PERMFILE63400

• Permit No: M1997087
• IBM Index Class Name: Permit File
• Doc Date: 10/9/1997
• Doc Name: LEASE AGREEMENT
• Media Type: D
• Archive: No

Rcvalty due for material produced from said premises shall 6e
credited against such a:~vance minimum royalty until the total sum is
equal to the advance minimum ro~~alty previously paid to the State,
at which time a regular monthly royalty will be dice and payable as
herein provided. In the event Lessee does not extract minerals from
the leased premises during the lease term or any term so agreed to
by Lessor, the minimum amounts above paid to the State will be
forfeited,
Acreage changes resulting from surrender or partial assignment may
reduce the advance minimum royalty proportionately. Further, at the
end of each five-year period, commencing from the original lease
date, Lessor may reasonably change the rate or amount of advance
minimum royalty to be paid by Lessee.
In case of assignment of this lease, all advance minimum royalty
paid to the State shall be carried forward and credited to the new
assignee.
3. PENALTIE= -- A penalty shall be imposed for, but not limited to,
late payments, improper payments, violations of any covenants of
this lease, or any false statements made to Lessor. Penalties shall
be determined by Lessor and may be in the for of, but not limited
to, interest, fees, and fines.
4. OVERRIDING ROYALTY LIMITATIONS -- It is agreed that this lease or
any subsequent assignment hereof shall not be burdened with
overriding royalties the aggregate of which exceeds two percent (2%)
of the gross value of the material at the first point of sale.
Lessor must be notified of all overriding royalties accruing to this
lease. Violation of the above may subject this lease to
cancellation by Lessor.
5. P.SSIGNMENT -- Lessee, with the written consent of Lessor, may assign
this lease as to the leasehold interest of Lessee in all or part of
the lands covered hereby, not less, however, than tracts of
approximately forth (40) acres, or governmental lots corresponding
to a quarter-quarter section for partial assignment. For approval
of such assignment Lessor may charge an assignment fee in an amount
c~~rrently ir. effect at the time c.f t assigna:~ent.
If an assignment of a part of this lease is approved, a new lease
designated as an assignment will be issued to the assignee covering
the lands assigned for the balance of the term of the base lease on
the mining lease form in use at the time of assignment and limited
as to term as said lease is limited. The assignor will be released
and discharged from all further obligations for such lands assigned,
as if the same had never been a part of this lease.
No assignment or transfer of this
unless made with its consent in
books or records of Lessor.
lease o:ill be held valid by Lessor
writing and duly entered in the
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