Laserfiche WebLink
4 <br /> Paying Quantities means production sufficient to return royalties to <br /> Lessor equal to the advance minimum royalty A*4.. ­ + - .+ <br /> 6. PENALTIES - A penalty shall be imposed for, but not limited to, late <br /> payments, improper payments, violations of any covenants of this lease, <br /> or any false statements made to Lessor. Penalties shall be determined by <br /> Lessor and may be in the form of, but not Limited to, interest, fees, and <br /> fines. <br /> 7. OVERRIDING ROYALTY LIMITATIONS - It is agreed that this lease or any <br /> subsequent assignment hereof shall not be burdened with overriding <br /> royalties the aggregate of which exceeds two percent (2%) of the gross <br /> value of the minerals or ore at the first point of sale. Lessor must be <br /> notified of all overriding royalties accruing to this lease. Violation <br /> of the above may subject this lease to cancellation by Lessor. <br /> 8. ISSIGNMF,NT -- Lessee, with the written consent of Lessor, may assign this <br /> lease as to the leasehold interest of Lessee in all or part of the lands <br /> covered hereby, not less, however, than tracts of approximately forty <br /> (40) acres, or governmental lots corresponding to a quarter-quarter <br /> section for partial assignment. For approval of such assignment Lessor <br /> may charge an assignment fee in an amount currently in effect at the time <br /> of the assignment. <br /> If an assignment of a part of this lease is approved, a new lease <br /> designated as an assignment will be issued to the assignee covering the <br /> lands assigned for the balance of the term of the base lease on the <br /> mining lease form in use at the time of assignment and limited as to term <br /> as said lease is limited. The assignor will be released and discharged <br /> from all further obligations for such lands assigned, as if the same had <br /> never been a part of this lease. <br /> No assignment or transfer of this lease will be held valid by Lessor <br /> unless made with its consent in writing and duly entered in the books or <br /> records of Lessor. <br /> Assignment Consideration -- The consideration for approval of assignment <br /> by Lessor shall be tea -ercent (10% ) of the value of any <br /> consideration tendered to the Assignor by the Assignee for the <br /> assignment. Divulgence of the value of these considerations shall be <br /> mandatory, in affidavit form, which form shall be presented to Lessor <br /> along with the other assignment instruments in order to obtain Lessor's <br /> approval for the assignment. An assignment does not constitute a new <br /> lease but is a continuation of the base lease. Any attempt to withhold <br /> this information shall be construed as an attempt to defraud the State of <br /> Colorado and shall render this lease null, void, and nonexistent, and all <br /> monies paid to Lessor shall be forfeited to Lessor. In addition, the <br /> current statutory fees will be paid at the time the assignment record <br /> form is submitted. <br /> 9. AGREEMENTS OUTSIDE THE TERMS OF THIS LEASE -- No assignment of undivided <br /> interests or retention or reservation of overriding royalties will be <br /> recognized or approved by Lessor; and the effect, if any, of any such <br /> assignments or reservations will be strictly and only as between the <br /> parties thereto, and outside the terms of this lease, and no dispute <br /> between parties to any such assignment or reservation shall operate to <br /> relieve Lessee from performance of any terms or conditions hereof or to <br /> Postpone the time therefor. Lessor will and shall at all times be <br /> entitled to look solely to Lessee or its assignee shown on its books as <br /> being the sole owner hereof, and for the sending of all notices required <br /> by this lease and for the performance of all terms and conditions hereof. <br /> Although not binding on Lessor, all instruments of every kind and <br /> nature whatsoever, including but not limited to sublease agreements and <br /> operating agreements, affecting this lease shall be filed in the records <br /> of the Mineral Department of Lessor. Upon request, such instruments <br /> furnished may be kept confidential as consistent within the law. <br /> 10. REPORTS -- After operations begin, it is agreed that on or before the <br /> last day of each month during the term of this lease Lessee shall submit <br /> a sworn, verified, written report to Lessor, in which report shall be <br /> entered and set down the exact amount in weight of all products and the <br /> assay thereof mined and removed from said leased premises during the <br />