Commitments and Contingent Liabilities	3 Months Ended
Apr. 30, 2011
Commitments and Contingent Liabilities [Abstract]
Commitments and Contingencies	14. Commitments and Contingent Liabilities Long-term contracts We routinely enter into long-term gas supply commodity and capacity commitments and other agreements that commit future cash flows to acquire services we need in our business. These commitments include pipeline and storage capacity contracts and gas supply contracts to provide service to our customers and telecommunication and information technology contracts and other purchase obligations. The time periods for pipeline and storage capacity contracts range from one to 21 years. The time periods for gas supply contracts range from one to two years. The time periods for the telecommunications and technology outsourcing contracts, maintenance fees for hardware and software applications, usage fees, local and long-distance costs and wireless service range from one to four years. Other purchase obligations consist primarily of commitments for pipeline products, vehicles and contractors. Certain storage and pipeline capacity contracts require the payment of demand charges that are based on rates approved by the FERC in order to maintain our right to access the natural gas storage or the pipeline capacity on a firm basis during the contract term. The demand charges that are incurred in each period are recognized in the consolidated statements of income as part of gas purchases and included in cost of gas. Leases We lease certain buildings, land and equipment for use in our operations under noncancelable operating leases. Legal We have only routine litigation in the normal course of business. Letters of Credit We use letters of credit to guarantee claims from self-insurance under our general liability policies. We had $3.5 million in letters of credit that were issued and outstanding at April 30, 2011. Additional information concerning letters of credit is included in Note 12 to the consolidated financial statements in this Form 10-Q. Environmental Matters Our three regulatory commissions have authorized us to utilize deferral accounting in connection with environmental costs. Accordingly, we have established regulatory assets for actual environmental costs incurred and for estimated environmental liabilities recorded. In October 1997, we entered into a settlement with a third party with respect to nine manufactured gas plant (MGP) sites that we have owned, leased or operated and paid $5.3 million, charged to the estimated environmental liability, that released us from any investigation and remediation liability. Although no such claims are pending or, to our knowledge, threatened, the settlement did not cover any third-party claims for personal injury, death, property damage and diminution of property value or natural resources. There are three other MGP sites located in Hickory, North Carolina, Nashville, Tennessee and Anderson, South Carolina that we have owned, leased or operated. In addition to these sites, we acquired the liability for an MGP site located in Reidsville, North Carolina, in connection with the acquisition in 2002 of certain assets and liabilities of North Carolina Services, a division of NUI Utilities, Inc. As part of a voluntary agreement with the North Carolina Department of Environment and Natural Resources (NCDENR), we conducted and completed the soil and groundwater remediation for the Hickory, North Carolina MGP site. Although the soil and groundwater remediation report was approved by NCDENR, we will continue to and are currently conducting periodic groundwater monitoring at this site. We have incurred $1.4 million on this site through April 30, 2011. In September 2009, the NCDENR requested an investigation plan for the Reidsville, North Carolina MGP site. In June 2010, we conducted our initial investigation which consisted of digging test pits and completing soil and groundwater contamination testing. The site investigations are now complete and a draft remediation plan has been submitted to the NCDENR for review. Our estimate of the total cost to remediate the Reidsville site is $.8 million for which we have recorded a liability. In November 2008, we submitted our final report of the remediation of the Nashville MGP holding tank site to the Tennessee Department of Environment and Conservation (TDEC). Remediation has been completed, and a consent order imposing usage restrictions on the property was approved and signed by the TDEC in June 2010. The public comment period has ended and we are currently conducting periodic groundwater monitoring at the site per the final consent order. We have incurred $1.5 million through April 30, 2011 for this remediation. In connection with the 2003 North Carolina Natural Gas Corporation (NCNG) acquisition, several MGP sites owned by NCNG were transferred to a wholly owned subsidiary of Progress Energy, Inc. (Progress) prior to closing. Progress has complete responsibility for performing all of NCNG's remediation obligations to conduct testing and clean-up at these sites, including both the costs of such testing and clean-up and the implementation of any affirmative remediation obligations that NCNG has related to the sites. Progress' responsibility does not include any third-party claims for personal injury, death, property damage, and diminution of property value or natural resources. We know of no such pending or threatened claims. At our Huntersville LNG facility, we are continuing to address the remaining remediation issues, including monitoring groundwater contamination and removing lead-based paint, with the latter scheduled to be finished in our fiscal year 2011. As of April 30, 2011, our estimate of the total cost to remediate the property is $3.1 million and we have incurred $2.9 million through April 30, 2011. During the six months ended April 30, 2011, we assessed the cost to remove lead-based paint at our Nashville LNG facility, and we increased our reserve by $.5 million. The removal of lead-based paint at our Nashville LNG facility is scheduled to be completed in fiscal 2011. We are transitioning away from owning and maintaining our own petroleum underground storage tanks (USTs). Only our districts in Charlotte, North Carolina and Greenville, South Carolina continue to operate USTs. Our Greenville district has begun plans to have its USTs removed in our third fiscal quarter 2011. As of April 30, 2011, our undiscounted environmental liability for USTs for which we retain remediation responsibility is $.4 million. One of our operating districts has coatings containing asbestos on some of their pipelines. We have educated our employees on the hazards of asbestos and implemented procedures for removing these coatings from our pipelines when we must excavate and expose small portions of the pipeline. Lead-based paint is being removed at multiple LNG facilities that we own. Employees have been trained on the hazards of lead exposure, and we have engaged independent environmental contractors to remove and dispose of the lead-based paint at these facilities. Based on information we have to date, we believe that the ultimate resolution of these matters will not have a material adverse effect on our financial position, results of operations or cash flows. As of April 30, 2011, our undiscounted environmental liability totaled $2.3 million, and consisted of $1.5 million for the four MGP sites for which we retain remediation responsibility, $.4 million for the LNG facilities and $.4 million for the USTs not yet remediated. Further evaluation of the MGP sites, the UST sites and removal of lead-based paint could significantly affect recorded amounts; however, we believe that the ultimate resolution of these matters will not have a material adverse effect on our financial position, results of operations or cash flows. Additional information concerning commitments and contingencies is set forth in Note 7 to the consolidated financial statements of our Form 10-K for the year ended October 31, 2010.

