MMS-4293 and sched Coal Transportation Allowance Report

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

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

COAL TRANSPORTATION ALLOWANCE REPORT

FOR MMS USE ONLY:
1

CUSTOMER NAME

2

CUSTOMER
CODE

ADDRESS
CITY

STATE

ZIP

4 REPORTING TYPE
5 REPORTING
PERIOD

20
to
20

6

7
LEASE
NUMBER

8

PRODUCT

9

MINE
NAME

3 FOR CUSTOMER USE ONLY:

10
a

PRIOR PERIOD ACTUAL DATA
11 CURRENT PERIOD ESTIMATED DATA
c
a
b
c ROYALTY
b
ROYALTY
ARM'S-LENGTH/
CUSTOMER-OWNED ROYALTY
ALLOWANCE
ALLOWANCE
ALLOWANCE
ROYALTY
ALLOWANCE
INDICATOR
TONS
AMOUNT
RATE PER TON
AMOUNT
TONS
RATE PER TON

1
2
3
4
5
6
7
8
9
10
11
12 PAGE TOTAL
13 REPORT TOTAL (Last Page Only)
IF MORE LINES ARE NEEDED, ATTACH ADDITIONAL PAGES OF FORM MMS-4293

XXXXXXXXXXXX

XXXXXXXXXXXX

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/responses. 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-4293

THIS INFORMATION SHOULD BE CONSIDERED (Please check one)

PROPRIETARY

NONPROPRIETARY

Page 1

FORM MMS-4293 – GENERAL INSTRUCTIONS
COAL TRANSPORTATION ALLOWANCE REPORT

In accordance with 30 CFR §§ 206.460 and 206.461, you may deduct from your royalty payments a
portion of the reasonable, actual cost of transporting coal from an Indian lease to a distant sales
point or to a wash plant remote from the lease. 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 transportation contracts, you must submit the
Form MMS-4293 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-4293 the actual costs
deducted during the prior reporting period and the estimated transportation costs to be deducted
during the current reporting period. The Schedules for Form MMS-4293 will assist you in
assembling the various transportation cost items, computing the total costs, calculating the cost perton, and computing the total actual and projected allowance amounts. Report and claim allowances
on the Form MMS 4430, Production and Royalty Report, in the allowance section of the form.
You may claim as a transportation allowance the actual transportation costs incurred under arm’s
length contracts. The transportation allowance amount incurred under non-arm’s length contracts
or no contracts equals the actual, allowable operating costs plus depreciation plus a return on the
remaining undepreciated capital investment.
Determine the transportation allowance rate by dividing the total dollar amount by:
- Tons shipped (raw coal/no washing)
- Clean tons of coal, as measured at the coal transportation facility (coal shipped from the
mine to the wash plant)
- Clean tons of coal (coal shipped from the wash plant to the buyer)
Do not take a transportation allowance for any movement of coal in and around the mine area.
Haulage recognized as necessary to normal day-to-day operations to the mine do not qualify for
transportation allowances, including haulage from the pit or underground operation to a loadout
facility, grizzly, or crusher. Do not take an allowance if the transportation segment is prior to the
first point where production can reasonably be marketed.
If you commingle Indian coal with production from other leases and transport it to a remote site,
you must uniformly apply the transportation cost for moving that production to all the transported
tonnage, regardless of the ownership status of the leases from which the coal was produced. This
concept is applied in Form MMS-4293, as you are required to compute the transportation allowance
using the total tons transported and the total costs incurred.
Page 1 of Form MMS-4293 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 transportation segment costs and computes the royalty allowance rate and
amount for a transportation facility. (A transportation segment is a mode of transportation from one
point to another; e.g., truck, rail, barge. A transportation facility consists of one or more segments
from the mine to the ultimate destination.) Use a separate schedule 1 for each transportation facility
over which coal is transported. In other words, complete a separate Schedule 1 for each line
reported on page 1 of the form MMS-4293.
Schedule 1A summarizes all costs associated with transportation that are not due to capitalized
costs. (Enter all costs except depreciation and the return on investment.) Use this schedule only
when the transportation segments are non-arm’s length or there is no contract.
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 transportation segment. Enter all depreciation and the return on investment on
this schedule. Submit a separate schedule 1B for each segment of the transportation facility.

INSTRUCTIONS FOR COMPLETING FORM MMS-4293, PAGE 1
1. Customer Name and Address -- Enter the company name and address used to report royalties
and transportation 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 transportation
allowance reported in column 10. If this is your first report for this mine and lease combination,
you will not complete column 10 and 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 entered a “4” or “5” in column 9:
• Your initial reporting period will begin with the month your were first authorized to
deduct the transportation allowance and will end at the end of the calendar year or when
the transportation 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 transportation terminates, whichever is
earlier.

If you entered a “6” in column 9:
• Your initial reporting period will begin with the month you were first authorized to
deduct the transportation 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-4293 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 transportation allowance.

9. Arm’s Length/Customer-Owned Indicator – Complete the column as follows:
• “4” if you incur 100% of the transportation costs under non-arm’s length conditions
• “5” if transportation costs were a combination of arm’s length and non-arm’s length
conditions
• “6” if you incur 100% of the transportation 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 transported and sold during the reporting
period (tonnage and royalty rate used in calculation of Schedule 1, line 14) plus the royalty
quantity sold during the reporting period but transported during the prior reporting period
(tonnage and royalty rate used in calculation of Schedule 1, line 15).
Enter in column 10b the transportation 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 16.
11. Current Period Estimated Data – Use column 11 to report estimated data for the current
reporting period.
The transportation 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 transportation costs solely under arm’s length conditions, compute estimates for a
transportation facility start-up as follows:
• Enter in column 11a the estimated clean coal royalty tonnage from transportation
operations during the new reporting period. This figure is the estimated lease tons
transported and sold multiplied by the lease royalty rate.
• Enter in column 11b the allowance rate per ton as specified in the arm’s length contract
and as shown on Schedule 1, line 13.
• 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 transportation 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 transported, expressed in terms of
clean coal tonnage.
• Enter in column 11b the estimate allowance rate per ton from Schedule 1, line 13.
• Enter in column 11c the estimated royalty allowance amount from Schedule 1, line 16.

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-4293, 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.