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~0~30~~ <br />coal interest leased herein, whether mining occurs by underground, surface or other <br />mining methods. ' <br />(a) With respect to bona fide arm's length transactions for the sale of coal, <br />Gross Procads shall mean the aggregate amount of consideration rxeived or receivable <br />by :he Lessee, directly or indirectly, for the sale of coal f.o.b. the tipple or the mouth of <br />the. mine, without deduction for any sales commissions, telling expenses or preparation <br />costs; provided that, if the coal is sold f.o.b. some other delivery point with the Lessee <br />bearing transportation expenses from the mouth of the mine to that delivery point, then <br />those transportation expenses shall be deducted from the .Gross Proceeds before <br />computation of the royalty. <br />(b) If coal mined from the Lased Premises under the terms of this Lease <br />is sold by the Ixsset other than by a bona ftde arm's length transaction or is used or <br />otherwix disposed of by the Lessee, including by gasification, slurrification or combustion, <br />then Gross Procceds shall mean the prevailing fair market value of the coal at the tipple <br />or the mouth of llte mine. The prevailing fair market value shall be determined with <br />reference to bona fide arm's length coal sale transactions by others which are most <br />comparable to the prevailing circumstances related to this Lease, giving consi~!eration to <br />quantity, size and quality of the coal, length of term and delivery of commitment of <br />contracts, availability and cost of transportation, and other pertinent market conditions. <br />(c) Production royalty payments shat! be frer of any e.penx of <br />exploration, mine development or operation. <br />(d) Production royalty payments are due and payable on or 1-cfore the <br />twentieth (2Utlt) day of each calendar month for the coal mined and removed, and wld, <br />used or otltcnvise disposed of from the Leased Premises during the preceding calendar <br />month. The Lessee shall furn,sh to the Lessors a statement of production and sale or <br />rther disposition to accompany each royally payment showing the amount of coal minP~, <br />removed and wld or otlrcrsvisc disposed of from the Leased Prcntiscs during !!+c <br />prectxling calendar month. <br />~. No ~~'arranties of l itle. 't'his l.case is executed by l.cssurs x~le•ly in their <br />capacities as Co-Successor Trustees by Virtue of Aplxrintment by the I)isvict Court in <br />i <br />