Commitments and Contingent Liabilities

3 Months Ended

Apr. 30, 2011

Commitments and Contingent Liabilities [Abstract]

14. Commitments and Contingent Liabilities

Long-term contracts

We routinely enter into long-term gas supply commodity and capacity commitments and other agreements that commit future cash flows to acquire services we need in our business. These commitments include pipeline and storage capacity contracts and gas supply contracts to provide service to our customers and telecommunication and information technology contracts and other purchase obligations. The time periods for pipeline and storage capacity contracts range from one to 21 years. The time periods for gas supply contracts range from one to two years. The time periods for the telecommunications and technology outsourcing contracts, maintenance fees for hardware and software applications, usage fees, local and long-distance costs and wireless service range from one to four years. Other purchase obligations consist primarily of commitments for pipeline products, vehicles and contractors.

Certain storage and pipeline capacity contracts require the payment of demand charges that are based on rates approved by the FERC in order to maintain our right to access the natural gas storage or the pipeline capacity on a firm basis during the contract term. The demand charges that are incurred in each period are recognized in the consolidated statements of income as part of gas purchases and included in cost of gas.

Leases

We lease certain buildings, land and equipment for use in our operations under noncancelable operating leases.

Legal

We have only routine litigation in the normal course of business.

Letters of Credit

We use letters of credit to guarantee claims from self-insurance under our general liability policies. We had $3.5 million in letters of credit that were issued and outstanding at April 30, 2011. Additional information concerning letters of credit is included in Note 12 to the consolidated financial statements in this Form 10-Q.

Environmental Matters

Our three regulatory commissions have authorized us to utilize deferral accounting in connection with environmental costs. Accordingly, we have established regulatory assets for actual environmental costs incurred and for estimated environmental liabilities recorded.

In October 1997, we entered into a settlement with a third party with respect to nine manufactured gas plant (MGP) sites that we have owned, leased or operated and paid $5.3 million, charged to the estimated environmental liability, that released us from any investigation and remediation liability. Although no such claims are pending or, to our knowledge, threatened, the settlement did not cover any third-party claims for personal injury, death, property damage and diminution of property value or natural resources.

