R652-5-300. Royalties

1. Royalty Reports and Reporting Periods

(a) All royalty payments shall be made payable to the Division of Forestry, Fire and State Lands and shall be accompanied by a certified royalty report on a form specified by the division. Check stubs or other report forms are unacceptable and do not satisfy the reporting requirement of this section.

(b) Any report not sufficiently complete and accurate to enable the division to deposit the royalty to the correct fund must be promptly corrected or amended by the payor. Failure to provide such a report may, after proper notification, subject the lease to cancellation.

2. Interest on Delinquent Royalties

Interest shall be compounded semiannually based on the average adjusted prime rate, rounded to the nearest full percent, for each six-month period computed from April to September and October to March, plus 4%. The interest rate will be subject to change at six month intervals every July 1st and January 1st. This interest rate will be applied to any delinquent royalties and will be in effect until payment is received. However, interest will not be assessed for prior period adjustments or amendments except for amounts of additional royalties due discovered during any audit action. Also, interest will not be accrued or billed for amounts less than $10.