I A -' If::" , ,/

l co P,O, BOX 541 • WORLAND, WYOMING 82401 • (307) 347-8221 • FAX (307) 347-3160

8,

~:. ~ -;:_~' _."" -<-'" ~ _ _ • "I ']

, )

1 1 11

or contact me at 1.

co P.O. BOX 541 • WORLAND, WYOMING 82401 • {3071347-8221 • FAX (3071347-3160

8,

1. is $1

3. structure

as a

5.

• ....... ~u IS a on

01 Exact Legal Name of Respondent Zia Natural Gas Company

03 PrlMOOS No"", ond Dote of Change (~ ""me changed duing year)

11 Name of Officer Hallill!l Cusloo,. of I!le Books of !\<:COtI1! XinWong

14 Nomo of stale _. R~ is

''''''''POIlI!.d Wyoming

IDENTIFICATION

2006

06 Title of CooIacl Person

Executive Vice President

16 ~ appIi_ Reference law l"""'POIlIted Under

ANNUAL CORPORATE OFFICER CERTlFlCA TIOII

FERC FORM No. 2I3Q (02-04)

Form 2-A Approved OMB No. 1902-0030 (Expires 6/30/2007) Form 3-0: Approved OMB NO.1902-0205 (Expires 613012007)

Gas Company Name:

Address:

Phone Number:

Person Completing Form:

Customer Class

Number of Customers

Met Sales (Thousands)

Gross Revenues

Avg. Annual Met Per Customer (1)

Avg. Annual Bill per Customer (2)

Avg. Monthly Bill per Customer (3)

Avg. Gross Revenue per Met sold (4)

Directions for the _I.

(1)

(2)

(3)

New Mexico Jurisdictional Information Year Ending December 31,2006

Residential Other

21,590 2,308

1,062 1,344

15,378,220 16,034,966

49.20 582.48

712.28 6,947.56

59.36 578.96

14.48 11.93

Divide Mef sales number of customers. Divide gross revenues number of customers. Divide (2) 12 months Divide gross revenues Mefsales.

Total

23,898

2,407

31,413,186

100.70

1,314.47

109.54

13.05

Reference

mu:;"",,,,, Balance Sheet Statement of Income Statement of Retained Statement of Cash Flows Notes to Financial Statements

114-117 118-119 120-121 122-123

N""", of Respondent l~: ~:;.: (1) I . tiiiieOfRioport VearlPoriod of Report

(Mo, End of 12131100 Zia Natural Gas Company Maya, 2007

Us! of~. (11_ Gas Company)

Enter in column (d) the terms "none," "not applicable," or "NA" as appropriate, where no infannalion or amounts have been reported for

certain pages. Omrt pages whe,e the responses are "none," "not applicable," or "NA."

Tille 01 SehoduIo R ..... ""'" IJotoR_ R.m,," U""

(0) (e) (d)

GENERAL CORPORATE INFORMATION II/>Il

FINANCW. STATEMENTS

1 s..ooty_andVciingP-. 107 2 Compar-__

110-113 3 _ 0I1n<mJo for tho y", 114-116

4 _oI~~ln<mJoand~_ 117

5 _tiR_E ....... forIheYoar 11/1.119

6_oIC .... FIows 120-121 7 NoW 10 F __

122

BAI.ANC'E SHEET SUPPORTNG SCHEIJULES

(As- and 0Ih0r Dobib)

~- ~ 12 OIhorR~_·Go. 232

BAlANCE SHEET SUl'PORTNG SCHI3JULES

(1.-' and 0Ih0r Crodilo)

13 C_SlootandL_T"""o.otlJoto 250

14 OIhorR~1.iobiiiio.o 278

INCOi.4E ACCOUNT SUPPORTNG SCl-EOUlES

15 Go. Opera!ing R_ 300-301

16 G .. Oporotiooand_~ 317-325

GAS PLANT STATISTICAL DATA

~G.. ~

Na".., of Rospoodeft

1~~=:1(1) I Dot. ",-Rep<l<I 1:;':";00 01 ROj:Xl<!

(Mo, Zia Natural Gas Company MayS, 2007

S<o<:ur1Iy Holders and \/otIng Powers

1, Give the names and addresses of the 10 security holders of the respondent who, at the date of the latest closing of the stock book or compilation of list of stockholders 0' the respondent, pnor to the end ollhe year, had the highest voting powers in the respondent,

and state the number of votes thai each could cast on that date if a meeting were held, If any such holde, held in trust, give in a footnote the known particulars of the trust (whethe, voting trust, etc,), duration of trust, and principal holders of beneficiary interests in the trust If the company did nol close the stock book 0' did not compile" list of stockholders within one yea, prior to the end of the year, or if since it compiled the previous list of stockholders, some other class of security has become vested with voting rights, then show such 1 0 security holders as of the close of the year Arrange the names of the security holders in the order of voting power, commencing with the highest Show in column (a) the titles of officers and directors included in such list of 10 security holders,

2 If any security other than stock carries voting rights, explain in a supplemental statement how such security became vested with voting rights and give other important details conceming the voting rights of such security, Slste whether voting rights a,e actual or contingent; if contingent, describe the contingency,

3, If any class or issue of security has any special privileges in the election of directors, trustees or managers, or in the determination

of corporate action by any method, explain briefly in a footnote 4, Furnish details concerning any options, warrants, or rights outstanding at the end of the year for others to purchase securtties of

the respondent 0' any securities or other assets owned by the respondent, including prices, expiration dates, and othe, material infonmation relating to exercise of the options, warrants, or rights, Specify the amount of such securities or assets any officer, director, associated company, or any of the 10 largest security holders is entitled to purchase, This instruction is inapplicable to convertible securities or to any securities substantially all of which are outstanding in the hands of the general public where the options, warrants,

1. Give date of tho latest dosing of the stock 2, Slate !he totall1l.lTlber of votes cast .t !he latos! ganenli. 3, Give tho date and ,,",ce of

~priorl and, in a f~e, stele such.-ing: rospoodeft

Talal:

NlA By Proxy:

VOTING SECURITIES

4, NlJI'I1ber 0I11O! ... a. of (dale): Line No, Name (Tille) and AL1dress 01 Tot_IVai ... Common Stock Preferred Stock 0Ihef

SecOOtyHolder (b) (e) (d) (e) (a)

5

5

7

8

9

10

11

12

13

14

15

16

17

18

19

10

Page 107

Name Zia Year/Period of Report Natural Gas C~.ml>a~I\I

Important Chang .... During Iha QuarlerIYoor

The acquisitions of the Town of Springers distribution system and the Capitan-Carrizozo Gas Company distribution system. were completed and the depreciated book value is included in the 2006 Annual Report.

Name 01 Respondent rRS R.:~j~I~~nol Dole 01 Report Y .. ,

Zia Natural Gas Company (Mo, Do, Yr) I Maya, 2007 Ender

COfflIl'If'IIIve 0 __ (AsSllts 011<1 0Ih0r DobIIs)

Une Current Year End of No Quarterf'{ear Balance Prior Year

ReferefICe (e) EndBa"""", Tille 01 AccOOI'II PageNII'TIIler 12131105

iOJ ib) (d)

UnUTYPLANT

2 Uliity Planl (101-1 06, 114) 200-201 $ 39,040,389 $ 36,715,722

3 Construc!ioo Wonc in Pr_ (107) 200-201 $ 39,449 $ 7,851

4 TOTAL Uliity PIanI (Total of fines 2 and 3) 200-201 $ 39,078,838 $ 36,723,573

5 (loss)Accum, Provision ,'" Dejl<" Amort" DepI, (108, Ill, 115) $ (14,788,889,24) $ (13,174,569)

6 No! Uliity Plant (T 0101 of fine 4 less 5) $ 24,290,149 $ 23,549,004

7 NudeorFuel(120,11hru 120,4, and 120,6)

6 (Less) Accum, PrOliisioo for Amort" of Nudeo, Fuel Ao_os (120,5)

9 N_ Fuel (Total of fine 7 less 8)

10 Net Uliily PIon! (Total 01 ines 6 and 9) $ 24,290,149 $ 23,549,004

11 Uliity PIanI A£IjusImenIs (116) 122 $ 131,003 $ 183,304

12 Ga. storod-Base Ga. (117,1) 220

13 System Balancing Gas (117.2) 220

14 GasstorndinR"""""'"".ndpjpelines-N~(117,3) 220

15 Gas OWned to Systom Gas (117,4) 220

16 OTHER PROPERTY AND INIIESTIIIIEIiTS

)

and _ZlIIioo (122)

222-

224-_. Page 224, ine 40) I

)

24 SlniOng Funds (125)

25 Oojnciotion FLIld (126)

26 _on FLIld - Foderal (127)

27 0Iher Special Funds (128)

28 long-T""" Portion of Dem!oI!veAoSllt. (175)

29 long-Term PorIlon of Dem!ol!ve Aoset. - Hodges (176)

30 TOTAL 0Iher Properly and 1 __ • (Toial 01 loos17-2O, 22-29)

31 CURRENT AND ACCRUED ASSETS

32 Cash (131) $ 159,020 $ 105,225

33 Special OoposiIs (132-1 34)

34 WOI1<ing funds (135)

35 T""-",IlfC,sh I_s (136)

36 Notes Receivable (141)

37 Customer Accoo1s ReceMilJio (142) $ 2,440,932 $ 2,668,960

36 other AccOOI'II. ReceMilJio (143) $ 1,019,392 $ 1,5ll9,512

39 (loss) Accum, Provision f", Uncolodible AcooooIs - Credit (144)

40 NoI""R_lJiof,orn_.tod~ni .. (145)

46)

~stock(151) Fuel stock Expenses UndistriWed (152)

Page 110

Nome of Respoodeni Ig~' Report Is(l) Ooto of Report VearlPeriod of R""""

Zia Natural Gas Company IA'" MayS, 2001 End of 12131/06

CorTI!>Mattve Balanco _ (Assets and 00- DGIlItsJ(cootlno.le<l)

line CuTenI Vosr End of No. OuortorN .... r Balance PIiOfYear

Reference (e) EndBaIa_

Tille of Ac1:o..-.t Page Number 12131105 (a) fb) (d)

44 Residuals (Ele<;) ond EJdradod Products (Gas) (153)

45 PIon! Moterials and Operating Supplies (154) $ 234,409 $ 196,764

46 M..-d18ndi"" (155)

47 othef Malerials and Supplies (HiS)

48 Nuclear Materials Held for Sole (157)

49 _""es (158.1 and 158.2)

50 (loss) Noncurrent Portlon of AIowanc ..

