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(e) Measurement. Records. and Reports. lessee shall be <br />responsible for determining the weight of Coal mined or produced and sold which is <br />subject to the production royalties in this Lease, and no such Coal shall be disposed of <br />unless and until Lessee has ascertained and recorded the weight thereof. To the extent <br />that scales and weighing devices are operated by Lessee, Lessor shall have the right to <br />request that Lessee furnish it with certificates of the current calibration of such scales <br />and weighing devices. <br />Lessee will furnish Lessor a written statement with each monthly royalty <br />payment showing the quantity and gross sales price, F.O.B. truck or railcar, of all <br />merchantable Coal sold from the Unitized Premises during the preceding month. Lessee <br />shall promptly inform Lessor of the sale or execution of any contracts for sale of Coal <br />from the Unitized Premises to a purchaser owned, controlled, or affiliated with Lessee, <br />or of the use by Lessee itself of any Coal, and of the amounts so sold or used. lessee <br />shall detail its computation of the value for royalty purposes of any such Coal sold or <br />used at the time royalties on such Coal are due. <br />Lessor shall have the right to inspect Lessee's books and records pertaining <br />to the production and sale of Coal from the Unitized Premises within a period of twelve <br />(12) months from the date of the inspected transaction. Such inspection shall be at <br />Lessee's place of business where such records are normally kept and shall be made <br />during lessee's regular business hours. Lessee shall not be required to maintain its <br />records for more than twelve (12) months subsequent to the date of the transaction <br />reflected therein. Representatives of Lessor shall have the right, at all reasonable times <br />and at Lessor's sole expense and risk, to enter the Premises, all workings therein, and <br />all facilities of Lessee therein or thereon, in order to inspect, survey, or measure the <br />same, or any part thereof, and to use freely and without hindrance the means of access <br />to said workings and facilities. <br />4.6 Payment of Taxes. Mortgages. and Liens. Lessee shall pay all taxes <br />• assessed or levied on all improvements, machinery, equipment or other property of <br />Lessee installed or placed in or upon the Premises by Lessee. Any production, severance, <br />gross profits, net profits, or other tax based upon production shall be paid by the parties <br />in proportion to their respective percentage of ownership in the right to receive proceeds <br />from the sale of Coal mined hereunder. For example, if the amount of production <br />royalty hereunder is 6 17o, then, Lessor shall be responsible for 6% and Lessee shall be <br />responsible for 94010 of the taxes so payable. <br />Lessor shall pay all taxes levied and assessed against the land as such and <br />on the improvements of Lessor located on the Premises; providing however, that any <br />increase in such taxes which is attributable to the conduct of Mining Operations on the <br />Premises by Lessee shall be borne and paid by Lessee. Lessor shall make all payments <br />necessary to discharge mortgages and other liens when such payments are due. Lessee <br />may, at its option, pay taxes and assessments on behalf of Lessor, and Lessee may <br />discharge any mortgages or other liens upon the Premises on behalf of Lessor and <br />deduct the amount thereof from any minimum royalty or production royalty payments <br />which may then or thereafter be payable to Lessor. <br />ARTICLE V <br />RECLAMATION - ENVIRONMENTAL COMPLIANCE <br />5.1 Removal of Structures and Equipment. Lessee shall have the right <br />to remove all structures, machinery, buildings, pipelines, equipment, and other property <br />or improvements placed by it on or in the Premises, including the foundations of any <br />such property or improvements, within twelve (12) months of the termination or <br />expiration of this Lease. Lessee shall have the right to enter the Premises at any time <br />during this period in order to remove these items. Any such structures, equipment or <br />other property not removed during that twelve (12) month period shall become the <br />property of Lessor. <br />-5- <br />