|
_.....__
<br />,_ .
<br />I
<br />~Y ~ szooae/ss/z ~ ~ ~'~ ~, nrw --
<br />thereon, and of ascerta'lning whether or not sal-.] Lessee and those
<br />holdin;; thereunder, by and from him, are carrying out the terms,
<br />covenants and agreements in this lease contained.
<br />TO HAVE AND TO HOLD the above-described premises, with the appurten-
<br />ances, unto the Lessee, his heirs, successors, assigns, or legal
<br />representatives, from the 15th day of Jules~, 1968, for the full term
<br />.of ten yearn, and until July 15, 1578, ~nd)as long thereafter as
<br />coal is bein¢ produced in paying quanti es from said premises,
<br />and the rents and royalties provided for herein, or by any
<br />e::te nc ion thereof, are being paid, subject to the following terms
<br />conditions and agreements, to wit: (y3,000 annually shall be con-
<br />sidered a "paying cuantity" within the meaning of this lease.)
<br />„~ 1. Aoyalty: Lessor he reby_reaerxes_anti..Lessee agrees to pay
<br />5S~;,,~~ Lessor as royalty, the sum of~~`iPte.en,centc~for each and every ton
<br />ii`~`~•, of coal mined from the leased premises. Soyalties hereunder shall
<br />~~ be due and payable on or before the twenty-fifth day of each
<br />C~;,.~ calendar month for coal mined and removed by Lessee during the
<br />precedin;; calendar month. The royalty herein provided shall be
<br />increased or decreased biennially on the anniversary of this
<br />lease, by that Fraction of increase or decrease reflected by the
<br />cost of living index issued by the U. S. Department of Labor.
<br />2. Idinimum Royalty: As-a minimum an3 advance royalty, the Lessee
<br />shall pay t e Lessor a minimum royalty of Six Hundred Forty
<br />Dollars ($640.00) annually. Zn the event said Lessee shall not
<br />y~ ~°,,.extract from said premises said minimum amounts above specified,
<br />--1`~'~it is nevertheless understood that the above sums of money are
<br />~~`~` ~~rcyalties, and are due and payable to Lessor whether coal is.
<br />`:r' `mined or not, but that such minimum advance royal iy shall be
<br />credited upon the first royalties due as hereinafter provided for
<br />~~~.~+~. coal actually mined from said premises,
<br />~~3• Reports: Lessee agrees to maintain separate accounting records
<br />relative to the mining of coal on the leased premises and agrees to
<br />furnish to the Lessor on or before the 25th day of each month, an
<br />accounting report disclosing the amount of coal mined, removed, and
<br />sold for the preceding month, and to furnish Lessor annually maps
<br />and en¢ineering surveys of all workings so as to enable Lessor to
<br />determine by cross section the amount of coal mined from the
<br />leased premises.
<br />4. Mining Methods: Lessee shall use such mining methods as shall `C
<br />insure a ex rac on of the greatest possible amounts of coal
<br />n_n_1_'-~.. i- „i t}. n«a ••eijTnn nnnj r~i n9«y ~ntirn 2n~i rnngififPni' ^•i h~
<br />ail rules, regulations, andylaws. of the^State of Colorado, and the
<br />federal government faith respect to coal mining, which rules, regu-
<br />lations, and laws Lessee agrees to adhere to.
<br />5• RS hts-of-~~~a It Ss agreed that Lessor reserves the right to k
<br />gran r g s-o -tray over said premises for public roads, railroads,
<br />power, telegraph, telephone, ditch and canal lines, but such grants
<br />shall be so made as not to interfere with the operations of Lessee;
<br />unless such rights-of-way are taken by third parties pursuant
<br />to the power of emminent domain. Iq the event that such rights-of-way
<br />are taken by the power of emminent domain,, the Lessee shall not
<br />be entitled to participate in any amounts paid by third parties in
<br />such emminent domain proceedings.
<br />6. Notices: It is agreed that any notice required or-permitted
<br />to be given to the Lessee under the provisions of this lease, shall
<br />be sent by certified mail to 403 Kansas Avenue, Walsenburg, Colorado,
<br />- 2 - .,'~<
<br />
|