51 Stor •• E1<pense Undisllibuted (153)

52 Gas Stored Un<lor~urrent (164.1)

53 Liquefied Natural Gas Stored ond Held for Processing (164.2!hru 164.3)

54 Prepaym<!f'lls (165)

55 AI:MInces for Ga. (166!hru 167)

58lrtorostondDMdendsR __ (171)

57 Fleris Receivable (172)

58 Accrued Utiily R""""""" (173) $ 279,242 $ 279,242

59 Miscolloneous Curreri and Accrued Assets (174) $ 562,254 $ 677,858

60 IJe<M!tive I~ Asset. (175)

61 (Los.) Long-Toon Poriion of Derivalivelnslrumenl Asset. (175)

62 IJe<M!tive Instrument Asset. - Hodges (176)

63 (Les') Long-T01m Portlon of Derivativo instrument AsseS. - Hedges (176)

64 TOTAl Curren! and Acerued Assets (ToIol of fines 32!hru 63) $ 4,695,248 $ 5,517,581

65 DEFERRED DEBITS

66 Ul18fI1Ortizod Debt E1<pense (181)

f[! EmaordinaryProperty Lo'''''s (162.1)

68 U~ PIonlond R~ study CosIs (182.2)

69 othef Rogo.;.lory Assets (182.3)

70 Preliminary Survey and ilM!Slill"tion Chorges (Elecl!1eXI83)

71 PrelimillOry Survey .ndl~getloo Chorgos (Go'XI83.1 ondI83.2)

72 Clearing Acco..-.ts (184)

73 Temporory radili"" (185)

74 Miscollo"""", Deferred Debits (186)

75 Deferred Losses from Disposition of Uliily Plant (187)

76 R ....... rch, ~, and Demonstration Expend. (186)

77 Unamortized Loss on Reacquired Debt (189)

78 Ac<:ImJIaIed Defornod Income Tax"" (190)

79 U,...".,~od f'I.rctlased Gas Costs (191) $ (473,563) $ 1,116,119

60 TOTAL Deferred Debits (Total 01 ine. 66 thru 79) $ (473,563) $ 1,116,119

81 TOTAl Asset. and othef OeIliIs (Tolal 011"". 1 ()-15,30,84,and 80) $ 28,642,838 $ 30,365,988

Page 111

No"", of Respondent

Ig~:~;:(l) Dol. O~ ROjXl<! YearlPeriod of Rop<l<1

Zia Natural Gas Company (Mo.Ds.

End of 12131106 MayS, 2007

Comparaliv. 11_. _ (~_ou-~.) line No. CmenlYear PrIor Year

Rei""""", End of End Balance Tolle of Acc<l<rt PageNurnber QuarterlY .... ' 12131

10) Balance (d)

1 PROPRIETARY CAPITAL

2 Common stock Issued (201) 250-251

3 Prof.....-ed stock Issuod 12(4) 250-251

4 Capital Stock _bed (202, 2(5) 252

5 stock Uobilty lor C_on (203. 2(6) 252

6 Premium on Capital stock (207) 252

7 0Iher Paid-In Copillli (206-211) 253

8 Inslallment. R""';\IOO on C8piIol stock (212) 252

9 (Los.) 01"""," on Capitol stock (213) 254

10 (L.,.) Capillli stock El<pertse (214) 254

11 Retained Earnings (215, 215.1, 216) 118-119 $ 20,693,308 $ 20,714,402

12 U_opriolod Undislrlbulod &Jbsjdlaoy Earnings (216.1) 118-119

13 (Las.) Raocqul,ed Copital stock (217) 250-251

14 iA<:WTlIJIaled 0Iher C~"" I""""", (219)

15 TOTAl PropriolooyCopital (Telal of I""" 211'ru 14) $ 20,693,308 $ 20,714,402

16 LONG TERIiIIlEBT

17 Bonds (221) 258-257

18 (Le .. ) R""cquirod Bonds (222) 258-257

19 Advances from _ated COlT'4><ln)", (223) 258-257

20 OIher LOI1!/" Tenn DellI (224) 258-257

21 Unomorlized Premium on Long-Tenn DellI (225) 258-259

22 (l .. s) Unam<>rliz<>d IJ'scOtrt on long-Term DellI-Dr (226) 258-259

23 (les.) CmenI Portion of Long-Toon DellI

24 TOTAl LOI1!/" Torno DellI (Toiol of ines 1711'ru 23) $ - $

25 OTHER NONCURRENT UABlUTIES

26 Obligations Under Capital L ....... NO!1CIJITeI1I (221)

27 AcWTllJlatod PrOliisioo'or Pr<Jl)Of1y In ..... nc. 1228.1)

28 A""""""tod PrOliision for l!'juries ond IJ8maljOS (226.2)

29 AccumuIoIed PrO'llisioo for Pensions and Benefil. (228.3)

30 AcctmJlalod Misceleneou5 OpemIing PrO'IIisioos (228.4)

31 AccumuIoIed PrO'llision for Rot. Roloods (226)

Page 112

Na",., of Respondent I:' Report Is: (1) Dotoof_R~ V •• rlPeriod of Report

Zia Natural Gas Company (1) An Original (Mo. De,

(2) A Rosubmissl"" MayS, 2007 End or 12131106

C~. _. _11.taIlIIIIles and OIlIer CmIII'Xconllnuod)

Line No.

C""""'Vea' Prior Year Rei""""", End of End Balance

Tille of AccoonI Page Number QuarterNear 12131 (a, (bl Balance (d)

32 LOOII" T em> Pornon of De!1votNe InstrumenI Uobilties

33 LOOII" T OOTI Pornoo of De!1votNe InstrumenI Uobiiti .. - Hodges

34 Asset Relir_ O!JIigetioos (230)

35 TOTAL Other N"""","",, Uobiitios (Tolal of 1_ 26_ 34)

36 CURRENT AND ACCRUED IJABiUTlES

37 Curr"'" Porn"" 01 LOOII" T """ DellI

3ll Noles Payabie (231)

39 fA<:COU1IS Payable (232) $ 3,355,693 $ 4,919,460

40 Noles Payable to Associated C~ .. (233)

41 AeooIris Payable to Associoled C""lJIInies (234)

42 Customer Deposits (235) $ 639,678 $ 506,2n

43 Tax"" Accrued (236) 262-263 $ 420,655 $ 474,933

44 Into_ Accrued (237)

45 Dividends Dedared (236)

46 Mo1lJred LOOII" Term Debt (239)

47 M.! .... ed InI!!fest (240)

48 Tax CoIIecIioos Payable (241) $ 328,220 $ 363,436

49 Miscelloneoos C...,.onlond Accrued Uobilties (242) 268 $ 160,209 $ 155,885

50 O!JIigoti""" Under C.pitalleoses-cum.nl (243)

51 Deriwtive I~ Uobiiti .. (244)

52 (less) LOOII"Term Pornon of Deriwlivolnsln.rneni li._

53 Deriwtive 1l'1'S!rumert Uobiiti"" - Hodges (245)

54 (less) lOOll" T""" Pornoo 01 O_volnsln.ment Uobiiti .. - Hedge.

55 TOTAL CUT"'" and Accrued liobiities (ToIol olines 37 _ 54) $ 4,904,456 $ 6,419,993

56 DEFERRED CREDITS

57 Customer Adva""osIOf eoo.trucIion (252)

56 Accu!ruIoIed Deferred Investmoot Tax Creats (255)

59 Deferred Goi"" from Oispositioo of Utility Plan! (256)

60 Other Deferred Creats (253) 269

61 Other Regulatocy Uobiities (254) 278

62 Unamortlzed Gain on Reacquired Debt (257) 26()

63 Accu!ruIoIed Deferred Income Tax .. - Accelerated _100 (281)

64 _ted Deferred I""""", Toxes - Other Property (282)

65 _too Deferred Income T""",,· Other (283) $ 3,045,074 $ 3,231,593

66 TOTAL DeferredCredt. (Talal of!"", 57ltJru65) $ 3,045,074 $ 3,231,593

67 TOTAL Uobiib .. and 0Iher Credts (ToIol of lnes 15,24,35,55,and 66) $ 28,642,838 $ 30,365,987

Page 113

Name of Respoodent I~S Report Is (1/

I Date 01 Report I V •• r!Pe<io<! of Report

(Mo, 08, YO

I End of 12131106 Zia Natural Gas Company

IA"·~" Maya, 2007

SlaliomenI 01 Income

1, Enter in column (e) the operations for the reporting quarter and in column (f) the balance for the same three month period for the prior year. Do not report annual amoun1s in these columns, 2. Report in column (g) the quarter to date amounts for electric utility function; in column (i) the quarter to date amoun1s for gas utility, and in (k) the quarter to date amounts for other utility function for the current year quarter/annual. 3. Report in column (h) the quarter to date amounts for electric utility function; in column Gl the quarter to date amounts for gas utility, and in (I) the quarter to date amounts for other utility function for the prior year quart"r. 4. rt additional columns are needed place them in a footnote.

