2009-08-27_REVISION - M1994097 - Laserfiche WebLink

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YO/ 1!,/ 00 .I.J..10 rI%A 1 V I V 01 % gOkV U""&n JnI.L M V"- --- ViIt1LJ! .J,+?.j Vi G SE This Mining i.ease, executed this 31st day of March, 1998 and effective April 1, 1998, by and between S & R Malta Panniers, L.L_L,P., Jack A Stamen and Thelma B. Scanner e l,msor97? and United Companies of Mesa County, Inc., a Colorado corporation In consideration of their matual promises and agreements, the parties agree as follows: "on 1. Dg tion of bleeds. Lessors hereby lease to Lessee the premises described on Exhibit A hereto ('Parcel 1") and the premises descrbed on Fxhibit B hereto ("Parcel 2") (Parcel I and Parcel 2 are referred to herein as the `Parcels") for the purpose of conducting a gravel zdaing operation and actives incidental thereto. Lessors represent and warrant to Lessee that they have We in fee simple to both Parcels. Scgl a 2. TUM and OplLou to Renew, This Lease shall continue ht force for a term of five (5) yem, beginning on April 1, 1999, (the "Commencement Date"I and ending on March 31, 2003 ("Termitiation Date"). Lessee shall have five (5) successive optimm to renew this Lease for additional periods of five (5) years each on the same: terms and conditions hereof as they may he modified in Section 3 hereof Each such option may be exercised by Lessee giving written notice of his intention to so renew to Lessors no later than January 1 of the calendar year in which this Lease or any extensiom ofthis Lease is to terminate. See ion 3. &yft and A.cxotmting. Mite Lessee hereby cortemits and agrees to pay to the Lessor a royalty for material removed fiom the, parcels calculated as set forth nx this 8fttion 3_ As a prepayment of royalties to he evened in each year of this Lease or any extension of this Lease, Lessee shaftl pay the sutm of F*' Thousand Dollars ($50,000.00) (the -Mm* mutn Royalty'") to Lessors on April 1, 1998, and on each April 1 during the term of this Lease or any renewal thereof, such prepayment of royalties shall be for the twelve-month period beginning on, each prepayment date and shall constitute the m'mmmm royalty due to Lessors for said period Within thirty (30) days alter the end of each Quarter-annual period duigng the term of this Lcasc or any extension thereo£ Lessee shall provide to Lessors a written accounting (the "Accounting") of the tonnage of material removed &um each Parcel during the previous quarter annual period. The Accounting shalt specify the amount of material, in tdrx& removed from each Parcel no royalty earned by Lessors from each ton of material removed by Lessees, sealed at each p4ricet, shalt W Fifty Cents ($_50) (tire 'aoyalty fries"). When the total tonnage rcHwved during each Lease Year (defined as the twelve nwnth period following the payment of each Minimum Royalty) tirims the Royalty Price exceeds the Minimum Royalty paid for flo Lease Yea. Lesser: shall. pay to Lessor the remaining royalty due, which royalty shall be paid with delivery of the Accousting. In the event Lessee exercises- any of itg options to renew this Lease, the Royalty Price for such renewal period stroll be increased to reflect the increase, if any, in the purchasing power of the U. S. dollar. Zlic Producer Price 7ndm fir Sand and Gravel, as prepared by the United States Department of Labor, drall be used as the basis for commutation. Such hidex shall be taken for April I, 1998, and the index thus obtained shall be considered the appli?able index fur computation, 111e Royalty Price for each extended period shall be increased by the proportion, if any, that the index fir April l of the year in which the exercised option, is effective is greater than