Common use of VERTICAL BOUNDARY PLANES Clause in Contracts

VERTICAL BOUNDARY PLANES. In consideration of Lessee's execution of this mining lease, and the reciprocal benefits received by reason of the terms of this Article by the Lessor and the Lessee, Lessor and Lessee hereby agree with each other that any and all ores and minerals within the surface boundaries extended downward vertically of any claim so held under lease and herein defined as leased premises shall belong to such claim. It is understood that the concept of vertical boundaries applies only as between Lessor and Lessee, and that neither party intends to, or will, give up any extralateral rights to third parties. In the case of extralateral rights extending from the leased premises, then Lessee will either lease the adjacent property or mine it by exercising extralateral rights. In both cases, the Lessee and Lessor interests shall be diluted proportionately based on the cost of leasing or acquiring the adjacent property. For example, if it costs a twenty percent (20%) NPR to lease an adjacent property of a third party, the Lessor in our agreement would suffer a twenty percent (20%) reduction in its net profit interest, and the Lessee in our agreement would suffer a twenty percent (20%) reduction as below: Net Profits = $100 from Third Party Property