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b) Outcrop Coal <br />Ravenwood agrees to pay CFI a production <br />royalty for coal mined or recovered from <br />surface Laterials in the amount of fifty cents <br />($0.50) per ton of 2,000 pounds of that coal <br />which is unable to meet quality specifications <br />and referred to as outcrop coal; except as <br />provided in (d) below. <br />c) Limitation on Outcrop Coal <br />Royalty payments on outcrop coal shall not <br />exceed twenty-five percent (258) of total <br />royalty payments in any given year. Each year <br />• shall be computed from and commence with the <br />effective date of this lease for the ensuing <br />12-month period, with each succeeding 12 <br />months thereafter constituting a year. The <br />effective date of this lease shall be the date <br />when Ravenwood has obtained all necessary ' <br />governmental approvals required to commence <br />operations hereunder. <br />d) Increased Royalty Payment <br />Royalty payments as provided for in (a) and <br />(b) above will be applicable to this lease <br />. agreement until or unless the market price at <br />the minehead reaches $19.00 per ton of 2,000:- _ <br />pounds for quality coal. If and when the <br />market price reaches $19.00 per ton for such <br />coal, the royalty is changed hereunder to <br />thirteen percent (138) of said market price <br />and shall continue at the 138 rate until such <br />~1 <br />- ° -- -, <br />time, if ever, that the market price falls <br />