---
kind: "section"
citation: "30 C.F.R. § 1220.012"
title: "30"
number: "1220.012"
heading: "Overhead allowance."
url: "https://uscodex.org/cfr/30/1220.012"
---

# §1220.012. Overhead allowance.

- (a) During the capital recovery period the overhead allowance shall be calculated on a percentage basis at the rate of 4 percent of allowable direct and allocable joint costs charged to the NPSL capital account, exclusive of costs specified in [paragraph (c)](#c) of this section. This overhead allowance shall be debited to the NPSL capital account in accordance with [§ 1220.021(b)(2)](/cfr/30/1220.021.md?p=b-2).
- (b) For each month after the end of the capital recovery period, an overhead allowance shall be calculated on a percentage basis at the rate of 10 percent of allowable direct and allocable joint costs charged to the NPSL capital account, exclusive of costs specified in [paragraph (c)](#c) of this section. This overhead allowance shall be debited to the NPSL capital account in accordance with [§ 1220.021(c)(2)](/cfr/30/1220.021.md?p=c-2).
- (c) Overhead shall not be charged on the value of:
  - (1) Lease rental ([§ 1220.011(a)](/cfr/30/1220.011.md?p=a));
  - (2) Contract services ([§ 1220.011(e)](/cfr/30/1220.011.md?p=e));
  - (3) Taxes ([§ 1220.011(i)](/cfr/30/1220.011.md?p=i));
  - (4) Re-injected hydrocarbons, originally produced from the NPSL tract, that are charged under [§ 1220.011(c)](/cfr/30/1220.011.md?p=c); and
  - (5) Credits for materiel charged under [§ 1220.011(c)](/cfr/30/1220.011.md?p=c) that are salvaged, returned, or used for the benefit of non-NPSL operations.

## Notes

### Amendments

[45 FR 36800, May 30, 1980, as amended at 75 FR 61087, Oct. 4, 2010]

### Authority

Authority: Sec. 205, Pub. L. 95-372, 92 Stat. 643 (43 U.S.C. 1337).

### Source

Source: 45 FR 36800, May 30, 1980, unless otherwise noted. Redesignated at 48 FR 1182, Jan. 11, 1983, and further redesignated at 48 FR 35642, Aug. 5, 1983, 75 FR 61087, Oct. 4, 2010.

### Amendments

[45 FR 36800, May 30, 1980, as amended at 75 FR 61087, Oct. 4, 2010]