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Larsen Bay Hydro Land Status June 23-2005
( Meridian June 23, 2005 Mike Harper Deputy Director, Rural Energy AIDEA/AEA 813 West Northern Lights Blvd. Anchorage, Alaska 99503 Subject: Larsen Bay Land Status. Dear Mr. Harper: Attached please find the final version of Rick Elliot's review of the land status for the Larsen Bay Hydroelectric Project. As detailed therein: 1. The existing project is located within an area identified as “Tract A” and comprising 28.80 acres. This land is owned by Koniag Inc. and the lease executed between Koniag and the City of Larsen Bay in 1989 for the use of this land for a power project remains in effect until 2039. 2. A portion of the dam, located within Tract A, lies within the boundary of U. S. Survey 361, owned by Kodiak Salmon Packers, Inc. (KSPI). The lease agreement entered into in 1990 for use of a portion of U. S. Survey 361 for the hydro project was signed by Mr. Alan Beardsley, President of KSPI. That lease should be amended or a new lease issued to reflect KSPI as the grantor. 3. The land surrounding the project required for development of the diversion structure and pipeline, located in sections 5 and 6, Township 31 North, Range 29 West, Seward Meridian, is owned by the United States and is under the jurisdiction of the U. S. Fish and Wildlife Service. In addition, this land is subject to a restrictive conservation lease granted to the State of Alaska. The fact that the land surrounding the project, including the area that would be necessary for construction of the diversion is now under federal ownership and is subject to a restrictive easement could make development of the diversion difficult. However, should both the state and federal governments so desire, development may be possible. It is my understanding that an equally restrictive conservation easement existed for the land proposed for the development of the Old Harbor MERIDIAN MANAGEMENT, INC. 3940 Arctic Boulevard, Suite 102 - Anchorage, Alaska 99503 Ph; 907.677.2601 Lok A Yee ty WWW.MERIDIANAK.COM > We Manage. You Succeed. Mike Harper June 24, 2005 Page 2 Hydroelectric Project but that this did not prove to be an insurmountable obstacle for the project. However, it took some nine months to amend the easement so that the hydro project could proceed. To address this issue | recommend that a meeting be held between AIDEA/AEA, the City of Larsen Bay, the U. S. Fish and Wildlife Service and the Alaska Department of Natural Resources. The purpose of the meeting would be to determine if the federal and state governments are willing to allow this project to proceed. Please give me a call at 677-2601 should you wish to further discuss permitting issues for the proposed diversion or contact Rick Elliot at 868-4043 if you have questions concerning land ownership. Sin oe Jim Thrall Vice President Environmental Services Attachment: As stated CC: Lenny Landis, AiDEA/AEA File Rick Elliott Land Consultant 5452 Cape Seville Drive Anchorage, Alaska 99516 Phone/Fax: (907)868-4043 e-mail: rickelliott@gci.net June 23, 2005 James H. Thrall, Ph.D Vice President Environmental Services Meridian 3940 Arctic Blvd, Suite 102 Anchorage, AK 99503 Dear Dr. Thrall: I was requested to review the land status in the area where the Larsen Bay hyroelectric facility is located. I was specifically asked to review the land status of sections 5, 6, 7 and 8, Township 31 South, Range 29 West, Seward Meridian. The purpose of this letter is to document my findings as a result of that review. Lease between Koniag, Inc. and the City of Larsen Bay A lease between Koniag, Inc. and the City of Larsen Bay was executed on September 12, 1989. The lease was recorded at Book 97, Page 858, on September 28, 1989, in the Kodiak Recording District. This lease provided the necessary site control for the construction of the power project on Koniag, Inc. property. This lease is in effect until December 31, 2039, and may be renewed for an additional 20-year term upon terms and conditions that are acceptable to the lessor. The lessee is required to pay rental in the amount of $100 per year. The area is to be used only for the purpose of construction and operation of the power project. A copy of the recorded lease is attached to this report. The lease contains a provision that an as-built survey would be accomplished after construction of the project was completed. The lease provides that the as-built survey shall be substituted for the more general description contained in the original lease. The as-built survey was completed and was recorded as Record of Survey 96-9 on March 7, 1996, in the Kodiak Recording District. A copy of the recorded plat is attached to this report. The hydroelectric project area is identified as “Tract A” and contains 28.80 acres. I could not find any recorded documentation that the lease was ever formally amended to reflect the survey. This notwithstanding, the surveyed Tract A should be considered the legal description of the project. James Thrall June 23, 2005 Page 2 U.S. Survey 361 U.S. Survey 361 is owned by Kodiak Salmon Packers, Inc (KSPI). The City of Larsen Bay and Allen Beardsley entered into a lease agreement on February 22, 1990. Mr. Beardsley apparently entered into the lease as the President of KSPI although this is not indicated in the lease document. I could not find any evidence that this lease was ever recorded. Subsequent correspondence between the City of Larsen Bay and KSPI indicated that the lease should be revised to reflect KSPI as the lessor instead of Mr. Beardsley. I could not find any evidence that a revised lease was ever recorded. In 1996, an action was taken by Koniag, Inc. and KSPI to vacate a portion of U.S. Survey 361, and portions of Lot 13 and Tract 37 of the southeast '4 of Section 31, Township 30 South, Range 29 West, SM, and to replat as Tract “A”, U.S. Survey 361. This replat changed the southern boundary of U.S. Survey 361. This plat was recorded as Record of Survey. 96-8 on March 6, 1996, in the Kodiak Recording District. It appears this may have been done so that the powerhouse would be located entirely on land owned by Koniag, Inc. The dam, however, appears to be located on KSPI property within Tract “A”, U.S. Survey 361. A copy of Plat 96-8 is attached to this report. Section 5, 6, 7 and 8, Township 31 South, Range 29 West, Seward Meridian The southern portion of the Larsen Bay Hydroelectric project is located with sections 5, 6 and 7 of Township 31 South, Range 29 West, Seward Meridian. Sections 5, 6, 7 and 8 were transferred to the United States of America by warranty deed dated October 7, 1996. This deed was recorded on October 8, 1996, at Book 0146, Page 232, in the Kodiak Recording District. A copy of the recorded deed is attached. The land is within the Kodiak National Wildlife Refuge and is, therefore, under the administration of the U.S. Fish and Wildlife Service. The land is also subject to the enforcement right of the State of Alaska as established by a conservation easement granted by Koniag, Inc. to the State of Alaska. This easement was granted on October 7, 1996, and was recorded on October 8, 1996, at Book 0146, Page 225, in the Kodiak Recording District. A copy of the recorded easement is attached. The easement interest is depicted on the State of Alaska land records as LSH (Limited State Holding) 404. The conservation easement grants the State of Alaska the right to enforce, on a non-exclusive basis, the terms of several restrictive covenants against the grantor and its successors. Koniag was the grantor of the easement and the successor is now the U.S. Fish and Wildlife Service. One of the restrictive covenants prohibits the “manipulation or alternation of natural water course, shores, marshes or other water bodies or activities or uses detrimental to water purity of the protected property.” Tract “A” as shown on Record of Survey 96-9, which is the as-built survey of the power project, is specifically excluded from both the warranty deed and the conservation easement. James Thrall June 23, 2005 Page 3 Discussion The lease between the City of Larsen Bay and Koniag, Inc. is still in effect. Both the land transfer to the United States and the conservation easement to the State of Alaska, specifically excluded Tract A, Record of Survey 96-9. It is recommended that the parties amend the lease to reflect the as-built location as depicted in Record of Survey 96-9. There is nothing that should prohibit the continued operation and maintenance of the existing project in accordance with the lease terms. It appears that U.S. Survey 361 may have been modified to eliminate the power plant encroachment onto Kodiak Salmon Packers, Inc. property. However, the dam appears to be located within KSPI property. Therefore, it appears that there should be a lease from KSPI to the City of Larsen Bay to cover the dam site. The existing unrecorded lease to Allen Beardsley should be amended or a new lease issued to reflect KSPI as the grantor. The document should also be recorded in the Kodiak Recording District. The