Line rllc(:f~ ~,e TOlai T,,", Cu!rert1l'roe _1l'roe

No. {e) 0JrrenI Year 10 PnorYearloDale Montls Ended MorIlsErnled --.,. """"',

ibl fot QuartenYear brQ.a1erf'(ear

~I Id) ('I ro

1

11IWlY ___

2 Gas Opoo/Ing R"""""" 1400) 300-301 $ 31,487,603 $ 211,074,5l1li

3 Opeming Expenses 40p,""",, __ 1401) 317-325 $ 28,160,562 $ 26,266,693

5~&""""'14(2) 317-325 $ 338,553 $ 305,273

6~,b<""",,,1403) 336-338 $ 642,663 $ 789,591

7 ~E,,,,,",,,iJrAss~Relrerr.rtCo:;i;I40311 336-338

a Pmor>z_ood'le_"JflJllly"""I4Il'4(!i) 336-338

9 _rlIz_oflJllly_ku_l4CI3J 336-338 $ 52,561 $ 52,300

10 f\mor', ofPmp l DSSe$, tXlreclM:1t.'d PIMIa'ld Reg Sb1y (',os!!;; ~7 t)

11 PmoI1ztJllonofCoi'l'lefSooExpenses{4012f

12 Reg"""IlebOsI4O'I3)

13 ~es'l """""" 0ed0s 14074)

~" ~ 182, 038

602,62 159

~1011

18 (Less) ProwstoPklr"Mrredlrcome Taxes-Credi (4111)

19 _T",(""dI~Ne!~114)

20 ~",)"""'_-'oflJllly"""~l16) $ (10,075) $ (10,228)

21 Losres"'mo.",~oflJllly_{411 n 22 (Less)GfWI5M[)spos$Onof~es(4118')

23 losses rom Drspos$oo ctHowan::es (4119)

24 """"""_nse(41110)

25 TOTti lJIIIyOpoo/lng "'pense' (f""of"",4ITJ24) $ 30,169,693 $ 28,240,826

26 NelUIiiIty 0pe;aiIng h:::ome {folal of lines 2 !ess25j {CarlyIofwtN\.lIo page 116, 1irM:!27} $ 717,911 $ 833,n3

Page 114

Y~~~ I End of 7

Stat""",nt of Income

Une EiecUij~ Eiec" Uijlty GaSlIIItt)/ 01her Utiily 01her~ No" PrelllOUS CUrrent f'reIIiOUS

Year to Date Yean" Date Y_to Dakl Y_to Date Year to Date (in_rs) (In_rs) (in_rs) Year to Dale (in_l"5) (In_rs)

(g) (h) (I) (In_rs) (k) (I) (j)

1

2 $ 31,487,603 $

1 31 4 26,266,693

5 $ 338,553 $ 305,273

6 $ 842,863 $ 789,591

7

8

9 $ 52,561 $ 52,300

10

11

~

19

20 $ (10,075) $ (10,228)

21

22

23

24

25 $ 30,769,693 $ 28,240,826

26 $ 717,911 $ 833,773

Page 114(2)

N.meoIR~ 1~~;::I(1) I Dale of Report Ve.,lPerioo of Report

Zia Natural Gas Company ,Mo, De, Yn I End of 121311O€ MayS, 2001

__ of Income(conllnuod)

line TileofPu;OI.!I'i """""'" TOOlI f"" cureii1iiree~ .. ::~~ No, lal C!.ll'ref1t Year 10 PoorYearloDate MortttsEnded o.oe-.o, -.,.

~I tlf~Near for Qu<r1ef1Year ~I 1"1 Ie) ro

$ 717,911

28 O'I'HBtIJlOOll!AllDOI!DIJCTIOIIIS

29 OI1erln::ome

30 """"'Y0_"""'" 31 ~ ___ ""'""*,,,,1'I""~15)

$ 2,313 $ 7,243

32 ~e"ICOS!S""'Expenseol_~Job&o._'I'I""('161 $ (1,494) $ (10,399)

33 """""''''''''''''''''Y0pern00m ~1l) $ 59,383 $ 39,930

34 ~"sIExpemesDf""""'Y0pe""""'~1711 $ (2,534) $ (7,727) 35 __ """"'~lilJ

$ 4,500 $ 4,500

36 E....,nE"""9' DfS.""""Yf_, (4181)

37 ",,,,,,""',,,,,,,,,",,"""""(419) $ 136,127 $ 130,211

38 AIowancerorOt1erFlJI"IdslJsed[)Jnngc.o"stt.rlon(419t)

39 """""'",,", __ ne~21) $ 11,273 $ 12,507

40 GanmDlsposionofPropertylil211)

41 TOTPi Otter~ome (Total cllnes 31 mJ40/ $ 210,170 $ 176,265

42O!herlrr.ome~

43 loss on 0._ 01"""""11421 2) 44_s __ ~251

45 Donaaons (426 1)

46 lJIe""""'.~262)

47 p"""", (4263)

48 p'<~"'C"""c..o,P""'''''''' __ ~25'1

49 Ilt1er DOO.doos 1425 5] $ (500) $ (100)

50 TOTJIL otler ~ Dedu:loos (T oIaI annes 4J 1tru49) $ (500) $ (100)

51 Taxes.Apptic IQClilerh::ooteandDeru';:bons

52 TaxesOh~ftmlo::omeTfl'Aes(4082}

53 Income Taxes-Federal (4002}

54 In;.omeTaxes-ot.er{4002j

55 Pro.s.on '" De;,red "'orne r",,,, ~IO:!) 56 (Less)Prov!s!or:b-~dlrcomeT6Xes-Croo!l'Ill2)

57lrN'esbnentT8XCredill~NeI:(41101

58 ~ess)lnves:!menlTSl(Credlsi470)

59 TOTN_ Tf..{1(e5on 0ttefn:ome oodO€'dtJc!ons(fooof&r!es52-~ $ - $ -60 Net Oher h;ome and lJed.doos (Tolal ofines 41, 50, 59) $ 209,670 $ 175,565 61 __

62 ~onLong..TennDebli42l)

63 _oIo«<o..c and&""""1428)

64 __ ,clLossOl1Fieocq..red Debl 142811

65 ~es8)~ct~orDebiCred!:j.l29)

~"'0«<"P<;S""""~~311 I

I I I

Page 115

Name of Respondent

Ig:i~:':(1) I O,to o~ Report

I fll~

tMo.Da. End 01 Zia Natural Gas Company MayS. 2007

SlIII_ of Intomo(tonllnuedl

line Tile ofPccoon! Rererem. r"" roOal Clmrin... P""Three No. ('I CurrerHearb POO'YeaflofJa\e McdlsEOOed Montas [flood

DateBatarce """", ~I brOuarteff{ear forClua1erfVear

~I 1"1 ('1 ro

68 Qtler it1eres1 Expense (431) $ (35,983) $ (29,988)

69 ~""I"""""""'''''_F_UsedDLmg~14.J2)

70 """_~(l,,"d_62In,69) $ (35,693) $ (29,988)

71 tocomeBei:KeExtaordnaryl!ems (Toial ci'ines27.00 and 70) $ 891,597 $ 979,350

72 FX1R~1TfMS

73~rr..ome!4341

7 4 ~"'I &tao_ De""""", ~:l\)

75 NetE::~Iiems:{T04alotWleT3lessllfie74J

76 h:;ome r<Pt~·~-ederalandOft1efj4(93)

77 Ex~lJ)'llemsalerT8I(esrrotalofIrle75Iessloe761 $ - $ -78 lve!frr:ome (fotaloflnes 71 and77} $ 891,597 $ 979,350

Page 116

Nome 01 Resp<l!1<!MI

I.

Zia Natural Gas Company

6 CurrO<tQuar1odYoarR ............... lmmk_ 219toNellnccmo

7 Curr ... Quar1odY..,c ....... in Fair Value

"fainll.iue MOOo~·" report the ace"""'. affected ond the roIoted .""""'. in • footnot.,

llmoaizodGmo ondu-...,., _for, .... ...-(b)

N/A

Page 117

12131/00

Name of Responder'i

Im~~~,;:' (1)

Dale o!_ R"I'oo YeaflPeriod of Report

Zia Natural Gas Company 11.10, Do, Endo! 121"31106 Moy8,2007

stot_ of Rot_ e.mIngs

i~ " ....... ...!~-~. I during Iho """ oIIotlId I ..... I_in ], f~ 4, 5, l_aleopiIaI...d,

I!em c.nv. Prinofy Ace_Mooted ClITtntYear '" Prmoo& Y ... - 8_. -.

