Minimum Royalties. Lessee covenants and agrees to pay to Lessor an annual advance minimum royalty (“Minimum Royalty”) of 16,000 tons of coal, delivered f.o.b., barge, the mine, or to such other location mutually agreed to by Lessor and Lessee. Minimum Royalty for the first lease year shall be delivered to Lessor sixty (60) days following the execution of this Agreement, and all Minimum Royalty after the first lease year shall be due and delivered in full on or before each anniversary of the date of this Agreement. Minimum Royalty shall be of a quality equal to the minimum standards set forth on Exhibit C. Minimum Royalty shall be recoupable against earned royalty for coal mined at a rate not to exceed Five Hundred Thousand Dollars ($500,000) per calendar year. Recoupment against in kind earned royalty shall be calculated at the rate per ton equal to the Average Gross Sales Price per ton for coal sold to third parties of a quality equal to the minimum standards set forth on Exhibit C, as the same is calculated under subparagraph 2(e).
Appears in 5 contracts
Samples: Coal Mining Lease (Armstrong Coal Company, Inc.), Coal Mining Lease (Armstrong Energy, Inc.), Coal Mining Lease (Armstrong Energy, Inc.)
