B&HGas Co.

497 George Rd,

Betsy Layne, KY 41605

Phone: (606)478-5851

Fax:(606)478-5266

February 2018

Mr. Matthew Baer

Kentucky Public Service Commission

PO Box 615

211 Sower Blvd

Frankfort, KY 40602

RECEIVED

FEB 2 0 2018

PUBLIC SERVICECOMMISSION

Mr. Baer,

Pursuant to Public Service Commission Order in Case No. 2015-00367, B&H Gas Company

("B&H") encloses, for filing with the Commission an original and ten (10) copies of datasubmitted pursuant to the requirements of the Gas Cost Adjustment Provision contained inB&H's tariff for its March quarterly Gas Cost Adjustment ("GCA").

B&H proposes to decrease its current rates to tariff sales customers by (-$0.4746) per Mcfeffective with its April 2018 billing cycle on April H', 2018.

Also, B&H is submitting three (3) Natural Gas Analysis for its active wells. For the purpose ofadjusting its Heat Differential.

Please feel free to contact me at (606)478-5851 or bandhgasi@mikrotec.com if there are anyquestions.

Sincerely,

Bud Rife

President

Enclosures

Case No. 2018-00073

Company Name

B&H Gas Company

Quarterly Report of Gas CostRecovery Rate Calculation

APPENDIX B

Page 1

RECEIVED

FEB 2 0 2018

PUBLIC SERVICECOMMISSION

February 2018

Date Rates to be Effective:

April 1^', 2018

Reporting Period is Calendar Quarter Ended:

December 31®*, 2017

Revised 02-26-04

Case No. 2018-00073

APPENDIX B

Page 2

SCHEDULE

GAS COST RECOVERY RATE SUMMARY

Component

Expected Gas Cost (EGC)+ Refund Adjustment (RA)+ Actual Adjustment (AA)+ Balance Adjustment (BA)= Gas Cost Recovery Rate (GCR)

GCR to be effective for service rendered from

$/Mcf$/Mcf$/Mcf

$/Mcf

Amount

5.3643

5.3643

EXPECTED GAS COST CALCULATION

Total Expected Gas Cost (Schedule II)Sales for the 12 months ended

Expected Gas Cost (EGC)

REFUND ADJUSTMENT CALCULATION

Supplier Refund Adjustment for Reporting Period (Sch.lll)Previous Quarter Supplier Refund AdjustmentSecond Previous Quarter Supplier Refund AdjusmentThird Previous Quarter Supplier Refund AdjustmentRefund Adjustment (RA)

ACTUAL ADJUSTMENT CALCULATION

Actual Adjustment for the Reporting Period (Schedule IV)Previous Quarter Reported Actual AdjustmentSecond Previous Quarter Reported Actual AdjustmentThird Previous Quarter Reported Actual AdjustmentActual Adjustment (AA)

BALANCE ADJUSTMENT CALCULATION

Balance Adjustment for the Reporting Period (Schedule V)Previous Quarter Reported Balance AdjustmentSecond Previous Quarter Reported Balance AdjustmentThird Previous Quarter Reported Balance AdjustmentBalance Adjustment (BA)

Mcf

$/Mcf

Amount

74177.81

13.828

5.3643

Amount

$/Mcf

$/Mcf

$/Mcf

$1

$/

$/

$-$/Mcf

Unit

$/Mcf

$/Mcf

$/Mcf

$/Mc

Amount

Amount

Revised 02-26-04

SCHEDULE

EXPECTED GAS COST

Actual * MCF Purchases for 12 months ended December 31. 2017

APPENDIX B

Page 3

Supplier

B&S Oil +

Gas

(3)BTU

Conversion Factor

1.275

Mcf

14392

Rate

$5.1541

(6)(4) X (5)Cost

$74,177.81

Totals

14,392 $74,177.81

Line loss for 12 months ended Dec. 31, 2017 is14392 Mcf and sales of 13828

1% based on purchases ofMcf.

Total Expected Cost of Purchases (6)Mcf Purchases (4)Average Expected Cost Per Mcf PurchasedAllowable Mcf Purchases (must not exceed Mcf salesTotal Expected Gas Cost (to Schedule lA)

Unit

$Mcf

$/McfMcf

$

Amount

74,177.8114,392

5.1541

14392

74,177.81

*0r adjusted pursuant to Gas Cost Adjustment Clause and explained herein.**Supplier's tariff sheets or notices are attached.

