Exhibit 10.4.2 Ormesa BLM License for Electric Power Plant Site CA 24678 UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT STATE OFFICE E-2845 Federal Office Building 2800 Cottage Way Sacramento, California 95825 Serial No. CACA 24678 LICENSE FOR ELECTRIC POWER PLANT SITE UTILIZING GEOTHERMAL RESOURCES This license, entered into on September 18, 1989, by the United States of America, the Licensor, through the Bureau of Land Management (BLM), and Ormesa Geothermal, the Licensee, is hereby issued under the Geothermal Steam Act of 1970 (30 U.S.C. 1001-1025) and is subject to all applicable Federal, State, and local laws and regulations including Title 43 CFR Group 3200. SECTION 1. RIGHTS UNDER LICENSE This license confers the right to construct, operate, and maintain a 10 MW electric generating plant and related facilities or appurtenant structures in accordance with the terms and conditions of this license, the approved plan of utilization, and the applicable regulations, on those certain lands situated in the County of Imperial, State of California, described below excepting that prior to commencing any surface disturbance activities allowed under this license, a permit to construct a utilization facility shall be obtained from the authorized officer as required by 43 CFR 3250.6-1(b): Geothermal Power Plant Site Land Description That portion of the Southeast one quarter of Section 6, Township 16 South, Range 17 East, San Bernardino Meridian, County of Imperial; State of California, being more particularly described as follows: Beginning at Southeast corner of said Section 6: Thence along the East line of said Southeast one quarter Section 6 North 00(0)06' 54" West 712.00 feet to a point; Thence leaving said East line North 89(0) 59' 18" West 33.00 feet to a point, said point being the true point of beginning; Thence continuing North 89(0)59' 18" West 890.80 feet to an angle point; Thence North 00(0)00' 00" East 552.75 feet to an angle point; Thence South 89(0)49' 44" East 382.80 feet to an angle point; Thence North 00(0)01' 00" West 86.96 feet to an angle point; Thence North 89(degree)55' 13" East 289.76 feet to an angle point; Thence South 00(degree)04' 47" East 66.00 feet to an angle point; Thence North 89(degree)55' 13" East 125.00 feet to the beginning of a tangent 92.08 foot radius curve concave Southwesterly; Thence Easterly and Southeasterly along said curve through a central angle of 89(0) 57' 53" an arc distance of 144.58 feet to a point, said point being 33.00 feet Westerly of the East line of of said Southeast one quarter of Section 6. Thence along a line parallel with and 33.00 feet Westerly of said East line South 00(0) 06' 54" East 481.44 feet to the true point of beginning. 2 Containing 11.93 acres, more or less. This license is for a primary term of 30 years, with a preferential right of renewal of such license under such terms and conditions as the Licensor may deem appropriate, provided that the license may be terminated as provided in Section 7 hereof. SECTION 2. OPERATIONS A. License shall comply with the regulations of the Secretary of the Interior as set forth in 43 CFR Part 3250. B. Licensee shall comply with the provisions of the operating regulations in 43 CFR Part 3260 and all orders issued pursuant thereto. Copies of the operating regulations may be obtained from the Authorized Officer. C. Prior to commencement of any activities relating to plant operations, the Licensee shall file with the Authorized Officer a copy of any utility commission license or other Federal, State, or local license or permit incident to the operation of the facilities authorized herein. D. Licensee shall allow inspection of the premises and operations by duly authorized representatives of the Department of the Interior or other Federal agency administering the lands and shall provide for the ingress or egress of government officers, and for users of the lands under authority of the United States. E. Licensee hereby agrees to hold harmless and indemnify the United States, its officers, agents, employees, successors, or assigns from and against all claims, 3 demands, costs, losses, causes of action, damages, or liability of whatsoever kind or nature arising out of or resulting from the utilization of the property by the Licensee hereunder. The United States shall not be liable for any damages or injuries to persons or property in, or about, said premises from any cause other than the negligent acts or omissions of its officers, agents, or employees. SECTION 3. RENTALS The Licensee shall pay to the Licensor a rental of $1200.00 on or before the date of issuance of the license and on each anniversary thereafter. Said rental shall be reassessed at the discretion of the Authorized Officer at not less than ten-year intervals beginning with the tenth year of the term of this license. SECTION 4. BOND The Licensee shall file with the Authorized Officer and shall maintain at all times the bond required under the regulations to be furnished as a condition to the issuance of this license in the amount established by the Licensor and to furnish such additional bond or security as may be required by the Licensor upon entry on the lands or after operations have begun. SECTION 5. EQUAL OPPORTUNITY CLAUSE This license is subject to the provisions of Executive Order No. 11246 of September 24, 1965, as amended, which sets forth the nondiscrimination clauses. A copy of this Order may be obtained from the Authorized Officer. 