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HomeMy WebLinkAboutAttachment C-Land Documentscc A L 2013-000191-0 A S Recording District 305 Aleutian !stands K A 05/14/2013 02:21 PM Page 1 of 7 THIS COVER SHEET HAS BEEN ADDED TO THIS DOCUMENT TO PROVIDE SPACE FOR jTffE RECORDING DATA. THIS COVER SHEET APPEARS AS THE FIRST PAGE OF THE DOCUMENT IN THE OFFICIAL PUBLIC RECORD. j c L 2013-027030-0 A S Recording District 301 Anchorage K A 05/14/2013 01:52 PM Page 1 of 6 After recording, return to: Chignik Lagoon Village Council P.O. Box 9 Chignik Lagoon, Alaska-9-905- SCvS Attn: Michelle Anderson Grant of Easement Agreement Aleutian Islands Recording District This Grant of Easement Agreement ("Agreement") is made and entered into and effective this i day of &d,) 2013 (the "Effective Date"), between the Chignik Lagoon Native Corporation, of P.O. Box 169, Chignik Lagoon, Alaska 99565 ("Grantor") and the Chignik Lagoon Power Utility, of P.O. Box 9, Chignik Lagoon, Alaska 99565 ("Grantee"). RECITALS Whereas, Grantor owns the surface estate of certain real property described below near Chignik Lagoon, Alaska; and Whereas, Grantee is a federally -recognized Tribal government that desires to construct, maintain, and operate a hydroelectric power utility in Chignik Lagoon commonly referred to as the Packers Creek Hydroelectric Project (the "Project"); and Whereas, the Project is proposed to consist of a 177 kW hydroelectric power plant on Packers Creek that will include a 9-foot tall concrete dam, a 3,260 foot long 18- inch and 16-inch diameter penstock and access trail, a 400 square foot power house, a 1,550 foot long access road with a bridge across Packers Creek to the powerhouse, and a 1,750 foot long overhead power line extension to the existing distribution system, and 3,000 foot long control connection to the existing diesel power plant; and Whereas, in order to perform the Project, Grantee needs certain easements in, across, and upon Grantor's lands; and Grant of Easement Agreement Page 1 of 6 4826-3415-57 )4.1. i 441A� V9�'IWllll!III Whereas, Grantor desires to grant such easements to Grantee for the Project, and Grantee desires to accept those easements from Grantor as set forth in this Agreement. Therefore, Grantor and Grantee agree as follows: 1. Easement Grant. Subject to the terms and conditions of this Agreement, and in consideration of $1.00, the receipt and sufficiency of which is hereby acknowledged, Grantor hereby grants to Grantee, for use by the Grantee, the Easements (as defined below) on the surface estate of certain portions of the Property (as defined below) for the purposes of constructing, maintaining, managing, and operating the Project. a. The Property. Grantor owns the surface estate of the following real property: U.S. Survey 1222 and 1223; and Tract C, Section 8, T45S R59W WM, all located in the Aleutian Islands Recording District, Third Judicial District, State of Alaska (collectively "Property"). b. The Easements. The easements (collectively "Easements") are depicted on Exhibit "A," containing pages R1 through R6, and are individually described as: i. Electric Easement. Grantor hereby grants and conveys a 20-foot wide nonexclusive easement to Grantee for construction, maintenance, and operation of an electrical transmission line over those certain portions of the Property identified on Exhibit A, pages R-2 and R-3, which are located within U.S. Survey 1222 (approximately 0.17 acres) and U.S. Survey 1223 (approximately 0.07 acres). ii. Access Road Easement. Grantor hereby grants and conveys a 50- foot wide nonexclusive easement to Grantee for construction, maintenance, and use of an access road over those certain portions of the Property identified on Exhibit A, pages R-2 and R-3, which are located within U.S. Survey 1223 (approximately 0.43 acres) and U.S. Survey 1223 (approximately 0.37 acres). iii. Penstock Easement. Grantor hereby grants and conveys a 150- foot wide nonexclusive easement to Grantee for construction, maintenance, and operation of a penstock over those certain portions of the Property identified on Exhibit A, pages R-3, R-4, and R-5, which are located within U.S. Survey 1223 (approximately 0.92 acres);; and Tract C, Sect 8, T45S, R59W, WM (approximately 4.81 acres). A separate easement between the Grantee and the State of Alaska, Tract J, Plat 99-2 (approximately 4.58 acres), Grant of Easement Agreement 4826-3415-5794.1. II�dIIVllllll�lll IIIIIIIIIIIIIIIA Page lI 2 of 6 Page 2 of 6 has been recorded in the Aleutian Islands Recording District at 2012-0001418-0, identified on Exhibit A, page R-4. 2. Tenn. The term of this Agreement shall be for fifty (50) years, commencing on the Effective Date, unless extended by the parties by written agreement. 3. Permitted Uses. Without limiting Section 1 of this Agreement, the Easements may be used by Grantee and its successors and assigns, affiliates, contractors, subcontractors, agents, representatives, and employees to locate, access, construct, operate, repair, maintain, and upgrade the Project's buried, and above -ground hydroelectric facilities and services. 4. Maintenance and Protection. Grantee shall use the Easements in a manner that does not cause any waste or nuisance and in accordance with all applicable state, federal, and local laws, rules, and regulations. Grantee shall maintain the Easements in a safe and orderly condition. 5. Improvements. Grantee may construct or install fixtures or other improvements on the Easements in connection with its performance of the Project and shall perform these tasks in a workmanlike manner. 6. Inspections. With Grantee's prior consent, which shall not be unreasonably withheld, Grantor, its designees, and authorized agents may enter upon the Easements for the purpose of inspecting the Property. Such inspection shall be preceded by at least three days' advanced -written notice, except in cases of emergencies, and shall in no event interfere with Grantee's uses as contemplated by this Agreement. 7. Indemnity. Grantee agrees to indemnify, defend, and hold Grantor harmless from any and all claims, damages, fines, personal injury, death, or property damage caused by, relating to, or arising in connection with Grantee's use of the Easements. 8. Taxes. Grantee shall pay any taxes assessed on Grantee's use of the Easements. 9. Warranties. Grantor warrants that it owns the surface estate of the Easements. Grantor makes no other warranty or representation regarding title or the Property, or suitability of the Property for the uses contemplated by Grantee under this Agreement. The Grant of Easement Agreement 4826-3415-5794.1. L!Tn I�II'Illl�l�lll�lllll�lallll II71-0 Page 3 of 6 IIIIIIIIIII�I�IIlllllllllT Ill 11lllllllllpl11llllllllllllllllla Page 3 of 6 2013-027030-0 Easements are subject to all prior covenants, conditions, restrictions, encumbrances, and easements of record. 10. Notice. Any notice under this Agreement shall be hand delivered or sent by registered or certified mail to the addresses set forth on page one (1) of this Agreement. 11. Further Assurances. The parties agree to promptly execute and deliver to the other, any additional instrument or other document which the other party reasonably requests to evidence or better effectuate the intent and purpose of this Agreement. 12. MisceIlaneous. This Agreement and the respective rights and obligations of the parties shall be construed under the laws of the State of Alaska. This Agreement contains the final, entire agreement between the parties with respect to the Easements. This Agreement cannot be amended or added to except by a written instrument signed by both parties. Grant of Easement Agreement 4826-3415-5794.1. Lof 7 i2013-000191-0 Page 5Iulllllll�lllll III Page 4 of 6 IIt'dl1f111111119uIIIIIIIINIiIIlllll Page 4 of 6 Date: 3 , 13 State of Alaska ) ) ss. Third Judicial District ) Chignik Lagoon Native Corporation BV Title: President Acknowledgment The foregoing instrument was acknowledged before me this day of March, 2013, by,=���r. �r7. ,:�,/�., , President of Chignik Lagoon Native Corporation, an Alaska corporation, on behalf of the corporation. Notary Public in Alaska;% ,X\§ '111I111111!