Exhibit 10.44
UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
STATE OFFICE
E-2841 Federal Office Building
2800 Cottage Way
Sacramento, California 95825
Serial No. CACA 22512
LICENSE FOR ELECTRIC POWER PLANT SITE
UTILIZING GEOTHERMAL RESOURCES
This license, entered into on Mar 8 1989, by the United States of America, the
Licensor, through the Bureau of Land Management (BLM), and Coso Energy
Developers, 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 Parts 3200, 3250, and 3260.
Section 1. Rights Under License
This license confers the right to construct, operate, and maintain a 48 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 Inyo, State of California, described as:
(a) Geothermal Power Plant Site Property
A parcel of land within geothermal resources lease CACA 11402, known
as NWC-2, situated within Section 20, Township 22 South, Range 39
East, Mount Diablo Meridian, Inyo County, particularly described as:
BEGINNING at the Northwest corner of said parcel from which the
Northwest corner of said Section 20 bears N. 36 20' 17" W. a distance
of 4,318.64 feet, thence East 800.00 feet; thence South 800.00 feet;
thence West 800.00 feet; thence North 800.00 feet to the POINT OF
BEGINNING, containing 14.69 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
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deem appropriate, provided that the license may be terminated as provided in
Section 7 hereof.
Section 2. Operations
A. Licensee 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 District Manager,
California Desert District.
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, 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.
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Section 3. Rentals
The Licensee shall pay to the Licensor a rental of $1,500.00 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. Bonds
The Licensee shall file with the Authorized Officer and shall maintain at all
times the bonds required under the regulations to be furnished as a condition to
the issuance of this license in the amounts 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.
Section 6. Assignments and Transfers
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 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).
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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 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 District
Manager, California Desert District, or 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
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by operations on the licensed lands and improvements thereon, whether
or not the improvements are owned by the United States.
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 CFR 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 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
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Licensee will retain such certifications in Licensee's files; and that Licensee
will forward the following notice 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. Stipulation
Affixed hereto as Exhibit "A".
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THE UNITED STATES OF AMERICA
By /s/ Fred O'Ferrall
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Chief, Leasable Minerals Section
Branch of Adjudication and Records
Date Mar 8 1989
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WITNESS TO SIGNATURE OF LICENSEE Coso Energy Developers,
a California General Partnership
/s/ Jeannette M. Dutil By Coso Hotsprings Intermountain
---------------------- Power, Inc.
a Delaware Corporation
Managing Partner
_____________________________________ By /s/ Richard A. Nishkian
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Signature of Licensee
Richard A. Nishkian
Chief Financial Officer
________________________________________________________________________________
________________________________________________________________________________
If this license is executed by a corporation, it must bear the corporate seal.
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