1983-06-21_PERMIT FILE - X198316908

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f • I -2- -f-:67Z C The right at all times during the life of this lease to go upon said premises and every part thereof, for the purpose of inspecting same, and the books of accounts and records of mineral workings therein, and of ascertaining whether or not said lessee and those holding thereunder. by and from it, are tarrying out the terms, covenants and agreements In thin lease contained. TO HAVE AND TO HOLD The above-described premises, with the appur- tenances, unto the lessee, its heirs, successors, assigns, or legal representatives, from Twelve O'clock Noon on the 4th day of Deccaber , 1964 , for the full term of twenty L_29 years, and until Twelve O'clock Noon on the 4th day - o[ oeee_.her 1984 , and, except as hereinafter stated, as long thereafter as coal is being produced in paying quantities from said premises, and the royalty and rents provided for herein, or by any extension hereof, are being paid, sub- ject to the following terms, conditions and agreements, to-wit: 1. Mlmmum Royal --Asminimum and advance royalty, without relation to the amount of coal mined from the leased premises, the lessee shall pay lessor the following amounts: Lease Year Minimum Rovalty Lease Year Tfinimum Royaltv Lt None Ind " ird 4th Sth •� The State Board of Land Commissioners may, at the termination of each and every five-year period, fix and determine the rate of advance royalty to be paid for the succeeding five-year period of the lease. • In the event that said lessee shall not extract from said premises said minimum amounts above specified, it is nevertheless understood that the above sums of money are royalties, and are due and payable to lessor whether coal is mined or not, but that such minimum advance royalty shall be credited upon the first royalties due as hereinafter provided for coal actually produced from said premises. 2. Production Royaltv--Lessor hereby reserves and lessee agrees to pay to lessor as royalty the following: (a) A sum equal tom per cent (S $) of the gross sale price, f.o b. the mine, for each and every ton (2000s) of coal mined from the leased premises (it being understood that the gross sale price shall not be less than the reasonable market value of coal of the same quality for the general area and mined and marketed under the same general conditions, and shall be subject to review upon demand made by either party). In no case shall the production royalty to the State be less than fifteen cents (151) per ton. 04 A Bum of for each and every ton (2000f) of all coal mined from the premises. Wit it sixty days prior to the termination of each and every five- year period for so long as this lease remains In effect, the State Board Of Land Commissioners may reappraise the property herein leased and fix and determine the rate of production royalty to be paid during each year of the succeeding five-year period. Failure to comply with any new royalty rate set by the Board may subject this lease to cancellation by thirty-day written notice by the Board. If requested by lessor, lessee shall furnish prod of price received for all coal sold. Such royalty shall be due and payable on or before the Twenty-fifth (25th) day of each calendar month during the tern of this lease for coal mined, removed and sold by lessee during the preceding calendar month. 3. Overriding R2V1,y Limitmlons--lt is agreed that this lease or any subsequent • assignment hereof may not be burdened with overriding royalties the aggregate of which exceed _j__S per ton. Lessor must be notified of all overriding royalties accruing to this lease. Violation of the above may subject this lease to cancella- tion by lessor.