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Code of Federal Regulations (Last Updated: May 6, 2024) |
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Title 30 - Mineral Resources |
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Chapter II - Bureau of Safety and Environmental Enforcement, Department of the Interior |
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SubChapter A - Minerals Revenue Management |
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Part 206 - PRODUCT VALUATION |
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Subpart J - Indian Coal |
§ 206.464 - Value enhancement of marketable coal.
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If, prior to use, sale, or other disposition, the lessee enhances the value of coal after the coal has been placed in marketable condition in accordance
with § 206.456(h) of this subpart, the lessee shall notify MMS that such processing is occurring or will occur. The value of that production shall be determined as follows: (a) A value established for the feedstock coal in marketable condition by application of the provisions of § 206.456(c)(2) (i) through (iv) of this subpart; or,
(b) In the event that a value cannot be established in accordance with paragraph (a) of this section, then the value of production will be determined in accordance with § 206.456(c)(2)(v) of this subpart and the value shall be the lessee's gross proceeds accruing from the disposition of the enhanced product, reduced by MMS-approved processing costs and procedures including a rate of return on investment equal to two times the Standard and Poor's BBB bond rate applicable under § 206.458(b)(2)(v) of this subpart.