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11 976
<br /> inclines, tipples, coke ovens, store and waserooms, machinery and mining equipment, as may
<br /> ! be deemed by the Lessee necessary and convenient to the conduct of its operations hereunder,
<br /> with the right to deposit dirt or waste of said mines or works upon or under the surface ofl
<br /> said lands; and also the right to transport coal from adjacent or neighboring lands owned or
<br /> I hereafter acquired by the Lessee, its successors or assigns, by Purchase, lease, or other-
<br /> wise, over or through the said leased coal lands, and to exercise with respect thereto all
<br /> other rights in said leased coal lands as are hereby granted to the Lessee with respect to
<br /> !coal mined from said leased coal lands ; the lease of the surface of said leased coal .lands
<br /> and the foregoing rights with respect thereto is limited and subject, however, to the right
<br /> j and title of the Lessors, or any of them, to lease or grant the same hereunder.
<br /> TO HAVE AND TO HOLD the same unto the Lessee, its successors and assigns, for the term
<br /> of thirty (30) years commencing the 1st day of April, 1954, and ending the 31st day of Marc
<br /> 1984, and the extension thereof for an additional term of thirty (30) years at the ontion
<br /> of the Lessee as hereinafter provided, subject, however, to earlier termination as herein-
<br /> after provided.
<br /> 2. Lessee, in consideration of said leasing by the Lessors as aforesaid, covenants and
<br /> agrees with the Lessors to pay as royalty twenty-five cents (25') per ton of 2,000 pounds
<br /> for all merchantable coal mined from said leased lands and sold or used by the Lessee. Las
<br /> covenants and agrees that during the term of this lease and any extension thereof, the mini-
<br /> mum royalty nayahle by the Lessen hereundar shall not be less than the following sums Per
<br /> year, computed from th- first day of th- t-rm of this lease:
<br /> Year Amount
<br /> First year one
<br /> Second year j2,500.
<br /> Third year 47,500.
<br /> Fourth to Thirtieth years, both inclusive, 412,500.
<br /> Each year under the extension of the term 412,500. .�.
<br /> In the event the tonnage of merchantable coal mined from said leased premises and sold b
<br /> or used by the Lessee during any year shall be less than the quantity to equal the minimum
<br /> (royalty above specified, then any tonnage produced in excess of the above specified minimum
<br /> I;royalty for the Preceding or succeeding year shall be credited to the tonnage or royalty
<br /> deficit in such year.
<br /> The Lessee covenants and agrees to pay to the Lessors a wheelage charge of five cents
<br /> (5q�) Per ton for all coal mined from lands or lands adjacent or neighboring said leased cos
<br /> 1 lands and transnorted over or through said leased coal lands.Payments of royalty and of wheelage charges shall be made by the Lessee on or before
<br /> ;the 15th day of the month for all merchantable coal from said leased coal lands mined and
<br /> sold or used or transported by the Lessee during the preceding month.
<br /> If Lessors own a less interest in said coal in said leased coal lands than the entire
<br /> fee simple estate therein, or if all the named Lessors do not execute this lease, then thre
<br /> royalty and wheelage charges herein provided for shall be paid to the Lessors only in the
<br /> prbnortion which their interest, or the interest of the Lessors executing this lease, if
<br /> JJexecuted by less than all of the named Lessors, bears to the whole and undivided fee s imnle
<br /> nterest therein.
<br /> Such Payments shall be made to the First National Bank of G lenwood Springs,which Bank is hereby designated and P age Colorado,
<br /> I!ceive all payments due hereunder an_d�whirhtdesignationea d a aointmens their common agent to re-
<br /> � or changed exrent by written dlrention of the L�ssors, their heirs andassigns. Said be ecom-d
<br /> ,mon agent shall nay to teach of th=
<br /> g v L-ssors ^x"cuting this lease, or their heirs and assigns,
<br /> ,'his or their respective share in Pronortion to their rPsn- ti cva interests'!heretofore set forth. in said coal as
<br /> With each m6nthly royalty and wheelage Pasee �.
<br /> agent of the Lessors a statement shwoing the amount Ofe merchantable lcoall ined to afr id mosaid
<br /> e Iileased coal lands and sold or used by the Lessee, and the tonnage of coal from adjacent or
<br /> neighboring lands to said leased coal lands and transported through said leased coal lands
<br /> �mined
<br /> bythe Lessee, during the preceding month. Lessee shall keep accurate records of all coal from said leased coal lands and sold or used by the Lessee and of all coal mined from
<br /> fadjacent or neighboring land or lands and transported through said leased coal la rd s an d
<br /> all of such records and all bills of lading, weigh tickets and other evidence verifying the
<br /> accuracy of such statements shall be open for inspection by Lessors or their agent at any
<br /> time during usual business hours.
<br /> 3. If the Lessee shall default in an pa
<br /> yment of�nrovided for, or in any other c ovenant or agreement of thealty Lessee oneitsg part atoebeak ptrai
<br /> 1''performed, and such default shall continue for a period of sixty (60) days after written
<br /> �notice of such default has been given by the Lessors to the Pssee, Lessors may then cancel
<br /> this lease and take possession of the interest in said leased JAIds hereby leased and with-
<br /> lout recourse take possession of Lessee's property upon said leased lands.
<br /> 4. Lessee shall mine said coal from said demised Premises in a workmanlike manner and
<br /> pin accordance with the best engineering and mining practices. Mining operations shall be
<br /> ;conducted in accordance with all State and Federal laws governing the same. Accurate and uP
<br /> to date mans of mine workings shall be available at all times for inspection by Lessors.
<br /> 5. Lessee shall hold Lessors harmless from any injury or damage to the persons or
<br /> Ilpronerty of others arising out of Lessee's operations carried on under this lease.
<br /> 6. Lessee shall pay tLie amount, if any by which general taxes levied and assessed .6-
<br /> �;against the interest of the Lessors in f a
<br /> ILessee's onerations hereunder. leased coal lands are increased by virtue of
<br /> 7. Lessee may Process said coal e
<br /> on said premises all necessary procrssi vt.iy eOke the same on said Premises, aryl may erect
<br /> coking -qutnm-nt. It is understood and agreed,
<br /> ;however, that the royalty above provides for shall by basted unon the
<br /> band converted into coke and other products and not upon the cokes or othorhantabct coal min
<br /> 'shall have the right and privilege at any time to remove all machiner products. Lessee
<br /> 1 tures used or Placed by it upon said premises, except in the event Ofyforfeituretofnthiax i• ��
<br /> 1(lease as Provided in paragraph 3 above.
<br /> t 8. This lease may not be assigned by the Lessee without written consent of the Lessor
<br /> Ilwhich consent, however, shall not be unreasonably withheld. 1`
<br /> 9. Lessee may cancel this lease and any extension thereof at any time upon not less
<br /> II !' than one year's Prior written notice thereof to the Lessors, specifying the date on which
<br /> I(said cancellation shall be effective, which notice may be served
<br /> or by registered mail addressed to the last known address se the Lessors
<br /> personally upon the Lessor
<br /> time Prior to the date on which said cancellation becomse effective, remove from said leas m\
<br /> premises all of the machinery, equipment, personal property and fixtures belonging to the
<br /> Lessee and used in connection with its mining and coking operations
<br /> ( excepted, Provided all royalty a , permanent under
<br /> !lease on it a �v y y Payments have been made and other obligations under this
<br /> °effRetivA..T� °1 ,epaaIIf� d tt,00, tt�h,e d�to such c ce lation becomes
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