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<br />• (e) In the event that retorting or processing of the lensed deposits <br />results in the product:ion of s~yr shale oil whatsoever, all such shale oil <br />shall, ar~ytbing in th'.ls lease to the contrary notwithstanding, be and remain <br />the exclusive property of the lessor and shall be disposed of by the lessor <br />or, at lessor's option, lessee shall dispose of such stale oil, it arty, at <br />the direction of the ]Regional Mining Supervisor, given within a seasonable <br />time after Its production, on such terms as are ~usL and reasonable and do <br />pot require lessee to bear the costs of disposing of such stale oil, it being <br />understood, that, if :Lessee !e required by lessor to store such shale oil, if <br />arty, then the costs o:f such storage shall be initia]~y borne by lessee but <br />such costs shall be credited by lessor against royalties payable under this <br />lease by lessee ns such royalties become due and payable thereafter. In <br />furthereace of the rights reserved dnfl retained herein by the lessor, ~ <br />contract or other agreement entered into by the lessee, or its successors in <br />interest, for the sale, transfer, or disposal of leased deposits or the pro- <br />ducts thereof shall specifica]ly provide that the purchaser or transferee, or <br />its successors in title, if nr~y, of any lensed deposit or the products thereof <br />neither intends to nor shall produce shale oil therefrom and lessee shall be <br />obligated under this lease to make ao further Bale or transfer of any leased <br />deposit or any products thereof to any purchaser or any of its successors in <br />title of any leased deposit or the products thereof who has violated such <br />contractual provision. Moreover, the lessee shall take whatever action may <br />be necessary to recover for the lessor ar{y shale oil so produced in any <br />significant quantity which is then still in existence or to recover damages <br />which shall De payable to the lessor if any such significant quantities of <br />• shale oil have been produced and are no longer in existence. <br />Sec. 2. The lessee 2,ereby agrees: <br />(a) Bond. To maintain the bond furnished upon the issuance of this <br />lease, which bond is conditioned upon cccmplinnce with all of the provisions <br />of the lease, except those provisions c~plience with which is made subject <br />to the bona required under subsection 5(e hereof, end to increase the amount <br />of, or to furnish such other, bond as may be required. <br />(b) Renta:t. To pay the lessor, annually, in advance, for each acre <br />or part thereof covered by this lease, beginning with the date hereof, the <br />following rentals: .?5 cents per acre or fraction thereof for the first <br />calen~ar year; 50 cents per acre for the second, third, fourth, and fifth <br />calendar years, resp~=ctive>,y; end ~1 per acre for the sixth and each succeeding <br />calendar year to be credited against the first royalties as they accrue under <br />the lease during the year for which the rental was paid. <br />(c) Roysl~. To pay the lessor a royalty of 3 percent of the <br />quantity or gross value of the output of the leased deposits nt the point <br />of shipment to market for the first ten years of this lees e; 4 percent <br />beginning with the eleventh year and for each succeeding year to and includ- <br />ing the fifteenth year; end thereafter 5 percent beginning with the sixteenth <br />year and for the remainder of the pritsry lease term. <br /> <br />4 <br />