OFFSETTING PRODUCTION Sample Clauses

OFFSETTING PRODUCTION. The obligation of Lessee to pay royalties under this Lease may be reduced by the Board for coal produced from any particular tract within the Lease upon a showing by Lessee to the Board that the coal is uneconomical to mine at prevailing market prices and operating costs unless Lessor's royalty is reduced. Under no circumstances may Lessor's royalty be reduced below 10% of the coal produced and sold f.o.b. the mine site, prepared for shipment, including taxes based on production or value.