Una ( 0) (b) (e) (<I) No,

RETANEIJ EARNNGS UNAPPROf'RlATED

l~oIPoriod $ 20,714,402 $ 22,472,098

~(ldontiIYbyl""-,-...,,;,,g.-)

~ R_ Eomings 10 (A«oont 439)

4 R"""""inl",,:oo,!>any $ (1,<W2,300) $ (1,475,375)

5 Update deferred tax and tax payable $ 101,545 $ (1,261,672)

6 Aud~ adjustment $ (211,935)

7 ~ alR_ Earnings (A«oont439)

8 9 IlMdonds ~ __ (A«oont437)

10

11 IlMdonds ~ SIoek (A«oont439)

12

13 T","" ... from_216,1,~lIndisIribuIlIdSubi!idialyEomings $ 891,597 $ 979,351 14 1!aianoo-Erld00Poriod(ToIoJoIlno> 1,4, 5, 6, 8, 10, 12, and 13) $ 20,893,308 $ 20,714,402

15 APPROI'RII\TED RETANEIJ EARNNGS (A«oont 215)

16 TOTAl Appropriaiod R_ Earnings (A«oont 215) (!ooImIo-)

17 ~opriaIofdR_E~_oIiooR_,FodoraI

18 TOTAl Appropriaiod R_ Eomirtp-"'-1izolioo R_, Fodoral (A«oont

19 TOTAl Appropriaiod R_ Eomings (A«oonto 215, 215,1) (ToUI 01_

20 TOTAlR_EIIII1ing<(A«oonto215, 215,1,216) (ToIoJ 0I1no> 14 and 1

UNAPPROI'RII\TED IHlISTRIWI'ED SUBSlJlARY EAR~ 218,1)

n .... ' AW_ ~ D<iy on '" no 0uari0rIy

22 ~ 01'1'_ (DebiIorCmdil)

23 Equitj! in Earnings forY_ (CmdiI) 1I\c«lI.InI418, 1)

24 (t ... )1lMdoodo R_ (DebiI)

25 OIhor~(EJq>Iain)

26~dolY_ $ 20,693,308 $ 20,714,402

Page 118-119

POj"""nts;(b)l_ils, _ures and oIherloog-l""" deilI; (e) Include ~.I paper: and (d) ldootify

line No,

2 Not Inc ..... (IJno l!1{e) 011 P"lI" 116)

1 _ T .. CrdAdjuomora (NoI)

16

17 Not cam _ by (\JNd ill 0p0mIing-'

18 (TobIIoIL .... 211w 16)

10 2OCnhFlooooIiom __ :

21 CooaInJetioo and A<~ "PiIrt (including land):

22 Gro>t _ to UIiIIIy PiIrt 0- nucIoar fuoI)

23 Gnm._to~~"' __

24 Gro>t _10 Carrmon UIiIIIy PiIrt

25 Gro>t _ to I'IooUIity PiIrt

28 (L ... ) _lor Othor F .... u...! Duoing CooaInJetioo

27 OIhor.~"""""'in_in __

28 c..,,"""""""" ..... u .... ., ..... 2211w27)

2Ii 30 A<:qui....,dOthor __ (d)

31 Proe--lliopo>aIoI __ Cd)

32

33 .... _inand_.toAuo<,andStAloiliary~

etc,

(a)

Page 120

current Year to Date

891,597 $;

$ 842,863 $

$; 52,300 $;

$;

$ (186,519) $

$ 798,148 $

(37,845) $;

(1,727,473) $;

1,705,286 $

$; 2,338,558 $;

$; (2,458,870) $

$ 905,459

$ (30,598) $;

$ (1,584,009) :$

700,756) $;

Previous Year to Date

Quarter/Year

979,350

789,591

52,300

1,422

791,252

3,903,102

(1,056,126)

(7,851)

(1,063,977)

N.mo<YfR~

Ig::~=:Jll) Dat. <Yf Report Ve.r/Perioo <Yf R."J"'"

liB (Mo. Ds, Yo End of 12131i1J< MayS, 2007

SlaI_ of Cash Flows (continued)

U ... Description (See Instructions for expJanatioo of codes; Current Year Previous Ye1!If

No. to Dale to Date

\0) QuarterlYear QuarterlYear

4Ol""",_or_

41 CoIedione on loans

42

43 NoI~)o-.... inR_

44 NoI~)o-....inilwwllllfy

45 NoIIlna .... ) 0-.... in _ .. Hold for Spoo.joIion

48 NoI""' .... (Door .... )inP ..... am!_~

~"-- (2,284~ ~ :> (3,801,024)

5f Cash Flows lim! Financiog_.

52 Proeae<IJ lim! -... at

53 t.ong.TIII\'!1Ilo1O(1))

54 I'roIomId Stock

55 CorrrnonStock

56

57 Notm .... in Sho!HtImIlolO«)

S3

511 CMII_byOWide_rrotllldinosS3Jhru58)

110

61PII)I1'IOIIIoJorR_at

62 t.ong.T,,,,,,IloIO(1))

= !IfI~"'I'r_Stock

69~""C"""""Stock

10 NotCMII_by (\l<odin) Financing_

71 rrolDldinos59JhruIl9) $ - $ -72

73 Not m .... (Door ..... ) in eMIl am! Cash EquivaIem

74 rrolDlolIino18,48am!71) :> 53,793 :> 102,078

75

16 CahandCuhE~.BeginrIin;ofP«iod $ 105,225 $ 3,147

n 78 Cooh am! Cash EquivaIem at End 01 Poriod $ 159,018 $ 105,225

Page 121

Name of Respondent Year/Period ) End of 1

Noth to Financial Statements

Page 122

Name 01 He:pondent ImS.H~IS(ll Date o~ Heport

I YearlPen

lie IMo.Da. End 01 lAD, MayS, 2007

Ga. PI.nll .. Service (Account. 101, 102, 103, and 1(8)

1. R~be<ow 1I1e O<igi~ cos! oI.!!"S.;M~ In ..",.;"" 1IC:~~10 1I1e pr~ IICcounts. 2. ~

102, Gas Plan! __ or Sold, AccornI

103, Experimental Gas Plan! Unclassified, and Account 106, Completed CoosIructIoo Not Oassified-Gas.

3. "" I.a~., f~~~"~~W ,e",rnue"", ,~ ,~,.~''''

4. 5. '" ", and Include1l1e en1Iies In coIurm (c).

I=ements' ,'''' ,eve,,,,,,, 101,:

IS!'!"opriate ifo. .•. ."~g-,,, M7_' ""'6"

Altach ~ _ showing 1I1e account distribulioos of 1I1esa I_five dassillcaUoos In columns (c) and (d),

Uoe Balance al No. Account Addtioos

(e) (b)

(e)

1 INTANGIBLE PLANT 2 301 Organization

3 302 Franch .... and Consents

4 303 Miscellaneous Intlnglble Plant $ 67,000

5 TOTAL Intangible Plant (Enter Total of lin"" 2 thru 4) $ 67,000

6 PRODUCTION PLANT 1 Natural Ga. Production and Gatheling Plant

8 325.1 Producing Land

• Ie 325.3 Gas Rights

11 325.4 Rights 01 Way

12 325.5 Other Land and land Rights

~ Structures

"Iating Station Equipment

16 329 Other Structur""

11 330 Producing Gas Well,..Well Construction

18 331 Producing Gas Well,..Well Equipment

19 332 Field Unes

21l 333 Field Compressor Station EqUipment

21 334 Field Measunng and Regulating station Equipment

22 335 Drilling .nd Cleaning Equipment

23 336 PurifICation Equipment

24 337 Other Equipment

25 3315 Unsuccessful Exploration and Development Costs 26 TOTAL Production and Gathering Plant (Enter Total 01 lin ... 8 \hru 25)

27 PRODUCTS EXTRACTION PLANT

2l! 340 Land and Land Riglrts

29 341 Structures and Improvements

"" 342 Extraction and Refining Equipment

31 343 Pipe Lines 32 344 Extracted Products Storage Equipment

33 345 Compressor Equipment

Page 204

IN"""'ofR~ lill~_~!I(I) l Date <>!. Report

I YearlPeriod of

Zia 1(2)Ai'~~".~~' MayS, 12I31Al6

G ... Plant In Service (Accounts tOl, 102, 103, and 1(6) (continued)

I I~ng !he '""","""is of 1Ile Il'i"'~::' tentative aceomt disffibu1ions of _ omomts. carelLi obseMInce of 1Ile above instructions and 1Ile texts of Accomt 101 and 106 wli

lavoid, '01 :.:"'v'~'" ,..;, 6. ,~,~.v"o

I~~,~.,.~, 102 102, ,amomtswl1ll

'''''''' ...... A.'''' , ..... -7. na1lJre and use of plant Indudad In lHs aceomt and if sths1lmtial In amooot suIlIr/t a suppIemen\aIy statement _ng

subaccomt classfficalion of such plant confOf1T'ling to 1Ile ~ of 1Ilese I"'ges. 8. For .... c/1.mooot C<J<T'4>Iising !he reported balance and changes in Aceomt 102, slate 1Ile property pudlIIsed '" sold, name 01_ or IMchaser,

and date of transaction. If pr"l""""l jotmaI en1!ies have baan filad wI1Il1lle eommssion as 'equired by 1Ile Unilorm SysIem of Aceomts, IJve date 01

TllIl1S!ers Balance.'

