How-To Guide

How to Respond to Audits

The basic procedures for addressing audits are set forth below.

Should you have any questions, please contact Mary Sanders at (903) 355-1400 or mary.sanders@la.gov.

Basic Procedures
  1. An audit engagement letter is issued to a payor several weeks prior to the start of an audit. This office is flexible to changes in accommodations as warranted.

  2. An audit report and/or billing will be submitted to the company upon completion of the audit. A company may make payments during the audit as exceptions become apparent. If you disagree with the audit billing, a written response explaining your reasons along with any supporting documentation should be sent to the Audit Director. All audit payments should include the royalty and interest.

  3. A company has 30 days from payment of the audit to submit the correcting State Royalty (SR) report  [Download:Microsoft Excel Format (XLS)orAdobe Acrobat Portable Document Format (PDF)]. This special audit State Royalty Report should be submitted separately from the monthly state royalty report.

  4. All penalty waiver requests must be detailed in writing and are granted by the State Mineral & Energy Board or their designee. Interest charges cannot be waived.

  5. All requests mentioned above should be sent to P.O. Box 44277, Baton Rouge Louisiana 70804-4277.

Forms mentioned on this page...
Monthly Report of Minerals Subject to State Royalty Microsoft Excel Format (XLS) Adobe Acrobat Portable Document Format (PDF)