Depletion Allowance Clause Samples
Depletion Allowance. The Base Price, as adjusted as of the Delivery Date, shall be increased or decreased by one-half the number of percentage points by which the effective rate of the gross depletion allowance applicable to coal for United States Income Tax purposes decreases or increases, as applicable, from the rate in effect on January 1, 1992. For example, if the effective rate of the depletion allowance is 8.5%, and this is decreased by one percent to 7.5%, the Base Price shall be increased by one-half of one percent (0.5%); or if the effective rate of the depletion allowance is increased by one percent to 9.5%, the Base Price shall be decreased by one-half of one percent (0.5%).
Depletion Allowance. In the event income tax depletion allowances become available to Lessor and become available to the Leased Premises in relation to the activities of the Lessee, then Lessor shall be allocated its share attrituable to the royalties payable hereunder of any such available income tax depletion allowances and Lessee shall be allocated the remainder. Lessee makes no representation that such depletion allowances will be available and will bear no liability if such allowances are not available.
Depletion Allowance. The parties acknowledge that all payments made pursuant to Paragraphs 5 and 6 of this Lease are in the form of royalties and not lease, rent or production payments. Further, the parties acknowledge that the Leased Sand and Gravel which are the subject of this Lease are natural resources which are the subject of a tax deduction of a reasonable allowance for depletion of such materials, which presently requires an equitable apportionment between the Lessor and Lessee.
Depletion Allowance. Supplier will provide Distributor, as permitted by state and federal law, a depletion allowance of fifty percent (50%) of Distributor’s Laid-In Costs for any and all Products remaining in Distributor’s inventory after twelve (12) months from the date of invoice of such Products.