W. Va. Code R. agency 110, tit. 110, ser. 110-01I, app A
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
W. Va. Code R. agency 110, tit. 110, ser. 110-01I, app A