|
'/ .
<br />Y.
<br />In the event that said Lessee does not extract from said premises said minimum amounts above specified during
<br />• each lease year of the term of this lease, it is nevertheless understood that the above sums oC money are royalties
<br />- for the years stated, and are due and payable to the Lessor whether minerals are mined or not during such year,
<br />but that such minimum advance royalty will be credited upon the first royalties due as hereinafter provided for
<br />~•' .' ... mineralsactuallyptoduced from said premises and sold or milled during the year for which such minimum royalty
<br />was paid.
<br />2. ~ Prnduellan 12ayelty a Lasser hereby reserves end Lessee agrees to pay ra Lasser as royalty the fallawln6:
<br />(a-1) . For fissionable materials -see attached schedule.
<br />(9-2) ,- For non-fissionable materials - A sum equal to---- % of the gross value at the mill or buying station
<br />less reasonable transportation costs. Lessee wdl Curttish evidence that prices received for material sold
<br />'' and transportation charges deducted are reasonable and fair. Unless otherwise agreed to in writing by
<br />' J' 'the Board, deductable transportation charges will be from the mine to [he nearest mdl or buying statron.
<br />• Lessee may use the weighted average sale price received for all lots of ores sold during each calendar
<br />month period.
<br />,; •.
<br />. ~ ~ ,< , (b) A sum of gL, 95 for each and every ton (2000#) of the above specified minerals mined from the
<br />remises. \Vithin sixty days prior to the termination of each and every five-year period Cor so longer this
<br />"` ~ lease remains in effect, the Stale Board of Land Commissioners may reappraise the property herein
<br />:.'; [, leased and fix and determine the rate of production royalty to be paid during each year of the succeeding
<br />five-year period. Failure to comply with any new royalty rate set by the Board may subject this lease to
<br />cancellation by thirtyday written notice by the Board.
<br />.;:, ~, IF requested by Lessor, Lessee is to furnish proof of price received for all minerals sold. Such royalty is due and
<br />payable on or before the twenty-fifth (251h) day of each calendar month during the term of this lease for minerals
<br />. mined, removed, and sold by Lessee during the preceding calendar month.
<br />r`. Ro alt
<br />y y payments shall apply to pa ment received by the Lessee on any mineral so sold. The minerals mined
<br />`~.~ from the leased premises may be milled in a custom or commercial plant or mill owned and operated by Lessee.
<br />~_•:-.~ They may not be mixed or commingled with ores from other properties until they have been crushed and sampled
<br />by the mill For the purpose of determining the hereinabove designated minerals and other minerals contained in
<br />=~' .' the crude ore that may be salvaged by milling of same. The resulting samples are to be assayed a[ [he laboratory
<br />used by the mill where ore is milled and Lessor may demand an assay certificate showing [he contents of each
<br />~'~ delivery to mill. If requested by the Lessor, the mill is to reserve a pulp of each composite sample for testing,
<br />r, .; provided, however, said mill will not be obliged to keep pulp (or a period of more than ninety (90) days, In the
<br />.,,,':.. event of a dispute as to analysis, the pulp prepared from each composite sample is to be referred to an umpire
<br />;, , ,acceptable to Lessor and Lessee and the determination of the umpire will be binding upon both pottier. The net
<br />. • weight of the crude ore on adry-weigh[ basis will be determined at the scales at the mill. Lessor will have the right
<br />to check the weights as often as.it deems advisable. Lessee will Furnish Lessor with duplicate scale weight
<br />• r ,t.r_ :certificates. Lessee agrees to, and will be held accountable to see that the foregoing provisions are carried out by
<br />such mill or mills as receive minerals produced from the premises herein demised.
<br />The Lessee has [he right to mine, raise, carry, and transport ores Crom the lands hereby leased through other lands
<br />`^`~~' now or hereafter owned or leased b the Lessee, and the ri [ to raise, cart
<br />y gh y,-and transport ores mined by the
<br />-_ Lessee Crom other lands owned or leased by the Lessee over or through the lands covered by this lease; provided,
<br />.that the ores mined from other lands are in no event mixed with ore mined from these leased premises, except as
<br />provided above.