Revised 02-26-04

'

Southern Hydrocai-bon Corporation

SERVlCES & PROD UC TS

Apl. B. ?3-i Ultk Co~l Rivc:r Alum Creek. W~'!lt Virgln!a 2-5003 l'el: UO·O 7S6-jl71 • Fax:{j04) 756-1364

Chan d ler Engineeri ng Co . Model 292/29 20 BTU Analyzer

Test time: Jan . OB 18 1 0 : 29 Test t\: :3739

Ca libra tion # : 230 Location No . : 3

Standard / Ory Analysis Saturated/Wet An al y s is --Mole'l. BTU * R . Den . 11< GPM** Mo 1 e'l. BTU * R.Den . *

Methane 68 . 615 694 . 64 0 . 3801 67.421 682 . 55 0.3734

Et hane 18 . 768 332 . 91 0 . 1949 5 . 0 160 1 8.442 327 . 1 1 0 .1915

P r opane 8 . 702 219 . 46 0 .1 325 2 . 3 959 8.550 215 .6 4 0 . 1302

i - Butane 0 .48 5 15.80 0 . 0097 0 . 1 586 0 . 47 6 15 . 53 0 . 0096

n-Bu tane 1 . 910 62 .45 0 . 038 3 0 . 6021 1 . 877 61 . 37 0 . 0377

i -Pentane 0 . 236 9.48 0 . 0059 0 . 086 5 0 . 232 9 . 32 0 . 0058

n-Pentane 0 . 310 12 .44 0 . 0077 0 . 1121 0 . 304 12 . 22 0 . 0076

' C6+ ) 0 . 331 16 . 80 0 . 0 105 0 . 1 425 0 . 325 16 . 51 0 . 0103

Moi s t ure o.ooo o. oo 0 . 0000 1 . 740 0 .88 0 . 0108

Ni trog en 0 .439 0 . 00 0 . 0 042 0 . 4 ...i l o . oo 0 . 0042

( C02 ) 0 . 2 04 0 . 00 0 . 0031 0 . 201 0 . 0 0 0 . 0030

Idea l 100 . 00 1364 . 0 0.7869 8 .5137 :+: : Uncon ected fo r compressibility at 6 0 . 0 F & 14 . 730PS IA . ** = Liqu id Vo lume reported at 60 . 0F .

Molar Ma s~ = Relati v e Densi ty = Com pres sibility F acto r = Gross Heating Value ~

Gro s s He a. ti ng Va l ue ::;:

~bsol<il: e Gas Dens.1.ty = Wobbe Inde i< =

Stand ard /Ory Ana ly s is 22 . 791 0 . 7901 0 . 9956 2 2659 . Btu / lb

137 0 . 1 E tu/CF

60 . 46 5 1 lbm/lOOOCF 15 1 5 .63

Satu rated / Wet Ana lysis 22 . 708 0 . 7873 0 . 9955 22361. Btu/lb

1347 . 2 Btu/CF

60 . 2 49 0 lbm/lOOOCF

Un n ormalized Total ; 99 .486 Ld~t Ca l 1b r· a t e d w.1. th Calyas o r 1U56 . 4 Btu/CF Jan . OB 18 0 9 : 29 Cb+ L a~t Upda te : GPA 2261 -90 .

Cb+ RTUI CF 5 065 . 8, C6 + lbm/Gal 5 . 64250 , cind C6+ Mel . Wt. 92 . 00 .

DISCLAIMER All analysis are hued solely on samples and materials supplied to Soulhem Hydrocarbon Corporation bY !ht client. Southern Hydrocarbon Corporation. if§ ~fficen and em(lloyees assume no responsibility for and make no warranty as 10 Ille JIOductMty. rroper operations. or profitability of lll1Y ps well or well or olhct operations or facilities in connc:ction with which these analysis arc relied upon. Southern Hydrocarbon Corpo111ion makes no· warranty as to the accuracy of these analysis. These analysis reflect the best judgement by Southern Hydrocarbon Corporation

