Common use of Production Royalties Clause in Contracts

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 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. f. Xxxxxx is responsible to reimburse Lessor for any collection or legal fees, plus interest at the above rates, which may be required for Lessor to collect royalties past due from Lessee or their agents.

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/_ per 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 2000 lbs. avoirdupois). No allowance shall be made for moisture content of materials. 1. The production royalty rate shall be adjusted at the end of the third (3rd) year and at the end of the County Road Commission price schedule approved , 20 and every three seventh (37th) years thereafter. The royalty rates for this lease will be adjusted effective , 20 , and every three (3) years thereafter year 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 producers’ 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: Year 3 – [PPI (t +3) ÷ PPI (t)] x royalty rate bid = adjusted royalty rate Year 7 – [PPI (t +7) ÷ 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 )lease is bid. PPI (t +3) = average of the monthly producer price index (CSG) for the latest 12 months available on the third (3rd) anniversary of the lease. PPI (t +7) = average of the monthly producer price agreement ( , 20 )index (CSG) for the latest 12 months available on the seventh (7th) anniversary of the lease. Royalty rate bid = royalty rate in effect bid 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 propertysold. 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 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. f. Xxxxxx Lessee is responsible to reimburse Lessor for any collection or legal fees, plus interest at the above rates, which may be required for Lessor to collect royalties past due from Lessee or their agents.

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 $0.22/0.90 per 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 2000 lbs. avoirdupois). No allowance shall be made for moisture content of materials. . (1) The production royalty rate shall be adjusted at the end of the third (3rd) year year, at the end of the County Road Commission price schedule approved , 20 seventh (7th) year and every before each three (3) years thereafter. The royalty rates for this lease will be adjusted effective year extension, 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 producers 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: Year 3 – [PPI (t +3) ÷  PPI (t)] x royalty rate bid = adjusted royalty rate Year 7 – [PPI (t +7)  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 )lease is bid. PPI (t +3) = average of the monthly producer price index (CSG) for the latest 12 months available on the third (3rd) anniversary of the lease. PPI (t +7) = average of the monthly producer price agreement ( , 20 )index (CSG) for the latest 12 months available on the seventh (7th) anniversary of the lease. Royalty rate bid = royalty rate in effect bid 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 propertysold. 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 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. f. Xxxxxx is responsible to reimburse Lessor for any collection or legal fees, plus interest at the above rates, which may be required for Lessor to collect royalties past due from Lessee or their agents.

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. _ per ton (2000 lbs. avoirdupois). 1. The production royalty rate shall be adjusted at the end of the third (3rd) year and at the end of the County Road Commission price schedule approved , 20 and every three seventh (37th) years thereafter. The royalty rates for this lease will be adjusted effective , 20 , and every three (3) years thereafter year 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 producers’ 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: Year 3 – [PPI (t +3) ÷ PPI (t)] x royalty rate bid = adjusted royalty rate Year 7 – [PPI (t +7) ÷ 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 )lease is bid. PPI (t +3) = average of the monthly producer price index (CSG) for the latest 12 months available on the third (3rd) anniversary of the lease. PPI (t +7) = average of the monthly producer price agreement ( , 20 )index (CSG) for the latest 12 months available on the seventh (7th) anniversary of the lease. Royalty rate bid = royalty rate in effect bid 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 propertysold. 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 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. f. Xxxxxx Lessee is responsible to reimburse Lessor for any collection or legal fees, plus interest at the above rates, which may be required for Lessor to collect royalties past due from Lessee or their agents.

Production Royalties. a. Lessee LESSEE shall pay to Lessor 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/per ton ($0.2862000 lbs/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. . (1) The production royalty rate shall be adjusted at the end of the third (3rd) year and at the end of the County Road Commission price schedule approved , 20 and every three seventh (37th) years thereafter. The royalty rates for this lease will be adjusted effective , 20 , and every three (3) years thereafter year 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 producers 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: Year 3 – [PPI (t +3) ÷ PPI (t)] x royalty rate bid = adjusted royalty rate Year 7 – [PPI (t +7) ÷ 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 )lease is bid. PPI (t +3) = average of the monthly producer price index (CSG) for the latest 12 months available on the third (3rd) anniversary of the lease. PPI (t +7) = average of the monthly producer price agreement ( , 20 )index (CSG) for the latest 12 months available on the seventh (7th) anniversary of the lease. Royalty rate bid = royalty rate in effect bid 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 propertysold. c. Lessee LESSEE shall secure written authorization of the Lessor 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 1.5% 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 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 LESSOR under the lease. d. Xxxxxx LESSEE agrees that all royalties accruing to the Lessor LESSOR herein shall be without deduction of any costs incurred by the Lessee LESSEE unless agreed to in writing by the LessorLESSOR. e. The Lessor LESSOR is not liable for any taxes incurred by the Lessee LESSEE and no tax deductions may be taken in computing the royalty. f. Xxxxxx LESSEE is responsible to reimburse Lessor LESSOR for any collection or legal fees, plus interest at the above rates, which may be required for Lessor LESSOR to collect royalties past due from Lessee LESSEE or their agents.