Una RelIr""""";'; End of Yea, No. (d) (I)

(9)

1

2

3

4 $ . $ - $ 67,000

5 $ - $ $ - $ 67,000

6

7

hi II

12

13

14

15

16

11

18

19

20

~ 28

27

28

29

30

31

32

33

Page 205

Name of Responden! This Report 1":(1) Dale of_ Re~r! II Year/Period of Zia Natural Gas Company

) A ~ Original (Mo, Da, Report MayS, End of 12131106

G .... Plant In Service (Accolln1ll101, 102, 103, and 108) (continued)

Line Salance at No. Aooount

Beginning of Year Additions

(a) (b)

(c)

34 346 Gas Measuring and Regulating Equipment

35 347 Other Equipment

36 TOTAL Products Extraction Plant (Enlar Total 01 lines 28 tIlru 35)

37 TOTAL Natural Gas Production Plant (Ente, Total 01 lin ... 26 and 36) 36 Manufactured Gas Production Plant ( Submrt Supplementary Statement)

39 TOTAL Production Plant (Entar Total 01 lines 37 and 36) 40 NATURAL GAS STORAGE ANO PROCESSING PLANT

41 Underground Storage Plant 42 350.1 Land I

~ 46 352.1 Storage Leaseholds and Rights

47 352.2 Reservoirs

46 352.3 Non-recoverable Natural Ga.

49 353 Lines

50 354 Compressor Station Equipment

51 355 Measuring and Regulating Equipment

52 356 Purification Equipment

53 357 Other Equipment

54 TOTAL Undergroung Storage Plant (Enter Total 01 lin"" 42 thru 53)

55 Other Storage Plant

58 360 Land and land Rights

57 361 Structures and Imp""",ments

39 363 Purification Equipment

IiO 363.1 Liquefaction Equipment

61 363.2 Vaporizing Equipment

62 363.3 Compressor Equipment

63 363.4 Measuring and Regulating Equipment

64 363.5 Other Equipment

65 TOTAL Other Storage Plant (Enlar Total 01 lines 56 thru 64)

66 Base Load Uquelleld Natural Gas Terminaling and ProcesSing Plant

67 364.1 Land and land Rights

86 364.2 Structures and Improvements

69 364.3lNG Processing Terminal Equipment

70 364.4 LNG Transportation Equipment

71 346.5 Measuring and Regulating Equipment

72 364.6 Compressor Station Equipment 73 364,7 Communications Equipment

14 364.8 Other Equipment

75 TOTAL (lines 67 thru 74) 16 TOTAL Nafl Gas Sto

77 TRANSMISSION PLANT

76 365.1 land and Land Rights

79 365.2 Rights-ol-Way $

eo 366 Structures and Imp""",ments

Page 206

1~:meafR~ I~~~ R"IXIfIls:(I) I Dale of Report

I YeariPOfiod of _R~

(Mo, End,,!

1(2) A R_ssioo MoyS,

Gas Plan! In ServIce (Ac<:oonI.ll11,I02, 103, _1(6) (COI'lIlnued)

Line Retireme11l:s T~"'" Balance III

EndofY"", No (d) (I)

(g)

34

3S

~ 40

41

42

43 44

45

4l!

47

48

~ 54

55

56

57

58

59

I!O

61

62

83

87

66

t1lI

70

71

12

73

74

15

76

~ - 1$ - 1$ - :$ 815,506 I

Page 207

I~:~~ of"I"u~" ~rtIS:(l) b:.eport I Yearl

ill Natural Company An Original End 01 8,

Gas Planlln Service IAccoun1" 101, 102, 103, l1li<1 106)lconllnuBd)

Une Balance at No. Account

Beginni~) of Year Additions

(a) (e)

81 :la7 Mains $ 7,449,482 $ . 82 368 Compressor Station Equipment

1!3 369 Measuring and Regulating Station Equipment $ 475,113 $ 47,806

811 370 Communication Equipment

115 371 Other Equipment $ 256,488 $

86 TOTAL Transmission Plant (Enter Toial of lines 78 thru 85) $ 47,806

87 DISTRIBUTION PLANT

88 374 Land and Land Rights $ 1l::>,UI'! I~ 24,000

119 375 Structures and Impn:wements

SO 376 Mains $ 12,021,795 $ 1,367,139

91 377 Compressor Station Equipment

92 378 Measuring and Regulating Station Equipment-General $ 817,797 $ 67,677

93 379 Measuring and Regulating Station Equlpment-City Gate $ 74,338 $ 2,886

94 380 Services $ 5,745,800 $ 590,652

95 381 Meters $ 2,778,334 $ 175,567

!16 382 Meter Installations

97 383 House Regulators $ 795,143 $ 73,238

ns

$ 44,6821 $ 3,879

368 Other Property on Customefs Pramlsea 1 387 Other Equipment 1

TOTAL Distribution Plant (Enter Toial of lines 68 thru 101) $

GENERAL PLANT I 389 Land and Land Rights $ .

105 390 Structures and Improvements $ 2,138,217 $ 9,000

106 391 Office Fumiture and Equipment $ 310,514 $ 11,737

101 392 Transportation Equipment $ 1,002,767 $ 81,643

100 393 Stores Equipment

109 394 Tools, Shop, and Garage Equipment $ 232,580 $ 2,756

110 395 Laboratory Equipment $ 228,564

111 396 Power Operated EqUipment $ 754,568 $ 912

112 397 Communication Equipment $ 75,835 $

113 398 Miscellaneous Equipment $ 4,001 $

114 Subtotal (Enter Toial 01 lines 104 ·113) $ 5,258,990 $ 106,048

115 300 Other Tangible Property

116 TOTAL General Plant (Enter T oIal 01 lines 114 and 115) ,. 5,256,990 $ 106,046

117 TOTAL (Accounts 101 and 1 (6) $ 38,715,722 $ 2,458,870

118 Gas Piant Purchased (See Instruction 8)

119 (Less) Gas Plant Sold (See Instruction 6) 120 Experimental Gas Plant Unclassified

121 TOTAL Gas Plan! in Service EnterToial of lines 117thru 120) $ 36,715,722 $ 2,458,870

~ 1 1

Page 208

~ Ig~:~=!(I) I y..,,/Peri

) Endo!

S Gas _In _. (Accounts 101,102, 103, _1(6) (conIIrtued)

Roti __ ALIjusImenIs Transfers Baionce !II

End ",y.", (d) (e) (1) (g)

81 $ - $ 7,449,482

112 $ -113 $ - :; 522,919

84 $ -85 $ - :; 255,488

8B :; - II $ - $ 11,044,_

1!7

88 :; - $ 139,074

89 Ill) $ 13,388,934

91

112 $ $ 885,474

93 $ - $ 77,204

1M $ 3,256 $ 6,333,196

115 $ - $ 2,953,901

00

97 $ - $ 868,379

98

99 $ - :; 48,741

$ -

$ 3,256 • - I $ - $

$ - $

- :5 $

$ 130,945 $ 1,043,488

100

1011 $ - $ 235,336

110 :; - $ 228,564

111 $ - $ 756,480

112 $ - $ 75,835

113 $ - $ 4,091

114 • 130,945 $ - $ - $ 6,234,093

115

116 $ 130,945 $ - , - , 5,234,093

111 • 134,201 $ - • - $ 39,040,391

118

119

120

121

~ I

Page 209

Zia Natural Gas Company (Zia) serves natural gas customers from its distribution systems located in and around the New Mexico communities in Ruidoso, Ruidoso Hobbs, Jal, Cimarron and Maxwell. Zia owns and operates approximately 150 miles of high pressure transmission pipelines , which supply natural gas to these distribution systems and to the distribution system serving Las Vegas. Zia Natural Gas Company acquired the distribution systems for Springer and Capitan-Carrizozo.

Page 211

Name of Respondent 1~:~=!(1) I Dat_ of Report Yea,JPe<1o,H" Report

lia Natural Gas Company (Mo. Endol Mays.

Gas ~_C~l_1i'om Others

1. Report below the information called lor conceming gas property and capecity leased from others lor gas operations. 2. For all lea""" in which the """",ge annual lease initial term 01 the lease ~s describe in column (el, if applicable: the property or capacity leased. associated companies with an ,,""'nsk in column (b).

Nama of lasso< . Dascriplion 01 L ...... lor

Line (oj (b) (e) CUnenlVear

No. (d)

NONE

8

9

10

11

12

13

14

15

16

17

18

19

20 21 22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

36

39

4(1

41

42

43

44

45 '~G

Page 212

Name of Respondent !~~R~I'(l) 1

tlat.ofR~ ;,:r:enoo of R~ Zia Natural Gas Company (Mo.

Maya.

Gas PrCIIIG'IY and Capacity i.eaH<llo au-.

1. For all leases in which the """",ge lease income over the initial term of the lease exceeds $500,000 prOllide in column (el, " description of each facility or leased capacity that is classified as gas plant in service, and is leased to others for gas operations.

