(1) The Department of Transportation considers the failure of a special fuel user, who is subject to 15-70-302, MCA, to retain records as specified in 15-70-323, MCA, to constitute reasonable cause for the revocation of the special fuel user's permit under the provisions of 15-70-306, MCA. Records to be kept include special fuel purchase invoices, bills of lading, and trip records.

(2) The Department of Transportation will, in the event a special fuel user, who is subject to 15-70-302, MCA, fails to retain the required records, estimate the miles traveled, special fuel purchases, and average miles per gallon to determine the special fuel permit holder's tax liability. These estimates will be based, whenever possible, on records for a portion of the operations of the special fuel user's vehicles consuming special fuels or other available information indicating fuel usage by the vehicles for which reports are being made. In those cases where the records are not adequate to verify the average miles per gallon (ampg) reported and the average cannot be estimated, an ampg specified in (4) will be used.

(3) If, within 30 days of the date the department issues an assessment based on the ampg, the special fuel user who is subject to 15-70-302, MCA, provides the department with adequate records to verify or estimate special fuel usage for the user's vehicles, the department will review the records and adjust the assessment to the extent necessary.

(4) The Department of Transportation will, in the event a special fuel user fails to retain the required records for fuel used in internal combustion engines to produce materials used on taxable projects, use the industry standard or other available information for special fuel usage by the internal combustion engines to calculate the formula for which reports are being made. In the event no industry standards are available, the following ampg standards will be used:

(a) trucks and truck tractors whose manufacturers gross vehicle weight rating is 9,000 lbs. or more, 4.0 ampg;

(b) pickups and trucks whose manufacturers gross vehicle weight rating is 6,000 lbs. or less than 9,000 lbs., 10 ampg; and

(c) automobiles and pickups whose manufacturers gross vehicle weight rating is less than 6,000 lbs., 15 ampg.

(5) The formula to compute fuel used to produce materials for taxable projects:

(a) Asphalt is composed of 94% aggregate (1 cu yd = 1.88 tons).

(b) Concrete is composed of 75% aggregate (1 cu yd = 2 tons) .28 gallons per ton is based on industry average (.13 gallons per ton may be used if electrical power is purchased from a commercial source).

(c) Example:

Concrete:	100 cu yd of concrete = 200 tons
	200 tons X .75 = 150 tons of aggregate
	150 tons X .28 = 42 gallons (diesel generator)
	150 tons X .13 = 19.5 gallons (electrical power)

Asphalt:	100 cu yd of asphalt = 188 tons
	188 tons X .94 = 176.72 tons of aggregate
	176.72 tons X .28 = 49.5 gallons