////l! . NC p BLIC_ � Grant of Easement Agreement 4820-3415-5794.1. U!!!n NINIIIIN�NIIINIINININIIIIII71-0 My commission expires: i n -/-3 Page 5 of 6 [12013-0270L3O-0 ge 5 Date: .3 1P `` fi ,� State of Alaska ) ) ss. Third Judicial District ) Chignik Lagoon Village Council By /�' rJC C/G: i l/,i`t Lr✓� Name. ZZ. Title: Vice President Acknowledgment The foregoing instrument was acknowledged before me this ./,,,��� day of March, 2013, by �,� C 2r n..rry, Vice President of the Chignik Lagoon Village Council. Notary Public in Alaska 2r = 1 My commission expires:_ OF ti'plJ FSr " United States of America ss`dd State of Alaska THIS IS TO CERTIFY that the foregoing is a full, true and correct copy of the document as it appears in the records and files of my office. IN THE WITNESS WHEREOF, I have hereunto set my hand and have affixed my official seal at Anchorage, Alaska, this t day of M�1C _ 20 t By Recorder 11 d5 Grant of Easement Agreement 4826-3415-5794.1. Page 7 of ;� Page 6 of 6 [12013-027030-0 ge 6 of 6 CC A L 2013-000190-0 A S Recording District 305 Aleutian Islands K - A 05/14/2013 02:21 PM Page 1 of 18 RECORDINGTHIS COVER SHEET HAS BEEN ADDED TO -- THIS DOCUMENT TO PROVIDE SPACE FOR THE COVER APPEARS THE DOCUMENT RECOR.D. 2013-027029-0 s Recording District 301 Anchorage K A 05/14/2013 01:52 PM Page 1 of 17 Document Title: Grantor: Grantee: Recording District: Property Description: Aber Recording Return IL -a: , C 1-11 C-7 4 1 rl_ L.AC7co rJ , THIS COVER. SHEET HAS BEEN ADDED DED TO PROVIDE SPACE FOR THE RECORDING DATA. THIS SHEET APPEARS AS '�HCOVER � FIRST PAGE OF THE DOCUMENTIN THE OFFICIA- � RECORD. UP L,IC DO NOT DETACH August 19, 2010 i�VN�81tlIIlIIGlllllll GROUND LEASE THIS GROUND LEASE (herein called "Lease") is made on the day executed by the last signatory hereto, by and between the Chignik Lagoon Native Corporation ("Lessor"), an Alaska Native Village Corporation, organized and existing under the Alaska Native Claims Settlement Act, whose mailing address is P.O. Box 169, Chignik Lagoon, Alaska 99565 and the Native Village of Chignik Lagoon ("Lessee"), a federally recognized Indian tribe, whose mailing address is P.O. Box 9, Chignik Lagoon, hereby agree to the lease described below for the purpose of furthering Lessee's hydroelectric power plant project on Packer's Creek ("Project") in the Village of Chignik Lagoon, Alaska. ARTICLE I. LEASED LAND AND TERM 1.01 Leased Land. Lessor, for and in consideration of the rent, covenants and conditions specified in this Lease, leases to Lessee the vacant and unimproved land situated in the Aleutian Islands Recording District, Third Judicial District, state of Alaska, more particularly described in Schedule A ("Leased Premises"), attached to and incorporated into this Lease, together with all rights, easements, privileges, both subterranean and vertical, and appurtenances attaching or belonging to the described land, but subject to the reservation contained in paragraph 1.02. 1.02 Reservation of Minerals. All oil, gas, coal, geothermal resources and minerals of whatever nature in the Leased Premises are excluded from this Lease. Lessee shall have the right, subject to the terms of this Lease, to use earth materials on or in the above -described land to a depth of twenty (20) feet below the surface, and to move such materials on the Packers Creek Hydroelectric site. 1.03 Improvements Owned by Lessor. The following described improvements are part of the Leased Premises and through the term of this Lease, are the property of the Lessor: any and all fill, retaining walls, berms, earth contours, and all other below -surface improvements situated on the Leased Premises on the date of this Lease. 1.04 Lease Term. This Lease shall be and continue in full force and effect for an initial term of 50 years ("Lease Term"), commencing as of the date of the signatures below, unless earlier terminated as provided in this Lease. Chignik Lagoon Ground Lease I!II;�IIIII�IIIIiI�11I�liIIIIIIIIiIIIIIII�I��lillll�illll'I��II�IIIIIIIIIII�III 4850-7509-3522.1. Page 1 of 16 Page 3 of 18 2013-000190-0 1.05 Options to Extend the Lease Term and Renew the Lease. (A) Provided that the Lessee is not then in default of any provision in this Lease, the Lessee shall have the following options to extend the lease term: (a) During the Lease Term, an option to extend the lease term for a 10-year period commencing on the date of expiration of the Lease Term (the "First Extension Period"); and (b) if the option to extend for a 10-year period is exercised, then an option to extend the lease term for an additional 10-year period commencing upon the date of expiration of the first extension period (the "Second Extension Period"). During any extensions of this Lease, the terms and conditions of this Lease shall continue in full force and effect. (B) The options to extend shall be exercised, if at all, at least 180 days prior to the date of expiration of the lease term then in effect. The options to extend and renew shall be exercised only by written notice to the Lessor, which notice shall be executed and acknowledged by the Lessee in form proper for recording. ARTICLE Il. RENTS 2.01 Basic Rents. Lessee shall pay the following rents to Lessor in legal tender of the United States of America, without deduction and without notice of demand, net of all real property taxes, assessments, and other charges required under this Lease with respect to the Leased Premises. The basic rents shall be as follows: For the Lease Term, the Basic Rent shall be a one time payment of Ten Dollars ($10.00). For the First and Second Extension Periods, the Basic Rent shall be a one time payment of Ten Dollars ($10.00). 2.02 Absolutely Net Rent. When a Basic Rent becomes effective under this Lease, such rent shall not thereafter be reduced for any reason. It is the purpose and intent of Lessor and Lessee that the Basic Rents established under this Lease shall be absolutely net to Lessor so that this Lease shall yield, net to Lessor, the rent specified herein during the term of this Lease, and that all costs, expenses and obligations of every kind and nature whatsoever relating to the Leased Premises, which may arise or become due during the Lease Term, except as otherwise expressly provided in this Lease, and except costs, expenses, and - — obligations (other than those to be borne by Lessee as herein provided) incurred by Lessor in connection with the sale or mortgaging of the Leased Premises, shall be paid by Lessee, and that Lessor shall be indemnified and held harmless by Lessee - = N from and against the same. -__ -= 0 0 co N Q) O -_ tM (n (4 O Chignik Lagoon Ground Lease4850-7509-3522.1, b i Page 2 of 16 ge 4Of 18 3-000190-0 ARTICLE III. LESSEE'S COVENANTS 3.01 Use of Leased Premises. Lessee specifically agrees that for the term of this Lease it shall use the Leased Premises for no purpose other than in connection with the development, construction, and operation of a hydroelectric power plant on Packer's Creek in the Village of Chignik Lagoon, Alaska. Any change in use will require prior written approval of Lessor. 3.02 Taxes, Assessments, and Charges. The Leased Premises are located on unincorporated land in the State of Alaska, which, as of the effective date of this Lease, is not subject to taxes, assessments, and charges. The Lessor and Lessee agree that if, at any time during the Lease Term or the First or Second Extension Periods, the Leased Premises become subject to taxes, assessments, and charges, that such taxes, assessments, and charges and shall thereafter be paid by Lessee throughout the time that this Lease is in effect. 