Section 1220.012 - Overhead allowance(a) During the capital recovery period the overhead allowance shall be calculated on a percentage basis at the rate of 4 percent of allowable direct and allocable joint costs charged to the NPSL capital account, exclusive of costs specified in paragraph (c) of this section. This overhead allowance shall be debited to the NPSL capital account in accordance with § 1220.021(b)(2) .(b) For each month after the end of the capital recovery period, an overhead allowance shall be calculated on a percentage basis at the rate of 10 percent of allowable direct and allocable joint costs charged to the NPSL capital account, exclusive of costs specified in paragraph (c) of this section. This overhead allowance shall be debited to the NPSL capital account in accordance with § 1220.021(c)(2) .(c) Overhead shall not be charged on the value of:(1) Lease rental (§ 1220.011(a) );(2) Contract services (§ 1220.011(e) );(3) Taxes (§ 1220.011(i) );(4) Re-injected hydrocarbons, originally produced from the NPSL tract, that are charged under § 1220.011(c) ; and(5) Credits for materiel charged under § 1220.011(c) that are salvaged, returned, or used for the benefit of non-NPSL operations.45 FR 36800, May 30, 1980, as amended at 75 FR 61087 , Oct. 4, 2010