There are three other MGP sites located in Hickory, North Carolina, Nashville, Tennessee and Anderson, South Carolina that we have owned, leased or operated. In addition to these sites, we acquired the liability for an MGP site located in Reidsville, North Carolina, in connection with the acquisition in 2002 of certain assets and liabilities of North Carolina Services, a division of NUI Utilities, Inc.

As part of a voluntary agreement with the North Carolina Department of Environment and Natural Resources (NCDENR), we conducted and completed the soil and groundwater remediation for the Hickory, North Carolina MGP site. Although the soil and groundwater remediation report was approved by NCDENR, we will continue to and are currently conducting periodic groundwater monitoring at this site. We have incurred $1.4 million on this site through April 30, 2011.

In September 2009, the NCDENR requested an investigation plan for the Reidsville, North Carolina MGP site. In June 2010, we conducted our initial investigation which consisted of digging test pits and completing soil and groundwater contamination testing. The site investigations are now complete and a draft remediation plan has been submitted to the NCDENR for review. Our estimate of the total cost to remediate the Reidsville site is $.8 million for which we have recorded a liability.

In November 2008, we submitted our final report of the remediation of the Nashville MGP holding tank site to the Tennessee Department of Environment and Conservation (TDEC). Remediation has been completed, and a consent order imposing usage restrictions on the property was approved and signed by the TDEC in June 2010. The public comment period has ended and we are currently conducting periodic groundwater monitoring at the site per the final consent order. We have incurred $1.5 million through April 30, 2011 for this remediation.

In connection with the 2003 North Carolina Natural Gas Corporation (NCNG) acquisition, several MGP sites owned by NCNG were transferred to a wholly owned subsidiary of Progress Energy, Inc. (Progress) prior to closing. Progress has complete responsibility for performing all of NCNG's remediation obligations to conduct testing and clean-up at these sites, including both the costs of such testing and clean-up and the implementation of any affirmative remediation obligations that NCNG has related to the sites. Progress' responsibility does not include any third-party claims for personal injury, death, property damage, and diminution of property value or natural resources. We know of no such pending or threatened claims.

At our Huntersville LNG facility, we are continuing to address the remaining remediation issues, including monitoring groundwater contamination and removing lead-based paint, with the latter scheduled to be finished in our fiscal year 2011. As of April 30, 2011, our estimate of the total cost to remediate the property is $3.1 million and we have incurred $2.9 million through April 30, 2011.

During the six months ended April 30, 2011, we assessed the cost to remove lead-based paint at our Nashville LNG facility, and we increased our reserve by $.5 million. The removal of lead-based paint at our Nashville LNG facility is scheduled to be completed in fiscal 2011.

We are transitioning away from owning and maintaining our own petroleum underground storage tanks (USTs). Only our districts in Charlotte, North Carolina and Greenville, South Carolina continue to operate USTs. Our Greenville district has begun plans to have its USTs removed in our third fiscal quarter 2011. As of April 30, 2011, our undiscounted environmental liability for USTs for which we retain remediation responsibility is $.4 million.

One of our operating districts has coatings containing asbestos on some of their pipelines. We have educated our employees on the hazards of asbestos and implemented procedures for removing these coatings from our pipelines when we must excavate and expose small portions of the pipeline. Lead-based paint is being removed at multiple LNG facilities that we own. Employees have been trained on the hazards of lead exposure, and we have engaged independent environmental contractors to remove and dispose of the lead-based paint at these facilities. Based on information we have to date, we believe that the ultimate resolution of these matters will not have a material adverse effect on our financial position, results of operations or cash flows.

As of April 30, 2011, our undiscounted environmental liability totaled $2.3 million, and consisted of $1.5 million for the four MGP sites for which we retain remediation responsibility, $.4 million for the LNG facilities and $.4 million for the USTs not yet remediated. Further evaluation of the MGP sites, the UST sites and removal of lead-based paint could significantly affect recorded amounts; however, we believe that the ultimate resolution of these matters will not have a material adverse effect on our financial position, results of operations or cash flows.

Additional information concerning commitments and contingencies is set forth in Note 7 to the consolidated financial statements of our Form 10-K for the year ended October 31, 2010.