Code of Federal Regulations Title 49. Transportation 49 CFR § 1201.6-4 6–4 [1201.6–4] Gravel and sand pits and quarries

(a) When a gravel or sand pit or quarry is opened for operations likely to extend over a long period, an account shall be set up designated, Operations of gravel pit at __________, or Operations of quarry at ______, as the case may be. To this account shall be charged cost of the land in excess of its estimated value after the gravel, sand, or stone has been removed (credit to the property account in which the cost of the land is included);  payments for right to enter upon and remove ballast from land not owned by the carrier;  cost of sinking test holes;  and costs preparatory to opening the pit or quarry. To this account shall be charged also the cost, in excess of the estimated salvage value, of rails and fastenings, ties, other material and labor used in constructing tracks to and in the gravel pit or quarry (the estimated salvage being carried in an appropriate suspense account);  cost of labor and train service employed in producing, quarrying, and loading ballast, including the cost of operation, repairs, and depreciation of power shovels and other machines and machinery;  pay and expenses of watchmen;  cost of explosives and hand tools, and miscellaneous expenses;  and cost of installing, operating and maintaining signals and interlockers at gravel pits.

(b) Credit to the clearing account shall be made each month to cover the cost of ballast material produced during the month. The cost of production shall include the expenses directly assignable to the monthly output plus a proportion of the expenses not directly assignable, such as cost of land, tracks, machinery, and interlockers. This latter amount shall be computed upon the basis of the ratio which the monthly output bears to the total estimated yardage to be taken from the pit. When any portion of the product of such pits or quarries is sold, the cost thereof shall be credited to this clearing account and any related profit shall be credited to account 110, Incidental.