Laserfiche WebLink
10/18/01 22:52 FAX <riJ04 <br />A. tbirtv-five cents (S .35 )per ton of 2,000Er, or frftv-five ceots (S 55 )per <br />cubic yard. <br />B.. N/A percent (~) of the Net Returns at the fusi poiru of eon-captive <br />market sale of the product(s) as determined by the Colorado State Board of Land <br />Commissioners on an individual wse basis. <br />Royalty shall be due and payable on or before the last day of each calendar month during the <br />term of this lease for ores, minerals sect other materials mined and removed for sale by Lessee duritrg <br />the pttreding calendar month, <br />Reporting of production royalty that is credited against advanced minimum royalty is also due <br />on or before the last day of each calendar monk for mining during the preceding calendar month_ <br />Within sixty days prior to the termination of earn sect every five-year period for so lorry as this <br />lease remains in sffe+x, Lessor may reappraise the property herein leased and fix and detenairte ate rate <br />of production royalty to be paid d~'^^.g each year of the succeeding five-Year period Failure to'tomply <br />with a~ stew royalty rate set by Lessor may subject this lease to cancellation by thirty lay writtea <br />notice by Lessor. ~ i <br />All accounting shall be validated and vetifit~d. <br />Lessor reserves the tight to reasonably adjust the production royalty rate at the end of each <br />five-year period of the lease if the leased premises are not held by prodtr~oa. <br />4. EXTENSION'-This paragraph deleted. <br />EXTENSION BY PRODUCTION -This paragraph deleted. <br />6. REPORTS -After operations begin, it is agreed that on or before the last day of each month during <br />the term of this lease Lessee shall submit a sworn report to Lessor, in which report shall be entered and <br />set down the exact aatoua! in weight of all products and the assay thereof mined and removed from said <br />leased premises during the preceding month, which rtpoa shall show the amount of work performed <br />during the preceding month; Lessee shall also. an,waRy during the term of tlls lease, submit a sworn <br />. statement to lessor disclosing the number of toes and the assay thereof of all ores, minerals and other <br />materials mined from the premises during the Preceding yeaz. Such annual statements may coincide <br />with Lessee's fiscal years or with official calendar years. Futthec, L.rssee shall furnish a map armually <br />showing all workings, depth, thicknesses and shape of any ore body with local;on. of same tied to a <br />corner established by United States survey, cetti5ed by a licensed surveyor. ltdapa furnished to the <br />Colorado Division of 1Vlines or to the Division of M'itted Iand Reclamation may satisfy this <br />requirement. <br />Lessee shall provide to Lessor, upon request, a complete report on prospecting sad exploration <br />operations, including geologic interpretations and retovetshle reserve calculations, and maps and cross <br />sections showing ]oration of any mineral-beating ou[crops, drill holes, treorhts, ore bodies and other <br />prospecting and exploration activities, along with assays showing the amount of mineral contained in <br />the ore. The records required to be maintained by L.easee sad provided to •Lessor upon request include <br />logs of all strata penetrated sad all geologic and hydrologic coadlaons P~s.~!serrd, and copies of <br />Page 3 of 9 <br />