[Code of Federal Regulations]
[Title 30, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 30CFR220.012]

[Page 198-199]
 
                       TITLE 30--MINERAL RESOURCES
 
                       DEPARTMENT OF THE INTERIOR
 
PART 220--ACCOUNTING PROCEDURES FOR DETERMINING NET PROFIT SHARE PAYMENT FOR OUTER CONTINENTAL SHELF OIL AND GAS LEASES--Table of Contents
 
Sec. 220.012  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) of this

[[Page 199]]

section. This overhead allowance shall be debited to the NPSL capital 
account in accordance with Sec. 220.021(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) 
of this section. This overhead allowance shall be debited to the NPSL 
capital account in accordance with Sec. 220.021(c)(2).
    (c) Overhead shall not be charged on the value of:
    (1) Lease rental (Sec. 220.011(a));
    (2) Contract services (Sec. 220.011(e));
    (3) Taxes (Sec. 220.011(i));
    (4) Re-injected hydrocarbons, originally produced from the NPSL 
tract, that are charged under Sec. 220.011(c); and
    (5) Credits for materiel charged under Sec. 220.011(c) that are 
salvaged, returned, or used for the benefit of non-NPSL operations.