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receipt of such notice, the parties in good faith shall renegotiate the Wash ng Deduction to reflect a deduction
<br />• that is acceptable to Lessor and Lessee. In the event Lessor and Lessee are tenable to renegotiate the Washing
<br />Deduction, the Washing Deducdeu shall be determined by a qualified professional engineer selected by the
<br />Bo:u~d. Lessor shall have the righ; :~~ require the elimination of the Washing Deduction in the calculation of the
<br />Average Gross Sales Price.
<br />if requested by Lessor, Le-~:e shall furnish proof of price receive, for all coal sold from the Leased
<br />Premises. Such ro}'zity shwa be d_r and payable on or before the last da}'. o` each calendar month during the
<br />term of this Lease rr, coal [Wined. i~moved, sold, and shipped by Lessee C~cing the preceding calendar mor.[h
<br />Gum the Leased Premises.
<br />3. HAULAGE ROYP,i_T'Y -- Lesse, s:grees to pay a haulage royalty ofer every ton of coal
<br />renaeved fiom the %.djacent Lands ivough the Leased Premises. No hau a~= .oya ry s a I apply to coal mined
<br />front the I-eased Premises for whi • ~ ~ production royalry is paid. At the end ci each 5-year period, connnencing
<br />from the date hereof, Lessor nta~ vsonably change the rate or amount of the Haulage Royalty to be paid by
<br />Lessee; provided tba~ any inereae~ .a the rate or amount of the Haulage kocalty shall not be greater than the
<br />inercasc, if any, it the average ~..:ual percentage change, taken over t?:e preceding 5-year period, in the
<br />Producer Price Ind~~:, Table 5, C ~~ `. Mining, as fvst published by US. Dr;=mnent of Labor Bureau of Labor
<br />Suusncs.
<br />1. 1~DVANCIi MINK\_!JM HAULP.;:::i ROYALTY -- Beginning with the Secondary Term, T.essee shall pay an
<br />anneal advance mi.,:;num haulaE.c royalry o piollazs~ provided drat
<br />such advance minitrvm haulage r•.;}_iry shall be ere t e upon ae us royt hies due a eretn provided for coal
<br />actually produced 1::-om the F djacci. ;ands and removed through the Leaser Premises: lit case of assignment u1
<br />[his Lease, all advad.;e miniamm..F :rdlage royalry paid to Lessor shall be ::tried forward and credited to the
<br />BSSi):Ret. .. ..
<br />5. WEIGH"I' OP COAL_ -- It is agree) ::!at all coal mined antl taken from [he Leased 'remises shall be weighed and
<br />the :weght !hereof stall be entered ::, due form in weight records kept for spc6 purposes by Lessee. I[ is agrced
<br />chat the term "ton" as used herein ^rans a ton of 2000 pounds of merchantabie coal zs shoam by miners' pay: all
<br />chrcl: nun:~ers or crucial railroaC i:rale ucke[s, or by weight detemilned at the minx tipple,. or by state certified
<br />• scales; provided [hat if it is not p<ssible to determine accurately the weight by s::ch means,'Lessor may, by its
<br />duly authorized agent or ag<rt;, moot to Compute a mn of coal at 27 cubEc fee, of coal in. the solid or by the
<br />measurer :• ns of tl:e space Gam ~A.r,ich the coal is mined, deducting therefrom .all space occupied by slate or
<br />other imp,: hies, ,tad in such rave t!:e said computation shall be final and binding upon Lessee.
<br />b. ROYAL"I y~ IN KhJg -- At the iption of Lessor and with 6 months' no:i.e to Lessee, Lessor may take its
<br />productimr royalty coal in kind, ir.'svhich event Lessee shall deliver such realty coal [o Lessor on [he Leased
<br />Premises, into slurry pipelines orunto storage piles designated by Lessor; M!t~ Lessee shal]'no[ in such case be
<br />required ro provide' ii-ee storage dr pay slurry chazges for any such coal tun onto storage piles or into slurry
<br />pipelines. '
<br />•i.,
<br />EXTHNS1iiN -- Lessor is nut obCgz[ed [o issue a new lease or to renew th•'s Lease. However, Lessee may have
<br />a prrferenti,a righ[ w renew is s Lease or to receive a new tease, under the fuilowing conditions:
<br />A. Lesxe shall ~fumish •;c, "_ess~i: satisfactory evidence of plans for mining during the term of [he renewed
<br />lease or during [he term of a t:ew lease. -'
<br />Lessee shall famish adequate geological evidence to Lessor that thz~5crcagc subject to the renewed or
<br />new :ease is in fact zn tarot hl psrt of and contains reserves in a logic,'. m:.ning unit. Whether the acreage
<br />is or is not a hart of a logical mining unit will be determined by Lesser.
<br />An extension of this Lease mould, as determined by Lessor, be in the best interest of the State.
<br />B. An advance minimum royalry, the amount to be negotiated at [be time of this extension, will be due and
<br />payable ,nodally commencing on [he date this Lease is renewed or b new lease is executed and shall
<br />continue until the expira[idd of the new or renewed lease. This amount may he adjusted by Lessor at the
<br />end of each ~-year period of [he renewed or new lease.
<br />D. CESSATION OF PRODUCTION -- This Lease may not be held in perpetuity; however, this Lease will
<br />. continue in effect through the Secondary Term provided that coal is being produced in paying quantities from
<br />the Leased Premises or fi uin the~Adjacen[ Lands during the Secondary Term, and, in addition, a minimum
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