( a ) defined terms. the following terms shall have the meaning set forth in this section : ( i ) “ affiliate ” shall mean any person or entity controlling, controlled by or under common control with producer. ( ii ) “ allowable deductions ” means : ( 1 ) in the case of a smelter or refinery that is an unrelated party of the producer, all direct costs, charges and expenses of the smelter or refinery incurred by the producer for off - site smelting or refining of the product following delivery to the smelter or refinery ( including provisional settlement fees, weighing, sampling, assaying, umpire, insurance and other off - site smelter or refinery deductions ) ; ( 2 ) otherwise, an amount equal to the commercially reasonable costs of a refinery or smelter on an arms length basis for off - site smelting or refining of the product following delivery to the refiner or smelter ( including provisional settlement fees, weighing, sampling, assaying, umpire, insurance and other off - site refiner or smelter deductions ) ; ( 3 ) direct sales, use, and gross receipts taxes, payable by the producer or other operator of the property, that are based directly upon, and assessed against, the value or quantity of product sold or otherwise disposed of from the property ; but excluding any and all taxes based upon the net or gross income of the owner or other operator of the property, the value of the property or the privilege of doing business, and other taxes assessed on a similar basis ; ( 4 ) costs to market the product ; and ( 5 ) to the extent paid by the producer, all costs ( including but not limited to insurance costs ) for transportation of the product to the purchaser of the product. ( iii ) “ business day ” means a day banks are open for general banking business in denver, colorado, and tucson, arizona, excluding saturdays, sundays and public holidays. ( iv ) “ copper ” means the element copper in whatever form and however contained. ( v ) “ dollars ” or “ $ ” means the currency of the united states of america. ( vi ) “ governmental authority ” shall mean any federal, state or local government, governmental or quasi - governmental agency, district or authority having jurisdiction or authority to regulate or control the property or any part of producer ’ s operations in connection with production and sale of minerals. ( vii ) “ law ”