About 2/3 down this page is an "aside" within a larger paper that theorizes on Nikon's NEF compression strategy and why they came up with this.
http://theory.uchica...3.html#bitdepth
The only way I've found to deal with it so far, when I get them, is to fiddle around in Startools wipe module. Pretty much requires maximum or near-maximum settings - this can move the rings around a bit or push them out wider, leaving color casts that are easier to deal with. Of course that erases more than you'd like to, often. And then less of a stretch in the ensuing step, perhaps leaving a remaining single ring that can be selected and rejected later.
The clouds cleared temporarily last night, letting me take some quick sky shots through my old achro refractor. I didn't hook up any cables, so the mount was unpowered and static, and the camera wasn't tethered so I was limited to the 30 second intervalometer. As such, I varied ISO to get differing exposure levels, from 100 to 1000.
Basically I was looking for the sweet spot. However, after looking things over I believe the BOC histogram is some kind of luminance reading. So, you can be under the recommended 1/4 and possibly still have your data into Mark's danger zone. BYN's histogram is similar to BOC except you can change from luminance to RGB, and I would suggest using that to stay under 1/4.
Here is where my ISO400 test shot ended up on BOC, and in IRIS. (note - I think the +EC can be ignored in M mode, I was just using that to test viewscreen brightness levels)
So if using BOC I would think maybe 1/6 would be safer. On all the subs I took, the bad spiking (which I think is what Mark is talking about) starts at just past 1030. A lesser spike usually starts in the upper 1020's.
On my test shots (a moving M42 lol), the BOC peak corresponded with the following ADU ranges in IRIS:
1/16: 640-760 with peaks at 655 and 725
1/8: 670-910 with peaks at 710 and 845
1/4: 760-1220 with peaks at 820 and 1090
1/3: 875-1625 with peaks at 980, 1280, and 1415
3/8: 950-1850 with peaks at 1075, 1450, and 1620
1/2: 1000-2200 with peaks at 1200, 1700, and 1900
I don't know if there's a rule of thumb here or if they are very subject-dependent.
I subtracted a dark off each one, and could not induce the rings in any of them with stretching. Maybe because it's not a stack? Or perhaps it needs flats divided to really bring them out? I might try different flat tests on them later.
Interesting idea on some kind of post-acquisition repair procedure to reverse the compression strategy. The true data is lost, as you say, but I guess it would be some sort of interpolation to smooth out the problematic spikes and craters? And could that be done while remaining lossy-sized, just with the anomalies leveled off, or filled out to be a full-sized 14bit RAW?