3.03 Construction or Removal of Improvements, Additions or Alterations. Lessee hereby acknowledges that, except as provided in paragraph 4.01 with respect to improvements associated with development of a hydroelectric power plant and paragraph 1.02 with respect to removal of improvements upon expiration of the Lease Term or earlier termination of this Lease, Lessor has not authorized or required and does not authorize or require Lessee to improve the Leased Premises in any manner that permits Lessor's interest in and title to the Leased Premises to become subject to the liens of Lessee's mechanics and material men. 3.04 Repair and Maintenance. Lessee shall, at Lessee's expense and without notice from Lessor at all times during the Lease Term, keep all improvements that may be constructed or placed upon the Leased Premises in good order, condition, maintenance, operability, and repair and of a neat, clean, and pleasing appearance satisfactory to Lessor. 3.05 Observance of Laws, Environmental Provisions. (A) General Compliance. Lessee, at all times during the Lease Term, at its own expense, and with all due diligence, shall observe and comply with all laws, ordinances, rules, and regulations which are now in effect or may later be adopted by any governmental authority, and which may be applicable to the Leased Premises or any improvement on it or any use of it. (B) Environmental Laws. In furtherance and not in limitation of the foregoing paragraph, Lessee shall, at its own expense, comply with all laws, Chignik Lagoon Ground Lease hll,d��I�,III�II�'Illl�llilll!Il Page 3 of 16 4850-7509-3522.1. Page 5 of 18 2013-000190-0 ordinances, regulations and administrative agency or court orders relating to health, safety, noise, environmental protection, waste disposal, hazardous or toxic materials, and water and air quality. In the event any discharge, leakage, spillage, emission or pollution of any type occurs upon or from the Leased Premises during the Lease Term or any holdover thereafter, Lessee shall immediately notify Lessor and shall, at Lessee's own expense, clean and restore the Leased Premises to the satisfaction of Lessor and any governmental body or court having jurisdiction of the matter. (C) Hazardous Materials on Leased Premises. Lessee shall not cause or permit any hazardous material to be brought upon, kept or used in on about the Leased Premises by Lessee, its agents, employees, contractors or invitees without the prior written consent of Lessor, which Lessor shall not unreasonably withhold as long as Lessee demonstrates to Lessor's reasonable satisfaction that such hazardous material is necessary or useful to Lessee's business and will be used, kept and stored in a manner that complies with all laws regulating any such hazardous materials so brought upon or used or kept in or about the Leased Premises. (D) Disclosure. At the beginning of this Lease and on or before January 15 of each year thereafter and including January 15 of the year after termination of this Lease, Lessee shall disclose to Lessor the names and amounts of all hazardous materials or any combination thereof which were stored, used or disposed of on the Leased Premises, or which Lessee intends to store, use or dispose of on the Leased Premises. (E) Environmental Indemnity. Lessee agrees to indemnify, hold harmless and defend Lessor against all liability, cost and expense (including, without limitation, any fines, penalties, diminution in value of the Leased Premises, assessment and clean-up costs, judgments, litigation costs and attorneys' fees) incurred by or levied against Lessor as a result of Lessee's breach of this paragraph or as a result of any discharge, leakage, spillage, emission or pollution on or discharged from the Leased Premises, without regard to whether such liability, cost or expense arises during or after the Lease Term of this Lease; provided, however, that Lessee shall not be required to indemnify Lessor under this paragraph if the parties agree or a court of competent jurisdiction determines that such liability, cost or expense is caused directly and solely by the active negligence of Lessor. The foregoing indemnity shall survive the expiration or earlier termination of this Lease. (F) Hazardous Material. For purposes of this Lease, the term means any hazardous or toxic substances, material or waste, including but not limited to those substances, materials and wastes listed in the U.S. Department of Chignik Lagoon Ground LeaseLi2013-000190-0 Page 4 of 16 4850-7509-_3522.1. ge 6 of 18 Transportation Hazardous Materials Table (49 CFR § 172.101) or by the U.S. Environmental Protection Agency as hazardous substances (40 CFR Part 302), and amendments thereto, or such substances, materials and wastes that are or become regulated under any applicable local, state or federal law. (G) Environmental Testing. Lessee agrees that it shall be solely responsible for all costs and expenses associated with the perfonnance of . environmental testing of the Leased Premises, which may be required at Lessor's sole discretion, upon the expiration or other termination of this Lease. Such environmental testing, conducted by a recognized engineering or environmental consulting firm acceptable to Lessor at Lessor's sole discretion, shall be the basis for determining the extent of any environmental impainnent caused by the Lessee's use and occupancy of the Leased Premises. In the event Lessor shall make any expenditures or incur any obligations for the payment of money in connection with this paragraph including, but not limited to, attorneys' fees for instituting, prosecuting or defending any action or proceeding, such sums paid, obligations incurred and costs, all with interest at the rate of ten and one-half percent (10-1/2%) per annum, shall be deemed to be additional rent due hereunder and shall be paid by Lessee to Lessor within ten (10) days of rendering of a bill or statement to Lessee therefor. 3.06 Inspection and Repair by Lessor. If Lessee refuses or neglects to repair or maintain the Leased Premises as required under the terms of this Lease to the reasonable satisfaction of Lessor after written demand, then Lessor, without prejudice to any other right or remedy it has under this Lease or otherwise, may perform such maintenance work or make such repairs without liability to Lessee for any loss or damage that may accrue to Lessee's merchandise or other property or Lessee's business by reason thereof. Upon completion of any such repair or maintenance, and no later than ten (10) days after presentation of a bill therefor, Lessee shall pay as additional rent Lessor's costs for making such repairs or performing such maintenance plus fifteen percent (15%) to cover its overhead. 3.07 Waste and Wrongful Use. Lessee shall not commit or suffer any strip or waste of the Leased Premises or any unlawful, unsafe, improper, or offensive use thereof or any public or private nuisance thereon. 3.08 Liens. Lessee shall not commit or suffer any act of neglect whereby the Leased Premises or the interest of Lessor or Lessee therein at any time during the Lease Term may become subject to any attachment, execution, lien, charge, or other encumbrance and shall defend, indemnify and hold Lessor harmless against ==_= 0 0 all losses, costs, and expenses, including reasonable attorneys' fees, paid or - C, o incurred by Lessor in connection therewith. Lessee shall not incur any cost or n N Chignik Lagoon Ground LeaseIIiI11 Page 5 of 16 4850-7509-3522.1. Page 7 of 18 g 2013-000190-0 ```—/ expense with respect to the Leased Premises which, if not timely paid, may subject the leased Premises or the interest of Lessor or Lessee therein to any lien or other encumbrance, without first complying with the requirements of paragraph 7.06 of this Lease. 