proposed diversion structure and pipeline to the existing project would be located within Sections 5 and 6, Township 31 North, Range 29 West, Seward Meridian. As noted above, these sections of land are now owned by the United States and under the jurisdiction of the U.S. Fish and Wildlife Service. The land is also subject to a restrictive conservation easement that was granted to the State of Alaska. Accordingly, both agencies would have to approve any type of construction activity in regard to this project. Summary Site control for the existing project, except the dam site, is in place by the existing lease between Koniag and the City of Larsen Bay. The lease should be amended to formally incorporate the record of survey description. The dam site appears to be on property owned by Kodiak Salmon Packers Inc (KSPI). The existing lease between the City of Larsen Bay and Allen Beardsley should be revised or replaced to reflect KSPI as the lessor. Any proposed activity within section 5 and 6, Township 31 North, Range 29 West, would require both the approval of U.S. Fish and Wildlife Service as the land owner and by the State of Alaska, Department of Natural Resources as holder of the conservation easement that encumbers the property. If additional information is needed, please let me know. Sincerely, Kuk Mist Rick Elliott Land Consultant Enclosures: a/s BOOK 171 PAGE &52_ LEASE AGREEMENT This Lease Agreement is made this at day of ee. , DSeytems ai , 1989, by and between Koniag, Inc., an Alaska corporation ("Lessor") and the City of Larsen Bay, « municipal corporation ("Lessee"). WITNESSETH: WHEREAS, Lessor is the owner of the surface estate to certain lands in Sections 5 and 6 of Township 31 S., Range 29 W., Seward Meridian, as the successor-in-interest to Nu-Nachk-Pit, Inc., the Village Corporation formed for the Natives of Larsen Bay pursuant to the Alaska Native Claims Settlement Act and the laws of the State of Alaska; and ROOK RECORDING DESTROCT WHEREAS, Lessee wishes to construct and operate a hydro-electric power and water project ("Power Project") as generally described in the U.S. Army Corps of Engineers Permit dated April 21, 1989, attached hereto as Exhibit A and incorporated herein by reference, to provide for the electrical power and water needs of the residents of Larsen Bay; and WHEREAS, the above-described lands include the best location for the Power Project; and WHEREAS, Lessor desires to make certain portions of these lands available to Lessee for the construction and opera- tion of the Power Project; NOW, THEREFORE, in consideration of the mutual cove- nants and conditions contained herein, and other good and Cains, hatin ee aia At Sih Y . o by <2 BOOK 27 PACE £57 valuable consideration, the receipt of which is hereby acknowl- edged, the parties agree as follows: 1. Description of Leased Lands. Lessor hereby grants Lessee a temporary lease to those lands described in Exhibit B, attached hereto and incorporated herein by reference (“Leased Lands"), for the purpose of constructing the Power Project. Upon completion of construction, Lessee shall have performed, at its sole cost and expense, an as-built survey of the land actually occupied by the Power Project, together with such additional land, if any, as is necessary to allow Lessee to operate, main- tain and repair the Power Project. The as-built survey shall be prepared by a professional surveyor and/or engineer licensed to practice in the State of Alaska, and shall be completed no later than sixty days after substantial completion of the Power Project. A copy of the as-built survey shall be provided to Lessor upon completion. Lessor shall have fourteen (14) days to raise any objections to the as-built survey. In such event, Lessor and Lessee shall meet as expeditiously as possible to attempt to resolve Lessor’s obligations. Upon resolution of Lessor’s objections, or, if Lessor has no objections, upon receipt of the as-built survey, a copy thereof shall be denom- inated as Exhibit B-1 and substituted for Exhibit B. From that time forward, the term "Leased Lands" shall refer solely to the lands delineated in Exhibit B-1. z. Term. The initial term of this Lease shall commence as of the date of execution of this Lease and shall expire on -2- meer peerT BOOK_27 PAGE_260 December 31, 2039 ("Term"), unless sooner terminated pursuant to paragraph 23. Upon written notice to Lessor on or before December 31, 2038, unless otherwise terminated pursuant to paragraph 23, Lessee may renew this Lease for an additional 20-year Term upon such terms and conditions as are acceptable to Lessor. 3. Rent. Lessee agrees to pay Lessor rent of One Hundred Dollars ($100.00) per year ("Rent"). The Rent shall be paid on or before January 1 of each year to Lessor at the address listed in paragraph 31. 4. Acceptance of Leased Land. Lessee has inspected the Leased Land and Lessee accepts the same "as is" with all of its faults. Lessor shall have no liability or obligation with respect to the condition, maintenance or use of the Leased Land, or its fitness or suitability for the Power Project. 5. Use of Leased Lands. Lessee shall use the Leased Lands solely for the purpose of constructing and operating the Power Project, and for no other purposes whatsoever. 6. Cooperative Agreement. Lessee acknowledges that the Leased Lands are located within the exterior boundaries of the Kodiak National Wildlife Refuge and are subject to Section 22(g) of the Alaska Native Claims Settlement Act ("ANCSA") and any and all lawful regulations promulgated thereunder. Lessee agrees to execute that certain Cooperative Agreement between the United States Fish & Wildlife Service, Koniag, Inc. and the City of Larsen Bay ("Cooperative Agreement") attached hereto as Exhibit c 2 RATE UBER IVE arte BOOK _77 PAGES% / and incorporated herein by reference, and to fully abide by its terms. as Notice of Construction and Operation. Lessee shall notify Lessor and the United States Fish and Wildlife Service ("Service") at least ten (10) days prior to (1) commencement of construction activities, (2) substantial completion of Power Project, (3) final completion of Power Project, (4) completion of reclamation/revegetation activities pursuant to paragraph 9, and (5) commencement of operations. Such notice may be by telephone, but shall be confirmed in writing. 8. Permits and Consents. Lessee shall obtain any and all permits, consents or other governmental or regulatory authoriza- tions necessary for the construction or operation of the Power Project and shall comply with the terms and conditions of the same. Lessec shall immediately inform Lessor of any permit, consent, authorization, law, ordinance or regulation which imposes any potential liability, either primary or secondary, upon Lessor as owner of the Leased Lands. Upon request of Lessor, Lessee shall provide a bond or other financial assurance satisfactory to Lessor to protect Lessor from loss in the event liability is imposed. 9. Clean-up, Restoration and Revegetation. At the conclu- sion of the construction of the Power Project, Lessee shall clean-up all construction materials and debris and shall grade the land to approximate the general features of the surrounding landscape to the extent possible, consistent with the operational and maintenance needs of the Power Project. Lessee shall -4- SS ie ah RR Pl IE TBR nt BUOK _7%7_PAGE_£6 2 revegetate the soil using Native grasses and shall take whatever actions are necessary to insure that the revegetation is successful. Lessee shall take such other and further reclamation and restoration activities as are necessary, if any, to restore and/or rehabilitate any damage to natural resources occurring as a result of the construction or operation of the Power Project. 10. Use, Occupancy and Care. At all times during the term hereof, Lessee shall: (a) keep the Leased Lands and the Power Project clean, safe and orderly; (b) conduct activities upon and generally maintain the Leased Lands and the Power Project in such a manner and with such care that injury to persons and damage to property does not result therefrom; (c) not use or permit any part of the Leased Lands or Power Project to be used for any unlawful or unauthorized purpose nor perform, permit or suffer any act or omission upon or about the Leased Lands or Power Project which would result in a nuisance or a violation of any applicable laws, ordinances or regulations; (d) comply with municipal, state, federal and other govern- mental laws, statutes, ordinances, rules ani nae me ater STENT TE boc 27. PACE £63 regulations of whatever type and nature, including bu. not limited to § 22(g) of ANCSA; (e) not cause or permit any waste, damage or injury to the Leased Lands or Power Project. (f) not generate, use, store, transport or dispose of any hazardous substance or hazardous wastes, as those terms aru defined under applicable federal or state law, on the Power Project or Leased Lands. 