Client:. ___ B=-:&:;..;:;H:....:;;G:.::a~s..::C=::o~m~p~a~n~y~-------

Well/Site:__.T:.:r:.::a:.::m::__ ____________ _

Measuring Station: ____________ _

District: ___________ Pressure: 5#

Date: __ .;:;.;01::..;/0=2::..:/2~0.;:;.:18~ ___ Time: 1520

Remarks: -----------------

Southern Hydrocarbon Corporation

S8RV ICE S & PROD U CTS

Apl. B, 934 Uttlc Coal River Alum Cn-ck. Wt.'Ht Virginia 25(103 Chandl8r- Enginee r ing Co. l'c.L: l311't) 7,6-,H71 • Fax: (j04) 756-1364

Model 292/2920 BTU Analyze r

Test ti me : J a n . OB 18 11: 25 Tesi:: ::t : 3741

Calibration # : 230 Location No . . : 3

Metnane Ethane F' r-opane 1-Eutane n-Butane i. -Pen tane n -Pen tane t C6+ ) Moistur-e ( C02

__ Standar-d /D r-y Analysis __ Mo l eZ BTU* R . Den . * GPM**

70 . 382 712 . 52 0 . 3898 17 .6 46 3 13.00 0 . 1832 4 . 7160

8 .498 2 14 . 33 0 .1294 0 . 47 3 15 . 41 0 . 009 5 1 .922 6 2 . 86 0 . 0386 0 . 237 9.49 0 . 00 59 0 .311 12 . 50 0 . 0077 0 . 329 16 .69 0 . 0104 0 . 000 o .oo 0 . 0000 0 . 203 0 .00 0 . 0031

2 . 3399 0 .1546 0 . 6060 0 . 0 866 0 . 1126 0 . 1415

I dea l 100 . 00 1 356 . 8 0 .7776 8 .1572

Satur-ated/ We t Analys is Mo l e% BT U* R . Den . *

69 . 157 700 . 12 0 . 3 8 31 17 . J 3 8 307 . 55 0 . 1800

8 . 351 210 .60 0 . 1271 0 . 465 15 . 14 0 . 0093 1 . 889 61 .76 0 . 0379 0 . 232 9 . 32 . 0058 0 . 306 12 . 28 0.0076 0 . 323 16 . 40 0 . 0103 1 . 740 0 . 88 0 . 0108 0.199 0 . 00 0 . 0030

* : Uncor r e~ted fo r compressibili t y at 60 . 0F & 14 . 730P5IA . ** = Li quid Volume reported at 60 . 0F .

Mol a r Ma s s = Re l at i v e Density = Com pr-essibilit y Factor = Gross Heating Value =

Standar-d / Dry Analysis 2;;.; . 523 0 . 7807 0 . 9956 22808. Btu/lb

Saturated / Wet An al ysis 2""' .444 0 . 7781 0 . 9956 22504 . Btu/lb

Gross Hea ti ng Val ue = 1362 .7 Btu/CF 1340.0 Btu/CF

Absol ut e Gas Density = 59 . 7485 lbm/lOOOC F 59 . 5449 lbml iOOOCF

Wobbe In de x = 151 6 . 5 3 Unnorma 1 i z ed Ta ta l : 100 . 306 l ast Calibrated with Cal gas of 1056 . 4 Btu/CF Jan.OB 18 09 : 29 C6+ Las t Update : GPA 226 -90 .

Cb• BT U/C F 5065 . 8 , C6+ lbm/G a l 5 . 64 2 50, and C6+ Mal . Wt . 9 2 . 00 .

DISCLArMER All analysis are based solely on samples and materials .s1.1ppl ied to Southem Hydrocarbon Corporation by the client. Soutbcm Hydrocarbon Corponition, it"s officel'll and cmpl~ assum~111nesponsibilityior ind niiKe. no wamnty IS to the Jl'Oductivity. proper opcmions. or protitabilily of any ps well or well or olbcr operations or lli~-ililic:s in a>RRCl:tion with which lhcsc analysis ire relied upon. Soulhem Hydrocarbon Corporaiion makes no warranty IS to the •cc:urKY of these 11181ysis. Tllese analysis reflect the best judpmcnt by Southl:m Hydrocarbon Corporation

Client: ___ B=--&;;;...;;;;B;;..G=a~s ..::C;;..::o:.::m::..ip~a:.::n:.z:y _______ _

W elVSite: Betsy Layne Shop

Measuring Station: ____________ _

District: ___________ Pressure: 5#

Date: _____ Ol=-/.;.;;02;;,;.;/2~0-.-1..:.8 ____ Time: 1142

'