3.09 Indemnification. (A) Lessee shall defend, indemnify and hold Lessor harmless from and against any and all claims arising from (1) Lessee's use of the Leased Premises, or from the conduct of Lessee's business, or from any activity, work or things done, permitted or suffered by Lessee in or about the Leased Premises or elsewhere; (2) any breach or default in the performance of any obligation on Lessee's part to be performed under the terms of this Lease; (3) any negligence of Lessee, or any of Lessee's agents, contractors, customers, employees, or any person claiming by, through or under Lessee; and (4) any accident on or in connection with the Leased Premises, or any fire thereon, or any nuisance made or suffered thereon. Lessee shall further defend, indemnify and hold Lessor harmless from and against all costs, attorneys' fees, expenses and liabilities incurred in the defense of any proceeding brought against Lessor by reason of any such claim. Lessee, upon notice from Lessor, shall defend any of the above -described claims at Lessee's expense by counsel satisfactory to Lessor. Lessee, as a material part of the consideration to Lessor, hereby assumes all risk of damage to property or injury to persons, in, upon or about the Leased Premises, arising from any cause and Lessee hereby waives all claims in respect thereof against Lessor. (B) Lessee acknowledges that, before entering this Lease, it has fully inspected or been provided with an opportunity to fully inspect the Leased Premises and all documents in the possession of Lessor relating to the condition of the Leased Premises, and to test or examine all conditions of or on the Leased Premises. Lessee further acknowledges that, at the time this lease is entered into and on the basis of the foregoing inspection or opportunity to inspect, Lessee is as knowledgeable about the physical condition of the Leased Premises as Lessor and, on that basis, assumes all risks relating to the condition of the Leased Premises, including but not limited to latent defects that may be unknown both to Lessee and Lessor at the time this Lease is entered into. Lessor represents and warrants that it has provided Lessee with an opportunity to inspect all documentation maintained----.� by Lessor in its records concerning the condition of the Leased Premises. 3.10 Costs and Expenses of Lessor. Lessee shall forthwith pay to Lessor - all costs and expenses, including reasonable attorneys' fees, which are (1) paid or =_ - incurred by Lessor but are required to be paid by Lessee under any provision of �__ this Lease; (2) paid or incurred by Lessor in enforcing any covenant of Lessee - o contained in this Lease, in protecting itself against or remedying any breach — o' N Chignik Lagoon Ground Lease'1i1i111111111111NN118iIHl�III�I�!IIIII II�I��Illlill page 6 of 16 4850-7509-3522. t. Page 8 of 18 2013-000190-0 thereof, in recovering possession of the Leased Premises or any part thereof, or in collecting or causing to be paid any delinquent rents, real property taxes, assessments, or rates; (3) incurred by Lessor in reviewing any matter for which Lessor's approval is sought and in processing such approval; or (4) incurred by Lessor in connection with any action in any respect related to this Lease, the Leased Premises, or Lessee's actions or omissions on the Leased Premises, other than a condemnation action filed by or against Lessee, to and in which Lessor is made a party but not adjudicated to be at fault. The term "costs and expenses" as used in this Lease shall include but not be limited to all of Lessor's out-of-pocket expenditures attributable to the matter involved. Except as otherwise expressly provided herein, all costs and expenses of Lessor shall be payable by Lessee to Lessor forthwith after mailing or personal delivery of statements therefor to Lessee and shall bear interest from the date which is ten (10) days after the date of such mailing or personal delivery at the rate of ten percent (10%) per annum. Such obligations and interest shall constitute additional rents. 3.11 Holdover. If Lessee remains in possession of the Leased Premises after expiration of the Lease Term without the execution of a new lease or of an extension of this Lease, and in such a manner as to create a valid holdover tenancy, and if no notice of termination has been delivered by Lessor to Lessee, Lessee shall be deemed to occupy the Leased Premises only as a tenant at will from month -to -month tenancy, including but not limited to the provisions of Article 2 or paragraph 11.02 of this lease. 3.12 Lessee's Improvements as Security for Obligations to Lessor. Lessor and Lessee covenant and agree that all of Lessee's improvements in any way affixed or attached to the Leased Premises or to a structure thereon (including, but not limited to, buildings, fill, drains, walls, fences, pavement, roadways, signs, and machinery) are real property. Lessee hereby grants to Lessor a security interest in all improvements and fixtures owned by Lessee and in any way affixed or attached, whether now or later, to the Leased Premises. Such security interest is granted and made as security for the payment of rent and all other payments of whatever nature for which Lessee may be or become obligated to Lessor under the terms of this Lease, without regard to whether such obligation arises before or after the termination of this Lease. The security interest shall expire and be released only (1) upon recordation of Lessor's release of such interest to Lessee or a person claiming under Lessee, or ( 2) removal of such improvements and fixtures from the Leased Premises upon termination of the Lease with the prior consent of Lessor. Lessee shall cooperate with Lessor with respect to the creation, documentation, execution, filing, registration, and perfection of this security agreement, including signing and returning to Lessor when requested any and all documents reasonably required to give effect to this paragraph. Chignik Lagoon Ground Lease ° l�ll�ill� I�III �IIII,I ll�I�II�II �II �I 4850-7509-3522.1. Page 9 of 18 Page 7 of 16 2013-000190-0 -- =00 - —COS -�0 =aCO -- N 3.13 Permits from Corps of Engineers and Others. (A) Lessee shall obtain all necessary permits from the Corps of Engineers and any other governmental entity with authority over the occupancy or construction of improvements on or adjacent to navigable waters and tidelands or wetlands. Lessee shall give Lessor notice of its proposed application for any such permit thirty (30) day period, it shall be deemed to have approved the proposed work. (B) Any application to the State of Alaska or other governmental entity for water rights appurtenant to the Leased Premises shall be made by Lessee. Lessee shall bear the costs associated with such application and shall have the rights accruing from such application, if granted, for the entire Lease Term, without payment of additional compensation to Lessor. ARTICLE IV. EMINENT D®MAIN 4.01 Effect of Eminent Domain on Lease. (A) Total Taking. In the event of a total taking, the rights of Lessor and Lessee to share in the net proceeds of any and all awards for land, building, improvements and damages shall be in the following order of priority: (1) To Lessor, a sum equal to the fair market value of the fee simple interest in the Leased Premises unencumbered by this Lease or any sublease, including Lessor's Improvements and excluding Lessee's Improvements. (2) To Lessee, a sum representing the fair market value of Lessee's improvements. In no even shall Lessee be entitled to any claim for its leasehold interest and any compensation therefor is hereby assigned to Lessor. (3) To Lessor, the balance of the award, excluding interest. Interest shall be allocated between the parties in proportion to their respective shares of the total award provided above. If the value of such respective interests of Lessor and Lessee have been separately determined in such condemnation proceeding, the values so determined shall be conclusive upon Lessor and Lessee. Chignik Lagoon Ground Lease Li2013-000190-0 ) II��I�I��III lI 4850-75u9_.3522.1. ge 10 of 18 Page 8 of 16 ==moo N - O O -- - N N O m (B) Partial Taking. In the event of a partial taking rental shall be abated and the net proceeds of the award shall be divided between Lessor and Lessee as follows: (1) To Lessor, a sum representing the fair market value of the fee simple interest of the part or parts of the Leased Premises so taken, unencumbered by this Lease, including Lessor's improvements and excluding Lessee's Improvements; plus an amount representing consequential damages to the part or parts of the land remaining after such taking, considered as if vacant and unimproved. (2) To Lessee, the balance of the award, which shall be applied by Lessee first to the restoration of Lessee's Improvements as nearly as reasonably possible to their condition before such taking. (C) Rights on Termination. Notwithstanding anything in this Lease to the contrary, if Lessee exercises its right to terminate the Lease upon a total or partial taking of the Leased Premises, the award balance attributable to Lessee's improvements shall belong to Lessor free of any claim of Lessee. In no event shall Lessee be entitled to any compensation for its improvements if the taking occurs after expiration of the Lease Term or termination of this Lease. 