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Containing SkQ.QQ acres, more or less,together with the right to use as much of the surface as may be reasonably required,
<br /> except as limited herein or in the attached Operation Plan, including the right to reasonable ingress and egress; the right to
<br /> make excavations, stockpiles, and other improvements as may be reasonably necessary in the mining and removal of said
<br /> minerals;subject,however,to all existing easements and rights-of-way of third parties,and the rights of surface lessees and
<br /> surface owners,and further subject to the terms,conditions and agreements set out in this lease. The above-mentioned rights
<br /> may be exercised in connection with mining on other or adjacent lands only when mining on such lands is carried on in
<br /> conjunction with the actual mining on the Leased Premises.The benefits,terms,and obligations of this lease shall extend to
<br /> and be binding upon the heirs,executors,administrators,successors,or assigns of the respective parties hereto.
<br /> RESERVING,however,to Lessor:
<br /> A. All rights and privileges of every kind and nature,except as are herein specifically granted.
<br /> B. The right to use or lease said premises or any part thereof at any time for any purpose,including the right to
<br /> explore and prospect said premises,which use and leasing of said premises shall be for purposes other than
<br /> and not inconsistent with the rights and privileges heroin specifically granted.
<br /> C. The right to dispose of or lease the surface where Lessor is the surface owner.
<br /> D. The right at all times during the life of this lease to go upon said premises and every part thereof for the
<br /> purpose of inspecting said premises,and the books of accounts and records of mineral workings therein,and
<br /> of ascertaining whether or not said Lessee and those holding thereunder by and from it,are carrying out the
<br /> terms,covenants and agreements contained in this lease,
<br /> E. The right at any time to grant a right-of-way upon,over or across all or any part of said premises for any
<br /> ditch, reservoir, railroad, communication system, electric powerline, or pipeline, schoolhouse or other
<br /> lawful purpose;but that such grants shall be subject to the rights of Lessee.
<br /> F. The Leased Premises shall be subject to the rights of OG 1960.12 and OG 8032.70.
<br /> TO HAVE AND TO HOLD The above-described premises unto Lessee, its heirs, successors, assigns, or legal
<br /> representatives for the term of Five years as taken from April 13, 2014, which is the expiration date of the July 30, 2004
<br /> Amendment, and until Twelve O'clock noon on the 13th day of Auril, 2019 , provided that the royalties and rentals
<br /> provided for herein are being paid,or by any extension hereof,subject to the following terms,conditions and agreements,to
<br /> wit:
<br /> I. ADVANCE MiNiMUM ROYALTY — As minimum and advance royalty, without relation to the amount of
<br /> minerals mined from the Leased Premises, Lessee shall pay annually, due on April 13, in advance to Lessor the
<br /> following amounts:
<br /> LEASE YEAR AMR
<br /> 2014-2018 $25,000
<br /> If Lessee does not extract minerals from the Leased Premises sufficient to return to the Lessor the minimum
<br /> amounts above specified, it is nevertheless understood that the above sums of money are due and payable to Lessor
<br /> whether or not minerals are mined, but that such advance minimum royalty shall be credited upon the first royalties
<br /> due as herein provided for minerals actually produced from the !,eased Premises. All advance minimum royalties
<br /> not credited against production royalties for minerals actually produced from the Leased Premises shall be forfeited
<br /> to Lessor at the expiration date of the lease.
<br /> Further, at the end of each five-year period, commencing from the original lease date, Lessor may reasonably
<br /> change the rate or amount of advance minimum royalty to be paid by Lessee. Failure to comply with any new
<br /> advance minimum royalty rate set by Lessor may subject this lease to cancellation by thirty day written notice by
<br /> Lessor.
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