11. Cost submissions to the Committee by railways other than Class I railways shall be made as follows:

• (a) the submissions shall be based on direct costing to the extent feasible;

• (b) where feasible, an empirical adaptation of factors employed by Class I railways shall be made for other than direct assignment of costs;

• (c) cost submissions shall be in the same form as those prescribed for Class I railways and shall be supported by a complete description of the methods and procedures used in determining output units and in assigning and allocating costs; and

• (d) cost submissions shall include an allowance for cost of capital as follows:

  • (i) where the railway companies have developed a capital structure satisfactory to the Committee, at an approved cost of capital rate developed in the same manner as prescribed for Class I railways in these Regulations, or

  • (ii) where the railway companies have not developed a capital structure satisfactory to the Committee, at a cost of capital rate prescribed by the Committee.

12. Applications for abandonment of any line of railway under section 106 of the Act shall be accompanied by a statement of costs and revenues, showing the actual loss incurred in the operation of the line of railway, prepared in the same manner as these Regulations require for the purposes of actual loss calculations under section 253 of the Act, unless the Committee directs otherwise pursuant to section 46 of the National Transportation Act.