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Please refer to example entitled:

Example of Low Value / High Bulk



SUBPART D Reference: § 24.301(g)(18)

Example of Low Value / High Bulk

Atkins Hardware has a 500 gallon kerosene tank with a remaining content of 100 gallons. Each gallon of the kerosene sells retail at the time of displacement for $2. The cost to provide a truck, pump the tank contents, filter it for water and foreign debris, deliver it to the new location is estimated at $400, which is greater than the materials' value. Delivering new kerosene to the new store location would cost about $1.45 per gallon for a five-hundred gallon delivery, and about $1.75 per gallon for a one-hundred gallon delivery.

If the remaining 100 gallons of kerosene were sold at old site: $200

If 100 gallons are delivered to the new site: $175

The business is entitled to $175

Note: The bulk supplier will accept a donation of the kerosene located at the old location.

Updated: 9/5/2014
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