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1 ' stockpiles on the Frazier Property or on the Delta Paving Property. No production royalty shall be payable to Lessor for any materials which aze mined from the Delta Paving Property. D. Delta Paving shall provide Lessor with a written statement as to all materials removed by it during the preceding month and, subject to the provisions of Paragraph 7, ' below, shall make payments to Lessor of any royalty due by the ?0th day of each month. E. Delta Paving shall install scales and weigh all materials before or a[ the time ' of removal from Delta Paving's stockpiles and shall preserve the weight ticl.ets. Lessor shall have the right to review the weight tickets during Delta Paving's normal business hours. 7. Delta Paving shall pay advance royalties to Lessor as follows: ' A. Delta Paving shall pay to Lessor advance royalties of ~ 10,000.00 per year for the first two years of the lease term, and advance royalties of X20,000.00 per year for the last eight years of the lease term. The first advance rovalty payment shall be due and payable within thirty days after the effective date of this lease (as set forth in Paragraph 3, above). ' Additional advance royalty payments shall be due and payable on or before the same month and day of each of the succeeding nine years. subject to the provisions of Paragraph 7.C., ' belo\v. B. The advance royalties payable hereunder shall be offset against royalties ' which shall accrue and be payable to Lessor for sand and gravel mined from the Frazier Property and removed from Delta Pavin~'s stockpiles under this lease. If the advance royalty paid for a year exceeds the amount of royalties accruing in that year, the excess shall not be ' used to reduce the amount of any advance royalties payable in future years, but this excess shall be tamed forward to offset royalties actually due m any future years during the term of this lease. If the amount of royalties accruing in a year exceeds the advance royalty paid ' for that year, the amoLmt of the excess shall be used to reduce the amount of advance royalty accruing for the next year. Subject [o the provisions of Paragraph 1 ~, below, if any excess advance royalties remain at the end of the term or other termination of this lease, Lessor shall be entitled to retain such excess royalties, and shall not be required to refund the excess to Delta Paving. ' C. If commercial sand and gravel shall be mined out of the Frazier Property before all advance royalty payments are due and payable, Delta Paving may give written notice thereof to Lessor, and thereafter Delta Paving shall not be obligated to pay any ' additional advance royalties. Delta Pavine shall then vacate the Frazier Property with reasonable dispatch and this lease shall terminate, subject to the provisions of Paragraph 14, below. For the purposes of this Paragraph, "mined out" means the removal of substantially ' all of the minable corrunercia] sand and gravel from the Frazier Property, v,~ith the exception of the area needed for processing and stockpiling of the mined material. ' D'~MAH•GIPIPE'•.FRAZIER\GRAVLEAS.VS '~' 1