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deduction for expenses of drilling, testing, developing, operating, and maintaining an), <br /> facilities for the recovering thereof, transportation costs, severance taxes, selling <br /> 3 <br /> expenses, or other expenses, costs or deductions whatsoever. The royalty set forth in this <br /> , <br /> i <br /> paragraph shall be based on the volume of the gas methane at the recovery point, and <br /> paid at the same time as tonnage royalties are paid. <br /> I <br /> 13. Recoupment. Each payment of advance minimum annual royalty <br /> shall be applied as a credit, first against tonnage royalties payable for mining performed <br /> in the calendar year for which such payment of minimum annual royalty is made and <br /> then, to the extent not recouped by such credit against tonnage royalties in that calendar <br /> year, against tonnage royalties payable for any succeeding calendar years during the term <br /> of this Lease as extended from time to time. <br /> 14. Adjustments to Royalty. The amount of royalty otherwise payable <br /> hereunder shall be adjusted in the following events: <br /> (a) In the event litigation is instituted regarding a dispute or <br /> question as to the ownership of any coal in, on or underlying the Leased Premises, the <br /> boundary lines of the Leased Premises, or monies to be paid by Lessee to Lessor <br /> hereunder, and Lessee concludes in its reasonable discretion that such litigation is not a <br /> spurious action, Lessee may deposit any and all monies that are the subject of the dispute <br /> or are payable with respect to coal that is the subject of the dispute and that are due or <br /> that may become due to Lessor during the pendency of such litigation with an escrow <br /> agent selected by mutual agreement of Lessor and Lessee. (Any and all undisputed <br /> monies shall be paid to Lessor as they become due during the pendency of such <br /> {L0406980.10} 9 <br />