Sounds perfectly reasonable to me. If someone is late in paying their electricity or gas, the utility companies will usually not wait around too long before cutting them off. Then they, like the phone company, will usually charge a fee for re-activation. Same as they've outlined.
What they should have done is really make the expiration line RED or something. Some other registrars don't charge an extra $99. At least they're not as bad (crooked) as Totalnic.com. They LOCK your domain names without you asking for them to be locked. And they will NOT release the locks regardless of how many times you ask nor how you ask.
Then they will not honour any transfers away from their registrar while locks are in place. So essentially you're stuck. I'm in this boat with a number of domains. And they charge $20 per year in singles with a sliding scale.
If anyone can help me get my domains unlocked I'd be really appreciative. Totalnic ar HQ'd in Australia and have an office in Colorado in the US.
Bruno