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•-- - • <br />B~ ~~ <br />755 537 <br />conducted on or under the Leased Premises after the primary term. <br />Mining operations shall be considered as being conducted as long <br />as there is no cessation of such operations, without resumption, <br />for longer than 90 days, unless otherwise agreed in writing. <br />3. Lessee shall pay to Lessor as production royalty <br />for all coal actually mined and removed from the Leased Premises, <br />eight percent of the value of such coal, calculated as set forth <br />in the Code of Federal Regulations for federal coal leases, as <br />such regulations are in effect as of the date of this Lease (the <br />°Federal Coal Regulations"). All such royalty shall be accounted <br />for and paid monthly, on or before the twenty-fifth day of each <br />calendar month, for the coal mined and removed from the Leased <br />Premises during the preceding calendar month. Monthly mine <br />production of coal produced from the Leased Premises shall be <br />determined in accordance with the Federal Coal Regulations. On <br />or before the twenty-fifth day of each calendar month after the <br />commencement of coal-mining operations hereunder, Lessee shall <br />furnish to Lessor a statement to accompany the royalty check <br />showing the amount and value of coal mined during the preceding <br />month. Lessee shall also keep books of account of the mining and <br />shipping of said coal for each month, such books to be of the <br />usual character kept by coal operators for such purposes, and <br />which books shall be open at all reasonable times to the <br />inspection of Lessor and its authorized representatives_ <br />4. Lessee shall pay the following to Lessor annually in <br />advance for each acre or fraction thereof covered by this Lease, <br />which, for the purposes of this Lease, shall be deemed to be <br />3,800 acres; <br />(a) Upon the execution and delivery of this Lease, <br />Lessee shall pay Lessor $2.50 per acre covered by this Lease; <br />(b) On or before April 18 of each year hereafter on <br />which this Lease is still in effect, commencing April 18, 1996, <br />Lessee shall pay Lessor $3.00 per acre covered by this Lease as <br />rent for that calendar year; provided that if the rental rate for <br />federal coal leases (the °Federal Rental Rate°) specified in 43 <br />Code of Federal Regulations Section 3473.3-1 (or any successor <br />federal regulation) is increased or decreased hereafter, the <br />$3.00 per acre rate described herein shall be adjusted, upward or <br />downward, for future payments, so that it remains equal to the <br />Federal Rental Rate; <br />(c) Except as specifically set forth in this <br />paragraph (c), Lessen shall not be entitled to credit payments <br />made under this Section 4 or advance royalty payments made <br />pursuant to the original Lease against the production royalty <br />payable to Lessor u;.der this Lease; provided that Lessee shall be <br />entitled to recoup against the production royalty payable as set <br />-3- <br />