The following definitions apply to this subchapter:

(1) "Arm's-length transaction" means a contract, negotiation, or agreement between or among parties where the parties have independent interests and are not related.

(2) "Contract revenue" means the total receipts or accruals from all sales of coal during the reporting period.

(3) "FOB mine price" means contract revenue less reasonable actual costs incurred to transport the taxable coal from the mine to a sales point remote from the mine after the coal is prepared for shipment.

(4) "Impute" means to assign a market value to coal by inference under circumstances set forth in 15-35-107, MCA.

(5) "Market value" means the value at which coal would change hands between a willing buyer and a willing seller under market and economic conditions at the time of sale, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts. Agreements that are not arm's-length transactions will not be considered market value for purposes of filing the Montana coal production taxes.

(6) "Related parties" means any relationship that has the ability to influence whether each party has independent interests and could influence a party's independence in negotiating a transaction; or

(a) when any of the following circumstances exist:

(i) Affiliation. The parties are members, affiliates, subsidiaries, or any other affiliations under the same ownership of a parent entity.

(ii) Common control. The parties are, directly or indirectly, under common or joint control.

(iii) Family member. A party is a close family member of a person who is part of key management personnel or who controls another party to a transaction. A close family member is an individual's domestic partner and children, children of the domestic partner, and dependents of the individual or the individual's domestic partner.

(iv) Individual control. A party is controlled or significantly influenced by a member of key management personnel or by a person who controls another party to the transaction.

(v) Joint venture. The parties are members of a joint venture.

(vi) Key management. The parties share key management personnel.

(7) "Related-party transaction" is a contract, negotiation, or agreement between or among related parties, as defined in (6).

(a) Related-party transactions are not considered an arm's-length transaction as that term is defined in (1).

(b) If at any time the parties to an arm's-length transaction become related parties, that agreement shall be considered to be a related-party transaction from that point forward.