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ton. On the anniversary date of the Lease, the Production Royalty shall be increased by the <br />percentage change in the Producer Price ]ndex for Industry/Product Code 21232158, <br />Construction Sand and Gravel Mining/Consttucfion Gravel in the Mountain Region. If the <br />percentage change is a decrease, the Production Royalty will remain the same. For <br />subsequent years, any increase will be calculated only from the Price Index level used to <br />calculate the prior year's Production Royally. That is to say, any future increases will be <br />offset by any past decreases. The percentage change shall be calculated by dividing the <br />simple average of the most recent twelve months available data by the simple average of the <br />previous twelve months. Payment of Production Royalty shall be due by the 25'" day of the <br />month following the month the Sand and Gravel is sold from the Leased premises. <br />The Tenant shall also pay Lessor a Producton Royalty per ton for any recycled base product, <br />as described under "Tenant's Operation of Premises", removed from the Property. <br />Production Royalty for the recycled base shall be per ton. The <br />Production Royalty for recycled base shall remain constant throughout the term of this Lease. <br />Payment of Production Royalty shall be due by the 25t° day of the month following the <br />month the recycled base is sold from the Leased Premises. <br />Within seven (7) days following the effective date of this Lease, Tenant shall pay an advance <br />Production Royalty to Lessor in the amount of Future <br />Production Royalties will be credited against this amount until it has been used up. Once the <br />entire advanced Production Royalty payment has been used, Production Royalty shall be paid <br />to Lessor on a montlily basis as described in paragraph 5 above. <br />6. Use of Scale. Quantities of Sand and Grave) removed from the property on which royalty is <br />due will be measured as follows. The Tenant shall maintain a scale (or scales) which aze <br />certified and licensed by the State of Colorado, over which all materials removed from the <br />property shall be weighed, and keep accurate records of all weights of materials including <br />date and time when weighed, and including empty weights of the trucks or other vehicles <br />transporting materials, and a reasonable identification of such vehicles, which will be <br />available for inspection by Lessor at all reasonable times during business hours. If Sand and <br />Gravel on which royalty is due are mixed with non-excavated material prior to weigltiri~ (for <br />example, in case of mixing gravel with asphalt cement in the production of asphalt) then the <br />mixed material shall be weighed and/or measured when it leaves the,Lessor's property, and <br />an appropriate deduction from the weight of the mixed materiels shall be made for the weight <br />of the materials added. Lessor shall be provided with copy of asphalt mix design, upon <br />request, for determination of asphalt cement content. <br />7. Water. Lessor does not include any water rights with this Lease. <br />8. Permits. Unless otherwise agreed between the parties, all mining permits from the Colorado <br />Division of Reclamation, Mining and Safety and all special use permits and other permits or <br />authorizations required by state, county or local authorities to conduct sand and gravel <br />extraction and processing operations on Lessor's property, including County land use <br />approval for the Asphalt Plant (the "Permits"), shall be obtained and maintained in the <br />Tenant's name. The Tenant shall have a maximum period of two (2) yeazs from the date of <br />