11. Maintenance _and_ Repair. Lessee covenants throughout the term hereof, at its sole cost and expense, to properly keep the Leased Lands and Power Project in good maintenance, repair, order and condition. Lessee acknowledges that Lessor has no responsibility to maintain the Leased Lands or Power Project during the term hereof. 12. Utilities. All utility costs shall be the sole respon- | sibility of Lessee. 13. Right of Access and Inspection. Lessor and the Service shall have the right to enter upon the Leased Land and the Power Plant for the purposes of inspecting the construction and opera- tion of the Power Project and determining compliance with the Cooperative Agreement and this Lease. Lessee shall have the right, but not the obligation, to have a representative present during any such inspection. ee ee ee BCOK 77_PAGE_f6% 14. Assignment and Subletting. Lessee shall not sublet, mortgage, pledge or assign its rights under this Lease without the prior written consent of Lessor, which consent may be with- held in its sole and absolute discretion, and any purported sublease, mortgage, pledge or assignment without such consent shall be void. 15. Liens. Lessee shall keep the Leased Lands and any part thereof free from any liens or similar encumbrances for labor or materials ordered or supplied upon the express or implied request of Lessee. Should any such lien be recorded or should a lien be recorded by Lessee, Lessee shall forthwith and within ten (10) days of learning of such recording cause the same to be cancelled and dischargec of record. Alternatively, Lessee shall provide Lessor with written proof of the existence of an appropriate surety bond written by a corporate surety qualified to do busi- ness in the State of Alaska, in an amount equal to not less than 150% of the amount of the lien. Such surety bond shall be in favor of Lessor or the lien claimant. Lessee shall take all steps necessary to have such lien released or judgment resulting therefrom satisfied at Lessee’s own expense. 16. Taxes and Assessments. Lessee shall be responsible for and shall pay promptly when due any and all general, special, real property and possessory interest taxes and assessments levied against the Leased Lands and/or the Power Project. 17. Insurance. Lessee shall obtain and maintain comprehen- sive liability insurance in an amount satisfactory to Lessor. Lessee shall have Lessor named on the policy as an additional -J- tt iin A 2 poy 77 Pace pes insured, and shall provide Lessor with a certificate of insurance evidencing the same. Lessee shall keep such insurance in effect at all times, and shall immediately notify Lessor of any termina- tion or change in the insurance. All insurance coverage here- under shall be primary to any insurance carried by Lessor. 18. Indemnification. Lessee shall save, protect, hold harmless, indemnify and defend Lessor of, from and against any and all claims, liabilities, damages, costs or expenses, includ- ing but not limited to attorneys fees, for injury to or death of any person or damage to property, howsoever and by whomsoever caused, including but not limited to damage to the Leased Land itself, occurring in or about the Leased Lands or Power Project or as a result of Lessee’s activities on the Leased Lands, including but not limited to both active and passive negligence. Lessee shall further save, protect, hold harmless, indemnify and defend Lessor from and against any and all damages sustained by Lessor arising out of Lessee’s failure to comply with any law, regulation, permit condition, or the Cooperative Agreement. 19. Surrender of Leased Lands. Lessee, on the last day of the Term, or upon earlier termination of this Lease, shall peaceably and quietly leave and surrender the Leased Lands in as good condition as on commencement of the Term, ordinary wear and tear excepted. 20. Fixtures and Improvements. Upon termination or expir- ation of this Lease or any extension thereof, unless otherwise requested by Lessor, Lessee shall promptly, at its own cost and expense, remove the Power Project from the Leased Lands. If BOOK 27 PAGE £éG Lessee fails to remove the Power Project within twelve (12) months after termination or expiration, Lessor may, at its gh option, either (1) have the Power Project removed, with all costs incurred in such removal to be paid by Lessee, or (2) elect to keep the Power Project, in which event the parties agree that this Agreement shall constitute a quitclaim, by Lessee to Lessor, of all Lessee’s right, title and interest, if any, in and to the Power Project and any other improvement located upon the Leased Lands. Lessee further agrees, in the event Lessor elects to keep the Power Project, to execute such other or further documents as are necessary to transfer its interest in the Power Project and any other improvements, together with all authorizations and permits relating to same, to Lessor. 21. Termination. Unless otherwise terminated pursuant to paragraph 22 of this Lease, this Lease shall terminate at the expiration of the Term of this Lease. 22. Default. A. The occurrence of one or more of the | following events shall constitute a default and breach of this Lease by Lessee: | f | (1) Violation or breach or failure to keep or perform any covenant, agreement, term or condition of this Lease which shall continue or not be remedied within thirty (30) days after notice thereof is given by Lessor to Lessee; ALITA RBA A al RIM BOOK _?2 PAGE £67 (2) Dissolution or reorganization of Lessee into something other than a state-chartered municipality; (3) The permanent cessation of the construction or opera- tion of the Power Project; for purposes of this provision, a permanent cessation shall be deemed to be the cessation of the construction or operation activ- ities for a period of two consecutive years unless Lessee provides written justification acceptable to Lessor that permanent cessation has not occurred; (4) The use of the Leased Lands for any purpose other than that specified in paragraph 5; (5) Failure to comply with any of the provisions of the Cooperative Agreement. B. Upon the occurrence of a default as defined in "A" above, Lessor may at Lessor’s option declare Lessee’s rights terminated and may re-enter the Leased Lands and Power Project, ; using such fcrce as is necessary, and without further notice, j remove all persons and property from the Leased Lands and repos- : sess Lessor of Lessor’s former estate. In such case, Lessor shall be deemed to have an immediate right to possession of the Leased Lands and Fower Project and Lessee shall peacefully surrender the same. No judicial action shall be necessary to effect such termination. -10- non 97) PACK £6 c. Such re-entry and termination notwithstanling, the liability of Lessee for payment of all amounts required to be paid by Lessee under this Lease, including payment of the full rental provided herein for what would otherwise have constituted the balance of the Term of this Lease shall not be extinguished and Lessee shall make qood to lessor the expenses and damages suffered by Lessor as a result of the default and repossession, including but not limited to attorneys fees. Lessor may, but shall not be obligated to, relet the Leased Lands or any part thereof in the name of the Lessor, or otherwise, for such term (which may be greater or less than the period which would otherwise have constituted the balance of the Term of this Lease) and on such conditions as Lessor may deter- mine appropriate, and may collect and receive the rent therefrom; Lessor shall not be responsible or liable for any failure to relet the Leasei Lands or any part thereof, or for any failure to collect any rent due upon any such reletting. D. In the event of default, as defined in subparagraph A, Lessor shall heve such further and additional rights as are provided by law. 23. Costs Upon Default. In the event a party shall be in default in the performance of any of its obligations under this Lease and an action shall be brought for the enforcement thereof, the defaulting party shall pay to the other party all the ex- penses incurred therefor, including a reasonable attorney’s fees. 24. Cure of Default by Lessor. Lessor may, at the expense of Lessee, cure any default by Lessee hereunder, but shall not be -11- POOK 72 PAGE_£67 required to do so. Lessee shall reimburse Lessor for all amounts expended in connection therewith, including attorney’s fees and other incidental expenses. Such amounts, together with interest at the maximum lawful rate of interest shall be deemed due and payable within thirty (30) days of request for payment by Lessor. 25. Attorneys’ Fees, Costs and Expenses. In the event either party brings or commences legal proceedings to enforce any of the terms of this Lease, the successful party in such action shall receive from the other, in every action commenced, all reasonable expenses incurred, including but not limited to attorneys fees. In the event either party hereto shall without fault on its part be made a party to any litigation commenced by or against the other party hereto, then such other party shall pay all costs and reasonable attorneys’ fees incurred or paid by the first party in connection with such litigation. 