ARSD § 64:27:01:14 — Cost of repair and replacement

64:27:01:14. Cost of
repair and replacement. The following repair and replacement costs are
chargeable costs for deduction purposes:
(1) The cost of repairing and maintaining mining
machinery;
(2) The cost of timber for the inside of a mine;
(3) The cost of assaying and the maintenance of
the assaying equipment; and
(4) The costs of repair and maintenance of
general administrative facilities within this state.
The cost of renewal of mining machinery and the cost of its
installation and the cost of new equipment, laboratories, and administrative
facilities are not chargeable against operating costs for deduction purposes.
Expenditures for equipment and equipment replacements which
are necessary to maintain the normal output solely because of the recession of
the working faces of the mine and which do not increase the value of the mine,
do not decrease the cost of production of mineral units, or do not represent an
amount expended in restoring property or in making good the exhaustion thereof
for which an allowance is or has been made shall be deducted as ordinary and
necessary business expenses and need not be capitalized.