<br />3."' Overridin¢ Royalty Limitations - !t is agreed that this lease or any subsequent assignment hereof may not be
<br />' burdened with overriding royalties the a&gregate of which exceeds-------------- .Lessor must be notified
<br />of all overriding royalties accruing to this lease.. Violation of the above may subject this lease to cancellation by
<br />:..'... .Lessor. - - - - .. _ .. .. _ .. _
<br />4..i Wei is - It is agreed that all minerals mined and taken from said premises are to be weighed and the weight
<br />..,i ~ t ereo is to be entered in due form in weight records kept for such purposes by Lessee.
<br />5. Reports -After operations are begun, it is agreed that on or before the 25th day o(each and every month during
<br />the term of this lease the Lessee will make a sworn report on forms furnished by Lessor, in which the exact
<br />amount in weight of all minerals mined and removed From said premises and sold during the preceding calendar
<br />month are to a entered and accompanied by full payment for all royalty due for the month. Further, Lessee
<br />must furnish annually a map or blueprint of survey of all workings, with location of same tied to a corner
<br />established by United States surveys of some land subdivision, certified to by a licensed engineer or surveyor.
<br />•~ 6. Ins~a~ction - It is agreed that during all proper hours and at all tunes during the continuance of this lease the
<br />Lessor or its duly authorized agent or agents, is authorized to check scales as to their accuracy, to go through any
<br />.~ . ~~ ~- of the slopes, entries, shafts, openings, or workings on said premises, and to examine, inspect, survey and take
<br />measurements of the same and [o examine and make extracts of copies of all books and weight sheets and records
<br />which show in any way the mineral output of the leased premises, and that all conveniences necessary for said
<br />inspection, survey, or examination are to be furnished to the Lessor. ,
<br />• ~ •7_,. Dlinin~ Methods -Failure to comply with env of the provisions of this paragraph may subject this lease tp
<br />ranee atio~
<br />In the underground and open pit workings, all shafts, inclines, and tunnels must be well timbered (when good
<br />~~ 'mining requires timbering) and all parts of workings, where minerals are not exhausted, will be kept free from
<br />-. water and waste materials. The underground and open pit workings are to be protected against fire, floods, creeps,
<br />' and squeezes. IF such events do occur, they must be checked in a manner which is in keeping with good methods
<br />',~~' ~~ of mining. Such methods of mining must be used as will insure the extraction of [he greatest possible amounts of
<br />minerals consistent with prevailing good mining practice.
<br />Lessee agrees to sloppe the sides of all surface pits or excavations to a ratio of not more than one foot (1') vertical
<br />for each two Feet (2') of horizontal distance. Such sloping is [o become a normal part of the operation. 1Vhenever
<br />practicable, all pits or excavations are to be shaped ro drain, and in no case may the pits or excavations be
<br />-=-allowed to become a hazard to persons or livestock. All material mined and not removed from the premises will
<br />. be-ustd to-fill-the pits so that at the expiration, surrender, or termination oC this lease the land will, as nearly as
<br />. ~ practicable, approximate its original configuration, with a minimum of permanent damage to the surface.
<br />Upon request from the Board, Lessee further a tees to submit plans and maps of proposed mining programs in
<br />advance, so [hat [he Board may be fu v aware o t e propose operations.
<br />8. Rights-of-way - It is agreed that the Lessor reserves the right to grant rights-of-way over said premises for public
<br />roads, railroads, power, telegraph, telephone, ditch, and canal lines, but such grants are [o be subject to the rights
<br />o(the Lessee.
<br />9. Notices - It is agreed that any notice required or permitted to be given to the Lessee under the provisions of [his
<br />eat leis to be sent by certified mail to the address set forth at the beginning of this lease or to such other address
<br />"' as Lessee may indicate in writing to Lessor and such service by mail will be deemed sufficient and in full com-
<br />' ~ pliance with the terms of this lease. Notice fo Lessor is to be given in like manner, addressed to State Board of
<br />[and Commissioners, Denver, Colorado.
<br />
|