26. Rights or Remedies. Except insofar as is inconsistent with or contrary to any provision of this Lease, no right or remedy herein conferred upon or reserved to a party hereunder is intended to be exclusive of any other right or remedy, and each and every right and remedy shall be cumulative and in addition to é any other right or remedy given hereunder, or now or hereafter existing at law or in equity cc by statute. 27. Waiver of Sovereign Immunity. Lessee waives any and } all sovereign immunity which it might otherwise possess with respect to any action relating to or arising out of this Lease or the Power Project. eR He SPRATT AN BELTS NMED BOOK _77_PAGE_ £26 28. Waiver and Forbearance. No waiver by a party hereto of any breach by the other party of any of its obligations, agree- ments or covenants hereunder shall be deemed to be a waiver of any subsequent breach of the same or any other covenant, agree- ment or obligation. Nor shall any forbearance by a party to seek a remedy for any breach of the other party be deemed a waiver by the first party of its rights or remedies with respect to such breach. 29. Successors~in-Interest. Unless otherwise provided herein, this Lease shall be binding upon and inure to the benefit of the respective heirs, successors and assigns of the parties hereto. Any transfer or conveyance of Lessor’s interest unless the specific language of the conveyance or transfer document otherwise provides, shall operate as a complete transfer of all of Lessor’s right, title and interest in and to the Leased Lands, and all its rights, duties and obligations under this Lease, and Lessor shall have no further obligation to Lessee under this Lease as of the effective date of the conveyance. 30. Notices. Any and all notices required or permitted under this Lease, unless otherwise specified in writing by the party whose address is changed, shall be as follows: KONIAG, INC. 4300 "B" Street, Suite 407 Anchorage, Alaska 99503 L2M 97 PACE 27s Lessee: CITY OF LARSEN BAY Larsen Bay, Alaska 99624 31. Representations and Warranties. Lessor represents that it is a corporation duly authorized and existing under the laws of the State of Alaska with full power and authority to enter into and perform all actions contemplated by this Lease. Lessor further represents and warrants that this Lease has been duly executed by an authorized officer of Lessor, with full power and authority to execute the same, and that no additional consent or authorization is necessary for the performance by Lessor of this Lease and the obligations herein. Lessee represents and warrants that it is a municipal corporation and the governmental body for the community of Larsen Bay, duly organized and authorized under the laws of the State of Alaska, with full power and authority to enter into this Lease and the actions contemplated hereby. Lessee further represents that this Lease has been duly executed by an autho- rized official of Lessee, with full power and authority to execute the same, that the Lease and its execution by Lessee is in compliance with all applicable laws, regulations and ordi- nances, and that no additional consent or authorization is necessary for the performance by Lessee of this Lease and the obligations herein. 32. Jurisdiction; Relief. This Lease Agreement shall be construed and enforced in accordance with the laws of the State of Alaska. -14- AREA KOREAN I BOOK .77__PAGE_ £22 33. Recording. The parties shall record this Lease in the ¢ Kodiak Recording District. ae 34. Miscellaneous Provisions. (a) This Lease contains all of the agreements and conditions made between the parties and may not be modified orally or in any manner other than an agreement | in writing signed by both parties or their respective successors-in-interest. (b) Each Term and provision of this Lease shall be construed to be both a covenant and a condition of this Lease. (c) Time is of the essence in each term and provision of this Lease. IN WITNESS WHEREOF, the undersigned have caused this Lease Agreement to be executed in duplicate as of the date and year hereinabove first written. LESSEE: CITY OF LARSEN BAY wy: hh, Ch Its lO KS LESSOR: KONIAG, -15- \ SRS RAR ESET RN WEIS rf, ; "00K 77. PAGE_£23 STATE OF ALASKA ) ) s8. THIRD JUDICIAL DISTRICT ) a : THIS IS TO CERTIFY that on the [2 day of Jesthembe, 1989, before me, the undersigned, a Not; Public in and for Alaska, personally appeared as LIS ZECNSCN A to me known and known to me to be the of CITY OF LARSEN BAY, the corporation name n the foregoing Lease Agreement, and he acknowledged to me that he executed the foregoing Lease Agreement on behalf of said corporation for the uses and purposes therein stated. WITNESS my hand and notarial seal on the date and year in this certificate first above written. Si. tary Public in and for Alaska is My Commission Expires: Astrdster ) ) ss. THIRD JUDICIAL DISTRICT ) STATE OF ALASKA < THIS IS TO CERTIFY that on the/ 2 ~ day of Septem ber, 1989, before me, the undersigned, a Notary Public in and for Alaska, personally appeared 4 = 7 to me known and known to me to be the L-CEOD of KONIAG, INC., the corporation named in the foregoing Lease Agreement, and he acknowledged to me that he executed the fore- going Lease Agreement on behalf of said corporation for the uses ‘ and purposes therein stated. 3 WITNESS my hand and notarial seal on the date and year in this certificate first above written. ‘, Fubore otary Public in and for Alaska My Commission Expires: 77/777 -16- NEUE GAIT OTF BARR Wt ~ ROOK.77._ PAGE Fg DEPARTMENT OF THE ARMY PERMIT City of Larsen Bay Permittee a 4-870537 (Humpy Creek 1) U.S. Army Engineer District, Alaska Inauing Office NOTE: The term “you” and its derivatives, as used in this permit, means the permittee or any future transferee. The term “this office” refers to the appropriate district or division office of the Corps of Engineers having jurisdiction over the permitted activity or the appropriate official of that office acting under the authority of the commanding officer, You are authorized to perform work in accordance with the terms and conditions specified below, Project Description: — p}ace approximately 50 cubic yards of fill material (shale, graywacke, silt, clay, and rock) below the ordinary high water mark of upper Humpy Creek in association with the construction of a small hydroelectric dam on Humpy Creek to generate electrical power for the city of Larson Bay. TODA Uae orcas = Tamas - — All work will be performed in accordance wi August 12, 1988. § feetee dee eh gay TUR ed, Bee ane. Project Location: Upper Humpy Creek approximately 1.5 miles south of the city of Larsen Bay, insect {on 6, T. 31 S., R 29 We, Seward Meridian. : Leena wd eye? | ROA, OGL PA *couepench yuu" a i ee aa Sa 8 Pod STENT De OD wee ur aod Permit Conditions: Genera! Conditions: 1, Thé time limit for completing the work authorized ends on — February 29, 1992 . If you find that you need more time to complete the authorized activity, submit your request for a time extension to this office for consideration at least one month before the above-date ls reached, : . 2, You must maintain the activity authorized by this permit in good condition and in conformance with the terms and condl- tions of this permit, You are not relieved of this requirement if you abandon the permitted activity, although you may make a good faith transfer to a third party In compliance with General Condition 4 below. Should you wish to cease to maintain the authorized activity or should you desire to abandon it without a gocd faith transfer, you must obtain a modification of this permit from this office, which may require restortion of the area. 3. If you dlecover any previously unknown historic or archeological remains while sccomplishing the activity authorized by thia permit, you must immediately notify this office of what you have found, We will initiate the Federal and state coordina- tion required to determine If the remains warrant a recovery effort or if the site Is eligible for listing in the National Register of Historic Places, ENG FORM 1721, Nov 86 EOITION OF SEP 8218 OBSOLETE. (33 CFR 320-330) , exurr_A__ Poge_!_ot_b Pages . BOOK_77_ PAGE £25 4, If you sell the property associated with this permit, you must obtain the signature of the new owner In the space provided and forward a copy of the permit to this office to validate the transfer of this authorization, 5, If a conditioned water quality certification has been issued for your project, you must comply with the conditions specified in the certification as special conditions to this permit, For your convenience, a copy of the certification Is attached if it con- tains such conditions, 6. You must allow representatives from this office to Inspect the authorized activity at any time deemed necessary to ensure that It ls being or has been accomplished In accordance with the terms and conditions of your permit. neous he Special Conditions: 1, That no camps (overnight and/or food service facilities) shall be placed at the construction site. All construction personnel shall leave the construction area at the end of each day. 2. That no refuse disposal (including burying of trash) shall occur at the construction site. All refuse shall be transported off site for proper disposal at the village's sanitary landfill. 