ONRR 4293 Coal Transportation Allowance Report

U.S. Department of the Interior
Office of Natural Resources Revenue

1

OMB Control No. 1012-0010
Expires December 31, 2016

COAL TRANSPORTATION ALLOWANCE REPORT

FOR ONRR USE ONLY:

CUSTOMER NAME

2

CUSTOMER
CODE

ADDRESS
CITY

STATE

ZIP

4 REPORTING TYPE
5 REPORTING
PERIOD

6

7
LEASE
NUMBER

8

PRODUCT

9

MINE
NAME

1
2
3
4
5
6
7
8
9
10
11

20
to

20

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

12 PAGE TOTAL
13 REPORT TOTAL (Last Page Only)
IF MORE LINES ARE NEEDED, ATTACH ADDITIONAL PAGES OF FORM ONRR-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 ONRR collects this information to ensure full value of minerals removed and to determine the proper royalty due. Responses
are mandatory to obtain a benefit (30 CFR 1206.458 and 1206.461). 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 1.3 hrs/response. Direct all comments about any aspect of this form to the Information Collection Clearance Officer, ONRR, P.O. Box 25165, MS 61030A, Denver, Colorado 80225-0165.

Form ONRR-4293

THIS INFORMATION SHOULD BE CONSIDERED (Please check one)

PROPRIETARY

NONPROPRIETARY

Page 1

FORM ONRR-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 Office of Natural Resources Revenue (ONRR) on an annual or, if
necessary, more frequent basis. For example, under arm’s length transportation contracts, you must
submit the form ONRR-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 ONRR-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 ONRR-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 ONRR-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 ONRR-4293, as you are required to compute the transportation allowance
using the total tons transported and the total costs incurred.
Page 1 of form ONRR-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 ONRR-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 ONRR-4293, PAGE 1
1. Customer Name and Address -- Enter the company name and address used to report royalties
and transportation deductions on form ONRR-4430.
2. Customer Code -- Enter the same company code (previously the payor code) as used on form
ONRR-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 ONRR-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 ONRR-4430.
7. Product -- Enter the same product as reported on the form ONRR-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 ONRR-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.

U.S. DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue

SCHEDULE 1 -- COAL TRANSPORTATION SYSTEM SUMMARY SHEET
1 CUSTOMER NAME AND CODE

2

LEASE NUMBER:
MINE NAME:

ADDRESS
CITY

STATE

FACILITY NAME/ID NUMBER:

ZIP

PRODUCT:
LINE NUMBER(S) FROM PAGE 1:
PERIOD:

(a)

(b)

(c)

Segment
of
Transportation

Mode
of
Transportation

Arm's-Length/
Customer-Owned
Indicator

(d)
Arm's-Length
Contract/
Customer-Owned
Operating Costs

20

(e)

(f)

Depreciation

Rate
of
Return

to

20

(g)
Beginning-of-Year
Undepreciated
Capital
Investment

(h)
Return on
Investment
(f) x (g)

From
To
A. TRANSPORTING COAL TO A REMOTE WASHING FACILITY.
$

$

$

$

3
4
5

Totals

$

$

$

$

Allowance rate = (6d + 6e + 6h) / Tons of production transported
from the mine to the washing facility, expressed in terms of clean
coal tonnage.

Part A Total Cost

Part A Total Clean Tons

=

6

$
Cost per Ton

7

B. TRANSPORTING COAL TO A REMOTE SALES POINT
$

$

$

$

8
9
10

Totals
Allowance rate = (11d + 11e + 11h) / Tons of coal
transported from the mine/plant to the sales point.

$

$
$
Part B Total Cost

=

Part B Total Tons

Total Unit Allowance Rate = line 7h plus line 12h.
Royalty Allowance Amount for coal transported and sold during the reporting period = Allowance rate (line 13) times lease tons transported
and sold during the reporting period (
tons) times the lease ad valorem royalty rate ( _
%).
Royalty Allowance Amount for coal transported during a prior period and sold during the reporting period = Allowance rate for deferred tons
) times lease tons of deferred coal sold during the reporting period (
tons) times the lease ad valorem royalty rate (
(
Total Royalty Allowance Amount = line 14 plus line 15.
FORM ONRR-4293 SCHEDULE 1

_

%).

