Lesser Interest. If GRANTOR conveys, leases or subleases less than a 100% interest in and to the Coal in, on, and underlying the tracts in question, the overriding royalty payments to GRANTOR shall be reduced in proportion to which any such partial undivided interest bears to the whole; provided, however, that GRANTEE agrees that any coal mined under the Cyprus Creek & Duncan #9 Lease and Sublease shall be subject to the $3.25 per ton overriding royalty unless the combined leased and subleased interest in the Cyprus Creek & Duncan #9 Lease and Sublease shall be less than a cumulative 100% interest in and to the Coal in, on and underlying the tracts described therein. In the event the Cyprus Creek & Duncan #9 Lease and Sublease leases and subleases less than a 100% interest in and to the Coal underlying any tract, then the overriding royalty payments to GRANTOR hereunder for any such tract shall be reduced in proportion to which any such partial undivided interest bears to the whole.
Appears in 4 contracts
Samples: Asset Purchase Agreement (Armstrong Coal Company, Inc.), Asset Purchase Agreement (Armstrong Energy, Inc.), Asset Purchase Agreement (Armstrong Energy, Inc.)
