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<br />after application of ordinary treatment processes normally applied by coal mine operators <br />in order to obtain a commercially saleable product, including, but not limited to, <br />cleaning, washing, breaking, sizing, dust allaying, and treating of to prevent freezing, <br />including the amount received from sales, if eny, of associated methane gases bled off <br />prior to or in the course of production of coal. If coal is consumed by Durango or <br />any affiliate of Durango or is sold to any affiliate, "Gross Proceeds of Mining" shall <br />include the fair market value of such coal computed by use of the actual price received <br />by Durango or relatively contemporaneous sales of eny of the coal to unrelated parties <br />and by use of the representative market price in a comparable area for coal of <br />comparable quality, provided that up to 1,000 tons of coal annually may be consumed <br />by Durango at the mine site in connection with its mining operations and to the extent <br />so consumed shall be excluded from Gross Proceeds of Mining. <br />2.6 Financisl Information: <br />a. At the time each Production Royalty payment under Section 2.1(a) is <br />paid and delivered to Arness, Durango shall deliver to Arness an accounting reflecting <br />its total coal s...es for the preceding quarter, its computation of the Gross Proceeds <br />of Yining for the preceding quarter with respect to which Production Royalties are <br />payable hereunder, and summarizing its computation of the payment then due to Arness. <br />b. Durango shall make available to Arness at the time the same are <br />delivered to local, state or federal authorities, any and all reports required to be filed <br />by it with respect to production on which Production Royalties are payable to Arness <br />hereunder. <br /> <br />4 <br />