$

11

$
Cost per Ton

12

$
Cost per Ton
$

13

$

15

$

16

Page 2

14

INSTRUCTIONS FOR COMPLETING FORM ONRR-4293, SCHEDULE 1
Use a separate Schedule 1 to determine the royalty transportation allowance amount for each lease
number/transportation facility combination. Do not take an allowance if the transportation facility
is not off the lease.
Use Part A to accumulate segment costs and compute an allowance for transporting coal from the
lease to a remote washing facility. Use Part B to accumulate segment costs and compute an
allowance for transporting coal from the lease to a remote sales point.
You must submit a clear schematic diagram, on no larger than 8-1/2 x 11-inch paper, illustrating the
transportation facility from the lease to the point where the coal is disposed. Designate
transportation segments, measurement points, and points of sale or disposition for royalty purposes.
1. Customer Name, Code, and Address – Enter the same company name, code, and address as
used on Page 1 of the Form ONRR-4293.
2. Lease and Mine Information – Enter the same lease number and mine name combination as
used on Page 1 of the Form ONRR-4293. Enter a transportation name or facility number
unique to the transportation facility. (For a transportation facility consisting of only one
segment, the segment name or number will be the same as the facility name or number.) Enter
the same product as entered on page 1. Enter the line number corresponding to the lease and
mine referenced on Page 1. Enter the same reporting period as shown in item 5 on Page 1.
The following instructions apply to Part A (lines 3-5) and Part B (lines 8-10):
a. Segment of Transportation – Describe each segment of the transportation facility; e.g.,
from lease M12-345678-0 to the Warrington washing facility.
b. Mode of Transportation – Describe the mode of transportation under which you incur
costs; e.g., truck, rail, slurry pipeline.
c. Arm’s Length/Customer-Owned Indicator – Indicate how you incurred the
facility/segment costs 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
d. Arm’s Length Contract/Customer-Owned Operating Costs – If you incur transportation
costs under arm’s length conditions, enter the total costs incurred for the period by
multiplying the transportation rate by the volume transported at that rate. Do not take an
allowance for coal that is not valued for royalty purposes. If two or more rates apply
during the reporting period, compute and sum the cost incurred under each rate.

If you incur transportation costs under non-arm’s length or customer-owned conditions,
complete columns (d) through (h). Using Schedule 1A, determine the operations,
maintenance, and overhead expenditures and enter the totals in column (d). Complete a
separate Schedule 1A for each individual segment.
Do not complete columns (e) through (h) for arm’s length costs.
e. Depreciation – Enter depreciation costs for the reporting period. Use Schedule 1B to
determine depreciation costs.
f. Rate of Return – The rate of return is the industrial rate associated with Standard and
Poor’s BBB rating. Enter the monthly average rate as published in Standard and Poor’s
Bond Guide for the first month of the reporting period.
g. Undepreciated Capital Investment at Beginning of Year – Enter the beginning-of-year
undepreciated capital investment. You must use Schedule 1B to determine beginningof-year undepreciated capital investment. Complete a separate Schedule 1B for each
individual segment.
h. Return on Investment – Multiply column (f) by column (g) to calculate the return on
undepreciated capital investment.
6. Totals – Enter the totals from columns (d), (e), and (h).
7. Part A Totals– Sum lines 6d, 6e, and 6h and enter in Part A Total Cost. Enter in Part A Total
Clean Tons the total volume of production transported from the lease to the washing facility, as
measured at the approved point of royalty measurement. Compute the allowance cost per ton
by dividing Part A Total Cost by Part A Total Clean Tons. Calculate it to six decimals and
enter it in Cost per Ton.
11. Totals – Enter the totals from columns (d), (e), and (h).
12. Part B Totals – Sum lines 11d, 11e, and 11h and enter in Part B Total Cost. Enter in Part B
Total Tons the total volume of production transported from the lease to the remote sales point,
as measured at the approved point of royalty measurement. Compute the allowance cost per ton
by dividing Part B Total Cost by Part B Total Tons. Calculate it to six decimals and enter it in
Cost per Ton.
13. Total Unit Allowance Rate – Add lines 7h and 12h.
14. Royalty Allowance Amount for Current Reporting Period – Multiply line 13 by the lease tons
transported and sold during the reporting period and by the lease ad valorem royalty rate.
15. Royalty Allowance Amount for Coal Transported in a Prior Reporting Period and Sold in the
Current Period – Multiply the allowance rate for deferred tons by the lease tons of deferred
coal sold during the reporting period and by the lease ad valorem royalty rate.
16. Total Royalty Allowance Amount – Add lines 14 and 15.

U.S. DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue

SCHEDULE 1A --

NON-ARM'S-LENGTH
TRANSPORTATION SYSTEM/
SEGMENT OPERATIONS,
MAINTENANCE AND OVERHEAD
EXPENDITURES

CUSTOMER IDENTIFICATION BLOCK
Customer Name and Code:
Lease No:
Mine Name:
Facility ID No:
Segment ID No:
Period:

20

to

20

Estimated Costs - Check when estimating costs for system/segment start-up.
A.

