---
kind: "section"
citation: "30 C.F.R. § 1206.457"
title: "30"
number: "1206.457"
heading: "Washing allowances—general."
url: "https://uscodex.org/cfr/30/1206.457"
---

# §1206.457. Washing allowances—general.

- (a) For ad valorem leases subject to [§ 1206.456](/cfr/30/1206.456.md), 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 [§ 1206.456](/cfr/30/1206.456.md) 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.
- (b) 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](/cfr/30/1218.202.md) of this subchapter, or shall be entitled to a credit, without interest.
- (c) Lessees shall not disproportionately allocate washing costs to Indian leases.
- (d) 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.
- (e) Coal washing costs shall only be recognized as allowances when the washed coal is sold and royalties are reported and paid.

## Notes

### Source

Source: 88 FR 47012, 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.