Section 85-06-02-16 - Audit and examination1. The department may audit and examine any records, including: a. Cuttings, cores, logs, mine plans, and estimated tonnage in place from any coal leased premises;b. Books, accounts, sales invoices, and receipts;c. Contracts and other records pertaining to the production, transportation, sale, and marketing of the coal produced from the coal leased premises; andd. Documents supporting the cost of the coal mining operation used for calculating the price per ton royalty.2. The department shall serve by certified mail, a written request to the payor specifying the documents requested.3. After audit and examination of the records set forth in subsection 1, the department shall notify the payor of the results, including the audit findings, any additional royalties due, the basis for that determination, and the date by which a response to the findings is due. If an exact amount of any delinquent royalties cannot be determined from the documents provided, the department shall request the payor make appropriate adjustments.4. A payor has sixty days from the date of the receipt of the audit findings to comply, respond to the findings, or request commissioner review. A request for commissioner review must be made in writing and include a statement of the reasons for disagreement with the audit findings. If a payor fails to comply with the audit findings, respond to the findings, or request commissioner review within sixty days, the coal lease is subject to cancellation under section 85-06-02-08.N.D. Admin Code 85-06-02-16
Adopted by Administrative Rules Supplement 375, January 2020, effective 1/1/2020.General Authority: NDCC 15-05-05, 15-05-09, 15-05-10, 15-07-20, 15-08.1-06, 61-33-06
Law Implemented: NDCC 15-05-01, 15-05-09, 15-05-10