4.02 Temporary Taking. If the whole or any part of the Leased Premises, or of Lessee's interest under this Lease, is taken by any competent authority for its temporary use or occupancy, this Lease shall not terminate by reason thereof, and Lessee shall continue to pay all rental payments and other charges payable by Lessee hereunder and to perform all other terms, covenants, and conditions contained herein, and to perform all other terms, covenants, and conditions contained herein, except to the extent Lessee is prevented from so doing by the terms of the order of the taking authority. In the event of a temporary taking, Lessee shall be entitled to receive the entire amount of the award and shall be obligated, at its sole expense, to restore the Leased Premises as nearly as may be reasonably possible to the condition in which they existed immediately prior to such taking; provided, however, that if the period of temporary use or occupancy extends beyond the expiration of the Lease Term, the award shall be apportioned between Lessor and Lessee as of said date of expiration, after Lessor shall have received the entire portion of the award attributable to physical damage to the Leased Premises (excluding Lessee's Improvements) and to the restoration thereof to the condition existing immediately prior to the taking or condemnation. Chignik Lagoon Ground Lease �ill���l�l��l�ill��l�l�l��ll��,ill�ll�ll�,�ll�'lli l�llllNlll�ll �IIIIIC 4850-7509-3522.1. Page 11 of 18 2013-000190-0 Page 9 of 16 r O O N o� a)o MCO a� 0 N ARTICLE V. ASSIGNMENTS 5.01 Limitations on Assignment. Lessee shall not voluntarily or by operation of law assign, transfer, mortgage, sublet, or otherwise transfer or encumber all or any part of Lessee's interest in this Lease or in the Leased Premises. Any attempted assignment, transfer, mortgage, encumbrance or subletting shall be void, and shall constitute a breach of this Lease. ARTICLE VI. DEFAULT AND DEFEASANCE 6.01 Events of Default. Each of the following events shall be a default by Lessee and breach of this Lease: (A) Failure to Perform Lease Covenants. Lessee's abandonment or surrender of the Leased Premises or of the leasehold estate, or failure or refusal to pay when due any installment of rent or any other sum required by this Lease to be paid by Lessee, or to perform as required by any other covenant or condition of this Lease. (B) Appointment of Receiver. The appointment of a receiver or trustee to take possession of the Leased Premises or improvements or of the Lessee's interest in the leasehold estate or of Lessee's operations on the Leased Premises for any reason. (C) Insolvency, Bankruptcy. An assignment by Lessee for the benefit of creditors or the filing of a voluntary or involuntary petition by or against Lessee under any provision of the U.S. Bankruptcy Code. 6.02 Notice and Right to Cure. (A) Notices. As a precondition to pursuing any remedy for an alleged default by Lessee, Lessor shall, before pursuing any remedy, give notice of default to Lessee. Each notice of default shall state the alleged event of default and the intended remedy, but the identification of the intended remedy shall not limit Lessor's right to seek or use any other available remedy not identified in the notice. O (B) Method of Giving Notice. Lessor shall give notice of default in =-_ o N accordance with subparagraph 6.02(A) by personal delivery to each party required - r — �o to receive it; or by (1) mailing by certified mail (return receipt requested) a copy aCO of the notice to each party required to receive it at the last address provided by that -- o Chignik Lagoon Ground LeaseLi2013-0001 II�'IiPage 10 of 16 4850-7509-3522.1. ge 12 of 18 90-0 party to Lessor and (2) mailing by first class mail a copy of the same notice to each such party at the same address. To be effective, personal delivery shall be documented by written acknowledgment of receipt by Lessee or by an affidavit of the personal delivery by Lessor's representative. (C) Lessee's Right to Cute Defaults. (1) If the alleged default is nonpayment of rent or other sums to be paid by Lessee, Lessee shall have thirty (30) days after the notice is given to cure the default. (2) If, in the reasonable opinion of Lessor the alleged default substantially endangers either the person or property of Lessor or a third party, or human health or the environment, Lessee shall commence curing the default immediately upon notice and complete the cure within such reasonable time period as is imposed by Lessor or nay governmental body having jurisdiction in the matter. (3) For the cure of any other default, Lessee shall promptly and diligently after the notice commence curing the default and shall have sixty (60) days after notice is given to complete the cure. 6.03 Nonwaiver. Acceptance by Lessor or its agents or any rents, whether basic or additional, shall not be deemed to be a waiver by it of any breach by Lessee of any of its covenants contained in this Lease or of the right of Lessor to reenter the Leased Premises or to declare a forfeiture for any such breach. Waiver by Lessor of any breach by Lessee shall not operate to extinguish the covenant the breach of which is so waived, nor be deemed to be a waiver of the right of Lessor to declare a forfeiture for any other breach thereof or of any other covenant. 6.04 light of Lessor to Protect Against Default. If Lessee fails to observe or perform any of its covenants contained herein, Lessor at any time thereafter and without notice, shall have the right but not the obligation to observe or perform such covenant for the account and at the expense of Lessee, and shall not be liable to Lessee or anyone claiming by, through, or under it for any loss or damage by reason thereof to the occupancy, business, or property of any of them. All costs and expenses paid or incurred by Lessor in observing or performing such covenant shall constitute additional rents, which Lessee shall forthwith pay to Lessor upon statements therefor. Chignik Lagoon Ground Lease I'1L11II��lI��l�'Ji��Illllll�lll�llillll'���IIIII]�II�IIIII�II�IIIIIiI Page 11 of 16 4850-7509-3522.1• Page 13 of 18 2013-000190-0 6.05 Lessor's Remedies. If any default by Lessee shall continue uncured, following notice of default as required by this Lease, for the period applicable to the default of this Lease, Lessor has the following remedies in addition to all other rights and remedies provided by law or equity or other provisions of this Lease, to which Lessor may resort cumulatively or in the alternative. The election of one remedy for any one default shall not foreclose an election of any other remedy for another default or for the same default at a later time. (A) Termination. Lessor may, at Lessor's election, terminate this Lease by giving Lessee notice of termination in accordance with the procedures specified in paragraph 6.02 of this Lease. On the receipt of the notice to terminate, all Lessee's rights in the Leased Premises and in all improvements thereon shall terminate, unless Lessor expressly and in writing requires Lessee to remove specified improvements (in which event Lessee's rights shall continue in the improvements required to be removed). Promptly after notice of termination, Lessee shall surrender and vacate the Leased Premises and all