Southern Hydrocarbon Corporation

- SERV[CES & PRO'D UC TS

Apl. H, 9~ Utlk Coal River Alum Creek. Wc."llt Virginia :l5003 Chandl er Engineering Co . l "eL: (31}4) 756-3171 • Fax: (304) 756.1364

Model 2 9 2 /2920 BTU Analyzer

r~st time : Jan . OB 18 10 :44 Test ~ : ;:,740

Ca l ib r ation # ; 230 Lo c a tion No . : 3

Me t han e ·[than e P ropa n e i -Butane n - Bu tane i-Pentane n-Pentane I C6+ i

Moisture r-Ji rogen \ CO:'

__ Stanaard /01'")' Analysis Mole% BTU* R . Den . * GPMI *

73 . 609 7 45 . 19 0 . 4077 15 . 989 2 8 3 . 62 0 . 1660 4 . 2 734

6 . 950 175 . 27 0 . 1058 1 . 9135 0 . 420 13 . 68 O. U084 0 .1 372 1 . 491 48 . 77 0 . 0299 0 . 4702 0 . 206 0 . 258 0 .295 0 . 000 0 . 611 () . 171

8 . 26 10 . 37 1. 4 . 99

0 . O•:J

0 . 0051 0 . 0064 0 . 0094 0 . 0000

o .ou 0 . 0059 o. oo 0 . 0026

0 . 0754 0 . 0934 0 . 1271

Ideal 100 . 00 1300 . 1 0 . 7473 7 . 0 9 01

Satura t ed /Wet Analysis Mo le% BTU* R . Den . *

72 . 328 732 . 22 U . 40U6 15 . 711 278.68 0 .1631 6.829 172 .22 0.1040 0 . 412 13.44 0 . 0083 1 . 465 47 . 92 0 . 0294 U.202 8 . 12 0 . 0050 o . 254 io.19 0 . 006 3 0 . 2 9 0 14 . 73 0 . 0092 1 . 740 0 .88 0 . 0108 0 .600 0 . 00 0 . 0058 0 .168 . 0 . 00 0 . 0026

* : Uncorrected for compressibi li ty at 60 . 0 F & 14 . 730PS1A . ¥* : L i quid Volume re ported a t 60 . 0F .

Molar- Ma s s St~ndard / Dr y An al ysis

2 1 . 6 44 Relative Densit y = 0.7500 Com p r essib i lity Fa ctor Gross He atin g Va lue

Gr o ~s rlea t ing Valu e

1 ~b ·-:-o lu te' Gas l)en s.l ty Wobbe Inde x Unnormaliz ed Total ;

0 . 9961 .<.27 4 3 . B tu/lb

= 1.3 )::> . 3 l::lt u /CF

57 . 9 4 0 l brn/l OOOCF = 1482 . 15 99 . 0 17

Satur ated / Wet Anal y s i s 2 1 . 5.8 0 . 7478 0 . 9960 22 428 . Btu/ lb

1283 . 6 Btu / CF

57 . 2312 lbm / 1000CF

Las t ~al brated with Calga s of 1056 . 4 Btu/ CF J an . OB 1 8 0 9 : 29 Cb + ~ast Updat e: GPA 2261 - 0 .

-:6- 8 11J/CF '.} l>t,5 . 8 , C6+ l bm / Gal 5 . 64250 , and C6+ Mal.Wt. 92 . 00 .

DISCLAIMER All analysis are based solely on •mples and materials supplied to Soulhem Hydroc:arbon Corponuion by lhe client. Southern Hydrocarbon Corporation. ifs office~ and einploycc:a a9Umc no responsibility for and make no warranty as to the productivity. proper operalions. or profitability of any ps well or well or otbct operations or li\OilitiG3 in WIUJQ;lioQ with which the3c analysis arc rel.led upon. Sou1hem Hydrocarbon Corporation makes no wamncy as to the accuracy ofthe$e analysis. These analysis reOect lhi: bmjudgcment by Southern Hydrocarbon Corporation

Client: _ _..B:;;;;...;:;&~H:...;G=as::..C~om:.::.&:p:.:a:.:.ny.._ ______ _

WelVSite: Cornfield

Measuring Station: ____________ _

District: Pressure: 6# ~~~~~~~~~~~~-

Date: __ ..;;..;01:.:..../0=2=/2=0=18::;..__ ___ Time: 1440