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f (d) The W1/2SW1/4 of Section 14, Township 13 South, Range 91 West, 6th P.M. (e) All other properties, assets and rights of every kind and description whatsoever, real, personal, tangible or intangible of Grantor, or Adolph Coors Company or any subsidiary or affiliate thereof, not directly related or appurtenant to the Assets. The royalty interest herein reserved and excepted by Grantor (the "Production Royalty") shall be a perpetual nonparticipating royalty equal to (1) the Applicable Royalty Percentage of the Gross Value of each ton of coal produced from or attributable to those portions of the Land as to which Grantee acquired the coal rights hereunder, but in no event shall the Production Royalty payable hereunder in any calendar year be less than the Minimum Royalty for such calendar year described below, and (2) the Applicable Royalty Percentage of the amount or value of all coalbed gas and coalbed methane production removed and sold from the Land (determined in the same manner as under federal coal leases containing ad valorem royalties (as currently defined in 30 C.F.R. part 206, subpart D), as such federal royalty valuation standards may hereafter ~ be amended and interpreted). Such reserved royalty interest shall constitute an interest in real property. The "Aoolicable Royalty Percentage" shall be percent from the date of this Deed until December 31, 2000, and shall escalate thereafter as follows: Royalty Effective Date Percentage January 1, 2001 January 1, 2002 ~r January 1, 2003 January 1, 2004 '~ January 1, 2005 and there after "Gross Value" shall mean S per ton from the date of this Deed until December 31, 2000, and shall mean the greater of S per ton and the Actual Sales Price effective January 1, 2001 and thereafter. The ~ figure shall be escalated annually commencing January 1, 1996, by multiplying such figure, as previously indexed, by a fraction, the -3-