(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 contract for the washing of coal, then ONRR will determine your transportation allowance under § 1206.454. 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 § 1206.458(a).
(2) You may use that method to determine your allowance until ONRR issues a determination.