TITLE 30 - MINERAL RESOURCES

CHAPTER II - MINERALS MANAGEMENT SERVICE, DEPARTMENT OF THE INTERIOR

SUBCHAPTER A - ROYALTY MANAGEMENT

PART 206 - PRODUCT VALUATION

subpart c - FEDERAL OIL

206.115 - What are my reporting requirements under a non - arm's - length transportation arrangement?

  (a) You or your affiliate must use a separate entry on Form MMS2014 to notify MMS of an allowance based on transportation costs you or your affiliate incur.

  (b) For new transportation facilities or arrangements, base your initial deduction on estimates of allowable oil transportation costs for the applicable period. Use the most recently available operations data for the transportation system or, if such data are not available, use estimates based on data for similar transportation systems. Section 206.117 will apply when you amend your report based on your actual costs.

  (c) MMS may require you or your affiliate to submit all data used to calculate the allowance deduction. Recordkeeping requirements are found at part 207 of this chapter.