(a) If you or your affiliate incur(s) washing costs under an arm's-length washing contract, you may claim a washing allowance for the reasonable, actual costs incurred.
(b) You must be able to demonstrate that your or your affiliate's contract is arm's-length.
(c) If you have no written contract for the arm's-length washing of coal, then ONRR will determine your washing allowance under § 1206.254. You may not use this paragraph (c) if you or your affiliate perform(s) your own washing. If you or your affiliate perform(s) the washing, then
(1) You must propose to ONRR a method to determine the allowance using the procedures in § 1206.258(a).
(2) You may use that method to determine your allowance until ONRR issues a determination.