Purposes Restrictions Clause Samples

Purposes Restrictions. After the Effective Date, and subject to Lessor’s Reserved Rights, the purposes of this Lease are to grant to Lessee the exclusive right to enter into and upon the Properties, for so long as this Lease remains in effect, and to explore, develop, mine, drill, pump, produce, process, treat and market the Minerals in, on or under the Properties, including existing dumps owned by Lessor, whether by drilling, surface strip, contour, quarry, bench, underground, solution, in situ or other mining methods now or hereafter developed. Production royalties have not been paid on any stockpiles, dumps, berms, or process tails existing on the Property with the exception of the stockpile referred to in Section 3(i) below. Lessee shall have the right: a) to temporarily store or permanently dispose of Minerals, water, waste or other materials on the Properties subject to conditions set in Paragraph 3(g) below; b) to use and develop the Water Right and any and all ditches, flumes, water and water rights owned by Lessor and pertinent to the Properties. For so long as Operations are conducted for the benefit of the Properties or the Area of Mutual Interest the water right may be utilized by the Lessee; c) to mine, process, mill, beneficiate, concentrate, smelt, extract, refine, ▇▇▇▇▇, convert, upgrade or conduct other operations to prepare for market on or off the Properties any Minerals taken from the Properties or from adjoining or nearby properties by any physical or chemical method or methods, including the right to remove Minerals to a plant or plants existing or established on the Properties or elsewhere, subject to the fact that royalties on Minerals (or products derived therefrom) that are taken off property shall be paid within 90 days of removal whether or not they have been processed and sold. Said payment shall be made upon the basis of previously developed and recognized recovery rates and established markets or upon parameters agreed to by both Lessor and Lessee. If no agreement is reached Minerals may not be removed. d) to use and alter so much of the surface and surface resources of the Properties as may be reasonably necessary in the exercise of said rights, or which Lessee may deem desirable or convenient, including rights of ingress and egress in connection with its operations on the Properties subject to conditions set in Paragraph 3(g) below; e) to mine and remove any Minerals existing on, in or under the Properties through or by means of shafts, openings ...