RECORDS AND LOGS Clause Samples

RECORDS AND LOGS. 1. The Lessee shall submit, upon request by the Lessor, an accurate log or record of each well in the format acceptable to the Supervisor of ▇▇▇▇▇ and as provided for in the DEQ’s Rules and Regulations under Part 615, 1994 PA 451, as amended. 2. The Lessee shall keep an accurate account of all operations under this Lease, including production, sales, prices, and dates of same; and shall report to the Lessor on the twenty-fifth (25th) day of each month, the quantity produced by each producing unit in the preceding calendar month, the quantities delivered to pipeline companies, and the quantities otherwise disposed of from the premises herein leased. The Lessee shall install and properly maintain, at its expense, adequate and correct meters for the measurement of gas production and flows, and shall provide for verification of gas production and flows by an independent third party at the sole discretion and request of the Lessor. 3. The Lessor shall have the right to examine the books of the Lessee insofar as they relate to the production, sale, and valuation of any oil, gas or other products derived from the premises herein leased. The Lessee shall provide monthly information such as production volumes, sale prices, remittance amounts, deductions and other information pertinent to the calculation and payment of royalties due the Lessor in a format approved by the Lessor. The Lessee shall submit, upon request by the Lessor, copies of source documents, reports, contracts, schedules, and computations to support volumes, prices, costs, and other factors used to determine value and remittance. 4. The Lessor, or the Lessor’s designated agent, shall have free access to the leased premises for the purpose of inspection and examination. 5. The Lessee shall, at the sole discretion of the Lessor, submit to an audit of all transactions, contractual relationships, volume, production, flows, sales, valuation, or such other records as Lessor may determine appropriate which are related to establishment of gross proceeds, deductions, the State of Michigan’s decimal interest and corresponding correctness of the royalty payments or any other types of payments due to the Lessor. The audit may be performed by the Lessor, or contracted for by the Lessor, at the Lessor’s discretion. The Lessee shall be responsible for the cost of the audit if, based upon the final audit report, any underpayment calculated before interest is in excess of five percent (5%) of the payment made for th...