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The Consumer Price Index (All Urban Consumers, All Cities, All Items), as prepared by the <br />United States Department of Labor, shall be used as a basis for computation. Such index shall <br />be taken for August 1, 1999, and the price index thus obtained shall be considered the applicable <br />index for the royalty amount applicable for the one-year period beginning August 1, 2000. Such <br />index obtained shall be compared with the price index figure for August 1, 2000, and the per -ton <br />price shall be varied (either increased or decreased) in the same ratio as the more recent price <br />index bears to the less recent price index. On August 1 of each year during the term hereof and <br />any renewal, the royalty rate shall be likewise adjusted for use in the succeeding one-year <br />interval by comparing the price index for August 1 of the then current year to the price index <br />for one year earlier, as used in the preceding adjustment calculation. If the index prescribed <br />above ceases to be published by the United States Department of Labor or its successor agency, <br />a similar index shall be utilized. (This basis of computation is taken from the case of Centennial <br />Enterprises. Inc. v. Mansfield Dev. Co., 568 P.2d 50 (Colo. 1977), and is to be interpreted <br />consistently therewith.) <br />Lessee shall forward to Lessor monthly reports showing the quantity of materials <br />removed during the preceding month according toconsecutively numbered load tickets, with the <br />date of loading. Such reports shall be forwarded to Lessor by the twenty-fifth (25th) day of the <br />following month, whether materials are removed or not. <br />Royalties for materials removed from the premises in excess of the $2,500.00 advance <br />royalty shall be due on the twenty-fifth (25th) day of the month following the calendar month in <br />which such material is removed. <br />Lessee agrees to keep a strict and accurate record of all materials removed from the • ' <br />leased premises and all sales thereof. Lessor shall have the privilege, at reasonable times, of <br />examining the mining procedures and checking the books and records of -Lessee for the purpose <br />of verifying the amount of royalties payable. <br />III. COVENANTS OF LESSEE <br />Lessee covenants and agrees with Lessor as follows: <br />1. To comply with all applicable laws, rules and regulations of governmental <br />authorities, including, without limitation, the Mined Land Reclamation Board of the State of <br />Colorado, and as well to comply with appropriate zoning, land use, and.dother regulations of Rio <br />Blanco County. <br />2 <br />