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(cubic yards), as provided in this section. In such case, volumetric measurement <br />may be conducted by toad count, monthly topographic surveys, or any other <br />technique commonly used in the sand and gravel industry and generally accepted <br />as a reasonably accurate means of such measurement. <br />Further, at the end of each five -year period, commencing from the original Lease <br />date, for so long as this Lease remains in effect, Lessor may increase the rate or amount <br />of production royalty to be paid by Lessee by a rate not to exceed the rate of increase of <br />the average Producer's Price Index for Construction Sand, Gravel and Crushed Stone for <br />the previous 5 -year period, as published by the U.S. Department of Labor, Bureau of <br />Labor Statistics. Failure to comply with any new royalty rate set by Lessor may subject <br />this Lease to cancellation by thirty -day written notice by Lessor. <br />Reporting of production royalty that is credited against advanced minimum royalty is <br />also due on or before the last day of each calendar month for mining during the <br />preceding calendar month. <br />3. EXTENSION -- Lessee may have a preferential right to renew the Lease or to receive a <br />new tease, whichever may be determined by Lessor to be in the best interest of the <br />Lessor, under the following conditions precedent: <br />A. An advance minimum royalty, the amount to be negotiated before expiration of <br />the Lease, will be due and payable annually commencing on the date this Lease <br />is renewed or a new lease is executed and shalt continue until the expiration of <br />the new or renewed lease. This amount may be adjusted by Lessor at the end of <br />each five -year period of the effective date of the renewed or new lease. <br />B. Lessee shall furnish to Lessor satisfactory evidence of plans for mining during the <br />term of the renewed Lease or during the term of a new tease. <br />C. Lessee shall furnish adequate geological evidence to Lessor that the acreage <br />subject to the renewed or new lease is in fact an integral part of and contains <br />reserves in a logical mining unit. Whether the acreage is or is not a part of a <br />logical mining unit wilt be determined by Lessor. <br />D. An extension of this Lease as determined by Lessor would be in the best interest <br />of Lessor. <br />4. EXTENSION BY PRODUCTION - This paragraph is deleted. <br />REPORTS AND RECORDS -- After operations begin, it is agreed that on or before the last <br />day of each month during the term of this Lease Lessee (or Lessee's operator) shall <br />submit a sworn, verified, written report to Lessor, in which report shall be entered and <br />set down the exact amount in weight or volume (cubic yards) of all products and the <br />assay thereof mined and removed from said Leased Premises during the preceding <br />calendar month. Lessee agrees to keep and to have in possession complete and accurate <br />books and records showing the production and disposition of any and all substances <br />produced on the Leased Premises and to permit Lessor at all reasonable hours, to <br />examine the same or to furnish copies of same to Lessor within 60 days following written <br />request along with purchaser's support documentation (which documentation may <br />Page 3 of 13 <br />