2. In column (d) provide the lease received from others. 3. Designate associated an asterisk in column (b).

Nomo of l"""'" . Description Of lioiiioii L ...... P~for

Une (0) (b) CurrenlY...,

No. (d)

1 NONE 2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

38

~ 42

43

44

45 Tolal

Page 213

INa"", of Respoodenl I~'~~od ) of 1 Zia Natural Gas Company

AcCUlTltJlalo<li _lor DoprecIaIloo <II Gas UIIIIIy _ (_11.18)

1. in a footnote any yea,. 2. in between the amount for book cost of plant retired, line 10, column (c), and that reported for gas plan! in service, page 204-209, column (d), excluding retirements of nondepreciable property. 3. The provisions of Account 108 in the Uniform System of Accounts require that retirements of depreciable plant be recorded when

such plant is removed from service. ~ the respondent has a Significant amount of plant retired at year end which has not been recorded andlor classified to the various reselVe functional classifications, make preliminary closing entries to tentatively functionalize the book cos! of the plant retired. In addition, include all costs included in retirement work in P"'!lress at year end in the appropriate functional classifications.

4. Show separately interest credits under" sinking fund or similar method of depreciation accounting. 5. At lines 7 and 14, add rows as necessary to report all data. Additional rows should be numbered in sequence, e.g., 7.01,7.02, etc.

Une Hem Total GasPWtin Gas PIont Hek Gas Plan! Leased

Service for F ........ U .. 10 0tI1er5 No. (0) (b) (e) (d Ie

_ A. BAl..ANCES MIl CHANGES DlIlN> YEN!

1_~oIY_

2 lloproeiaIion_fwY ... ,~to

3 403) 0"",......., Expono. $ 842,863 $ 842,863 4 (402I)IloproeiaIion~fw ___ Coob

~ (413)~oIGas_l_toOO-

6 T,~~-CIoaing

101fl0rCloaing_

8 0Ifl0r CIoaing (SpociIy) (fuoInoIo _):

9

10 TOTAl 0. ... Prov. for Y_(foml dinoo 3!1wlJ)

~ ,,~~ I I

oIaioi_'2!1wul4} 1$ (134,202) $

-~ _oipianl~ 905,459 $ 905,459

18 Boo<c..tol_R_C_

19 _EI1d .. r ... (fIllai .. _1,10,15,16 .... 11J) $ 14,788,689 $ 14,786,869

-. B.IlIIUINCES AT EM) Of YEN! ACCORIl1NG TO F1.H:'!lONAL CLISSI"ICATlONS

21~Gas

22_ .... ~Gas 23~_Gas

24 Undorgrormd Gas ..

2501fl0r,,_

26 _loadlHGT~ond~_

27T,~

28 Iliolribubon

29 GoooraJ

"" TOTAI.(f .... "'_2'1lw29l

Page 219

Nome of RespondenI This Roporlls:(l) I Dole of Report ':'::"" '" Report '" .~ Do, Vrl Zia Natural Gas Company (2) A May 2007

00- Rogulalory Asuls <_1112,3)

1. Report below the doIaiis caIed for coocemi1g oilier reguialory assets wtOch are crollied Ih«>ugh the rntemaldng actions of regulatory agencies (and noI irdIdabIe in other .......... ).

2 For reguialory asset. being amortized, show period of aroortizaIion in cWm (a). 3. """" ioms (5% of the Balance 01 End of Year fur AoooonII82.3 or 0I1lIlU1I$1ess then 5250,000. whicIIeIIer is less) may be groopod by classes. 4. Report ""I"'f1lIeIy any "Deferred Regulatory C«nmission E_·1hoI .... also reported on pages J50.351, Regulatory C«nmission ~.

U"" No. -. """"'1JUnIlII _oft'

S .... , .. tEndol ,1IIIIi1'!.iopo$ll

IlobiIo Account C!.mori .... (e) Quao1srN-

(a) Quao1srN...- -(b) (0) (!)

1 NONE 2

3

4

5

6

7

8

1

1

1

13

14

15

16

17

18

19

20

21

~ 26

27

28

29

30

31

32

33

34

~ 39

4lI Total

Paga232

of Respondent

I VearlPeri

) End of

CAPITAL STOCK DATA

2.ThoIobld g_in..!..,-;:m_andlor!g4Jo<mdobt

Une No. P .. V ....

SIlotodV .... C1aotandSorioorlSleek _of Pedi"".

Sham ofP .. p .. -. -- v .... - -(e) (1)) Sleek

Sham -(c) (d) (0) (Il

1 NONE 2

3

4

5

8

7

8

9

10

11

~ LONG-TERIII DEBT

i~: C1aot and Sorioo of 00Iig0ti0n - o.t..of - Inter .. OaIoof IAaIuriIy

I\ory_ torY ••

aI;:--J ""'" SIleo! % Rate -(II) (c)

(d) (0) (l)

16 NONE 11

18

19

20

21

22

23

24

25

2tl

21

28

29

30

L

Page 250

ThI. Rep<l<t 1.:(1) Dal."!.".~ V •• rlPoIlod

(2) }:M Original (Mo, Endo! 1

Zia Natural Gas Company MayS, 2007

other Reguiotory U.biltles (_ 254)

1. ReporI_!he _110 ""lied for """""""ng _ ~ lobiliti"" which .... """''''' throogII tho "'tomaklng .ctions of reguIotory agencl ... (ond not

2. show period of __ on In colum (0).

3. 1(5% 1$250,000, ,Ie •• ) ""'Y be groope<I by,

line IlEIlITS IlEIlITS _II

No -II - - End of CI.mInI

~. er_ (d) Cre<iiIs a.-tY_

.~(.) (el (0) (!)

a.-tY"", (b)

1 NONE 2

3

4

5

6

7

8

9

10

11

12

20

21

22

23

24

25

29

27

29

29

30

31

32

33

34

35

36

37

38

45ToIaI

I I

Page 278

Zia Natural Gas Company

_ ... R.....,.. ... r_ r_ _ ... ,,_for

un. -"'-c __

COSItcand ""'_ACA GIRl""''''''' .... (0)

_ ... _ .... """*"V_ PrwIou:iv ••

C!.NnIntv ••

_v_ (d) (0)

(0) (e)

Page 300

Name of Respondent li~~~eport Is( 1)

DaiEI 01 Report Zia Natural Gas Company

~6nginal' . (Mo. Do. Yn of

May 8, 2007

",,~a.-.

, 6. Report Ibe I"eWIIIlIIlIIt &om ~OI!I Mr'Vica: tbIIi: are bundled with ~ I«\'ltn .. ~ou service TWemte.

T"," T","

0IIw 0IIw ~ ~ ~of o.bII>omI or Une R"""", Reva:IQelI R", ...... Rt'VeDUell N-.Jo.. N-.!""" 1'10. _& _1m- _l'< _l'< _& _for

"'--v .... PreviOUll Year c...-V..,. PRviOlMVe« ",--v..,. Previour Year ,f. '" ... '" II Ikt

1 $ 31,413,186 $ 28,843,296 $ 31,413,186 $ 28,843,296 z $ 3 $ -• $ 59,586 $ 58,868 $ 59,586 $ 58,868 , $

• $ 7 $ 14,830 $ 172,636 $ 14,830 $ 172636

I 8' 1$ • $ -

10 $

1l $ -lZ $ 1 11 $ -1. S I

3 " $

1 1 $ -I 1 I

Page 301

Name of Respondent Zia Natural Gas Company

AI::ooo.ri (0)

1. PRODUCTION EXPENSES

15 758 Gas Wei Royalties

17760 Ronl.

18 TOTAl Operation (ToIIIl of illO$ 7_ 17)

19 Molllt"""""" 20 16i Moilll __ SI.porvisioo end Engi_ng

21762Mollll_0I_ondln",,,,,,,,,..,1Is

Z3 764 Moillt ..... """ 01 Fi<4d U"""

24 765 M.illl_ 01 Field Compressor stotioo Equipme<t

25 766 M.illt"""""" 01 Fi<4d M .. suring ond Regulating st.boo Equipme<t

2S 161 Mailll"""""" 01 Pl.rllicotioo Equipme<t

27 765 Maillt ... """ 01 [Jrjllng and Cleaning Equipme<t

28 789 Moillt"""""" 01 00- Equi~

29 TOTAl M.IIIt"""""" (Total oIlnes 20 _ 28)

JO TOTAL Not ..... 1 Gas Production ond GotherI"Il (Total oIlnes 18 ond29)

Page 317

""""""for CUrrertYeer

(til

""""""for Previous Yesr

(0)

Name of Respondent lillS' R~ 15:( 1)

Do'" Of. R':P"" r_R.~ Zia Natural Gas Company End of

) A F1_"lhmi.""" MayS,

Gaa Ope,otion ond M.intenance ExpenfiO>tl{eomlnued)

Line AccOO'1I AmounIfor AmounIfor No. (a) ClITemYear PrelliousYear

Operation

779 Marketing Expenses

43 780 ~ Pt.-chased lor Resale

44 781 Vanation in ~ InvenI<l<y

45 (less) 782 Extraded ~ Used by 1tre U1iI1y-Credl

45 783RenIs

47 TOTAl Operation (To1lIJ of lnes 33!hru 45)

48 Mail1lemlnce

49 784 Maintenance &JpervIsion and Engineal1ng

50 785 Maintenance of strucI1.res and I~

51 786 Mall1lena""" of Extraction and Refining Equipment

52 187 Maintenance of Pipe Unes

53 788 MaJl1IemInce of Extraded ~ S1xlmge Equipment

54 789 Maintenance of Compressor Equipment

55 790 Maintenance of Gas M",,""';ng and Regliating Equipment

56 791 Maintenance of 01trer Equipment

57 TOTAl Mall1lemlnce (Total of ines 49!hru 56)

56 TOTAl Products Extraction (Total of ines 47 and 57)

Page 318

Name of Respondent lillS Report IS:ll) Dale of Report Yea,lPenod of _R"I"'rt Zia Natural Gas Company IMo,Da, Yo End of

lAD, MayS, 2007

Gaa Operation ond Maintenance Expenan(continued)

