(1) The lessee shall maintain adequate records to determine the amount of royalty owned.

(2) The lessee shall furnish upon request, but not more than once each calendar year, an exploration and development report which describes the work completed by the lessee. The report shall include a plat showing the location of any work completed on the lease property and shall include a complete geologic log and electric log (if done) of any test holes.

(3) Upon commencement of mining, the lessee shall make on or before the last day of each quarter, a report to the department concerning the operations for the latest 3 months for which records are available but not more than 3 months preceding the report. The report shall be on the form prescribed by the department and shall provide sufficient information to determine the royalty as well as any other pertinent information requested by the department. The royalty for the quarter reported shall accompany the report.