GROSS OVERRIDING ROYALTY. 4.1 In addition to the consideration provided in Section 5.1, the Optionor reserves for itself and shall be entitled to receive a gross overriding royalty equal to 2.5% of all products mined and removed from the Property, to be calculated and paid in accordance with Schedule B to this Agreement. At the discretion of NAGR, it may buy down 1% of the Gross Overriding Royalty for $2.5 million, leaving a 1.5% Gross Overriding Royalty to the Optionor.
GROSS OVERRIDING ROYALTY. 3.1 The Grantor hereby reserves out, grants, sets over and conveys to the Grantee an interest in the Licences, the Petroleum Substances and the Documents in the form of a gross overriding royalty of 3% (THREE PERCENTUM) percent of the Grantor’s gross interest in all Petroleum Substances (and/or turnover of the Grantee deriving therefrom) to be found to exist or deemed to exist within, upon or under the Licences or in the Acreage and which are produced, marketed and/or saved therefrom (hereinafter called the “Royalty”).
GROSS OVERRIDING ROYALTY. A gross overriding Royalty (Gross Overriding Royalty) is usually calculated based on the percentage of the value of mineral products produced, without deduction for costs or with deduction for the costs to make the mineral products marketable and to deliver them to market. The Gross Overriding Royalty is best applied to commodities that can be sold with minimal processing, such as diamonds. Gross Overriding Royalties for diamonds are calculated by multiplying the negotiated Royalty percentage by the appraised value of the diamonds at the mine site.6 Like Unit Royalties, Gross Overriding Royalties are payable regardless of whether the mine is profitable. [3] Net Smelter Returns Royalty A net smelter return Royalty (NSR Royalty) is based on a percentage of the revenue generated from the sale of ore, concentrates or other mineral products produced from mining property, less certain allowable deductions. Usually, the deductions are limited to (1) transportation costs from the mine to the buyer (usually a smelter, refinery or mint); (2) insurance and which protects the royalty holder from downside price changes but enables participation in increases in sales prices. See Xxxxx X. Xxxxxx, “Coal Royalties,” 26 Rocky Mt. Min. L. Inst. 3-1, 3-4 (1980). 3 Xxxxx X. Xxxxxxxxx & Xxxxx X. Xxxxxxxx, “International Mining Royalty Issues,” 57 Rocky Mt. Min. L. Inst. 15-1, 15-3 (2011). 4 Id. 5 Xxxxx X. Xxxxxx & Xxxx X. Xxxxxxxx, “Precious Metals Royalties,” 35 Rocky Mt. Min.
GROSS OVERRIDING ROYALTY. Upon Unigeo and GEOCAN drilling the Test Well pursuant to this Agreement, the Royalty Agreement will be deemed to have been executed and delivered with respect to the Test Well spacing unit. COC will receive a gross overriding royalty, as described in the Royalty Agreement, subject to the right of conversion of the gross overriding royalty described in clause 14.
GROSS OVERRIDING ROYALTY. (a) Grantor hereby grants and assigns Grantee a 6.5% gross overriding royalty on the leased substances on the interest which Grantor holds in the Lease(s). It is understood that the gross overriding royalty applies not only against the initial working interest of Grantor, but also to the interest of any third party which derives its interest from or through the Grantor.
GROSS OVERRIDING ROYALTY
