Regulation 6(2)
The annual value of the right to win and work a relevant mineral as at the date when the order took effect shall be calculated by multiplying–
(a)the royalty rate of the unit of sale of that mineral which if it were to be the subject of a lease in the open market at that date a willing landlord and a willing tenant might be expected to agree, and
(b)the anticipated average annual sales of that mineral which if it were to be the subject of a lease in the open market at that date a willing landlord and a willing tenant might be expected to agree:
Provided that no account shall be taken of any grassum or consideration other than rentpayable in respect of the lease.
Regulation 6(2)
1. The multiplier is the years' purchase, which shall be appropriate to the estimated life of a relevant mineral being won and worked at the site as at the date when the order took effect, and which, if the site were sold in the open market on that date, a willing vendor and a willing purchaser might be expected to agree.
2. For the purposes of paragraph 1 above the estimated life shall be calculated by dividing–
(a)the quantity of the relevant mineral remaining unworked in the site at that date, being the amount which, if the site were sold in the open market, a willing vendor and a willing purchaser might be expected to agree as being economically workable and saleable mineral reserves; by
(b)the anticipated average annual sales at that date of that unworked mineral, being the identical figure arrived at as under paragraph (b) of Schedule 1.