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BY. 765 E37 conducted on or under the Leased Premises after the primary term. Mining operations shall be considered as being conducted as long as there is no cessation of such operations, without resumption, for longer than 90 days, unless otherwise agreed in writing. 3. Lessee shall pay to Lessor as production royalty for all coal actually mined and removed from the Leased Premises, eight percent of the value of such coal, calculated as set forth in the Code of Federal Regulations for federal coal leases, as such regulations are in effect as of the date of this Lease (the "Federal Coal Regulations"). All such royalty shall be accounted for and paid monthly, on or before the twenty-fifth day of each calendar month, for the coal mined and removed from the Leased Premises during the preceding calendar month. Monthly mine production of coal produced from the Leased Premises shall be determined in accordance with the Federal Coal Regulations. On or before the twenty-fifth day of each calendar month after the commencement of coal-mining operations hereunder, Lessee shall furnish to Lessor a statement to accompany the royalty check showing the amount and value of coal mined during the preceding month. Lessee shall also )seep books of account of the mining and shipping of said coal for each month, such books to be of the usual character kept by coal operators for such purposes, and which books shall be open at all reasonable times to the inspection o£ Izssor and its authorized representatives_ ~. Lessee shall pay the following to Lessor annually in advance for each acre or fraction thereof covered by this Lease, which, for the purposes of this Lease, shall be deemed to be 3,800 acres: (a) Upon the execution and delivery of this Lease, Lessee shall pay Lessor $2.50 per acre covered by this Lease; (b) On or before April 18 of each year hereafter on which this Lease is still in effect, conmencing April 18, 1996, Lessee shall pay Lessor $3.00 per acre covered by this Lease as rent for that calendar year; provided that i£ the rental rate £or federal coal leases (the "Federal Rental Rate") specified in 43 Code of Federal Regulations Section 3473_3-1 (or any successor federal regulation) is increased or decreased hereafter, the $3.00 per acre rate described herein shall be adjusted, upward ox do-anward, for future payments, so that it remains equal to the Federal Rental Rate; (c) Except as specifically sat forth in this paragraph (c), Lessee shall not be entitled to credit payments Wade under this Section S or advance royalty payments made pursuant to the original Lease against the production royalty payable to Lessor u.,der t.:is Lease; provided that Lessee shall be entitled to recoup against the production royalty payable as set -3-