Form MMS-4292 and sched MMS-4292 and sched Coal Washing Allowance Report

U.S. Department of the Interior
Minerals Management Service
Minerals Revenue Management

OMB Number 1010 - 0074
OMB Approval Expires November 30, 2007

COAL WASHING ALLOWANCE REPORT

FOR MMS USE ONLY:
1

2 CUSTOMER
CODE

CUSTOMER NAME
ADDRESS
CITY

STATE

ZIP

4 REPORTING TYPE
5 REPORTING
PERIOD

20

to
20

6

7
LEASE
NUMBER

9

8

PRODUCT

MINE
NAME

ARM'S-LENGTH/
CUSTOMER-OWNED
INDICATOR

3

FOR CUSTOMER USE ONLY:

11 CURRENT PERIOD ESTIMATED DATA
PRIOR PERIOD ACTUAL DATA
c
b
c
b
ROYALTY a
ROYALTY
ROYALTY
ALLOWANCE
ALLOWANCE
ROYALTY
ALLOWANCE
ALLOWANCE
TONS
TONS
RATE PER TON
AMOUNT
RATE PER TON
AMOUNT

10
a

1
2
3
4
5
6
7
8
9
10
11
12 PAGE TOTAL

XXXXXXXXXXXX

XXXXXXXXXXXX

13 REPORT TOTAL (Last Page Only)
IF MORE LINES ARE NEEDED, ATTACH ADDITIONAL PAGES OF FORM MMS-4292

XXXXXXXXXXXX

XXXXXXXXXXXX

I have read and examined the statements in this report and, to the best of my knowledge, they are accurate and complete.
NAME (FIRST, MIDDLE INITIAL, LAST) (typed or printed)

DATE:

AUTHORIZED SIGNATURE:

DATE:

NAME OF PREPARER:

TELEPHONE NUMBER:

Paperwork Reduction Act of 1995 (PRA) Statement: The PRA (44 U.S.C. 3501 et seq.) requires us to inform you that we collect this information to assure full value of minerals removed and to determine the proper royalty due. Responses are
mandatory to obtain a benefit (30 CFR 206.458 and 206.461). Proprietary information is protected in accordance with standards established by Federal Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1733), the Freedom of Information
Act [5 U.S.C. 552(b)(4)], and Department regulations (43 CFR 2). An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB Control Number. Public
reporting burden is estimated at 2 hrs/response. Direct all comments of any aspect of this form to the Information Collection Clearance Officer, MMS, MS 4230, 1849 C Street, NW, Washington, DC 20240.

Form MMS-4292(revised 11/2004)

THIS INFORMATION SHOULD BE CONSIDERED (Please check one)

PROPRIETARY

NONPROPRIETARY

Page 1

FORM MMS-4292 – GENERAL INSTRUCTIONS
COAL WASHING ALLOWANCE REPORT
In accordance with 30 CFR §§ 206.457 and 206.458, you may deduct from your royalty payments a
portion of the reasonable, actual cost for washing coal mined from Indian lands. You calculate the
allowance on a per ton of clean coal basis, and may not claim an allowance for reject material on
which no royalty is due. You are required to report to the Minerals Management Service (MMS) on
an annual or, if necessary, more frequent basis. For example, under arm’s length washing contracts,
you must submit the Form MMS-4292 as frequently as necessary to reflect contract modifications
or amendments.
At the end of each reporting period, you must report on page 1 of Form MMS-4292 the actual costs
deducted during the prior reporting period and the estimated washing costs to be deducted during
the current reporting period. The Schedules for Form MMS-4292 will assist you in assembling the
various washing cost items, computing the total costs, calculating the cost per-ton, and computing
the total actual and projected allowance amounts. Report and claim allowances on the Form MMS4430, Production and Royalty Report, in the allowance section of the form.
You may claim as a washing allowance the actual washing costs incurred under arm’s length
contracts. The washing allowance amount incurred under non-arm’s length contracts or no contracts
equals the washing system operating costs plus either depreciation plus a return on the remaining
undepreciated capital investment or a cost equal to the depreciable investment in the washing
system multiplied by the rate of return determined in accordance with 30 CFR §
206.458(b)(2)(iv)(B).
Determine the washing allowance rate by dividing the total dollar amount by clean tons of coal (as
measured at the coal loadout facility).
No cost normally associated with mining, which would normally be conducted in the absence of
washing - such as crushing, storing, screening, loading, blending, and any related in-mine haulage is allowed as a washing cost.
Page 1 of Form MMS-4292 lists royalty allowance amounts claimed during the prior reporting
period and estimates of the royalty allowance amount for the new reporting period. Use a separate
page 1 for each mine.
Schedule 1 accumulates washing costs and computes the royalty allowance rate and amount for a
washing facility.
Schedule 1A summarizes operating, maintenance, and overhead costs for a non-arm’s length or no
contract washing operation.
Supplemental Schedule 1A details operating, maintenance, and overhead costs that could not be
shown on Schedule 1A because of limited space.
Schedule 1B summarizes depreciation and undepreciated investment capital costs for a non-arm’s
length or no contract washing operation.

