16 Tex. Admin. Code § 12.29 - Requirements for Exemption
(a) Activities are
exempt from the requirements of the Act if all of the following are satisfied:
(1) The cumulative production of coal
extracted from the mining area determined annually as described in this
paragraph does not exceed 16 2/3% of the total cumulative production of coal
and other minerals removed during such period for purposes of bona fide sale or
reasonable commercial use.
(2) Coal
is produced from a geological stratum lying above or immediately below the
deepest stratum from which other minerals are extracted for purposes of bona
fide sale or reasonable commercial use.
(3) The cumulative revenue derived from the
coal extracted from the mining area determined annually shall not exceed 50% of
the total cumulative revenue derived from the coal and other minerals removed
for purposes of bona fide sale or reasonable commercial use. If the coal
extracted or the minerals removed are used by the operator or transferred to a
related entity for use instead of being sold in a bona fide sale, then the fair
market value of the coal or other minerals shall be calculated at the time of
use or transfer and shall be considered rather than revenue.
(b) Persons seeking or that have
obtained an exemption from the requirements of the Act shall comply with the
following:
(1) Each other mineral upon which
an exemption under §§12.25-12.28, this section, and §§
12.30-12.33 of this title (relating to
Exemption for Coal Extraction Incidental to the Extraction of Other Minerals)
is based must be a commercially valuable mineral for which a market exists or
which is mined in bona fide anticipation that a market will exist for the
mineral in the reasonably foreseeable future, not to exceed 12 months from the
end of the current period for which cumulative production is calculated. A
legally binding agreement for the future sale of other minerals is sufficient
to demonstrate the above standard.
(2) If either coal or other minerals are
transferred or sold by the operator to a related entity for its use or sale,
the transaction must be made for legitimate business purposes.
Notes
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