West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-01I - Valuation Of Active And Reserve Coal Property For Ad Valorem Property Tax Purposes
Appendix A

Current through Register Vol. XLI, No. 38, September 20, 2024

Formula 1

Annual Acres Mined = Annual Production / Ave. Thickness X 1800 X Clean coal recovery rate

Formula 2

1800 tons/ac.ft.= (62.4 lbs.water/ft3)x(1.32 lbs.coal/1 lb.water)x(43,560 ft2/acre)x(1Thk) / 2000 lbs./ton

WHERE: Thk = 1 foot thickness

Formula 3

$/ac = [(Thk)x(1800)x(RR)x(SRoy)x(SCM)x(M)]+[(Thk)x(1800)x(RR)x(MRoy)x( MCM)x(M)] / ML

Where: $/ac = appraisal rate per acre

Thk = coal thickness in feet

1800= 1800 tons per acre foot

RR = clean coal recovery rate

SRoy = steam coal royalty rate

SCM = decimal representing percent of coal sold to steam market

M = net present value multiplier

Thk = coal thickness in feet

MRoy = Metallurgical coal royalty rate

MCM = decimal representing percent coal sold to metallurgical market

ML = mine life in years

Formula 4

VAMP = (AAM) X (ML) X ($/ac)

Where: VAMP = value of active mining portion

AAM = annual acres mined

ML = mine life in years

$/ac = value per active acre

Formula 5

tons = (Thk) X (ac.) X (1800) X (RR)

Where: tons = Reserve Property Coal Quantity

Thk = Thickness in feet of a coal bed ac. = areal extent of coal bed

1800 = 1800 tons per acre foot

RR = clean coal recovery rate

Formula 6

$/ac/bed=($/mmBTU)X(Roy)X[1"( BTU+ S)]X[(1/(1+I)(t+0.5))x(1/106)]X(BTU)X(2000)X

(1800)X(RR)X(Thk)

Where: $/ac/bed = present value per acre of an individual coal bed on property

$/mmBTU = coal price (FOB-source) per million BTU

Roy = average royalty rate

[1 " ( BTU + S)] = BTU and sulfur adjustment factor

1/(1 + I)(t+0.5) = standard mid-year present worth factor

(1/106) = 1 divided by 1,000,000

BTU = BTU content of one pound of dry coal by coal bed by location

2000 = two thousand lbs. per ton

1800 = 1800 tons per acre foot

RR = clean coal recovery rate

Thk = coal bed thickness in feet

Formula 7

Aggregate value=(Ave.Coal price)X(Ave.Royalty rate)X(Annual production) / Capitalization rate