3. That the permittee shall provide the State of Alaska, Dam Safety Office, with a dam break analysis prior to construction. If the hazard potential as determined by the dam break analysis is e or significant, the permittee shall provide the Dam ireyae Safety Office with construction plans and specifications, as well as a design Tain -:8nalysis, for.approva] prior to, construction, je ate hee = o10u SI Wet pry ne On = Further Information: 1, Congressional Authorities: You have been authorized to undertake the activity described above pursuant to: ( ) Section 10 of the Rivers and Harbors Act of 1899 (33 U.8.C. 403). (2% Section 404 of the Clean Water Act (33 U.S.C. 1344). (_ ) ‘Section 108 of the Marine Protection, Research and Sanctuaries Act of 1972 (33 U.S.C. 1413). . WI} MOM AL )] 0G OSLLOLMEG JU SCTOLQSUCS MJY FUG SEesCUGY bygu2’ 2 eveGs2 qareq 2, Limits of this authorization. &. This permit does not obviate the need to obtain other Federal, state, or local authorizations required by law, b. This permit does not grant any property rights or exclusive privileges, ¢. This permit does not authorize any injury to the property or rights of others. d. This permit does not authorize interference with any existing or proposed Federal project. 3. Limits of Federal Liability. In issuing this permit, the Federal Government does not assume any liability for the following: a. Damages to the permitted project or uses thereof as a result of other permitted or unpermitted activities or from natural causes. . b, Damages to the permitted project or uses thereof as a result of current or future activities undertaken by or on behalf of the United Btates In the public interest, @, Damages to persons, property, ov to other permitted ov unpermitted setivities ov structures enused by the activity authorized by this permit, & Design or construction deficiencies associated with the permitted work. 2 exuert_A__. { 7 i Page_2_of © Pages SNES BE TNE . eat ~~. af YY pPAre 30K 22_ PAGEL ZS @, Damage claims associated with any future modification, suspension, or revocation of this permit. 4, Reliance on Applicant's Data: The determination of this office that Issuance of this permit is not contrary to the public Interest was made in rellance on the information you provided, 5, Reevaluation of Permit Decision. This office may reevaluate its decision on this permit at any time the circumstances warrant. Clreumstances that could require a reevaluation include, but are not limited to, the following: a. You fail to comply with the terms and conditions of this permit, b. The information provided by you in support of your permit application proves to have been false, incomplete, or inaccurate (See 4 above), ¢. Significant new information surfaces which this office did not consider in reaching the original public interest decision, Such a reevaluation may result in « determination that It ts appropriate to use the suspension, modification, and revocation procedures contained In 33 CFR 325.7 or enforcement procedures such as those contained In 33 CFR 326.4 and 326.5, The referenced enforcement procedures provide for the issuance of an administrative order requiring you to comply with the terms and conditions of your permit and for the Initiation of legal action where appropriate. You will be required to pay for any corrective measures ordered by this office, and ! you fall to comply with such directive, this office may in certain situations (such as those specified in 33 CFR 209.170) accomplish the corrective measures by contract or otherwise and bill you for the cost, 6, Extensions, General condition 1 establishes a time limit for the completion of the activity authorized by this permit, Unless there are circumstances requiring either a prompt completion of the authorized activity or a reevaluation of the public Interest decision, the Corps will normally give favorable consideration to a request fo: an extension of this time limit, Your signature below, as permittee, indicates that you accept and agree to comply with the terms and conditions of this permit, Z, Lhe #S7-§F (PERMITTEE) AND TITLE (DATE) This permit becomes effective when the Federal official, designated to act for the Secretary of the Army, has signed below. Ankle He rrssng Avil al 1989 FOR(DISTRICT ENGINEER)YColone1 William W. Kakel (DATE) Timothy R. Jennings, Chief, Northern Unit Permit Processing Section Regulatory Branch When the structures or work authorized by this permit are still in existence at the time the property is transferred, the terms and conditions of this permit will continue to be binding on the new owner(s) of the property. To validate the transfer of this permit and the associated labilities associated with compliance with its terms and conditions, have the transferee sign and date below. (TRANSFEREE) (DATE) exHiBrt_Au ics Page—3_ oto Pride 3 #U.8. GPO: 1908—s20-306 Ue tw eae wy \\\ i" 87930° 18490" Project Vicinity Map Location Map & Lr BOOK 27. PAGES? 7 A iwi Snitiild BOOd +.7%a APPROXIMATE MEAN OECLINATION, 1952 osed Hydroelectric Diversion Den : mile 1.7 Humpy Creek assen Bay ediak Island 2 6,T31S,R29W SM iL of 3 non A Pace. wee Pages ip. Purpose: Provide Hydroelectric Power to the City of Larsen Bay Dacum: MLW Dam Plan View Scale: 1"=20’ City of Larsen Bay P.O. Bex 8 Larsen Bay, Ak 99624 Date: Aug 12, 1988 a th ee AIN PIPE \ Proposed Hydroelectric Diversion Dam In: mile 1.7 Humpy Creek At: Larsen Bay Kodiak Island Sec 6,T31S,R29W SM Sheet 2 of 3 wane, PageD_of 2 Pages DAM_SEC B-B SCALES eo iy eq Purpose: Provide Dam Section > Hydroelectric Scale: 1"°=6' iS~ By Power to the City of Larsen Bay City of Larsen Bay P.O. Box 8 Datum: MLW Larsen Bay, Ak 99624 Date: Aug 12, 1988 = {OMa RS Proposed Hydroelectric Diversion. Dam “In: Humpy Creek.,(milel.7} At: Larsen Bay Kodiak Island Sec 6,T31S,R29W SM Sheet 3 of 3 HuMPY CREEK 3 ew, ISCN1 09h > = } eps AGE FE. o POOR FILMIN a & QUALITY ay j iquot Part Desciption Larsen Bay Hydroelectric Project Containing 32.5 acres. 88.75 acres. Altogether aggregating {_Pook Filwind-GuALiTE 7] EXHIBIT. pago___of 2 Pages PAGE_£& / V) BOOK BOOK 7.2 PAGE ¢£2- 7 1 t > : t ; — 1 i : the t B t 7 i z : i 4 | F os it? t : 5 +— ® i ia ss | | TH t li 1 yi. aa CH aq T i I LT sell Cri io 4 14 t | T 1 oe 1 i { , al ft ? = AY! rt tt ia = : t po ret <i i aa | xyl_l_lz 1s * i VT ee ” tik 1 : © y, x a % | eee Ls 1 > HEE: Por, ‘ T ae H+ i : T re D The fa } i eit tt? = t eo. : ie T Z cr aif aor PT : 1 (Benes 7 + fl I t ti + . t T + 4 { i \ T t oy a 1 coh : Crit i ae { SI CTT oO Zi reece} eee ¢ . ae, o T T t im rh ta Pi i | Lt rit tT ririi, -H Ht EH : eee { t ia TTT} o y HI ceo a Soo} oy t TCTs. i iit _| Z hh 7" F : SCC EC H | i ] oan Z I cor Bien te 1 EE PCC t. ct! rel at aan 4-4 x Cer ' ste a cri |i—}—4 h— let v C af al T a = a BOOK_22_ PAGE £&/ ¢ JA wh ets ue | Rete, Pot ll | } Konay Tne: n Caroma RECORDED FLED dr~ | 4300 'B Stree yee. barr. | | Suite #407 mn_/ag_, 1087 | Anchorage, Alaske meme ple bee ee = Tile TRACT “A* US.S, 4872 +. LOT Sy 2 SS At ce _ os ee SEBSRLOMCD) MONO BA a a a , BLK 497 we 6 oat oF ana sem “ ke # | ran eur} uf ites y SP a seeure m0 eee Ze if) — seo Pe afl id fa 3 i 8 8 3 - NEU 8, 18 SE — 4 ‘ : / te 1 Pp : gi % 4] a $ t Simp prints me ey / 3.00" OF 347E. Lot 1 29° 35° 57" W. 6244 eG eo Nr 27 a” W, S848 Aare | < Fe -— rn 95° E MOB ' Nit 37 347 M563 LM 74° 8 W, 38.30 my one 1 18* 30° 00" W, 104.00 — ~~ (00 eras nesgene is Sg € crete \ \ = 2 & | « saseeetee| le SEGMENT ! ee PLAT INDEX | ‘AND LOCATION DIAGRAM 1 + 600 PLAT MOTES | THE, SASS OF BeaRs Fon THES suRveY 1s THe | TOPE SES" AND "Tt" 1929 OF & 60" 44 OO! WEST. BEARINGS ARE ALASKA STATE PLANE ZONE S 1927 DATUM, | STREAM MEANDERS WERE DETERMINCD BY FIELD ‘OBSERVATION FOR THE PURPOSE OF ACREAGE | CALCULATIONS, THE TRUE BOUNDARY 1S THE NATURAL THREAD OF THE STREAM, ‘TWS SURVEY DOE" NOT CONSTITUTE A SUBDIVISION AS DETERMINED BY AS, 4015190 (2) | LEGEND | © + SET 21/2" DIAM. AL. CAI ON 30" LONG S18" RERAR ' © * FOUND RECORD G10, erMENT SURVEYORS CERTIFICATE ' aay sais |i pean aman Aa . TION 4 THAT | ¥, AN | i @ * CALCULATED LOCATION UF RECORD 3 ir mae spe? a "0 ' © + DNGLE OF DIMENSION FONT ta TONER DETAR ane Commer eee oar LZ 2G ncasrmaron ie S777 “Oe Tits | a TERED Lan SURVEYOR ! ; = ' 1 ! RECORD OF SURVEY 8) 4 | CREATING TRACT “A” OF THE ALASKA ENERGY al | aun LARSEN BAY HYDROELECTRIC PRO.XCT ; Hl i ‘AEA-001 ) LOCATED IN SECTION 3 T. 30 5, R29 W. i q AND SECTIONS 5, 6, AND 7, T. 31S. R29 W. OF i ; THE SEWARD ‘ON KODIAK NTE i Sec. 6 i | Sec. 5 s | | Pra 4 | | i wn == bhp aterine te stomen « \ Mm .