Default assessment
19 Default assessment
The Secretary may assess the net value and gross production revenue from a production unit on which, in the Secretary's opinion, royalty ought to be levied if:
the royalty payer fails to deliver the statement required under section 12; or
the Secretary is not satisfied that a statement delivered by the royalty payer is a full and accurate statement; or
the Secretary is of the opinion that the amount stated by the royalty payer to be the gross value of a saleable mineral commodity is not reasonable.
If the Secretary is of the opinion that the amount stated by the royalty payer to be the gross value of a saleable mineral commodity is not reasonable:
the Secretary must, in assessing the net value and gross production revenue, by written notice to the royalty payer, declare the amount the Secretary considers to be a reasonable gross value for the mineral commodity concerned; and
the net value and gross production revenue must be assessed by reference to the gross value declared under paragraph (a).
The amount assessed under this section is taken to be the net value or gross production revenue, as the case may be, on which royalty is payable.
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