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5/13/81 <br /> as those that would be used to calculate royalty <br />• payments to the United States for that coal, if <br /> such payments were made on a percentage basis, <br /> rather than a fixed amount per ton. Production <br /> payments due under this Paragraph 4.A. shall be <br /> made at the same times as royalties for such coal <br /> are paid by Hear to the United States in <br /> accordance with rules and regulations adopted <br /> from time to time by the Department of Interior <br /> or other agency having jurisdiction over the <br /> subject property. <br /> B. Minimum Production Payments: Hear shall pay <br /> Anchor an annual minimum production payment of <br /> $120,000, commencing thirty months after the date <br /> hereof. Each year thereafter, this payment shall <br /> be adjusted upward or downward in proportion to <br /> the following ratio: average gross sales price <br />• pee net ton of coal produced from the Property <br /> during the prior twelve-month period/$20.00. <br /> Bear shall be entitled to credit against each <br /> minimum production payment due only production <br /> payments paid pursuant to paragraph A above <br /> during the twelve months prior to the due date <br /> for such minimum production payment. Any <br /> production payments in excess of the minimum <br /> production payment at the end of a twelve-month <br /> period shall not be credited against any <br /> subsequent minimum production payments. <br /> Article 5 - Payment by Bear of Royalties and P.entals <br />The parties understand that, in addition to the <br />royalties and rentals due the United States under the Lease, <br />B. R. Noe Coal Company (hereinafter described as "Noe") is <br />• entitled to receive royalties and payments, as set forth in the <br />-3- <br />~ y~ l~r <br />