£5.00 JO W 7 £0 Gb 0S oer M00 bY 10 W V, LOVYL jigs a Na a leorgre | \ 4 j \ 2k, SE ate, SEGMENT se i 2 [ sO'scaLE SEGMENT LEGAL DESCRIPTION TRACT OF Laide LOCATED {:°RORTIONS OF SECTION 31, ToOwNsnIr 30 SOUTH, JANGE 29 VEST AND SECTIONS 5. §. AND 7, TOUWSiIP 3: SOUTH, RANGE 20 VEST OF THE SEVARD MERIDIAN, Git KODIAK ISLAWO IM THE ETATE OF ALASKA. BEING | MORE SPECIFICALLY DESCRINED AE FoLLOVE q C.8G.5. STATION “TOPE” 1029, U.8.C.66.8. STATION STUT™ M'$O" ae” OO" VEST OF THIS POINT: TWENCR SOUTH 1e* 43 FEET TO THE TRUE POINT OF BEGINNING OF THE TRACT TO ME 10 FEET; THENCE SOUTH 70" ‘50° 18* EAST 8. 74 FRET: WORTH 63° 17" 50" VEST CURVE AM ARC DISTANCE OF 90.5% FEET TO * WEST 207.37 FEET: THENCE SOUTH > FEET: THEU'E SOT SS" $9" OB" VEST (28.35 FEET) ‘THENCE XOUTH 20° 37° 32° MEST 178.17 FEET: THENCE SUT 00° 33° 02" EAST 176,70 FEET Sout 03° 23° OF f GURVE To THE Li AND A” RADIUS. OF py 00° 33" O2" WEST 164.02 FEET: THENCE NORTH 20° WORTH 65° 50° OB EAST 115 80.06 FEET: THENCE NORTH 13° 11° i . O86" AND A’ RADIUS ALONG SAID CURVE AN ARC DISTANCE OF 124.00 FEET 43° 27° 42" VEST 228. TWENCE WORTH 42° ow" 7" VEST 470.01 FuET) VES; (26.08 FEET: THEWCE NORTH BB? 11) 22.60 FEET) THENCK WORTH 23°, 00" 007 EAST 1 THENCE WORTH. 43°" 90° 00" WEST 108.00 FEET: THENCE NORTH. 7 oa? uEsT THENCE NORTH 12" 37° 34" VEST 5.91 FERT) THENCI EAST 31.00 FEET) THENCE WORTH.11° 21" 12" VEST 33. NORTH 20° 25° 57" UEST O2.04 FEET) THENCE NORTH 09 FEET: THENCE NORTH 00° 21° 26° EAST 88.43 FEET) THENCE MORTH 4° 12" 0" VEST 27.12 FRET: THENCE NORTH 31" OR’ SO" EAST 90 FEET, THENCE SOUTH BB" 01° 43" VEST 134,03 FEET TO THE POINT OF BRGINNING.. CONTAINING 26.80 ACRES MOPc On Less: SUBJECT TO) KASEREWTS COVENANTS AND RESTRICTIONS OF PecorD. N69°0057"€; 34.6247" } $.25°89'43°E, 2400 S.W. 1/4 Sec. 5 1% OF OF OO" W. NE. 1/4 Sec, 7 i —— REGIS TRA Tow no, _8777 RECORD OF SURVEY AESATING TRACT “A” OF THE ALASKA ENERGY Y Wea eeias ye set RS « hie ‘ON’ KODIAK NTE [PORT Te aasea peer ao ———— ENERGY AUTHORITY P.0. BOX 120869 ANCHORAGE ALASKA 99519-0869 TRACT "A” U.S.S. 4872 4 LOT Pi 7 ri 7 a! ee eee OWNERSHIP AFFIDAVIT E14 A Seis Sa m3. ba, ee { ty Debra fo Tae Pubut au tastueTs fon puake LiKE, ; WA rs ALE ARES, PARKS. AND OTHER i , it ; at ze \ / Fix. SsMON PPCKERS i / ! - ; / i * a i / t , i ' / ! | ! My ' | ! ' NOTARY'S ACKNOWLEDGEMENTS / J) YOR KODIAK SALMON PACKERS INC. | ! 1 RED Re SR 9 THE me _ ! / ' me » : 1 / 1 {ge LOT \ N.E. 1/ s/ ; + ih | N.E. 1/4 §/ FOR KONG IC ob & ig 14 1 S.E. 1/4 i || SUBSCRIBED AND SWORN TO BEFORE ME THES _<?: | ie i / 1 wo December _» @§ . " ! f ' | OS . / if ! | PEililmed, _ sis: at i \ / 1 ee posse | ages / 1 A a “ \ = agers 1 i TAX CERTIFICATE &y / %' 1 ok \ i Ht 1 S37 or sre ™ 8 as 8 i ! i al & | / i 3\ . : x/ SI \t i a/ ' a \ ! By t s 4 ' a» F he ‘ \ \ 50° PUBLIC ACCESS EASEMEN! TO THE Cif) 1 y i 1 ae OF LARSEN BAY PER BOOK 137, PAGE 14 4 1 i , ' / ' “o-oo - -—— --- — rt aes --- aoe eH i i / ! ( : / 1 / 1 H I ! 1 I t 1 8 ' = | CERTIFICATE OF APPROVAL BY ADEC ; cae t 1 Ss ' ! W554 i =) ne Lor -|| . ” 4 TRACT "A 13 3 i 1 ( REMAINDER ) 1 t3.2. 361 KONIAG INC. i \ \ %, | 2.53 ACRES + S.W. 1/4 S Bg I KODIAK SALMON PACKERS INC. 1 N.E. 1/4 NG NC \ ! Sts ® Ne ill i te IE \ Nit i \ PN ' \ BAN ' ay i ah 1 a. "ap a peor \ i leg: S. 1/16th ! wee aes a cng Ate act Mc hag garcia A ae ee oe | ae apace cay % “Lee ! \ NOTE: : \ ACCORDING TO A TITLE REPORT ISSUED BY 1 WESTERN ALASKA LAND TITLE CO. NO. WA~9973 TRACT DATED SEPTEMBER 11th 1995 ' {aot odie to Rude SSLBAES a ' BY THEIR DELINIATION ON THE OFFICIAL ( REMAINDER ) ee PER B.LM. PLAT OFFICIALLY FILED DECEMBER 17th 1993 \tceno KONIAG INC. #8 FOUND 8. us. WON Ld Yur sy or me Sounessr't74"Ge Seema se nse So'soum Rance 29 WEST OF He SEWARD. MERION ON KODAK SUNO IN THE STATE OF ALASKA. SET MAGNENZED MONUMENT 31/7 CAP. 2 1/7 0. PIPE, 30° LONG BuRIeD 26° ‘OEP © Lye ao on oF ven REPLAT TO: wer 2, use et we scou ISUIND INTHE STATE OF ALASKA. [FORTHE ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY 480 WEST TUDOR ROAD P.O BOX 1935 KODIAK AVASKA 99615 [oman or (907 ) 486-6506 W661 95 9E BOS UM URN 2 loys WA. ul46 292 AFTER RECORDING RETURN TO: U.S. Department of the Interior Fish and Wildlife Service Division of Realty 1011 E. Tudor Road Ancnorage, Alaska 99503 WARRANTY DEED THIS Indenture, made this 77 aay of october, 1996, between Koniag, Inc., 4300 B Street, Suite 407, Anchorage, Alaska 99503, Grantor ("Koniag"), and the United States of America and its assigns, Grantee ("United States"), under the authority of Section 1302(a) of the Alaska National Interest Lands Conservation Act (16 U.S.C. § 3192(a)) and the Fish and Wildlife Act of 1956, (16 U.S.C. § 742£(a)(4)), and the Agreement for the Sale and Purchase of Lands and Interests in Lands Between Koniag, Inc. and the United States of America, dated November 13, 1995. WITNESSETH, that the Grantor, for itself and as successor in interest to the merged corporations of Karluk Native Corporation and Nu~Nachk Pit, Inc., for and in consideration of the sum of Four Million Five Hundred Thousand Dollars ($4,500,000.00) to it in hand paid by the Gr..:tee, the receipt whereof is hereby acknowledged, conveys and warrants to the Grantee and its assigns, forever, the surface estate of all those lands lying and being in the Kodiak Island Borough, State of Alaska, containing approximately 10,136 acres, moe or less, and more particularly described as follows: Seward Meridian, Alaska, Township 31 South, Range 28 West. Sec. 9, EXSE%, EWSEX; Secs. 14 through 16; Seca. 22 through 24. Containing approximately 3,835 acres. Township 30 South, Range 29 Weot, Sec. £ (fractional), excluding U.S. Survey 2586; Sec. 6; Sec. 7, Wh, excluding U.S. Survey 9410; Sec. 18, Wh; Sec. 19, Wh. Containing approxima:ely 1,414 acres. Township 31 South, Range 29 West, Secs. 5 through 8, excluding Tract “A" as shown on Record of Survey Number 96-9 recorded in the Kodiax Recording District on March 7, 1996, Containing approximately 2,499 acres. u146 233 Township 30 South, Range 30 West, Sec. 1, EX, EXNWk, SWiNW, EXNWiNWh, SW; Sec. 12, excluding U.S. Survey 9410, ard also excluding the S¥SE\NESEk and NEYSE%SE%, being more particularly described as follows: commencing at a point being Latitude 57°35'12.76449" North, Longitude 154°00'45.50753" West, said point being the southeasterly corner of said parcel and the True Point of Beginning; thence north 691.68 feet along the boundary common with U.S. Survey 9410 to a point; thence continuing north 139.26 fee. 4 point being the northeasterly corner of said parcel; thence west 660.00 feet to a point being the northwesterly corner of said parcel; thence south 605.63 feet to a point being the southwesterly corner of said parcel; thence along the ordinary high water mark of the north shore of a lake locally known ae Salmon Lake as follows; thence N. 86°16' E., 27.92 feet to a point; thence S. 84°42' E., 68.63 feet to a point; thence S. 77°S4' E., 84.35 feet to a point; thence S. 68°40' E., 82.32 feet to a point; thence S. 58°33' E., 106.29 feet to a point; thence S. 55°52' E 133.54 feet to a point; thence S. 70°18' £., 140.29 feet to a point; thence N. 86°29' E., 71.52 feet to a point, said point being the southeasterly corner of said parcel and the True Point of Beginning; Sec. 13; Sec. 24. Containing approximately 2,373 acres. Aggregating approximately 10,121 acres. The herein described lands are acquired for administration by the Department of the Interior through the U.S. Fish and Wildlife Service ("Service"). TO HAVE AND TO HOLD THE SAME, Together with all the hereditaments and appurtenances thereunto belonging or in anywise appertaining, to the Grantee and its assigns, FOREVER. SUBJECT, however, to: (1) Easements, rights and reservations of the United States and ‘:hird parties if any, of record. (2) Enforcement Rights of the Stato of Alaska as established by the Conservation Easgment granted by Grartor to the State of Alaska dated (cy by; "YY _,_-1996, attached and incorporated herein, authorizing the State of Alaska 2 ul46 234 to enforce on a non-exclusive basis the restrictive covenants set forth therein. RESERVING from the lands so granted the following described rights and covenants: Easement for Subsistence Access The residents of Karluk, Alaska, and Larsen Bay, Alaska, (which are defined to mean those persons maintaining their primary, permanent abode in Karluk, Alaska, or in Larsen Bay, Alaska) (hereinafter “residente") shall have the right to enter upon and travel across the above-granted lands for the purposi of engaging in lawful customary and traditional uses (hereinafter “uses” or “such uses") of wild, renewable resources for direct personal or family consumption as food, shelter, fuel, clothing, tools, or transportation; for making and selling of handicraft articles out of non-edible by~ products of fish and wildlife resources taken for personal or family consumption; for barter, or sharing for personal or family consumption; and for customary trade. As used herein, the term: (1) “family” means all persons related by blood, marriage, or adoption, or any person living within the household on a permanent basis; and (2) “barter” means che exchange of fish or wildlife or their parts, taken for subsistence uses-- (a) for other fish or game or their parts; or (b) for other food or for nonedible items other than money if the exchangy