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Committee restores a 10-year audit lookback for mineral-leases
Summary
The committee approved an in-concept amendment to set the audit prescription period for certain mineral lease payments at 10 years and reported SB168 as amended.
The House Civil Law and Procedure Committee on May 13 approved an in-concept amendment to Senate Bill 168 that sets a 10-year prescription (audit lookback) period for bonuses, rentals, royalties and similar payments under state mineral leases.
Representative Neil Riser, speaking on the bill, said the change limits how far back the Department of Natural Resources can pursue audits on lease payments and other sums payable under valid existing mineral leases. The Senate had set the period at five years; the author requested an amendment reverting the period to 10 years and the committee adopted that concept amendment.
The bill was reported as amended with no objections. Department of Natural Resources staff was on hand to answer technical questions, and several industry and industry-related groups filed support cards for the committee record.
The adjustment alters the prescription period for audits but does not otherwise change lease terms; the committee recorded that the intent is to give DNR sufficient time to allocate staff and pursue audits when appropriate.
