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thereunder by and from it, are carrying out the terms, covenants and agreements in this lease <br /> contained. <br /> E. The right at any time to grant a right-of-way upon, over or across all or any part of said <br /> premises for any ditch, reservoir, railroad, communication system, electric powerline, or <br /> pipeline, schoolhouse or other lawfut purpose; but that such grants shall be subject to the rights <br /> of Lessee. <br /> F. The right at any time to place the Leased Premises into the Stewardship Trust as set forth in <br /> Section 10(1)(b)(1) of Article IX, of the State Constitution. Said placement into the Stewardship <br /> Trust shall be for reasons not inconsistent with the rights and privileges of Lessee. <br /> TO HAVE AND TO HOLD the above described Leased Premises unto Lessee, its heirs, successors, assigns, <br /> or legal representatives for the primary term of 5 years, and until Twelve O'clock noon on the 10h day of <br /> March, 2021. The Lease may continue in effect for an additional 5 years to the 10`h day of March, 2026 (the <br /> "Secondary Term") as long as sand and gravel are being produced in paying quantities from.said Leased <br /> Premises and subject to the terms of paragraph 4 of this Lease, and the royalties and rentals provided for <br /> herein are being paid, subject to the following terms, conditions and agreements, to wit: <br /> 1. 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 in advance to Lessor the following <br /> amounts: <br /> LEASE YEAR AMR <br /> 2018-2025 (Beginning March 2018) $10,000 <br /> If Lessee does not extract minerals from the Leased Premises sufficient to return to the Lessor the <br /> minimum amounts above specified, it is nevertheless understood that the above sums of money are due <br /> and payable to Lessor whether or not minerals are mined, but that such advance minimum royalty shall <br /> be credited upon the first royalties due as herein provided for minerals actually produced from the <br /> Leased Premises. In the absence of production of minerals in continuous paying quantities before the <br /> expiration date of the lease, all advance minimum royalties and all rentals shall be forfeited to Lessor. <br /> Acreage changes resulting from surrender or partial assignment do not reduce the advance <br /> minimum royalty proportionately. Further, at the end of each five-year period, commencing from the <br /> original tease date, Lessor may reasonably change the rate or amount of advance minimum royalty to <br /> be paid by Lessee. Failure to comply with any new advance minimum royalty rate set by Lessor may <br /> subject this lease to cancellation by thirty day written notice by Lessor. <br /> In case of assignment of this lease, all advance minimum royalty paid to the state shall be <br /> carried forward and credited to the new assignee. <br /> 2. PRODUCTION ROYALTY -- Lessor reserves as royalty, and Lessee agrees to pay to Lessor on or before <br /> the last day of each calendar month following the month of production the following amounts: <br /> • The royalty rate shall be $0.75 per ton (2000 pounds) of sand Et gravel produced and sold from <br /> the Leased Premises. <br /> Further, at the end of each five-year period, commencing from the original lease date, for so long <br /> as this lease remains in effect, Lessor may increase the rate or amount of production royalty to be paid <br /> by Lessee by a rate not to exceed the rate of increase of the average Producer's Price Index for <br /> Construction Sand, Gravel and Crushed Stone for the previous 5-year period, as published by the U.S. <br /> GL 110167 Revised 9/2015 <br /> Page 2 of 13 <br />