improvements not required to be removed in a broom -clean condition, and Lessor may reenter and take possession of the Leased Premises and all remaining improvements and eject all parties in possession, or eject some and not others, or eject none. Termination under this paragraph shall not relieve Lessee, or any of its guarantors, insurers, or sureties, from the payment of any sum then due to Lessor or from any claim for damages previously accrued or then accruing against Lessee. (B) Re-entry Without Termination. Lessor may, at Lessor's election, reenter the Leased Premises, and , without terminating this Lease,' at any time and from time to time relet the Leased Premises and improvements, or any part or parts of theirs, for the account and in the naive of Lessee or otherwise. Lessor may, at Lessor's election, eject all persons or eject some and not others or eject none. Any reletting may be for the remainder of the Lease Term or for a longer or shorter term. Lessor may execute any leases made under this provision either in Lessor's name or in Lessee's name, and shall be entitled to all rents from the use, operation, or occupancy of the Leased Premises or improvements or both. (C) Recovery gfRent. Lessor shall be entitled, at Lessor's election, to each installment of rent or to any combination of installments for any period before termination, plus interest at the rate of ten and one-half percent (10 ''/2%) per annum from the due date of each installment or at the highest rate permitted by law, whichever is less. �: (D) Lessee's Personal Property. Lessor may, at Lessor's election, use Lessee's personal property and trade fixtures on the Leased Premises, or any of such property and fixtures, without compensation and without liability for use or damage, or store them for the account and at the cost of Lessee. Chi�snik�L�agoon Ground Lease IIIIII��IIII�IIII��I�IIIIII��IIIIIIIIIIIIII�I'lllll�lll�l�l�llllllllf Page 12 of 16 Page 14 of 18 2013-000190-0 (E) Damages. Lessor shall also be entitled, at Lessor's election, to damages in the following sums: (1) all amounts that would have fallen due as rent between the time of termination and the time the property is relet; provided that Lessor shall exert reasonable efforts to relet the property at prevailing market value; and (2) the amount, if any, by which the Basic Rents under this Lease exceed the rents under any subsequent lease upon reletting calculated over the Lease Term; and (3) all administrative, marketing, brokerage, repair, cleaning and similar costs incurred by Lessor and necessary or useful to reletting the Leased Premises or placing it in good and marketable condition. ARTICLE VII. GENERAL PROVISIONS 7.01 Lessor's Right to Entry, Inspection and Repair. Lessor or its authorized agents may enter and inspect the Leased Premises at any time, with or without the presence of Lessee or its authorized representative, after giving twenty-four (24) hours' advance notice to Lessee of such inspection. Such inspections may include, but not be limited to, conducting tests for environmental contamination. All inspections will be conducted in a manner that does not unreasonably interfere with the operation of Lessee's business. If contamination is identified on the Leased Premises, Lessee shall be responsible for all resulting costs associated with cleanup as provided in this Lease. In the event of an emergency, Lessor may enter and inspect the Leased Premises on reasonable notice (including no notice to Lessee if the circumstances warrant) and snake such repairs or institute such measures, on the account and at the expense of Lessee, as may be necessary to avert or terminate the emergency. An emergency is any action, event, or condition, either extant or imminent, that threatens significant damage to property or injury to persons on or near the Leased Premises, and includes but is not limited to flood, fire, explosion, avalanche, earthquake, uncontrolled or dangerous discharge or release of water or other fluids, unauthorized or illegal placement of hazardous or toxic materials on the Leased Premises, and shifting, settling or loss of earth or support on the Leased Premises. 7.02 Notices. Any notice, other than notice of default under subparagraphs 6.02(A) and 6.02(B) of this Lease, or demand to Lessor or Lessee provided for in re - this Lease may be given sufficiently for all purposes in writing, mailed by - - - registered or certified mail, return receipt requested, and addressed to such party or its agent at its mailing address specified herein or at the last such address specified by such party in writing to the other, or may be delivered personally within the °o State of Alaska to such party or its again. Except as otherwise expressly provided herein, such notice shall be conclusively deemed to have been given on the date of n such mailing or personal delivery. If at any time during the Lease Term Lessee is -- o Chignik Lagoon Ground Lease ci INIIIINNIIIININININIIIIII Page 13 of 16 4850-7509-3522.1.e 15 of 18000190-0 more than one person or entity, any notice given by Lessor to any of them shall constitute notice to all of them, and any agreement or approval with or in favor of Lessor made or given by any of them shall bind all of them. 7.03 Covenants and Conditions. Every Provision in this Lease which imposes an obligation upon Lessee or invests an option, power, or right in Lessor shall be deemed to be a covenant of Lessee in favor of Lessor, and the time of observance and performance by Lessee of each of its covenants contained in this Lease shall be a condition hereof. 7.04 Integration and Amendments. This Lease is a complete integration of every agreement and representation made by or on behalf of Lessor and Lessee with respect to the Leased Premises, and no implied covenant or prior oral or written agreement shall be held to vary the provisions of this Lease, any law or custom to the contrary notwithstanding. In the event of any conflict between this Lease and Memorandum of Lease, the provisions of this Lease shall be effective unless incorporated in a written instrument duly executed and acknowledged by Lessor and Lessee. 7.05 Binding Effect. This Lease shall be binding upon and shall inure to the benefit of Lessor and Lessee and their respective successors and assigns. The designations "Lessor" and "Lessee" include their respective successors and assigns and shall be so construed that the use of the singular number includes the plural number, and vice versa, and the use of any gender includes the other gender. If at any time during the Lease Term Lessee is more than one person or entity, including persons who are partners and operate Lessee as a partnership, their liability hereunder shall be joint and several. ARTICLE VIII. DUTIES UPON TERMINATION OR EXPIRATION 8.01 Surrender of Leased Premises. Upon expiration or early termination of this Lease, Lessee shall surrender to Lessor the possession of the Leased Premises. If Lessee fails to surrender the Leased Premises at expiration or termination, Lessee shall defend, indemnify, and hold Lessor harmless from all liability and expense resulting from the delay or failure to surrender, including but not limited to claims made by any succeeding tenant founded on or resulting form Lessee's failure to surrender. In the event of failure or refusal of Lessee to surrender possession of the Leased Premises and remove therefrom Lessee or any person, firm or corporation claiming by, through or under Lessee and to obtain damages for trespass from Lessee. Chignik Lagoon Ground Lease Page 14 of 16 1850-7509-3522.1, Page 16 Of 18 2013-000190-0 =moo 8.02 Removal of Improvements Upon Termination. (A) Upon the expiration or termination of this Lease or any extension thereof, including termination resulting from Lessee's breach; Lessee shall leave the Leased Premises in a leasable condition, which shall include removal of all improvements, buildings, foundations and footings to buildings, personal property, trash, vehicles and equipment. Any excavation on the property, including excavation to remove Lessee's Improvements, shall be filled and compacted with material approved by Lessor. (B) Lessor may, at its option, allow Lessee to leave some or all of Lessee's Improvements on the Leased Premises upon termination. If Lessor so elects, such improvements shall become the property of Lessor upon termination. (C) Pursuant to the security interest granted under this Lease, Lessor may, at its option, require Lessee to leave some or all of Lessee's Improvements on the Leased Premises upon termination, with Lessor becoming the owner of such improvements, when at the time of termination, Lessee has failed to make all payments to Lessor required under this Lease. (D) Any improvements owned by Lessor or added to the Leased Premises by Lessor after execution of this Lease, shall not be removed by Lessee. 