27-239

27-239. Inspections, investigations and
audits

A. The state land commissioner or the commissioner's authorized representative may
enter, and the lessee shall maintain access to, the state land held under a mineral lease
at reasonable times to inspect the workings, improvements and other facilities used to
extract or sever minerals or common variety minerals, as defined in section 27-271, from
state lands.

B. The commissioner or the commissioner's authorized representative may enter at
reasonable times to:

1. Obtain factual data or access to records pertinent to mineral production and
required to be kept under the terms of the lease.

2. Otherwise ascertain compliance with law and the terms of the lease.

C. Inspections, investigations and audits under subsection A shall be on reasonable
notice to the lessee unless reasonable grounds exist to believe that notice would
frustrate the enforcement of law or the terms of the lease. The commissioner may, and if
required by law shall, apply for and obtain warrants for entry and inspection.

D. The commissioner may require a lessee to appear at reasonable times and on
reasonable notice at the commissioner's office and produce such records and information
as are specified in the notice to determine compliance with the terms of the lease.

E. The commissioner shall provide to the lessee a written report of each
inspection, investigation and audit under this section.

F. Tax records and trade secrets, as defined in section 23-401, obtained under this
section are confidential.