INSTRUCTIONS FOR COMPLETING FORM MMS-4292, PAGE 1
1. Customer Name and Address -- Enter the company name and address used to report royalties
and washing deductions on Form MMS-4430.
2. Customer Code -- Enter the same company code (previously the payor code) as used on Form
MMS-4430.
3. For Customer Use Only -- Enter your internal account identifier that will distinguish this report
for you.
4. Reporting Type -- Enter the report type indicator as follows:
• “1” if this is an initial report for the mine and lease number (complete column 11 only)
• “2” if this is a recurring form reporting the prior and current period data (complete both
columns 10 and 11)
• “3” if this is an amended report to correct previously reported data. An amended report
requires a two-line entry. The first line reverses the original entry using a minus sign (-)
in all sections of columns 10 and 11, and the second line shows the correct entry.
5. Reporting Period – Enter the period covered by the actual cost data for the washing allowance
reported in column 10. If this is your first report for this mine and lease combination, you will
not complete column 10 so the reporting period will be the timeframe covered by the estimated
data reported in column 11.
The reporting period is controlled by the arm’s length/customer owned indicator in column 9.
If you enter a “4” or “5” in column 9:
• Your initial reporting period will begin with the month your were first authorized to
deduct the washing allowance and will end at the end of the calendar year or when the
washing terminates, whichever is earlier.
•

Your subsequent reporting periods will begin the first day of the calendar year and end
the last day of the calendar year or when the washing terminates, whichever is earlier.

If you enter a “6” in column 9:
• Your initial reporting period will begin with the month you were first authorized to
deduct the washing allowance and will end at the end of the calendar year or when the
contract or rate terminates, is modified or amended, whichever is earlier.
•

Your subsequent reporting periods will begin the first day after the period covered by
the previous Form MMS-4292 and end the last day of the calendar year or when the
contract or rate terminates, is modified or amended, whichever is earlier.

6. Lease Number -- Enter the lease number as reported on the Form MMS-4430.
7. Product -- Enter the same product as reported on the Form MMS-4430.
8. Mine Name -- Enter the mine name associated with this lease for this washing allowance.

9. Arm’s Length/Customer-Owned Indicator – Complete the column as follows:
• “4” if you incur 100% of the washing costs under non-arm’s length conditions
• “5” if washing costs were a combination of arm’s length and non-arm’s length
conditions
• “6” if you incur 100% of the washing costs under arm’s length conditions
10. Prior Period Actual Data – Use this column to report actual data for the reporting period. If
this is an initial report for start-up, do not complete this column; go to column 11.
Enter in column 10a the sum of the royalty quantity washed and sold during the reporting period
(Schedule 1, line 9) plus the royalty quantity sold during the reporting period but washed during
the prior reporting period (tons used in calculation of Schedule 1, line 11).
Enter in column 10b the washing allowance rate determined by dividing the royalty allowance
amount (column 10c) by the royalty quantity (column 10a). Calculate the allowance rate to six
decimal places.
Enter in column 10c the royalty allowance amount shown on Schedule 1, line 12.
11. Current Period Estimated Data – Use column 11 to report estimated data for the current
reporting period.
The washing tonnage or allowance rate may be the same as the actual tonnage or rate reported
in column 10. If so, enter the corresponding values from columns 10a, 10b, and 10c into
columns 11a, 11b, and 11c. If you believe the tonnage or the rate for the new reporting period
will be different from the prior reporting period, then adjust the estimates accordingly. Report
the allowance rate to six decimal places. Please take care to ensure the estimates are as accurate
as possible.
If you incur washing costs solely under arm’s length conditions, compute estimates for a
washing facility start-up as follows:
• Enter in column 11a the estimated clean coal tonnage from washing operations during
the new reporting period.
• Enter in column 11b the allowance rate per ton as specified in the arm’s length contract
and as shown on Schedule 1, line 6.
• If the arm’s length contract rate is on a raw coal (input tonnage) basis, convert that rate
to a cost per clean ton basis. Report the allowance rate to six decimal places.
• Enter in column 11c the estimated royalty allowance amount computed by multiplying
column 11a by column 11b.
If you incur washing costs under non-arm’s length conditions or a combination of both arm’s
length or non-arm’s length conditions:
• Use Schedules 1, 1A, and 1B to estimate the allowance rate and amount.
• Enter in column 11a the estimated royalty tons to be washed, expressed in terms of clean
coal tonnage.
• Enter in column 11b the estimate allowance rate per ton from Schedule 1, line 6.
• Enter in column 11c the estimated royalty allowance amount from Schedule 1, line 10.

12. Page Total – Enter page totals for columns 10a, 10c, 11a, and 11c.
13. Report Total – If you submit more than one page 1 of Form MMS-4292, sum the lines 12 of
each page and enter the total on line 13 of the last page 1 of the report packet.
Complete the bottom portion of the form with your dated name, signature, and the name and phone
number of the person completing the form. Check the appropriate box indicating if you consider
the submitted information proprietary or nonproprietary.