shall be
allocated to the members originally denied such benefits in the year
the items were generated.
(5) In the event the consolidated tax is subsequently materially revised
by amended returns, interim payments or refunds, or, in any event, by
a final determination, such changes shall be allocated in the same
manner as though the adjustments on which they are based had formed
part of the original consolidated return. The tax effect of negotiated
adjustments which do not include an item-by-item modification of the
return shall be allocated in accordance with Section (2)(d) of this
agreement or, considering all the facts and circumstances, under such
other method as may be determined to be more fair and equitable.
(6) No subsidiary company, as a result of the method of allocation
described herein, shall be required to pay more tax than its separate
return tax as defined in Section (1).
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Exhibit D
Page 5 of 5
(7) Any current state income tax liability or benefit associated with a
state income tax return or franchise tax return involving more than
one member shall be allocated to such subsidiaries doing business in
such state based on their separate return liabilities and other
principles set forth herein.
No member is to be allocated a state tax which is greater than its
state tax liability had it filed a separate return, including the
carryback/carryforward period . All available credits are to be
allocated to the member generating the credit prior to the allocation
of the System tax liability if available on a separate return basis.
Similar to section 2(b) for federal income taxes, a member of the
group that cannot utilize its negative separate return tax on a stand
alone basis either in the current period or permitted carryback period
will not receive payment for their negative separate return tax until
that member generates sufficient taxable income to utilize its losses.
In the event the consolidated state income tax liability for any year
is redetermined subsequent to the allocation of the consolidated tax
liability reported for that tax year, the redetermined tax liability
shall be allocated pursuant to this Agreement as if the adjustments
and modifications related to this determination had been a part of the
original return. Any interest or penalties associated with
underpayment or overpayment of tax shall be allocated based on the
allocation of the underlying underpayment or overpayment of tax.
(8) This agreement shall apply to the consolidated federal and state
income tax returns to be filed for the calendar year 1996 and all
subsequent years unless subsequently amended. In the case of
unexpected events, including changes in the tax laws which may require
modifications to the agreement, amendment to this agreement shall be
conditioned on approval by the Securities and Exchange Commission.
Pursuant to the requirements of the Public Utility Holding Company Act
of 1935, the undersigned, duly authorized, have signed this agreement
on behalf of the company(s) indicated.
By:
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DATE: December 31, 1998
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