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additional production royalties if Lessee, through the term of the lease, mines more than 767,857 tons <br />of coal ($1,075,000 total payment divided by $1.40). If the mine continues operating through calendar <br />year 2011, and, as of December 31, 2011, Lessee has mined more than 767,857 tons of coal then, <br />in January 2012, Lessee shall pay Lessor the difference between the total mined and 767,857, times <br />$1.40, in a lump sum. If the total of the actual payments to Lessor is more than the production royalty <br />due, then the difference shall be recouped, at the rate of $1.40 per ton, from the royalties due from <br />any coal subsequently mined from that property in year 2012 and thereafter. If mining on Lessor's <br />property continues in year 2012 or thereafter, the Lessor shall be paid production royalty at the rate <br />of $1.40 per ton of coal mined subject to the recoupment of unrecouped advance royalties. This <br />payment shall be made on a monthly basis. Payment for a given month shall be due by the 25th day <br />of the suceeding month. <br />(c) Payment. All payments hereunder shall be made by check and, for purposes <br />of this Lease, remittance thereof may be effectuated by mailing same to the address of Lessor stated <br />herein. Lessor shall promptly notify in writing sent by certified mail, return receipt requested, of any <br />change of ownership by Lessor. If any payment required under this Lease is returned to Lessee due <br />to inability to make delivery, then Lessee shall be entitled to hold same, free of interest and without <br />affecting the validity of this Lease, until Lessor shall contact Lessee in writing with specific <br />instructions. If at any time ownership of Lessor is transferred and/or divided, and if Lessee is unable <br />to satisfy itself as to whom and in what amounts any payments should be paid and/or credited, <br />Lessee may continue to effectuate payment hereunder by mailing checks in payment thereof to <br />Lessor in the names and at the address stated above, until Lessee shall have satisfied itself, upon <br />the basis of relevant legal instruments which Lessor will provide to Lessee, that a payment method, <br />different from that stated above, is authorized. <br />(d) Records. No Implied Obligation. Lessee shall keep records of all Coal mined <br />and sold from the Property and Lessor shall have the right to inspect the records at all reasonable <br />times, so long as the Lessor provides reasonable notice to the Lessee, Lessee may commingle the <br />Coal with other coal. Nothing shall be construed in this Lease as an obligation of Lessee to mine any <br />or all of the Coal, and the payment of royalties, when and as due hereunder, shall be construed as <br />full payment of Lessee's right to retain the leasehold estate and all of the rights granted by Lessor <br />under this Lease. <br />3 <br />?. L'?