8.03 Abandonment of Lessee's Property. All property that Lessee is not required or allowed to leave on the Leased Premises shall, on the tenth (101h) day following termination, be conclusively deemed abandoned. Abandoned property shall, at the election of Lessor, become the property of Lessor or be destroyed or removed by Lessor. 8.04 Liability for Cleanup Expenses. Lessee shall be liable for all costs and expenses incurred by Lessor to remove or destroy abandoned property and improvements not required or allowed to be left on the Leased Premises, and for the removal of trash or other debris left thereon. In addition, nothing in this Lease shall relieve Lessee of any obligation or liability for removal of hazardous substances (including wastes) or inappropriate fill material placed on the Leased Premises during the term of the Lease, regardless of when such hazardous substance (including waste) or inappropriate fill material are discovered. - I�,'I'I�II��Illall��1811111111�1111'�I[{�!I�'ll�ll��lll�llll�l�ill'lll Chignik Lagoon Ground Lease Page 17 of 16 Page 15 of 16 �4850-7509-3522.1. 2013-000190-0 ARTICLE IX. EXECUTION OF LEASE AND GOVERNING LAW 9.01 Execution and Counterparts. Any and all counterparts of this Lease shall be considered the original, and all of which shall constitute one and the same instrument. 9.02 Recordation of Lease. This Lease shall not be recorded. 9.03 Governing Law. This Lease shall be governed by and construed in accordance with the laws of the State of Alaska. Venue for any and all disputes shall be in state court in the Third Judicial District in Anchorage, Alaska. IN WITNESS THEREOF, Lessor and Lessee have duly executed and acknowledged this Ground Lease. CHIGNIK LAGOON NATIVE CORPORATION Dated:. - / By: ,911,?�"k.� -I�%tec,? �,,� Andrea Macauly 61 President NATIVE VILLAGE OF CHIGNIK LAGOON Dated: By Name: --}� t h lj Its: O � United States ofAmerica ss State of Alaska f THIS IS TO CERTIFY that the foregoing is a full, true and correct copy of the document as it appears in the records and files of my office. IN THE WITNESS WHEREOF, I have hereunto set my hand and have affixed my seal at Anchorage, Alaska, __ o /�ocial this day of c�y 90 -- 0 0 ffr Y S Recorder Perks l -- c� r o � II�I��II I'I' Illy I Illlll!III Chignik Lagoon Ground Lease .I!lll�lll�illl�lllllhllll�l Page 16 of 16 4850-7509-3522.1. Page 18 of 18 2013-000190-0 ?3-077t 2012-000418-0 Recording District 305 Aleutian Islands 12117/2012 03:09 PM Pagel of 9 State of Alaska Department of Commerce, Community and Economic Development Municipal Trust Land Easement Agreement This Agreement is entered into and between the State of Alaska, Department of Commerce, Community and Economic Development, as Trustee for any future city in Chignik Lagoon, Alaska, the Grantor, whose address is 550 West 7th Avenue, Suite 1770, Anchorage, Alaska 99501-3510, and the Chignik Lagoon Village Council, the Grantee. The mailing address of the Grantee is Chignik Lagoon Village Council, P.O. Box 9 Chignik Lagoon, AK 99565. The parties agree as follows: l . The Land: This agreement provides the Grantee the right to construct, operate, and maintain the hydro electric penstock and related facilities on the surface estate of the following real property located in Chignik Lagoon, Alaska. The surface estate of that certain real property located in Section 5 of Township 45 South, Range 59 West, Seward Meridian, Alaska, being situated in the vicinity of the Native village of Chignik Lagoon within the Aleutian Island Recording District, 3rd Judicial District, State of Alaska, containing 4.58 acres more particularly described in Appendix A, attached to this agreement. 2. Reservation of Rights. The Grantor reserves the right to grant to others the rights to use the land not specifically and exclusively granted in this agreement. Only such rights are granted hereby as are necessary for the construction, operation and maintenance of a hydro electric penstock and related facilities. In accordance with 3 AAC 190.460(l ), should this land be used for purposes other than hydra electric penstock and related facility purposes title and all other interests shall (upon election by the Grantor) revert to the Grantor or to any successor municipality established in Chignik Lagoon in the future. Waiver of Fair Market Value/Rental. The fair market value requirement for this disposal of municipal trust land is waived pursuant to 3 AAC 190.460(1) because it serves a public purpose. 4. Valid Existing Rights. This agreement is entered into and made subject to all valid existing rights, including easements, rights -of -way, reservations, or other interests in land, in existence on the effective date this agreement. Formation of a City. The parties acknowledge that this Agreement is subject to the potential conveyance of the land to a first or second class city that may form in Chignik Lagoon. If a first or second class city forms during the duration of this agreement, the City shall succeed to the Grantor's interest upon the conveyance of the land. If the City assumes the powers associated with the improvements allowed by this easement, by enacting a code enabling ordinance this easement shall terminate for those purposes and the City shall be responsible for the assumed operations. The City and Lessee may also mutually agree to another allocation of responsibility for the improvements. 6. Waiver of Sovereign Immunity. The Grantee, by execution of Appendix B, attached hereto, gives its irrevocable consent to allow it to be sued by the Grantor or any successor municipality upon the agreement or any claims arising out of its activities under the agreement and waives any immunity from suit for such claims. 7. Indemni#ication. Grantee agrees to indemnify or hold harmless Grantor, its officers, agents and employees, from and against all claims, demands, judgments, costs and expenses (including reasonable attorney's fees) which may arise by reason of injury to any person or damage to any property attributable to the negligence of the Grantee, Grantee's officers, agents and employees, in connection with the Grantee's construction, operation and maintenance of said improvements and its use of or presence on the property. 8. Construction and operation. At no cost to the Grantor, the Grantee will construct, operate and maintain the penstock and related facilities necessary for the Grantees hydro electric operation. The Grantee will conduct all activities authorized by this agreement in compliance with current and subsequent Federal, State, and local laws, ordinances, rules and regulations. The Grantee will take reasonable and prudent steps to protect the surface of the area in this easement agreement and natural resources and improvements thereon and maintain the land in a neat and clean condition to the satisfaction of the Grantor. 9. Non-use. This Agreement shall at the Grantors election terminate for some of the uses and portions of this easement corridor, abandoned, herein defined as non-use for any 36 consecutive months, and said interests granted herein shall revert to the Grantor, or its successor, upon the Grantors issuance and recording of an agreement termination. 