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<br /> <br />. .. <br />~' ~ . <br /> 2.~ A:ncss s~iall apply rlie production r~y..l t}• payable <br />, . <br /> under Section 2.1 hereof as a credit against (i) any advance <br /> minimum production zo}•alties previously paid under Section <br /> 2.2 and Section 2.3 hereof or (i it any advance minimum <br /> production royalties paid in the future under Section 2.2 <br /> and Section 2.3 hereof, until Arness has recouped the <br /> aggregate amount of all such advance minimum production <br /> royalties paid. Production royalties payable in excess of <br /> the amounts of minimum royalties paid and credited against <br /> production royalties shall be payable on a quarterly basis <br /> on the 25th day of the month following the quarter for coal <br /> mined, produced and sold during the previous calendar quarter. <br /> 2.5 "Gross Proceeds of Mining" shall be the actual <br /> amount received at the mine site from the sale of coal mined <br /> from the Coal interests less severance, sales and use taxes <br /> paid by Arness, after application of ordinary treatment <br /> processes normally applied by coal mine operators in order <br /> to obtain a commercially salable product, including, but not <br /> limited to, cleaning, washing, breaking, sizing, dust allaying, <br /> and ~tr ea ring of to prevent freezing, including the amount <br />' received from sales, if any, of associated methane gases <br /> bleb off prior to oz in the couzse of production of coal <br /> from the Coal Interests. If coal is consumed b}• Arness or <br /> any affiliate of Arness or is sold to any affiliate, "Gross <br /> Proceeds of Dining" shall include the fair market value of <br /> such coal computed by use of the actual price received by <br /> Arness fot relatively contemporaneous sales of any of the <br /> coal to unrelated parties and by use of the representative <br /> mar):et price in a comparable area for coal of comparable <br /> qualit}•, provided that up to 1,000 tons of coal annual'_y may <br /> be consumed by Arness at the mine site in connection with <br />~~, <br />~ its mining operations and to the es tent so consumed shall be <br /> <br />. excluded from Gross Proceeds of Mining. <br />_ <br />-0- <br />