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r~ <br />production is sold. If the total Production Royalties <br />actually paid to Grantor in a calendar year are less than the <br />Minimum Royalty due hereunder for such calendar year, Grantee <br />shall pay to Grantor an amount equal to such difference by the <br />last day of February of the following year. Monthly <br />Production Royalty and Minimum Royalty payments shall be <br />subject to annual reconciliation by Grantee not later than <br />April 1 of the following year. If such annual reconciliation <br />discloses that Grantee has overpaid Grantor, Grantor shall <br />refund such overpayment to Grantee, without interest, within <br />thirty days after receipt of such reconciliation. If such <br />reconciliation discloses that Grantee has underpaid Grantor, <br />Grantee shall deliver with such reconciliation the amount of <br />such underpayment plus interest at the rate provided below. <br />Production Royalty payments for coalbed gas and coalbed <br />methane shall be made monthly by the last day of the month <br />after the month in which such coalbed gas or coalbed methane <br />is produced and sold. All payments hereunder shall be made by <br />wire transfer to a bank account specified from time to time by <br />Grantor. <br />Grantor or an independent auditing firm designated by <br />it, shall have the right, at any time or times during the term <br />~ of this Agreement, to review and audit the books and records <br />of Grantee respecting the quantities of coal sold and the <br />calculation of Production Royalty and Minimum Royalty due <br />hereunder, including all information required to determine the <br />Actual Sales Price. Grantee shall provide Grantor with true <br />and correct copies of all of Grantee's coal supply contracts, <br />purchase orders and other sales arrangements under which coal <br />is sold from the mine as required to determine Actual Sales <br />Price. Each monthly payment made hereunder shall be deemed <br />final unless Grantor gives written objection thereto within <br />two years after delivery of Che annual reconciliation relating <br />to such payment. All late payments of Minimum Royalty or <br />Production Royalty and all amounts found to be due to Grantor <br />as a result of any annual reconciliation or audit shall bear <br />interest at the rate of 4.0 percent lus the Prime Rate per <br />annum. As used herein, the "Prime Rate" shall mean an annual <br />rate of interest which equals the floating commercial loan <br />rate of Norwest Bank, N.A., or its successors and assigns, <br />announced from time to time as its "base rate," adjusted in <br />each case as of the banking day in which a change in the base <br />rate occurs. <br />The conveyance of the Assets herein is intended to <br />create a determinable estate in Grantee subject to the <br />conditions subsequenC described in this paragraph, and subject <br />to divestment upon exercise by Grantor, its successors or <br />assigns, of the right of reentry for failure of any such <br />-7- <br />