Federal regulations · Through 2026-08-25 · Newer source version available

30 CFR 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) of this section. This overhead allowance shall be debited to the NPSL capital account in accordance with § 1220.021(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 § 1220.021(c)(2).
(c) Overhead shall not be charged on the value of:
(1) Lease rental (§ 1220.011(a));
(2) Contract services (§ 1220.011(e));
(3) Taxes (§ 1220.011(i));
(4) Re-injected hydrocarbons, originally produced from the NPSL tract, that are charged under § 1220.011(c); and
(5) Credits for materiel charged under § 1220.011(c) that are salvaged, returned, or used for the benefit of non-NPSL operations.

Where this section sits in the code

Title 30—Mineral Resources
CHAPTER XII—OFFICE OF NATURAL RESOURCES REVENUE, DEPARTMENT OF THE INTERIOR
SUBCHAPTER A—NATURAL RESOURCES REVENUE
PART 1220—ACCOUNTING PROCEDURES FOR DETERMINING NET PROFIT SHARE PAYMENT FOR OUTER CONTINENTAL SHELF OIL AND GAS LEASES

(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 § 1220.021(c)(2).

(1) Lease rental (§ 1220.011(a));

(2) Contract services (§ 1220.011(e));

(3) Taxes (§ 1220.011(i));

(4) Re-injected hydrocarbons, originally produced from the NPSL tract, that are charged under § 1220.011(c); and

(5) Credits for materiel charged under § 1220.011(c) that are salvaged, returned, or used for the benefit of non-NPSL operations.

Collected 2026-08-27T02:25:24Z. Source file · JSON

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