Laserfiche WebLink
(c)When the Mining Properties are classified under Colorado law as a <br /> producing mine,Lessor and Lessee shall each be responsible for its <br /> allocable share of taxes which are computed on the basis of the amount <br /> of proceeds from production as assessed under the Colorado method of <br /> mining taxation as,for example,severance taxes. <br /> (d)Excise and taxes levied on the privilege of mining shall be paid by <br /> Lessee. <br /> (e)The Lessee shall create a Tax Reserve Fund to assure the payment of <br /> such taxes. There shall be deducted from net smelter returns on all <br /> materials produced and sold from the Nfning Properties,before any <br /> royalties are computed 1.5%of the value there of for the purpose of a <br /> tax reserve fimd for paying such taxes. Said 1.5%deduction shall be <br /> paid to the Lessor by the smelter or other ore producing agency,and the <br /> same shall be held by the Lessor as a trust fund in its hand for the <br /> payment,when due,of such taxes. Any surplus remaining in said tax <br /> fund accumulated in the year, for which the taxes were levied after the <br /> payment of taxes,shall be equitably and ratably apportioned and paid to <br /> the respective parties on the basis of dw applicable royalty rate paid <br /> during such year.At any time after the mining properties are placed in <br /> production,it is determined that said 1.5% is ins,4 icient tD <br /> pay such taxes,then said 1.5%deduction may be reduced or increased <br /> in such amount as may reasonably be expected to pay the taxes which <br /> are to be paid there from.Depletion allowance,as defined by the United <br /> States Tax code shall be apportioned between the parties as the interest <br /> of the parties shall be in the ore,minerals or metals generating the <br /> depletion allowance- <br /> (J)The Lessee shall pay before delinquency all ad valorem taxes and <br /> other governmental charges,which if failed to be paid when due could <br /> result in alien on the Mining Properties,but may in good faith contest <br /> the validity or amount of any such tax. <br /> 9.2 Force 'eure. If Lessee should be prevented or delayed from <br /> performing any of the obligations of this Lease by reason of or act of nature, <br /> strike,threat of strike,fare, flood,delay in transportation,or insurrection, <br /> mob violence,requirement or regulation of government,unavoidable <br /> casualties,shortage of labor,equipment,matrxial,plant breakdown or other <br /> disabling causes,or for any reason which cannot be reasonably overcome by <br /> 12 <br />