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American Fuels. Market value for purpose of cal- <br />culating royalty payments shall be the price for <br />which coal is sold at the minehead to the consumer <br />thereof. For purposes hereof, the term 'minehead• <br />shall mean the point of shipment of such coal to <br />the consumer thereof or the point at which the <br />price for the sale of such coal to the consumer <br />thereof is based. Calculation of tons sold shall <br />be from scale weights of trucks or railroad cars at <br />time of shipment. Royalties shall be paid not <br />later than the twentieth (20th) day of the month <br />succeeding that month in which the coal was <br />shipped. In the event coal is mined and sold, but <br />not shipped, American Fuels and C&U shall meet and <br />agree on estimated payments. <br />e) Guaranteed Tonnage <br />American Fuels guarantees a royalty payment based <br />on an annual volume of 50,000 tons of 2,000 pounds <br />of coal during the term hereof. In any 12-month <br />period commencing from the effective date hereof <br />and for each successive year thereafter during the <br />term of this lease, in which less than 50,000 tons <br />of coal is shipped, American Fuels will, within 30 <br />days thereafter, pay to C&U the royalty due. <br />f) Audit Provisions <br />American Fuels agrees to keep accurate records <br />which will indicate the coal mined and the tracts <br />from which mined. The weight of coal sold and <br />shipped shall be accurately accounted for. <br />American Fuels agrees to permit an inspection of <br />its records by C&U for purpose of verifying roy- <br />alty payments. This will include scale tickets, <br />freight bills, sales invoices and accounting <br />records and other such documents which are deemed <br />necessary by C&U in this verification processing. <br />-4- <br />