Lessee grants to Lessor or Lessor's agent the right to examine annually, or inspect books, records and accounts of Lessee pertinent to the purpose of verifying the accuracy of the reports and statements furnished to Lessor, and for checking the amount of payments lawfully due the Lessor under the terms of this agreement. In exercising this right, Lessor shall give reasonable notice to Lessee of its intended audit and such audit can be conducted during normal business hours at the office of Lessee. Such examination and audit shall be at the sole cost and expense of Lessor. Lessee shall afford Lessor the time reasonable necessary to conduct a full audit covering the purposes described above.
Malone Petroleum Consulting
An alternative:
Right to Audit. Without limiting Lessor's rights or Lessee's obligations under any other provision of this Lease, commencing on the completion date of the first well drilled on the Leased Premises as a producing well, no more often than once a year during the term of this Lease, Lessor shall have the right to have an audit of the books, accounts, contracts, records, and data of Lessee pertaining to the development, production, saving, transportation, sale, and marketing of the oil, gas, and sulphur produced from or attributable to the Leased Premises conducted. If the exceptions or deficiencies in royalty payments by Lessee as revealed by the audit (the “audit exceptions”) are, either by agreement of Lessor and Lessee or by a final, non-appealable judgment binding on the parties, determined to be more than the cost and expense of such audit to Lessor, then Lessee shall reimburse Lessor for the cost of such audit within thirty (30) days after the earlier of (i) the date of the agreement of the parties respecting the amount or amounts of the audit exceptions or (ii) the date upon which a judgment binding on the parties and determining the amount or amounts of the audit exceptions becomes final and non-appealable. If the audit exceptions are, either by agreement of Lessor and Lessee or by a final, non-appealable judgment binding on the parties, determined to be less than the cost and expense of the audit to Lessor, such cost and expense shall be borne by Lessor.
Buddy, I like yours better! My main objective was to get this added to leases to protect the mineral owner. Thanks! Bob