Section 85-06-01-13 - Audit and examination1. The department may audit and examine any records, including: a. Books, accounts, and receipts; andb. Contracts and other records pertaining to the production, transportation, sale, and marketing of the oil or gas or other products produced from the oil and gas leased premises.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, the basis for that determination, and the date by which a response to the findings is due.4. A payor has sixty days from the date of the receipt of the audit findings to comply, request an extension, respond to the findings, or request commissioner review. A request for an extension or for commissioner review must be made in writing. A request for commissioner review must 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 oil and gas lease is subject to cancellation under section 85-06-01-10.N.D. Admin Code 85-06-01-13
Adopted by Administrative Rules Supplement 375, January 2020, effective 1/1/2020.General Authority: NDCC 15-05-09, 15-05-10, 15-07-20, 15-08.1-06, 47-16-39.1, 61-33-06
Law Implemented: NDCC 15-05-09, 15-05-10, 47-16-39.2