Lessee's Operating Costs for System / Segment
Operations Supervision and Engineering

$

1

Operations Labor

2

Utilities

3

Materials and Supplies

4

Ad Valorem Property Taxes

5

Rent / Leasing

6

Other (specify). Attach Supplemental Schedule 1A

7

as necessary
Total Operating Costs -- Subtotal

B.

$

8

$

9

Lessee's Maintenance Costs
Maintenance Supervision
Maintenance Labor

10

Materials

11

Other (specify). Attach Supplemental Schedule 1A

12

as necessary
Total Maintenance Costs -- Subtotal
C.

$

13

$

14

Lessee's Overhead Allocation (specify)
15
16

Other (specify) use Supplemental Schedule 1A

D.

Total Overhead Allocation

$

17

Total Operating and Maintenance Costs

$

18

FORM ONRR-4293 SCHEDULE 1A

Page 3

INSTRUCTIONS FOR COMPLETING FORM ONRR-4293, SCHEDULE 1A
Use Schedule 1A to record reasonable, actual operating, maintenance, and overhead costs for a
transportation segment for the prior reporting period. You must complete a separate Schedule 1A
for each segment in the transportation facility. Accumulate the costs for all transportation facility
segments to determine the total operating costs for the facility. On the following page of
instructions is a list of allowable and nonallowable costs to use as a guide in determining operating,
maintenance, and overhead costs. You must use this schedule only when the transportation
segments are non-arm’s length, either because your affiliate is performing the service or you are
transporting the coal yourself.
Customer Information Block – Enter the same customer name and code as used on page 1 of the
form ONRR-4293, Coal Transportation Allowance Report.
Enter the same lease number and mine name as used on page 1 of the form ONRR-4293.
Enter a transportation name or facility number unique to the transportation facility.
Enter the transportation segment name or identification number unique to the transportation
segment. (For a transportation facility consisting of only one segment, the segment name or
number will be the same as the facility name or number.)
Enter the same reporting period as shown in item 5 on page 1 on form ONRR-4293.
Part A and Part B – Identify and list on Part A and Part B all operating and maintenance costs
directly attributable to the transportation facility/segment during the reporting period. If you need
additional space to identify or explain other cost items, complete and attach a Supplemental
Schedule 1A noting the nature and amount of the cost.
Total Operating Costs – Subtotal (8) – Sum lines 1-7.
Total Maintenance Costs – Subtotal (13) – Sum lines 9-12.
Part C – Identify and list all overhead costs directly allocable and attributable to the operations and
maintenance of the transportation facility/segment. If you need additional space, complete and
attach a Supplemental Schedule 1A noting the nature and amount of the expenditure.
Total Overhead Allocation - (17) – Sum lines 14-16.
Part D, Total Operating and Maintenance Costs – Sum lines 8, 13, and 17.

ALLOWABLE AND NONALLOWABLE
OPERATING, MAINTENANCE, AND CAPITAL COSTS
Allowable Capital Costs – Allowable capital costs are generally those costs for depreciable fixed
assets (including costs of delivery and installation of capital equipment) which are an integral part
of the transportation system. The following capital items are generally considered allowable:
garages and warehouses, rail haulage equipment including rail spurs, trucks, and roads.
Nonallowable Capital Costs – Nonallowable capital costs include costs incidental to marketing
(e.g., storage and treatment). Also, schools, hospitals, roads, sewer and other capital improvements
or equipment not an integral part of the transportation facility are not allowable capital costs. The
capital cost associated with the preparation of an environmental impact statement is not allowable.
However, capital costs for environmental equipment that are an integral part of the transportation
facility are allowable.
Allowable Operating Costs – Allowable operating and maintenance costs are those nondepreciable
costs that are directly attributable to the operation and maintenance of a transportation
facility/segment. These expenditures include:
• Salaries and wages paid to employees and supervisors while engaged in the operation
and maintenance of equipment and facilities
• Fuel and utility costs directly related to transporting lease products
• Chemicals aiding in the transportation of the coal
• Repairs, labor, materials, and supplies directly related to transportation equipment and
facilities
• Port and toll fees, insurance and ad valorem property taxes (Federal and State income
taxes are not allowable deductions)
• Arm’s length rental, leasing, or contract service costs for equipment, facilities, on-site
location or maintenance of equipment and facilities
• General administrative overhead costs (headquarters, personnel, telephone service,
payroll taxes, employee benefits, vehicle expenses, office supplies, etc.). The total of
these costs is limited to those reasonable expenditures directly attributable and allocable
to the operation and maintenance of the transportation equipment and facilities.
Nonallowable Operating Costs – Nonallowable operating costs include:
• Costs incidental to marketing, and other operating costs associated with nonallowable
capital expenditures which are not directly allocable or attributable to the transportation
of lease products.
• Federal and State income taxes, production taxes, royalty payments, or fees such as State
severance taxes
• Costs for services that you are obligated to perform at no cost to the lessor.

