9. Assignment of Proceeding

Susan P. Kennedy is the Assigned Commissioner and Myra J. Prestidge is assigned ALJ in this proceeding.

1. The proposed easement will not interfere with SoCalGas' use of the property for utility purposes or with service to SoCalGas customers, and will be utilized in a manner consistent with Commission and legal requirements.

2. SoCalGas' conveyance of the proposed easement to SCE will uphold and preserve SCE's pre-existing right to an easement across the property for potential use as a transmission line corridor, if SCE determines that an additional transmission line is needed in the future.

3. SoCalGas' conveyance of the easement to SCE will enable Rye to construct and dedicate Aurora Drive as required for development of its project in the City of Santa Clarita.

4. It is not possible to assess the feasibility of future non-tariffed development on SCE's new easement area, until SCE has engineered any future transmission lines to be located in the new easement area.

5. Compensation received by SoCalGas from Rye for the proposed easement will be credited to SoCalGas' Miscellaneous Operating Revenues account, as consistent with ratemaking treatment for other SoCalGas revenues received from ceased or rented facilities.

6. SoCalGas will be fully compensated for the assessed value of the easement.

1. SoCalGas' conveyance of the proposed new easement to SCE is not a project under Public Resources Code Section 21080 and therefore does not require environmental review.

2. SoCalGas is required to obtain our prior approval of any development on its property in the area of SCE's previous easements pursuant to Section 851.

3. SCE must obtain our prior approval of any future expansion of transmission facilities in new easement areas, as required by GO 131-D.

4. Consistent with Section 851, SoCalGas' conveyance of the easement to SCE for the project will serve the public interest and should be authorized.

5. The decision should be effective today in order to allow the easement to be conveyed to SCE expeditiously.

ORDER

IT IS ORDERED that:

1. Southern California Gas Company (SoCalGas) is authorized to convey an easement, as described in Exhibit B to the Application, to Southern California Edison Company (SCE).

2. SoCalGas shall credit the $21,000.00 received for the easement to its Miscellaneous Operating Revenues account.

3. SoCalGas shall obtain our prior approval pursuant to Section 851 of any development on its property in the area of the three easements previously conveyed to SCE. SCE shall not permit any development in the new easement area by any third party until any future transmission facilities have been designed and built, unless SCE first obtains our approval of such development.

4. This proceeding is closed.

This order is effective today.

Dated July 8, 2004, at San Francisco, California.

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