10. Notices. All notices and other writings required or permitted by this easement agreement must be sent to the parties. The current address of the Grantor and Grantee are: GRANTOR: Municipal Land Trust Officer Department of Commerce, Community and Economic Development 550 W. 7th Avenue, Suite 1640 Anchorage, Alaska 99501-3510 GRANTEE: Chignik Lagoon Village Council P.O. Box 9 Chignik Lagoon, AK 99565 11. Encumbrance of Land. The rights granted to and duties assumed by the Grantee under this agreement may not be assigned or delegated by the Grantee without the prior written consent of the Grantor. Any attempted assignment or delegation by the Grantee without the prior written consent of the Grantor shall be void. 12. Amendments. This agreement may be amended from time to time, as may be necessary, by mutual consent of both parties, provided, however, that no amendment to the agreement shall be effective unless in writing and signed by both parties. BY SIGNING THIS AGREEMENT, the Grantor and Grantee, agree to be bound by the provisions as set out above. Attachments Appendix A: Property Plan ige 2 of 9 2-000418-0 Grantee: Chignik Lagoon Village Council P.O. Box 9 Chignik Lagoon, AK 99565 Qy President ACKNOWLEDGEMENT STATE OF ALASKA ) ALEUTIAN ISLAND RECORDING DISTRICT) 3"' JUDICIAL DISTRICT ) This is to certify that on -A 120 la , before me 01,P \kNjeA- 7p�( nown by me to be the President, of the Chignik Lagoon Village Council, who is authorized to sign this AGREEMENT by the Chignik Lagoon Village Council as shown by the attached resolution (Appendix B), and who executed this AGREEMENT and acknowledged voluntarily signing it on behalf of the Chignik Lagoon Village Council as GRANTEE. (SEAL) Notary Public for Ala t, My commission expires: L!!!n page GRANTOR: State of Alaska Department of Commerce, Community and Economic Development as Trustee for any future city established in the Native village of Chignik Lagoon Scott Ruby Municipal Land Trust Officer ACKNOWLEDGEMENT STATE OF ALASKA ANCHORAGE RECORDING DISTRICT 3RD JUDICIAL DISTRICT THIS IS TO CERTIFY that on the /Z day of _ 1 &V- 1'(-b— , 20 ;may before me, the undersigned Notary Public for the State of Alaska, duly commissioned and sworn as such, ersonally came Scott Ruby, Municipal Land Trust Officer acting under delegation of authority for the Commissioner of the Department of Commerce, Community and Economic Development, for and on behalf of the STATE OF ALASKA as trustee for any municipal corporation which may be established in the future at Chignik Lagoon, Alaska, and acknowledged that this AGREEMENT was signed and sealed on behalf of the STATE OF ALASKA by proper authority delegated and vested in himself, and acknowledged further said instrument to be the free act and deed of said STATE OF ALASKA, IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written. (SEAL) ' **���i�r�►r ` ,. ere• Cra \ 1 � - 1,'1�. �� i���(! .I�� i Nola Public for Alaska ommission expires: NOTARY. *' PuBLI L!vn Page Attachment: Appendix A, Property Plan ii Page 5 af 9 2012-000418-0 ILV'p USS 41398 f- BLOCK 10 ' CORNER 4, USS 1223 N00'22'25"E 107.58' TRACT J I - 02 /15/11 -] ` r 1 ANCSA 14C PARCEL PLAT NO. 99-2 CORNER H. PLAT 99-2 TRACT J USS 1223 \\-`/�, 1\\z+ * I t 1 f S ` r C1J 1 Lei O f d 1� TRACT J ' ANCSA 14C PARCEL 1 PLAT NO. 99-2 , f N 7� �0 CL �l SRO f PACKERS 1 CREEK / TRACT C V i T45S R59W SM TRACT C 1 �� N i IT22'25"E T45S R59W SM', �1 r TRACT J PARCEL 1 ly CORNER 1, I �' 150' WIDE PENSTOCK ES4T —4.58 ACRES 1�PE,a,T gg_Z 1r ' 1 } TRACT J N + — — ---- _ "' jjff v 200 400 PENSTOCK EASEMENT �� M � ' Appendix A I I I 150' WIDE PENSTOCK EASEMENT — TRACT J. PLAT 99-2 �ltcflino areO= a�w PACKERS CREEK HYDROn TRIC PROJRCCT CHICNIIL LACOON POWER UTILITY 4ROMQ. AL"" low w hwl MFiYll AK Sheet IofI Liage 6 of 9 2012-000418-0 IIIIGVI�IVf1itlil'lid�i�i Appendix B: Village Council Resolution of Approval i V81�4�IWtoP'N�fi�d�'M m 23-0771 Appendix B Chignik Lagoon Village Council Resolution WHEREAS, the Chignik Lagoon Village Council is the governing Village Council for the Village of Chignik Lagoon and as such intends to develop and operate a hydro electric facility that serves the residents of Chignik Lagoon; and WHEREAS, the Chignik Lagoon Village Council has requested the State of Alaska, Department of Commerce, Community and Economic Development, as trustee for a future city, issue an easement agreement to the Chignik Lagoon Village Council to construct, operate, and maintain a hydro electric penstock on the surface estate of the following real property located within Section 5 of Township 45 South, Range 59 West, Seward Meridian, Alaska, being situated in the vicinity of the Native village of Chignik Lagoon within the Aleutian Island Recording District, 3`d Judicial District, State of Alaska, containing 4.58 acres more particularly described in Appendix A, attached to this agreement. WHEREAS, the Chignik Lagoon Village Council is the recognized appropriate village entity regarding the approval of such municipal trust land disposals including the waiver of the fair market value requirement in accordance 3AAC 190.430 and 3AAC 190.460; and WHEREAS, The State of Alaska, Department of Commerce, Community and Economic Development, as trustee, requires as a condition of the easement agreement that the Alaskan Native village of Chignik Lagoon waive its sovereign immunity from suit by the Grantor or a future city that may form in Chignik Lagoon for claims arising out of its activities under the easement agreement. IT IS THEREFORE RESOLVED, that Chignik Lagoon, an Alaskan Native village, acting through its village council approves the Easement Agreement and the waiver of fair market value requirement for this disposal of an interest in municipal trust land; and IT IS FURTHER RESOLVED, that Chignik Lagoon, an Alaskan Native village, acting through its traditional village council hereby gives its irrevocable consent to allow it to be sued by 'the Grantor, or a future city that may form in Chignik Lagoon, in the name of the Chignik Lagoon Village Council upon the easement agreement or any claims arising out of its activities related to the easement agreement, and hereby waives any immunity from suit by the State in Trust or a future city for such claims and the Chignik Lagoon Village Council shall be liable for such claims. The Chignik Lagoon Village Council hereby consents to the execution of any judgment obtained pursuant to this waiver of immunity against any of its property, whether real or personal, including money; and IT IS FURTHER RESOLVED that the Chignik Lagoon Village Council President is authorized to execute the attached easement agreement on behalf of the Chignik Lagoon Village Council. The foregoing resolution was adopted at a duly convened meeting of the Chignik Lagoon Village Council on 1- rt <" Kati ) C,l I 20_L�, >3y: P �s i dents Attest: Secrete /Tre'asurer J LiAli llll � 11111i�ll��l I�'�I IIIII�I��lR4�'�� 2012-000418-0 ge 8 of 9 its] FROM: THE, ST.VTF.. Department of Commerce, Comnimilty, and Economic Development o� (�/� L:`SE.1N 11-1',\L.,I L 550',I. tea a;'th a• ,i: �,i'= i -s0 N041: °07.269.4-tO1/'7EJ7.269.41�r3 MEMORANDUM District Recorder Aleutian Island Recordinigy District Shawana Guzenski J° Natural Resource Specialist Municipal Lands Trustee Program Department of Commerce, Community, and Economic Development MAIN: 269-4549 DATE: Monday, December 17, 2012 RE: Recordation FILE: 23-0771 Enclosed is an easement agreement for a portion of the Municipal Trust Land in Chignik Lagoon, Alaska. Please record the agreement in the Aleutian Island Recording District. This action is State of Alaska business, so it is appropriate that the recording fee be waived.'Please return the original document and an additional copy to: Municipal Land Trust Officer Department of Commerce, Community, and Economic Development Division of Community and Regional Affairs 550 West 7th Avenue, Suite 1640 Anchorage, AK 99501 Attention: Shawana Guzenski If you have any questions, I can be reached at 269-4549. IINIII9Page 9RI�IN'cNIlNlllllpp;1411111