Common use of Royalty Statements Clause in Contracts

Royalty Statements. Due on the same day as the NSR payment, Lessee shall provide Lessor with a Royalty Statement which details the amount of ores, minerals, or other products sold or processed and a detailed compilation of the payment due. Examination and/or audit. Lessor may require an independent audit by a CPA or accounting firm that is acceptable to both parties of the Royalty Statement and all records related to concentrate or product sales. If the audit discloses a substantial discrepancy(ies), defined as discrepancy(ies) resulting in an underpayment to the Lessor of five percent (5%) or more of the NSR due or an ongoing history of significant underpayment to the Lessor, the cost of the audit shall be paid by the Lessee. If the audit fails to disclose a substantial discrepancy(ies), the cost of the audit shall be paid by the Lessor. The Lessee shall keep appropriate records detailing the amount, source, and assay of ores, minerals, or other products recovered, processed, sold, or shipped and the amount and source of payment received.