1989-11-04_REVISION - C1981035 - Laserfiche WebLink

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the Property , or coal from the Property is processed and marketed , or reclamation , restoration or abandonment operations are conducted on the Property , or for so long as , Lessee conducts operations off the Property which are reasonably necessary and related to the obtaining of coal production from the Property or other property owned or leased by the Lessee in the general mining area of Lessee in La Plata County , Colorado . Reference is made to paragraphs 15 and 16 below ( Default/ Force Majeure/ Termination) regarding possible extension of time for conducting operations and under which the term of this Lease may be extended . 5 . Royalty . Lessee agrees to pay Lessor a royalty of eight percent (8%) of all coal mined , processed and sold from the Property . If Lessor has merchantable title to an interest in the Property less than a full interest in the entire fee simple estate , then the royalties payable to Lessor hereunder shall be reduced proportionately , it being the intent of the parties to cause payment to Lessor of a royalty of eight percent (8%) for a lease of the full mineral interest in the Property . The royalty payments described in this paragraph 5 shall be based upon the value of the coal at the mine , produced in raw form before any processing or benefaction and before transporting from the mine to a point of sale , storage or processing , less all federal , state and local sales and use taxes required by the taxing authority to be charged and collected from the purchaser by the Lessee and all amounts representing federal , excise , reclamation and state severance taxes and any other taxes of a similar nature levied against the extraction of mining of coal . No royalties shall be due or payable until coal mined from the Property has actually been sold by Lessee . Production Royalty payments will be computed to the eighth digit , i .e . . 00000017 . Royalty payments will be made within thirty ( 30) days after the end of the month in which coal mined from the Property was sold . Accompanying each royalty payment shall be a complete accounting for the particular month of all coal tonnage mined and all proceeds of sale received from coal produced from the Property , all accrued royalties and an explanation of all offsets and deductions . Lessor shall have a period of sixty ( 60) days from the date of the monthly statement to question the correctness of the monthly statement . If no objection is made within the sixty ( 60) day period , such statements shall be conclusively deemed correct .