(1) The department shall consider the date the coal is loaded for final transportation to the purchaser as the time for determining the contract sales price of coal.   To arrive at FOB mine price any shipping or any other expenses incurred after the coal is prepared for shipment may be excluded from the contract revenue. The contract sales price will be determined by deducting from FOB mine price or a value imputed by the department:

(a) the allowance for federal, state, and Indian royalties;

(b) the processing allowance resulting from imputing value according to ARM 42.25.515; and

(c) the amounts charged to the purchaser to pay taxes on production.

(2) In computing production taxes the operator may include the amount that the operator expects to pay or the amount charged to the purchaser.   If the taxes actually paid on the production are more or less than the production taxes deducted and affect the contract sales price, the difference shall be an adjustment in production taxes deducted for the following year.

(3) The above formula should be applied to each contract individually with the exception of those contracts for which the department must impute value.   The resource indemnity trust tax and the gross proceeds tax deductions shall be the actual amount charged to the purchaser.