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. `, <br /> <br />A. $1,000.00 paid at time of execution <br />hereof, receipt of which is hereby ac- <br />knowledged by the Lessor, which shall be <br />an advance royalty; but, if the permit <br />referred to above is not granted by the <br />Colorado Land Reclamation Board the said <br />$1,000.00 shall be retained by Lessor as <br />his separate property. <br />~~ <br />~- B, $1,000.00 shall be paid by Lessee to <br />Lessor upon the issuance of the gravel <br />permit by the Colorado Land Reclamation <br />Board, said payment to be an advance royalty. <br /> <br />3 <br />C. Lessee shall pay $.25 per ton as royalty <br />to the Lessor for each ton of material removed <br />from the leased premises during the term of <br />this Agreement, subject to the provision for <br />increase of royalty set forth hereafter for <br />the second ten years of the term of this <br />lease. Lessee shall weigh all material-as it <br />is removed from the leased premises and shall <br />keep good and accurate weight records thereof. <br />Lessee shall provide Lessor with a written <br />statement as to all materials removed by it <br />in the preceding month and make payment to <br />Lessor of the royalty due therefor by the <br />25th day of each month for materials removed <br />in the preceding month. <br />D. During any calendar year when the royalties <br />paid to Lessor pursuant to the next preceding <br />subparagraph shall be less than $1,000.00, the <br />Lessee shall pay Lessor a sufficient sum at the <br />end of the said calendar year so that the total <br />royalties paid shall be at least $1,000.00.. <br />Such payment, if any, shall be an advance <br />royalty. A "calendar year" begins on the date <br />upon which this lease becomes effective which <br />is to be the date upon which the permit is <br />issued by the Colorado Land Reclamation Board <br />as set forth above. <br />E. At the end of the first five years of the <br />lease term, if Lessee has not paid to Lessor <br />~i. royalty on at least 1'00,000 tons of material <br />(that is, $25,000.00 in royalty) the Lessee <br />shall forthwith pay to Lessor a sum sufficient <br />to bring the total royalty paid to Lessor to <br />the amount of $25,000.00. Any such payment <br />shall be considered an advance royalty. <br />F. The Lessor and Lessee agree that the <br />royalty to be paid by Lessee of $.25 per <br />ton is percent of the market value of <br />the material, which market value has been <br />determined by taking an average royalty paid <br />by the Colorado Division of Highways, District <br />3, under sand and gravel leases to it in the <br />year 1976. The royalty to be paid to Lessee <br />during the last ten years of the lease term <br />shall be percent of the market value <br />which shall be determined in the same fashion <br />and shall relate to royalties paid by the <br />District 3 of the Colorado Division of High- <br />ways in the year 1986. <br />-3- <br />