6. ASSIGNMENTS AND TRANSFERS 4 A. This license shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. Any proposed transfer in whole or in part of any right, title, or interest in the licensed plant or facility or this license must be filed with the Authorized Officer. The application for transfer must be accompanied by the same showing of qualifications of the transferee as is required of the applicant, and must be supported by a stipulation that the assignee will comply with and must be bound by all the terms and conditions of this license. No transfer will be valid unless and until it is approved in writing by the Authorized Officer. B. An application for approval of an assignment or transfer shall be accompanied by a nonrefundable fee as specified by the regulations at 43 CFR 3250.8(b). SECTION 7. TERMINATION AND RELINQUISHMENT A. The Licensee may surrender this license by filing a written relinquishment, in triplicate, with the Authorized Officer. The relinquishment shall include a statement as to whether the land covered by the license has been disturbed and, if so, whether it has been restored as prescribed by the terms and conditions of the license. The relinquishment will not be accepted until the requirements for reclamation of the land have been met. B. The license may be cancelled upon written order of the Authorized Officer for violation of the terms and conditions hereof, or of any of the regulations or 5 orders applicable hereto, subject to notice and a right of appeal as provided in the regulations. C. Following relinquishment, expiration, or cancellation, the Licensee shall within one year following the termination of the license remove all structures, machinery, and other equipment from the above described lands, and restore the land in accordance with Section 7(D) of this license. Additional time may be granted by the Authorized Officer upon a showing of good cause by the Licensee. The bond required by this license shall not be released until the reclamation process has been completed to the satisfaction of the Authorized Officer. D. Prior to the termination of bond liability and to the extent deemed necessary by the Licensor, the Licensee shall reclaim all surface disturbances as required, remove or cover all debris or solid waste, and, so far as possible, repair the offsite and onsite damage caused by its activity or activities incidental thereto, and return access roads or trails and the licensed lands to an acceptable condition, including the removal of structures, if required. The Authorized Officer shall prescribe the steps to be taken by the Licensee to protect the surface and the environment and for the restoration of the licensed lands and other lands affected by operations on; the licensed lands and improvements thereon, whether or not the improvements are owned by the United States. 6 SECTION 8. UNLAWFUL INTEREST No Member of, or Delegate to, Congress or Resident Commissioner, after his election or appointment, or either before or after he has qualified and during his continuance in office, and no officer, agent, or employee of the Department of the Interior, except as provided in 43 CFE 7.3(a)(1), shall be admitted to any share or part in this license or derive any benefit that may arise therefrom; and the provisions of Section 3741 of the Revised Statutes of the United States, as amended (41 U.S.C. Sec. 22) and Sections 431, 432, and 433, Title 18 U.S.C., relating to contracts, enter into and form a part of this license so far as the same may be applicable. SECTION 9. CERTIFICATION OF NONSEGREGATED FACILITIES By entering into this license, the Licensee certifies that Licensee does not and will not maintain or provide for Licensee's employees any segregated facilities at any of Licensee's establishments, and that Licensee does not and will not permit Licensee's employees to perform their services at any location, under Licensee's control, where segregated facilities are maintained. The Licensee agrees that a breach of this certification is a violation of the Equal Opportunity Clause of this license. As used in this certification, the term "segregated facilities" means, but is not limited to, any waiting rooms, work rooms, work areas, rest rooms and wash rooms, restaurants and other eating areas, time clocks, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing facilities provided for employees which are segregated by explicit directive or are in fact 7 segregated on the basis of race, color, religion, or national origin, because of habit, local custom, or otherwise. Licensee further agrees that (except where Licensee has obtained identical certification from proposed contractors and subcontractors for specific time periods) Licensee will obtain identical certifications from proposed contractors and subcontractors prior to the award of contracts or subcontracts exceeding $10,000 which are not exempt from the provisions of the Equal Opportunity Clause; that Licensee will retain such certifications in Licensee's files; and that Licensee will forward the following notice to such proposed contractors and subcontractors (except where the proposed contractor or subcontractor has submitted identical certifications for specific time periods); Licensee will notify prospective contractors and subcontractors of the requirement for certification of nonsegregated facilities. A Certification of Nonsegregated Facilities, as required by the May 9, 1967, Order (32 F.R. 7439, May 19, 1967) on Elimination of Segregated Facilities, of the Secretary of Labor, must be submitted prior to the award of a contract or subcontract exceeding $10,000 which is not exempt from the provisions of the Equal Opportunity Clause. The certification may be submitted either for each contract and subcontract or for all contracts and subcontracts during a period (i.e. quarterly, semi-annually, or annually). SECTION 10. STIPULATIONS Affixed hereto as Exhibit "A" 8 THE UNITED STATES OF AMERICA By /s/ Fred O'Ferrall -------------------------------------- Chief, Leasable Minerals Section Date SEP 18 1989 ----------------------------------- WITNESS TO SIGNATURE OF LICENSEE Ormesa Geothermal By Ormat Geothermal, Inc. -------------------------------------- /s/ Barbara L. Bressler Managing Partner - ---------------------------------- -------------------------------------- By /s/ Indecipherable -------------------------------------- (Signature) Vice President -------------------------------------- (Title) Date September 13, 1989 ------------------------------------ - -------------------------------------------------------------------------------- If this license is executed by a corporation, it must bear the corporate seal. 9
Ormat (ORA) S-1IPO registration
Filed: 21 Jul 04, 12:00am