Uno Account Am<lmIlo< Am<lmIlor No (0) ClMrentYea, PrelliousYea,

59 C, ExpIomIon and DeveIopmeI1I

60 Opera1ion

61 795 Delay Rentals

~~~ 1797 Ailandonad leases

00 and DeveIoprroeI1I (Total oflnes 61ltru 64)

66 D, 01her Gas SUppiy Expenses

67 Operation

68 BOO Natural Gas Wei Head Ptn:I1ases

69 BOO,l Natural Gas wee H .... d Ptn:I1ases, Inlnlcompany Transfers

70 601 Natural Gas Field Une PurcI1ases 71 802 Natural Gas Gasolne Plan! 0uIIet Ptn:I1ases

72 803 Nollnl Gas Transmission Une Ptn:I1ases

73 804 NaIlnl Ga. City Gale Ptn:I1ases $ 23,293,280 $ 21,994,929

74 804,1 U<Jle1Ied Natural Gas Ptn:I1ases

~--~-- [ I, 294,616

24,946,772 $ 22,289,544

80 807,1 wee Elqlense-Ptn:I1ased Gas

81 8072 Operation of l'ur<:hased Ga. MeaSUJing Sial"""

82 807,3 Maintenance of l'ur<:hased Gas Measuing Siations

83 807,4 Ptn:I1ased Gas Colc!htions Expenses

64 807,5 01t>er Ptn:I1ased Ga. Expenses

85 TOTAll'ur<:hased Gas Expenses (Total of lnes 80 ltru 64)

Page 319

Name of Respondent Zia Natural Gas Company

101 814 Operation Supervision and EngInee<ing

102 815 Maps and Records

103 816 Wells EJ<penses

104 817 Unes Expeose 105 818~Sle!fjooEJ<penses

107 820 Measaing and RegUating Sle!fjon EJ<penses

108 821 Punficatioo EJ<penses

109 822 Exploration and DeveI<ljlmenI

110 823 Gas Losaes

111 824 0U1er EJ<penses

112 825 S100Ige Well R0"y8!1!es

113826RenIs

114 TOTAl.. Operation (ToIlIl of illeS oI1011tru 113)

Page 320

AmornIlor CurrenlYear

AmornIfor Previous Year

0)

Name of Respondent

1r~1E~~:I~ :::?E End 01 fREif)(1rt

Zia Natural Gas Company

Ga8 Opel1l1lon and liIalntenance Expenses(con1lnuad)

Une Account Amou1Ifor Amou1Ifor No. (a) CUrrent Year Previous Year

(b) (e)

~81m-nce

118 832 Maim-nce 01 Reservoirs and Wets

119 833 Mllim-nee of Unes

120 834 Maim-nee of Compressor S1aUoo Equipment

121 835 Malntenan<:e of Measu1ng and RegoJaUng staUoo Equipment

122 836 Maim-nce of Puffication Equipment

123 837 Maim-nee of O\hef Equipment

124 TOTAL Maim-nee (Tola!ofines 11611ru 123)

125 TOTAL Undergroo1d S1mIge Expenses (Tola!oflnes 114 and 124)

126 B. Olher storage EJ<peI1SeS

127 Operation

128 840 Operation SUpervision and Engineenng

129 841 Operation lobe< and Expenses

130 842 Rents

131 842.1 Fuel

132 842.2_

133 842.3 Gas Losses

134 TOTAL Operation (Tola! of ioos 12811ru 133)

135 Maim-nee

136 843.1 Maim-nce SUpervision and Engineenng

137 843.2 Maintenance of_

138 843.3 Maim ..... nee 01 Gas HoItle<s

139 843.4 Maim-nee of PufficaUon Equipment

140 843.5 Maintenanee of Liquefaction Equipment

141 843.6 Mai"""",""e 01 Vaporizing Equipment

142 843.7 Malnlmance 01 Cornpl>ssor Equipment

143 843.8 Maim-nce of M .... su1ng and RegoJating Equipment

144 843.9 Maim-nce of Olher Equipment

145 TOTAL Maim-nee (Total "fines 13611ru 144)

146 TOTAL Olher S1mIge El<penses (Total 01 ioos 134 and 145)

Page 321

Name of Respondent lili~=!il) =7-

R

ep<Xt

v:r:oo OJ !'.~ Zia Natural Gas Company

G .... Operation and lIIaimenanco Exp"nllGS{contlnued)

line Accoi.r1I AmoonIloc AmoonIlor No. (a) CmmtYear Previous Year

(b) (e)

147 C. liquefied NalLlrlll Ga. T""';nalng and f'ro<:essing Expensas

148 OperatIon

149 844.1 Operation Supervision and EngI_ng

150 844.2lNG f'ro<:essing T""';nallabor and Expensas

151 844.3 liCflJ"l'aclion Processing labor and Expensas

152 844.4 UCfIJ"I'aclion Transportation labor and Expensas

153 844.5 Measu1ng and Regulating labor and Expensas

154 844.6 C<JmpresS<lf Slaton labor and Expensas

and load Dispatching ~-~ 150 845.4 Demtxmge Charges

161 (less) 845.5 \l\lhar!age R_pls-C,edl

162 845.6 P'O<:e!iSing liquefied or Vaporized Gas by 01Ilefs

163 846.1 Gas Losse.

184 846.2 0Iher Expensas

165 TOTAL OperatIon (To!lIl of lnes 14911'ru 184)

165 Maintenance

167 847.1 Maintenance Supervision and EngI_ng

168 847.2 Malnlenance of S1ruc1!res and I~

169 847.3Main1enance of lNG Processing T""'nal Equiprnml

170 847. 4 Maintenance 01 LNG Transportation Equiprnml

171 847.SMaintenance of Measu1ng and Regulating Equiprnml

172 847.6 MaIn1enance of C~ Slation Equiprnml I ~-.8 Maln1enance of 0Iher Equiprnml

OTAl Maintenance (T o!lIl of lnes 16711'ru 174)

TOTAL liquefied NIrtGas TemmIIlIngand Proc Exp (To!lIl oflnes 165 and 175)

TOTAL Na1JJraI Gas Storage (To!lIl of ines 125, 146, and 176)

Page 322

Name of Respondent lill:Ri:!J o..te~R~ YearlPe<ioo of _R,~

Zia Natural Gas Company (Mo,o.., End 01 MayS,

G •• Operalion and lIIIainlena""" Expen8M(eonlinued)

Line Account Amo<.nIfor Amo<.nIfor No, (a) Ctrren1 Year PrEMoosYea,

(b) (e)

178 3. TRANSMISSION EXPENSES

179 Operation

~ 184 854 Gas for ~ SIotion Fuel

185 855 0IIler Fuel lind Power for Compressor S1aUons

186 856 Mains E><penses $ 62,828 $ 69,884

187 851 Measuring lind Regulating S1aUon E><penses $ 37,501 $ 36,992 188 858 Transmission and Compression 01 Gas by 01he<s

189 859 0IIler E><penses HIll 860RenIs

191 TOTAl Operation (ToIa! of lnes 180 1I\ru 190) $ 100,329 $ 100,876 192 ~

193 861 Maintenance SUpeMsion and EngiflElel'ing

- of struc1l.oes and I~ 863 Maintenance of Mains 1$ 33,855 1$ 30,527 884 Malnt"""""" of ~ S1aaon EquiprIl<!<1t

197 865 Maintenance of Maosuring and Regulating SIotion Equiprll<!<1t

198 886 Maintenance 01 ConmroIcaaon EquiprIl<!<1t

199 867 Mointenance of 0IIler Equipment

200 TOTAl Maintenance (Tofol oflnes 19311\ru 199) $ 33,855 $ 30,527 201 TOTAl Transmission E><penses (Total of lnes 191 ond 200) $ 134,185 $ 137,403 202 4. DISTRIBUTION EXPENSES

203 Operation

204 870 Operation SUpeMslon lind Engi~ng

205 871 Disllibullon Load Dispa1d1ing

205 872 Compres_ S1ation Lilbor lind E><penses

207 873 ~ S1aaon Fuel and p"""",

Page 323

Name of Respondent riS Report 19:(1) Dale of r:e~rt YearlPeriod of~~~rt Zia Natural Gas Company (1) An End 01

(2)A'" 8,

Gas Operation and Maintenance Expen!l<lS{contlnued)

Line Account Amount for Amount for No. (a) CUlTemYear prevjous Year

(b) (e)

208 874 Mains and Services Expenses $ 565,455 $ 628,954

209 875 Measuling and Regula~ng station Expense&-Gen .. ral $ 337,509 $ 332,924

i~r-""-' and Regulating staron Expenses-City Ga. Check staron

House Regulator Expen ....

nstallation. Expenses

214 880 other Expen ....

215 881 Rents

216 TOTAl Operaron (Total 01 lines 204 lhru 215) $ 002,963 $ 1l61,8n

217 Maintenance

218 B88 Maintenance Supervision and Engineering

219 886 Maintenance of structures and Improvements

220 887 Maintenance of Mains S 304,698 $ 274,748 221 886 Maintenance of Comp"""",r staron Equipment

222 889 Maintenance of Measuring and Regulating staron Equlpmenl-Gen .. ral

890 Maintenance of llleas. and Reg. station Equipment-Industrial

891 Maintenance of Meas. and Reg. staron Equip-City Gate Check staron

225 892 Maintenance 01 Services

226 893 Maintenance of Metel1l and House Regulators

227 894 Maintenance of other Equipment

228 TOTAl Maintenance (Total of lines 218 lhru 227) $ 304,698 $ 274,748

229 TOTAL Distribution Expen""" (Total 01 lin"" 216 and 228) $ 1,207,661 $ 1,236,623

230 5. CUSTOMER ACCOUNTS EXPENSES

231 Operaron

232 901 Supervision

233 902 Meter Reading Expen ....

234 903 Cuaiomer Record. and Collecoon Expen .... $ 1,172,496 $ 1,215,138

Page 324

Name of Respondent ImZ:~!I(l) Dale 01_ Repo<t Y~iP:OO 01 ~"!"'lt

Zia Natural Gas Company MayS,

Gas Operation and Maintenance IExpenan{continued)

line Acoo.mt AAloI6lt for AAloI6lt for No. (a) Ct.mll1lYear Pr""ousYear

(b) (e)

235 904 Uncollectible Accounts $ 48,197 $ 44,622

235 905 Miscellaneous CUstomer Accounts Elcperlses

237 TOTAL CUstomer AccOlJ'lis Elcperlses (Tolal of ines 2321hru 235) $ 1,220,693 $ 1,259,760

238 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES

239 Operation

240 907 SUpervision

241 908 CUstomer Assistance Elcperlses

242 909 Informational.nd Instrudional Elcperlses

