[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: 30CFR220.013]

[Page 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. 220.013  Unallowable costs.

    The following costs shall not be charged as direct or joint costs to 
NPSL operations:
    (a) Bonus payments to the United States;
    (b) Interest (except as permitted under Sec. 220.011(g));
    (c) Depreciation, depletion, amortization, or any other charge for 
capital recovery for materiel charged to the NPSL capital account under 
Sec. 220.011(c), except as explicitly provided by the allowance for 
capital recovery calculated according to Sec. 220.020;
    (d) The cost of taking inventory;
    (e) Research and development costs;
    (f) The following legal expenses:
    (1) The costs of litigation against the Federal government;
    (2) Fines or penalties levied by any Federal agency;
    (3) Settlement of claims or other litigation resulting from the 
lessee's violation of regulatory requirements or negligence; and
    (4) The cost of the lessee's legal staff or expense of outside 
attorneys, except as explicitly allowed under Sec. 220.011(f);
    (g) The following employee relocation costs (whether incurred by the 
employee or the lessee):
    (1) Loss on the sale of a home;
    (2) Purchase price of a home in the new location;
    (3) Payments for employee income taxes incident to reimbursed 
relocation costs; and
    (4) Any relocation cost in connection with an employee move that is 
for the primary benefit of the lessee's non-NPSL operations;
    (h) The lessee's own cost of administering employee benefit plans;
    (i) The cost of acquiring or constructing shore base facilities and 
real property improvements that are charged to NPSL operations on a 
rental basis under Sec. 220.011(g);
    (j) Rentals on any facilities, the investment costs of which have 
been charged either directly or as allocable joint costs, to the NPSL 
capital account; and
    (k) Pre-NPSL expenditures.