Surface Machinery and Methods for Oil-Well Pumping

PRIME MOVERS AND POWER PLANT MACHINERY. 49
tions on oil pipe-lines, as that service is considered as coming under the in-
dustrial or commercial rate. This, however, represents a very small part of
such service and is not considered in the light of production.
Under Schedule P-5 it is contemplated that the rate provided shall be ap-
plicable to large leases where their power demand would be equal to or in
excess of 200 kw. per month. Such service is rendered at the primary voltage
of our available distributing mains and is metered on the primary side of the
transformer, and on this basis the consumer owns and maintains the necessary
step-down transformers and all secondary or distributing mains.
The extension rule that is the basis upon which power is furnished
is quoted below:
a. Where estimated annual revenue equals or exceeds 33J per cent of the
cost of the extension:
Such extension will be made at the entire expense of the company.
b. Where estimated annual revenue exceeds 20 per cent but is less than 33J
per cent of the cost of the extension:
Such extensions will be made provided applicant for service advances the
difference between the cost and an amount equal to three times the estimated
annual revenue. The amount thus advanced will be refunded quarterly on the
basis of 20 per cent of the monthly bills of applicant for service received: No
refund, however, will be made after the tenth year of service. If the revenue
from applicant during any continuous period of one, two, or three years within
the first ten years of service exceeds the amount invested by the company,
such excess will be refunded, it being provided, however that the total amount
refunded shall not exceed the amount advanced by applicant.
For the purpose of determining refunds, the applicant's revenue during the
tenth year shall not be considered as more than the average revenue of the
three next preceding years.
Extensions under this class will be made requiring no advance provided
applicant guarantees during a three-year period a revenue equal to the total
cost of the extension. Such guarantee shall be paid in three equal annual
payments, dating from the time service is first rendered. It is provided, how-
ever, that in the event payments for service rendered during the first and
second year exceed the annual guarantee requirements, such excess shall
accrue toward the fulfillment of the normal third year guarantee. Further-
more, should the payments for service rendered during the first year or during
the first and second year combined equal the cost of the extension, then the
three-year guarantee shall be considered as having been fulfilled.
c. Where the estimated annual revenue is less than 20 per cent of the cost
of the extension:
Such extensions will be made provided applicant for service advances the
entire cost of the extension, in which case the advance will not be subject to
refund. Extensions under this class, however, may be made under rule 2, b,
above, provided applicant guarantees an annual revenue equal to 20 per cent
of the cost of the extension.
d. Extensions to speculative business such as wildcat drilling, where the
estimated revenue exceeds 20 per cent of the total cost of the extension, such
extension will be made provided the applicant for service advances the total
cost of the extension, the amount advanced will be refunded on the basis of 20
per cent of the monthly bills for service received.

George, H. C. Surface Machinery and Methods for Oil-Well Pumping. Washington D.C.. UNT Digital Library. http://digital.library.unt.edu/ark:/67531/metadc12407/. Accessed August 21, 2014.