Section 1220.010 - NPSL capital account(a) For each NPSL tract, an NPSL capital account shall be established and maintained by the lessee for NPSL operations. The NPSL capital account shall include debit entries for all allowable direct and allocable joint costs incurred during the term of the lease, appropriate overhead allowances permitted on these costs pursuant to § 1220.012 , and allowances for capital recovery calculated pursuant to § 1220.020 . The NPSL capital account shall be credited with production revenues attributable to the NPSL and any other credits arising from NPSL activities.(b) The NPSL capital account shall be kept on an accrual basis.45 FR 36800, May 30, 1980, as amended at 75 FR 61087 , Oct. 4, 2010