Production Royalties a. Lessee shall pay to Lessor a production royalty for the nonmetallic minerals and/or nonmetallic mineral products mined from the leased premises which shall be the product of the removed mined tonnage (tonnage of material removed from sites) times the County Road Commission Production Royalty rate of $0.22/ton ($0.286/yd) for sand and clay and $0.45/ton ($0.6075/yd) for mixed bank run or processed sand and gravel (1 ton=2000 pounds avoirdupois). No allowance shall be made for moisture content of materials. The production royalty rate shall be adjusted at the end of the third (3rd) year of the County Road Commission price schedule approved , 20 and every three (3) years thereafter. The royalty rates for this lease will be adjusted effective , 20 , and every three (3) years thereafter if the lease continues or is extended. The adjustment of the royalty rate shall be based upon the average of the changes in the producer’s price index (PPI) for construction sand and gravel (CSG) for the north central region as published by the U.S. Bureau of Labor statistics– xxx.xxx.xxx/xxx/. The reviewed/adjusted royalty rate shall be calculated as follows: [PPI (t +3) ÷ PPI (t)] x royalty rate bid = adjusted royalty rate Where: PPI (t) = annual producer price index for (CSG) for the year in which the price agreement was signed by the DNR ( , 20 ). PPI (t +3) = average of the monthly producer price index (CSG) for the latest 12 months available on the third (3rd) anniversary of the price agreement ( , 20 ). Royalty rate = royalty rate in effect at the time of leasing.
b. Production royalties shall be paid on a monthly basis on or before the twenty-fifth (25th) day of the month following the calendar month in which nonmetallic minerals and/or nonmetallic mineral products were removed from the lease property.
c. Lessee shall secure written authorization of the Lessor in order to delay any royalty payments beyond the date specified. Payments made after the due dates shall include interest at the rate of 1.5 percent per month, or at the maximum legal rate, whichever is less, on the amount of royalty unpaid. If royalty payments are delayed, or if such authorization is not secured, Lessor may, at its sole discretion, declare the lease defaulted under the provisions of Section D herein or invoke any other remedies available to Lessor under the lease.
d. Xxxxxx agrees that all royalties accruing to the Lessor herein shall be without deduction of any costs incurred by the Lessee un...
Production Royalties. If the Optionee acquires the Mining Rights to the Property and begins commercial production on any part of the Property, the Optionee shall pay to the Optionor a royalty ("Production Royalty") calculated at two percent (2%) of the Net Smelter Returns as defined, calculated and set forth herein.
Production Royalties. Lessee shall pay Lessor a production royalty of eight per cent (8%) of the value of all coal severed and removed from the Leased Premises. For all coal sold pursuant to an arm’s-length contract, value shall be determined on the basis of the gross proceeds received by Lessee from the sale or disposition of such coal. Gross proceeds shall include all bonuses, allowances or other consideration of any nature received by Lessee for coal actually produced. For any coal that is sold or disposed of other than by an arms-length contract, or for coal that is used within the mine permit area containing the Leased Premises for generation of electricity or for gasification, liquefaction, in situ processing, or other method of extracting energy from such coal, the value of such coal shall be determined by Lessor with reference to (in order of priority): (i) comparable arms-length contracts or other dispositions of like-quality coal produced in the same coal field; (ii) prices reported for that coal to a public utility commission; (iii) prices reported to other governmental agencies; or (iv) other relevant information.
Production Royalties. Lessee shall pay lessor a production royalty on the basis of 10% of the gross value of the leased substance, including all bonuses and allowances received by Lessee, at the point of shipment from leased premises or the geothermal field, of the first marketable product or products produced from the leased substances and sold under a bonafide contract of sale, whether or not such product or products are produced through chemical or mechanical treating or processing of the leased substances raw material. Payment or reimbursement by the purchaser for any operator expense, including without limitation payment for reinjection or disposal of water into the well or aquifer or otherwise, are part of gross value for royalty purposes.
Production Royalties. 2 -------------------- 4.3 Manner of Payment......................................... 3 -----------------
Production Royalties a. Lessee shall pay to Lessor a production royalty for the nonmetallic minerals and/or nonmetallic mineral products produced and sold from the leased premises which shall be the product of:
1. the sale value, as defined in this lease, of nonmetallic minerals and/or nonmetallic mineral products sold during the past calendar quarter; and
2. the production royalty rate according to the following schedules: Type of Salt and Mining Method In Bulk Rock Salt (NaCl - halite) - conventional dry mining 3.24 % Sodium Chloride - solution mining and natural brines 4.0% Potash - solution mining 5.0%
3. Royalties of all other products will be negotiated by Lessor and Lessee.
b. Production royalties shall be paid on a quarterly basis on or before the twenty-fifth (25th) day of January, April, July, and October of every year during the term of this lease for all nonmetallic minerals and/or nonmetallic mineral products sold during the preceding calendar year.
c. Lessee shall secure written authorization of the Lessor in order to delay any royalty payments beyond the date specified. Payments made after the due dates shall include interest at the rate of 1.5 percent per month, or at the maximum legal rate, whichever is less, on the amount of royalty unpaid. If royalty payments are delayed, or if such authorization is not secured, Lessor may, at its sole discretion, declare the lease defaulted under the provisions of Section D herein or invoke any other remedies available to Lessor under the lease. Lessor agrees that sales of nonmetallic minerals and/or nonmetallic mineral products on a consignment basis may be justification for allowing Lessee to delay payment of royalty payments beyond the date specified above, however if Lessor approves such delay, Lessor shall specify an alternate payment schedule binding on Lessee.
d. Lessee agrees that all royalties accruing to the Lessor herein shall be without deduction of any costs incurred by the Lessee unless agreed to in writing by the Lessor.
e. The Lessor is not liable for any taxes incurred by the Lessee and no tax deductions may be taken in computing the royalty.
Production Royalties. The royalty shall be 12.5 percent of the value of the coal as set forth in the regulations. Royalties are due to Lessor the final day of the month succeeding the calendar month in which the royalty obligation accrues.
Production Royalties. Subject to Section 11 below, and subject to proportionate reduction as described in Section 1 and in Section 3(d), Lessee shall pay to Lessor a royalty out of the proceeds received by Lessee from the sale of Geothermal Resources or Substances produced from the Premises, or allocated to the Premises as provided in Sections 6 and/or 10(b) as follows:
Production Royalties a. Lessee shall pay to Lessor a production royalty for the nonmetallic minerals and/or nonmetallic mineral products produced and sold from the leased premises which shall be the product of:
(1) the sale value, as defined in this lease, of nonmetallic minerals and/or nonmetallic mineral products sold during the past calendar quarter; and
b. the production royalty rate according to the following schedules:
(1) Salt
Production Royalties. After production is achieved from the Property, Lessee shall pay Owner the greater of (i) a royalty on production equal to two and one half (2.5%) percent of net smelter returns, and (ii) the lease payments payable pursuant to Section 1.2 in order for this Lease to continue and be extended pursuant to Section 1.1.
