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<br />• <br />• <br />,'.,.. <br />..•: ~. <br />.. <br /> <br />~ ~ '•C , <br />railroad weights shall govern with respect to coal shipped by <br />rail and truck scale weights shall govern with respect to coal <br />shipped by trucks. Lessee shall furnish Lessors with a state- <br />ment showing the amount of coal mined, removed and shipped <br />from the~real estate 6escribed herein during the preceding <br />calendar month with each production royalty remittance. such <br />production royalty payment and the production statement shall <br />be deposited to or for the account of Lessors at Tracy-Collins <br />Bank ar,d Trust Co., American Office, State at 400 South, Salt <br />Lake City, Utah 84111 to~the account of Prank lfartinez, and <br />Lessee shall not be responsible for the proper application, <br />payment or division of such production royalty palment between <br />Lessors or between Lessors and others. Lessors shall 'nave <br />the right at reasonable times to inspect Lessee's books for the <br />purpose of verifying the amount of coal so mined and shipped, <br />and Lessors shall have the right at rensonable times and upon <br />request to inspect the operations of Lessee. . <br />5. It is agreed that coal is currently selling at $16.00 per <br />ton tipple price. Lessor and Lessee agree that for each $1.50 <br />increase in the price of.tipple coal the Lessor agrees to <br />increase the royalty payments above provided by five cents <br />($.OS) per ton. <br />6. Lessee shall have the right to remove all or any part <br />of the coal from said real estate by any one or more <br />mining methods which it deems advisable, including but not <br />limited to strip mining, drift mining, and shaft or deep <br />mining methods. It is understood that the surface of the <br />zeal estate described herein may be excavated in whole or <br />in part to remove the overburden in connection with the i <br />removal of any coal from said real estate, and Lessee shall ~ <br />restore the surface of the real estate in compliance with <br />the laws of the State of Colorado and the United States <br />applicable to such mining operations. Lessees shall be <br />vnfier no obligation to restore the surface of real estate <br />mined by others. <br />7. Lessors hereby represent and warrant that they nre the <br />owners of the coal underlying said zeal estate, and have the <br />right to grant to Lessees the right to remove the coal from said <br />real estate as herein set forth. Without impairment of Lessee's <br />rights under the warranty in the event of failure to title, <br />it is agreed that, if Lessors own an interest in said sub- <br />~.stanees less than the entire and undivided fee .simple estate <br />.therein, then the considerations, including rentals and rol•al- <br />ties herein provided shall be paid the Lessors only in the <br />proportion which their interest bears to the whole undivided <br />fee. Should any one or .more of the parties named above as <br />+Lessors fail to execute this lease, it shall nevertheless be <br />binding upon the party or parties e>:ecuting the same. <br />B. It is understood that the type of operation contemplated <br />by Lessees necessitates the acquisition o= coal leases <br />covering other property from which coal may be mined and <br />removed. Tha rate and extent of mining and removal operations <br />on the real estate described herein shall be at the sole <br />discretion of Lessee and Lessee shall not be obligated to <br />maintain any minimum production reouirements or.operate contint <br />ously once production is coaanenced so long as the annual minir:~ <br />ad~•ance royalty of four thousand dollars (;4,000). If Lessors <br />own the surface, then Lessors hereby grant to Lessee the r:yht <br />to haul coal and other minerals removed from other property <br />