ANNUAL ADVANCE ROYALTY. The lessee shall be required to pay an annual advance minimum royalty unless waived by the Department. The amount of such royalty is set forth above. The annual advanced royalty is not refundable in the event that actual production royalty is less. In the event such actual production royalty is greater, lessee is obligated to pay the greater amount. Failure to pay any royalty when due will result in this lease entering into default status. The lessee will be notified by the Department of lease default and will be given 30 days to remedy the violation. If no remedy is received within 30 days, this lease shall cancel for violation of lease terms. The Department has the right to review and change the annual advanced royalty on January 1st of each year but must justify the reason for the change.
ANNUAL ADVANCE ROYALTY. The permittee shall be required to pay an annual advance minimum royalty unless waived by the Department. The amount of such royalty is set forth above. This minimum royalty is not refundable in the event that actual production royalty is less. In the event such actual production royalty is greater, permittee is obligated to pay the greater amount. Failure to pay any royalty when due will result in automatic cancellation of this permit.
ANNUAL ADVANCE ROYALTY. During the second year of the term of this Lease and in each succeeding year until the exhaustion of all mineable and merchantable Coal from the Property, Lessee shall pay Lessors an advance minimum royalty equal to One Million Five Hundred Thousand and no/100 Dollars ($1,500,000.00), payable in four equal installments of Three Hundred Seventy Five Thousand Dollars ($375,000.00) on or before March 31, June 30, September 30 and December 31 of each such year. Advance royalty payments made pursuant to this Section shall be recoupable as provided in Section 6.3 below.