is of a limited and noncommercial nature. In exercising the rights reserved herein, the residents may utilize such means of transportation as are permitted to the general public on adjacent federal lands and all means of transportation which were customarily utilized by the residents for engaging in such uses on the above-granted lands as of April 20, 1995; provided however, that the Secretary or his delegate (hereinafter simply, Secretary) may impose such reasonable restrictions on such means of transportation as may be necessary to protect the natural and other values of the Kodiak National Wildlife Refuge (hereinafter KNWR). Nothing herein shall be construed as (1) allowing such uses to interfere with the Secratary's responsibility to manage the above-granted lands for the purposes for which the KNWR is established, (2) permitting the level of such uses of wild, renewable resources upon the above-granted lands to be inconsietent with the conservation of heaJthy fish and wildlife pepulations, or (3) preventing the Secretary from closing the above- granted lands to such uses of a wild, renewable resource if necessary for reatons of public safety, administration, or to assure the continued viability of such resources; provided however, that the Secretary shall not limit or preclude such uses of fish and wildlife on the abo granted lands by the residents for purposes of public safety or 3 ul46 235 administration unless the Secretary has taken all other reasonable actions necessary to remedy the conditions giving rise to the proposed limitations or preclusions, including, but not limited to, the termination of all other activities, consumptive or non-consumptive, on such lands that contribute to such conditions. The Secretary shall, consistent with his other legal obligations, manage the above-granted lands in a good faith manner which acknowledges and seeks to preserve the rights described in this easement. Nothing herein shall be construed to create any fiduciary or trust obligation whatsoever on the part of the Secretary, his successors and assigns, or the United States and its assigns with respect to the Grantor for the management of such lands. Nothing herein shall be construed to affect the authority of the State of Alaska to regulate or prohibit the taking of fish and wildlife upon the above-granted lands. Nothing herein shall be construed to affect the authority of the United States under the provisions of any federal law governing the conservation or protection of fish and wildlife, including, but not limited to, the National Wildlife Refuge System Administration Act of 1966, as amended (80 Stat. 927; 16 U.S.C. §§ 668dd-4}), the Fur Seal Act of 1966 (80 Stat. 1091; 36 U.S.C. § 1187), the Endangered Species Act of 1973, as amended 197 Stat. 884; 16 U.S.C. §§ 1531-1534), the Marine Mammal Protection Act of 1972 (86 Stat. 1027; 16 U.S.C. §§ 1361-1407), the Act entitled “An Act for the Protection of the Bald Eagle," approved June 8, 1940 (54 Stat. 250; 16 U.S.C. §§ 1742a-754), the Migratory Bird Treaty Act, as amended (40 Stat. 755; 16 U.S.C. §§ 703-711), the Federal Aid in Wildlife Restoration Act (50 Stat. 917; 16 U.S.C. §§ 669-6691), the Fishery Conservation and Management Act of 1976 (90 Stat. 331; ! 16 U.S.C. §§ 1801-1882), the Federal Aid in Fish Restoration Act (64 Stat. 430; 16 U.S.C. §§ 777-777k) or any amendments, currently or in j the future to any one or more of such acts. Such easement is a covenant running with the above granted lands and shall be binding upon the United States, ite successors or assigns. The Grantor hereby covenants to and with the Grantee and its assigns, that the Grantor is lawfully seized of the surface estate in fee simple of the above granted real property, has a good and lawful right and power to sell and convey the same, that the same is free and clear of encumbrances, except as shown above, and that the Grantor will forever warrant and defend the title thereto and the quiet possession «hereof, such warranty and defense being limited to that portion of the chain of title from the moment of conveyance by the United States to Grantor or its predecessors in interest pursuent to the Alaska Native Claims Settlement Act, 43 U.S.C. § 1601 et, seq., to and including the moment at which such title is validly reconveyed to the United States and its assigns, against the lawful claims and denands of all persons. ul46 236 IN WITNESS WHEREOF, the Grantor hereunto sets its hand and seal the day and year first above written. (Grantor) Koniag, Inc. Chak fbi 2 Charles Pemberton, Jr. Acting President/Vice President ssistant Secretary Koniag, Inc. STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this 2 day of October, in the year of 1996, before me, the undersigned a Notary Public in and for the State of Alaska, duly commissioned and aworn as such, personally appeared Charles Pemberton, Jr., Acting President/Vice President of Koniag, Inc., to me known and known to be the person he represented himself to be, and the same identical person who executed the above and foregoing WARRANTY DEED on behalf of Koniag, Inc., and who acknowledged to me that: he signed the same as President of Koniag, Inc., in the name of and for and on behalf of said Corporation, freely and voluntarily and by authority of its Board of Directors for the use and purposes therein mentioned. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year first written above. c¢ fn and for Alaska ‘ion expires: C= -9F My commi ACKNOWLEDGEMENT a t STATE. OF KLASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on the lt day of October, 1996, before me, the undersigned a Notary Public in and for the State of Alaska, duly commissioned and sworn as such, personally appeared Debbie Lukin, known to me and known to he the Assistant Secretary of Koniag, Inc., a corporation vi46 = 237 organized and existing under the laws of the State of Alaska, and acknowledged to me that she attested to the execution of the foregoing WARRANTY DEED freely and vcluntarily for and on behalf of said corporation by authority of its Board of Directors for the use and purposes therein mentioned. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year first written above. ic in and for Alaska My commisBion expires: 2f = ACCEPTANCE Pursuant. to § 1302 of the Act of December 2, 1980, Alaska National Interest Lands Conservation Act, P.L. 96-487 (16 U.S.C. § 3192), the Fish and Wildlife Act of 1956, (16 U.S.C. § 742f(a)/4)), and the Agreement. for the Sale and Purchase of Lands and Interests in Lands Between Koniag, Inc. and the United States of America, dated November 13, 1995, the Grartee hereby accepts this WARRANTY DEED conveying to the United States and its aesignra, those lands described therein. Dated this _7 ~ day of vctober, 1996. Acting Regional Director, Region 7 U.S. Fish and Wildlife Service ACKNOWLEDGEMENT STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) Aly THIS IS TO CERTIFY that on this tA day of October, 1996, before me, the undersigned a Notary Public in and for the State of Alaska, duly commissioned and sworn as such, personally appeared Robyn Thorson, known to me and to me known to be the Acting Regional Director, Region 7 of the U.S. Fish and Wildlife Service, and he acknowledged to me that he signed an accepting the foregoing WARRANTY DEED conveying to the United States those lands described therein, and he acknowledged to me that he executed the foregoing instrument freely and voluntarily. IN, WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal;"the- day and year first written above. Hi) ar) & Mi Viva ll B se Notary Public in and for Ala ka (GEAL) My commission expires 3/7 s u146 238 562500 Jo- =o nee DIST CT REQUES ‘ED BY WALCO ‘607 8 Phase 86 ‘oe wh (0322 WI46 225 AFTER RECORDING RETURN TO: State of Alaska Department of Law Environmental Section 1031 W. 4th Avenue, Suite 200 Anchorage, Alaska 99501 CONSERVATION EASEMENT THIS Conservation Easement is made this 2 day of October, 1996, by Koniag, Inc., 4300 B Street, Suite 407, Anchorage, Alaska 99503 ("Koniag") ("Grantor") and the State of Alaska ("Grantee"). WHEREAS, the real property subject to this conservation easement (the “Protected Property") lies within the boundaries of the Kodiak National Wildlife Refuge ("Refuge") in the State of Alaska, a conservation system unit administered by the U.S. Fish and Wildlife Service; and WHEREAS, Grantor is the owner in fee simple of the surface estate of the Protected Property, which is described below; and WHEREAS, the Protected Property is a natural area that provides significant habitat for migratory birds and other fish and wildlife and plant species that were injured as a result of the Exxon Valdez oil spill; and WHEREAS, the Exxon Valdez Oil Spill Trustee Council ("Trustee Council") has approved the use of joint settlement funds for acquisition by the United States of America of the protected property, subject to certain third-party rights to be held by the State of Alaska in order to assure that the restoration objectives for use of the settlement funds are achieved; and