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i <br />The higher of the two adjustments will be added to the initial royalty =ate of <br />$1.00 to determine the royalty rate fox the forth-coming year. The Adjustment <br />Date is the last day of each year during the term of this lease. <br />The index means the subclass "Construction Sand, Gravel, and Crushed <br />Stone," commodity code 13-21 of the Producer Price Index as published by the <br />Bureau of Labor Statistics of the United States Government ("BLS") in Producer <br />Prices and Price Indexes. Percent changes in Producer Price Indexes shall be <br />calculated on data with base year 1982 = 100 until the BL5 publishes data with a <br />new base period. If the index just described or one reasonably similar thereto <br />is no longer published, then an index or adjustment accomplishing as nearly as <br />practical the result which would have been obtained by using the subclass <br />"Construction Sand, Gravel, and Crushed Stone," if it had been available shall <br />be selected by agreement of the parties hereto, or if the parties are unable to <br />agree promptly on such adjustment, by arbitration as provided herein <br />4.9 Override Fee. The Lessee shall strive to sell Sand & Gravel from the <br />Property to its customers. On occasion materials may be imported onto the <br />Property for processing and sale such as Portland cement, asphaltic cement, and <br />stone. The Lessee shall not pay a Production Royalty on such materials unless <br />the materials are of a like and similar nature to the Sand 6 Gravel processed on <br />the Property. <br />In the event that such like and similar Sand & Gravel are imported, the Lessee <br />shall pay to the Owner an Override Fee of per ton. <br />The Override Fee shall be adjusted each year using the method B in paragraph 9.3 <br />and the adjustment shall be done on the same date as the adjustment to the <br />Production Royalty. <br />4.5 Earnest Money. Upon execution of this lease, the Lessee shall pay the <br />owner ) as non-refundable earnest money. <br />Within 15 days of the date of the Routt County Commissioners granting <br />conceptual approval of the 5 ecial Use Permit, the Lessee shall pay the Owner <br />as non-refundable earnest money. All earnest <br />money paid shall be credited against advanced royalty and production royalty <br />pursuant to 9.6. <br />4.6. Advance Royalty. Owner shall be paid an advance royalty of ~' <br />less any earnest money paid. <br />The payment shall be due within sixty days after the Lessee obtains all of the <br />following four operating permits: Routt County Special Uses Permit, Colorado <br />Division of Minerals and Geology Permit, Colorado Department of Transportation <br />Access Permit, and US Army Corps Engineers 404 Permit. The Advance Royalty <br />shall be a payment made as an offset to and in reduction of Production Royalty <br />;payments due hereunder and credited against production from the property at' a <br />constant royalty rate of per ton until the Advance Royalty is <br />exhausted. A monthly report, including sales for the month and the average <br />selling price for unprocessed pit run, shall be mailed to the Owner. <br />~~~ 9,7. Production Royalty Payment. On the date that is fifteen days (15) <br />from the end of the preceding month, Lessee shall make a payment to Owner of any <br />Production Royalty payment due. <br />(~! o. ~'1 <br />~~ 4 of 14 <br />