~~~.m'_~ SeMce and Information Elcperlses (Total of ires 240 Ihru 243) !$ $ -7. SALES EXPENSES

248 912 Demons1rating and Selng Elcperlses

249 913 Advertising Elcperlses

260 916 Miscellaneous SIIles Elcperlses

251 TOTAL Sales Elcperlses (Tolal of.""" 2471hru 250) $ - $ -252 8. ADMINISTRATIVE AND GENERAl EXPENSES

253 Opera1Ion

254 920 Admiris1ratiVe and ~ SalaI1es $ 1,555,184 $ 1,506,570

255 921 Office Supplies and Elcperlses

258 (Less) 922 Adminis1rll1ive El<p<lnses Tram;ferre<l-Credl1

257 923 outside SeMces E~

258 924 Property Instill"""

259 925 l..,n"" and Damages $ - $ 142,056

i!IIi .2MlsceI8rleoI.is General Elcperlses

266 931Renls

267 TOTAL Opera1Ion (Total of lnes 2541hru 266) $ 1,555,184 $ 1,548,635

266 Moirdenance

259 932 Mairdenance of General Plant

270 TOTAL Admiris1rll1ive and General Elcperlses (Tolal of lnes 267 and 269) $ 1,555,184 $ 1,648,638

271 TOTAL Ga. 0&1.4 Expenses (Total of Broes 97, In,201,229,237,244,251, and 270) $ 29,064,495 $ 26,571,956

Page 325

line No.

110m (0)

iIISj..:..._:_IIobbIIJ __ oIIUn_._co�n __ t_ ... _IIIy __________ _

7 Go of 0tfwnI R~ ficr ConIrad; S'ItoragII (Atcount ... .4)

11 0II10< __ 1rom-'(~)

14

18 GAS DELIVERED

19 OoIMorin .. ""'y_ ... """"" ............ -.2) .. _~ ... '*-(l\ee __ .3)

27

Page 520

"I< ..... ""

(1))

301

307

328

1,735,254

1,647,507

303

305

301

301

32!1

3211

332

-1,647,501

87,747

87,741

lile No.

110m (.j

GAS RECEIVED

16 GASOElMRED

17 _-(A<:_-..84j

18 ~ olGa Gaihered for 0it'Iers (Ac:cCUtt489.1)

19 ~ •• '_T~luoon...(A<:"""499.2)

20 Deliveries of Gin DiBlributIItd me Others (Account 499.3) 21 DeliwlriMofControc! __ (A<:. __ A)

22~--"'0III0rlI(A<:"""1IOO')

23 Gas ~ II:S l~. (Aceourd:806)

24 ~.of_IoOlllorll""T~(Auoort1lOO)

2. ""--_"'_<_) 26 GIllS Used for Compt'M&OI' SIiiiIiI:hon FI.IIiW

T1

28 r ... DolIvoriM(T .... finn 17lhru27)

28 GAS UNACCOUNTED FOR

30 Production Symm loa ...

31 ~SyWmLoo_ 32 rr ___ SyWm L_

33 Distribution System Lo"" 34 _ SyWm Loooe.

T"""~F"'(T"'oIinn30Ihru:l5j

~&"""'_F",(T"""of_28ond36)

(1))

$ 123,485 303

301 $ 646,252

307

$

$ 112,765 -3IJ5

301 $ 646,252

307

328

328

332

509

$ 759,017

10,720

$

$

Page 520 (2)

I~iame of Respondent YearlPeriod ia Natural Gas Company An Original End of 1

A

System Maps

Name of Respondent This Report is: (1) Date of Roport Zia Natural Gas Company (1) An Original End of

(2) A Resubmission May 8,

FOOTNOTE REFERENCE Page No. Line or Item No. Column No Footnote No

(a) (b) (e) (d)

551

Accrued and prepaid !axes 262-263 Accumulated 1-" vv,,,,,,,, for ""'I-" ..... 'auv' of gas utility plant 219

utility plant (summary) 200-201 Advance to associated companies 222 Associated "'" "" .. , """. advances from 256

advances to 222-223 control over respondent 102 corporations controlled by. respondent 103 investment in 222-223

~ 357

HSR discount 254 expense 254 premiums 252 reacquired 251 subscribed 252

Cash flows statement of 120-121 Changes - important during the year 108 CompressorSumons 508-509 Construction overhead procedures, general description of 218

work in progress - other utility departments

e:= e over respondent 02 security holders and voting powers 107

CPA Certification, this report form i Current and accrued liabilities, miscellaneous 268 Deferred credits, other 269

debits, miscellaneous 233 income !axes accumulated 234-235 income taxes, accumulated-ol:her property 274-275 income !axes, accumulated-other 276-277 regulatory expenses 350-351

Definitions this report form

amortization and depreciation of gas plant "" and amortization of producing natural gas land and land rights 336-338

l!!as plant 336-338 gas plant in service 219

Discount on Capital Stock 254

Dividend appropriations 118-119 Eamings, retained 118-119

Exchange and imbalance transactions 328 Expenses gas operation and maintenance 320-325 Extraordinary property losses 230

Filing RequirO::HlO::I''''', this report form i-iii Footnote Data 551-552 Gas account -- natural 520

Gas exchanged, natural 328 received 328 stored underaround 220 used in utility operations credit

• ~ons1ruction ovomead .n,com"o, 2-303 218 101

Income deductions -- details f256-259, 340 statement of for year 114-116

Installments received on capital stock 252 Interest on debt to associated companies 340

on lona-term from investment, etc. 256-257 Instructions for filing the FERC Form No.2 i-iii Investment in associated companies 222-223

other 222-223

subsidiary companies 224-225 securities dis osed of durin a year

~ -223 iv

this report form 2-3 Legalproceedinas durina vear 108 Long-term debt 256-257

assumed during year 255 retained during year 255

,~1al ""1:4"" Ilel and "" '1:4"1"'0::111 '1.1 contracts 357

Map, systemO 522

Miscellaneous general expense 335 Notes Payable advances from associated companies 256-257

to balance sheet 122 to financial statement 122 to statement of income for the vear 122

- gas

~ revenues - gas I Other donations received from stockholders 253

aains on resale or cancellation of reacauired caoital stock 253 miscellaneous paid-in capital 253 other supplies expense 334 paid-in capital 253 reduction in par or stated value of capital stock 1253

1232 Ir ....... I-.+,., ... , liabilities 1278 Peak u<1ililr",,,,,,,,,, transmission system, 518 Peaking facilities, auxiliary 519

Plant -- gas construction work in progress 216

held for future use 214

1212 leased to others 1213

Plant accumulated I-"vm,,,,,",,, ,"''''"II''''''),} 200-201 leased to others, income from 213

Premium on capital stock 252 !Prepaid taxed 262-263

I...., ''''''' .. y'', .. " .... 230

Professional services charges for 357 Property losses, "'AU av, .... 11 ,a, 230 I~eacquired capital stock 250-251

long-term debt 256-257 Receivers' certificate 256-257

ses ses - deferred

Retained eamin

C Stock liabilitv for conversion Storaae of natural (las underaround revenlLes 3Q6...307

~mulated .262-263

222-223

~ reconciliation of net income for Transmission

lines t14 revenues system oeak deliveries

Unamortized debt discount and eXPense 258-259 lose and aain on reacauired debt 260 oremium on debt ?58-?5.q

Underaround 51:l-5li Unrecovered plant and l]:lgulatol"'Lstudll' costs 230