WHEREAS, Grantor intends to convey its fee simple interest in the surface estate of the Protected Property to the United States of America; and WHEREAS, Grantor desires to provide to the State of Alaska an independent right in perpetuity to enforce the restrictive covenants as to the surface estate set forth herein; NOW THEREFORE, pursuant to ‘the laws of Alaska and in particular Alaska Statute § 34.17.010 - § 34.17.060, andthe Agreement for the Sale and Purchase of Lands and Interests in Lands Between Koniag, Inc. and the United States of America, dated Novembar 13, 1995 ("Agreement"), Grantor for itself and as successor in interest to the merged corporations of Karluk Native Corporation and Nu-Nachk Pit, Inc., does hereby grant and convey to Grantee, its successors and assigns, forever, with special warranties of title, subject to conditions, restrictions and limitations of record, including, but not limited to, conditions, restrictions and limitations contained in Interim Conveyance Number 117 dated August 24, 1978, and recorded September 21, 1978, at page 875, book 41, of the records of the Kodiak Recording District, Third Judicial District, State of Alaska, a conservation easement in perpetuity over the Protected Proverty of the nature and character and to the extent hereinafter set forth (the "Easement"), as to the property described as follows: W146 226 Seward Meridian, Alaska, Township 31 South, Range 28 West, Sec. 9, ESSE%, EWYSEK; Secs. 14 through 16; Secs. 22 through 24. Cortaining approximately 3,835 acres. Township 39 South, Range 29 West, Sec. S (fractional), excluding U.S. Survey 2586; Sac. 6; Sec. 7, Wy, excluding U.S. Survey 9410; Sec. 18, Wh; Sec. 19, Wh. Containing approximately 1,414 acres. Township 31 South, Range 29 West, Secs. 5 through 8, excluding Tract “A" as shown on Record of Survey Number 96-9 recorded in the Kodlak Recording District on March 7, 1996. Containing approximately 2,499 acres. Township 30 South, Range_30 West, Sec. 1, Ey, EXNWy, SWyNWh, EXNWhNW, SWhy Sec. 12, excluding U.S. Survey 9410, and also excluding the S¥SENE\SE and NESEYSE%, baing more particularly described as follows: commencing at a point being Latitude 57°35'12.76449" North, Longitude 154°00'45.50753" West, said point being the southeasterly corner of said parcel and the True Point of Beginning; hence north 691.58 feet along the boundary common with U.S. Survey 9410 to a point; thence continuing north 139.26 feet to a point being the northeasterly corner of said parcel; thence west 660.00 feet to a point being the northwesterly corner of said parcel; thence south 605.63 feat to a point being the southwesterly corner of said parcel; thence along the ordinary high water mark of the north shore of a lake local)y known as Salnion Lake as follows; thence N. 86°16' E., 27.92 feet to a point; thence S. 84°42' E., 68.63 feet to a point; thence S. 77°54' E., 84.35 feet to a point; thence S. 68°40' E., 82.32 feet to a point; thence S. 58°33' E., 106.29 feet to a point; thence S. 55°52' E., 133.54 feet to a point; thence S. 70°18' E., 140.29 feet to a point; thence N. 86°29' E., 71.52 feet to a point, said point being the uil46 227 southeasterly corner of said parcel and the True Point of Beginning; Sec. 13; Sec. 24. Containing approximately 2,373 acres. Aggregating approximately 10,121 acres. SUBJECT, however, to easements, rights and reservations of the United States, and third parties if any, of record: The Grantee shall be entitled to enforce on a non-exclusive basis the terms of the following restrictive covenants against the Grantor, its successors or assigns: (a) The following listed activities are prohibited on the Protected Property except as determined by the U.S. Fish and Wildlife Service, or its successors in administrative function ("Service"), to be necessary for either refuge or conservation research or management of the subject lands (whether carried out by the Service, an entity approved by the Service, or its successors in law or interests), or for conveying information to the public to protect public safety or natural resources: (4) the construction or placing of building: fixed or improved camping accommodations or mobile homes, fences, billboards or signs; (it) the changing of the topography of the Protected Property in any manner; (iii) the removal, destruction or cut:ting of trees or plants except for local subsistence uses; (iv) the use of biocides except as necessary to control or remove non-indigenous fish, wildlife or plants; and (v) the manipulation or alteration of natural water courses, shore3, marshes or other water bodies or activities or uses cleotrimental to water purity on the Protected Property. (b) The following listed activities by any person are prohibited: (i) the introduction of non-indigenous fish, wildlife or plants, including, but not limited to, the grazing of domestic animals or the introduction of reindeer; and (ih) the dumping of trash, garbage, or other unsightly or offensive material. v1l46 228 Nothing herein shall be deemed to cause a merger of the surface and subsurface estates, and nothing herein shall be deemed to pertain to, affect, expand or limit the rights of the subsurface owner to utilize that estate in accordance with applicable law. Grantor agrees that these restrictive covenants shall run with the lands and shall be binding upon Grantor, its successors and assigns. The Grantor hereby covenants to and with the Grantee and its assigns, that the Grantor is lawfully seized of the surface estate in fee simple of the above granted real property, has a good and lawful right and power to sell and convey the same, that the same is free and clear of encumbrances, except as shown above, and that the Grantor will forever warrant and defend the title thereto and the quiet possession thereof, such warranty and defense being limited to that portion of the chain of title from the moment of conveyance by the United States to Grantor or its predecessors in interest pursuant to the Alaska Native Claims Settlement Act, 43 U.S.C. § 1601 et, seq., to and including the moment at which this Easement is validly conveyed to the State of Alaska and its assigns, against the lawful claims and demands of all persons. If the United States does not make payment to Grantor for the United States' related purchase of the Protected Property under the terms of the Agreement, this conveyance is incomplete and of no effect, and the State agrees to execute mutually satisfactory documents, suitable for recordation, for purposes of clearing Grantor's title as to this Easement. Once such payment has been made by the United States, this Easement is effective as of recordation. ul46 229 signs forever. TO HAVE AND TO HOLD unto Grantee, its successors, and IN WITNESS WHEREOF Grantor and Grantee have set their hands on the day and year first above written. (Grantor) Koniag, Inc. Charlee Pemberton, Jr. Acting President/Vice President Assistant Secretary Koniag, Inc. ACKNOWLEDGEMENT STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this qe day of October, 1496, before me, the undersigned, a Notary Public in and for the Stete of Alaska, duly commissioned and sworn, personally appeared Charles Pembarton, Jr., Acting President/Vice President of Koniag, Inc., to me known and known to be the person he represented himself to be, and the same identical person who executed the above and foregoing CONSERVATION EASEMENT on behalf of Koniag, Inc., in the name of and yor and on behalf of said Corporation, freely and voluntarily and by authority of its Board of Directors for the use and purposes therein mentioned. u146 230 IN WITNESS WHEREOF I have hereunto set my hand and affixed my official seal the day and year first above written. “ony P. ) jf ) ss. THIRD JUDICIAL DISTRICT ) THI:3 IS TO CERTIFY that on the Le day of October, 1996, before me, the underwignad a Notary Public in and for the State of Alaska, duly commissioned and sworn as such, personally appeared Debbie Lukin, known to me and known to be the Assistant Secretary of Koniag, Inc., a corporation organized and existing under the laws of the State of Alaska, and acknowledged to me that she attested to the execution of the foregoing Conservation Easement, Yreely and voluntarily for and on behalf of said corporation by authority of its Board of virectors for the uses and purpos: therein mentioned. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year first written abov and f ‘or, Alaska My Commissfon expires: z -s°-9 7 u146 234 ACCEPTANCE BY THE STATE OF ALASKA Pursuant to AS 38.05.035(a)(i2), I do hereby accept title to the above described interest in real property on behalf of the State cf Alaska. Deputy Commissioner Alaska Department of Natura sources ACKNOWLEDGEMENT STATE OF ALASKA ) ) ss: THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this £ day of October, 1996, by Marty K. Rutherford, Deputy Commissioner, Alaska Department of Natural Resources. He ‘ i (Signature) er hh ei (Printed or typed name of Notary) NOTARY PUBLIC in and for Alaska My Commission Expires: 4) // 4 ~ Ly ) “Any 5-24399