U.S. DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue

CUSTOMER IDENTIFICATION BLOCK
Customer Name and Code:
Lease No:

SCHEDULE 1B -- NON-ARM'S-LENGTH TRANSPORTATION SYSTEM/SEGMENT
DEPRECIATION AND CAPITAL EXPENDITURE SUMMARY

Mine Name:
Facility ID No:
Segment ID No:
Period:

1

2
Initial Capital
Investment
and Date
Placed in Service

Expenditure
Item
$

FORM ONRR-4293 SCHEDULE 1B

3

4

5

Salvage
Value

Depreciable
Life/Years
of Depreciation
Taken to Date

Beginning-of-Year
Undepreciated
Capital
Investment

$

8

Totals

20

to

6

7
End-of-Year
Undepreciated
Capital
Investment

Depreciation

$

$

$

$

20

$

Page 5

INSTRUCTIONS FOR COMPLETING FORM ONRR-4293, SCHEDULE 1B
Use Schedule 1B to summarize actual or estimated facility/segment depreciation and undepreciated
capital investment for computing return on investment for each non-arm’s length or no-contract
transportation segment. These costs are capital equipment that is an integral part of the
transportation system and may include, for example, trucks, rail cars, or locomotives. You must
complete a separate Schedule 1B for each segment in the transportation facility. The costs of all
transportation facility segments are accumulated on Schedule 1 to determine the total depreciation
and undepreciated capital investment for the facility. You must use this schedule only when the
transportation segments are non-arm’s length, either because your affiliate is performing the service
or you are transporting the coal yourself.
Complete the customer identification block (see Schedule 1A instructions).
Complete a line for each facility/segment capital expenditure item as follows:
1. Expenditure Item -- Identify the capital expenditure item. List all major equipment exceeding
$50,000 in initialized capitalized value individually.
2. Initial Capital Investment and Date Placed in Service – Enter the initial capital expenditure
amount and the date the expenditure was placed in service.
3. Salvage Value – Enter a reasonable salvage value.
4. Depreciable Life/Years of Depreciation Taken to Date -- Enter the depreciable life of the
expenditure and the number of years of depreciation taken to date.
5. Beginning-of-Year Undepreciated Capital Investment – Enter the undepreciated capital
investment at beginning-of-year. In computing this value, deduct salvage from the initial
capital investment.
6. Depreciation – Enter the amount of depreciation to be taken for the year. In computing
depreciation, you may elect to use either a straight-line depreciation method or a unit of
production method based on the life of the equipment or the life of the reserves which the
transportation facility/segment services. Once you make an election, you may not alternate
methods without ONRR approval. Do not depreciate equipment below a reasonable
salvage value.
7. End-of-Year Undepreciated Capital Investment – Enter the undepreciated capital investment at
end-of-year. Compute this by subtracting depreciation from the beginning-of-year
undepreciated capital investment. Also use this amount as the next year’s beginning-of-year
undepreciated capital investment.
8. Totals – Sum columns 5 and 6 and enter on Schedule 1, Part A, columns g and e, or Part B,
columns g and e, accordingly.

U.S. DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue

SUPPLEMENTAL
SCHEDULE 1A-- NON-ARM'S-LENGTH
TRANSPORTATION SYSTEM/
SEGMENT OPERATIONS,
MAINTENANCE, AND OVERHEAD
EXPENDITURES

CUSTOMER IDENTIFICATION BLOCK
Customer Name and Code:
Lease No:
Mine Name:
Facility ID No:
Segment ID No:
Period:

20

to

20

Type of Expenditure - Describe:
$

Total

FORM ONRR-4293 SUPPLEMENTAL SCHEDULE 1A

$

Page 4

INSTRUCTIONS FOR COMPLETING FORM
ONRR-4293, SUPPLEMENTAL SCHEDULE 1A
Use Supplemental Schedule 1A to identify and document operating, maintenance, and overhead
expenditures listed under the “Other” expenditure categories on Schedule 1A.
Complete the customer identification block (see Schedule 1A instructions).
Complete a separate Supplemental Schedule 1A for other operating costs, other maintenance costs,
and other overhead costs associated with the transportation facility/segment. Describe and specify
each expenditure item and amount. Retain receipts and invoices in your office, subject to audit.
Sum the amounts of each expenditure on the Total line. Enter the total amount of the operations,
maintenance, or overhead expenditures on Schedule 1A, line 7, 12, or 16, as appropriate.