This excerpt taken from the JRCC 8-K filed Jun 6, 2005.
The Company leases certain mining properties under operating leases, with terms in excess of one year or for so long as the Company is commercially mining coal from the leased property. The leases are cancelable and all obligations of the Company end upon written notice of termination by the Company. Payments of advance royalties are recoupable from future earned royalties. Payments of earned royalties are due at a specific rate per ton for all coal extracted from the leased property. The total royalty expense recorded in operating costs and expenses was $4,071,644 for 2004.
TRIAD MINING, INC. AND SUBSIDIARY
The Company does not have any future minimum royalty commitments under coal lease agreements as of December 31, 2004.