§1206.258. Washing allowances—general.
30 C.F.R. § 1206.258
For ad valorem leases subject to § 1206.257, ONRR shall, as authorized by this section, allow a deduction in determining value for royalty purposes for the reasonable, actual costs incurred to wash coal, unless the value determined pursuant to § 1206.257 was based upon like-quality unwashed coal. Under no circumstances will the authorized washing allowance and the transportation allowance reduce the value for royalty purposes to zero.
If ONRR determines that a lessee has improperly determined a washing allowance authorized by this section, then the lessee shall be liable for any additional royalties, plus interest determined in accordance with § 1218.202 of this subchapter, or shall be entitled to a credit without interest.
Lessees shall not disproportionately allocate washing costs to Federal leases.
No cost normally associated with mining operations and which are necessary for placing coal in marketable condition shall be allowed as a cost of washing.
Coal washing costs shall only be recognized as allowances when the washed coal is sold and royalties are reported and paid.
Notes, amendments, and revision history
Source
Source: 88 FR 47006, July 21, 2023, unless otherwise noted.
Authority
Authority: 5 U.S.C. 301 et seq., 25 U.S.C. 396, 396a et seq., 398, 398a et seq., 2101 et seq.; 30 U.S.C. 181 et seq., 351 et seq., 1001 et seq., 1701 et seq.; 43 U.S.C. 1301 et seq., 1331 et seq., and 1801 et seq.
Source
Source: 48 FR 35641, Aug. 5, 1983, unless otherwise noted. Redesignated at 75 FR 61069, Oct. 4, 2010.