of such roads suitable for Permittee's purposes be approved in writing by the Superintendent. Permittee shall have the right to limit use by other of any such roads to comply with reasonable safety measures. No part of any road or roads shall by reason of Permittee's use, inure to the benefit of the public, and the public shall obtain no rights thereon, but upon termination of this permit for any cause whatsoever or, if at any time it shall become unnecessary for Permittee to use any such road for conducting the operations authorized under this permit or subsequent lease, the right to use said road shall thereupon cease and all the rights shall revest in Permitter in accordance with law. Permittee shall hold Permitter and the United States harmless and indemnify them against any and all loss or damage that might result from the construction or maintenance by Permittee of said roads in a negligent manner. (m) Rights-of-way.—Application for rights-of-way shall be made by Permittee pursuant to the requirements of 25 CFR 161. Permittee shall have the right free of charge to install on the premises power and water lines which may be removed by the Permittee on termination of this permit. (n) Water Wells.—Permittee may, at its own expense, drill and equip water wells on the land and agrees at the termination of this permit, by expiration of its term or otherwise, all such wells (as distinguished from wells from products as herein defined) be left intact and properly cased. Permittee may remove all mechanical pumping equipment installed by Permittee at any wells. If any of said water wells shall produce water surplus to the needs of Permittee, said water shall be available, at or adjacent to the well site, to Permitter or its members in a manner consistent with Permittee's operations. In addition, no use of water by Permittee shall be authorized which conflicts with existing water rights or which unreasonably interferes with the use of water by Permitter or its members. (0) Indian Labor.-Permittee shall employ Indians, giving priority to Permitter and other members of its Tribe in all positions for which they are qualified and available and shall pay the prevailing wage rates for similar services in the area. The Permittee shall do everything practicable to employ qualified Indians, giving priority to members of Permitter's Tribe and its equipment in all hauling of materials under this permit, insofar as Permittee does not use its own equipment for that purpose, at competitive rates. Permittee agrees to make special efforts to work Indians giving priority to members of Permitter's Tribe into skilled, technical, and other higher jobs in connection with the Permittee's operations under this permit. However, it is recognized that exploration and prospecting work requires the services of technically-trained geologists, engineers, physicists and skilled workers, and, to a large extent, mobile units and organizations. (p) Assignment.-Permittee agrees not to assign the permit or any interest therein by an operating agreement or an agreement for payment of overriding royalty or otherwise, nor to sublet any portion of the permitted premises, except with the approval of Permitter and of the Secretary of the Interior or his authorized representative, which shall not be unreasonably withheld. (q) Surrender and Termination.-Permittee may in writing surrender this permit at any time upon the performance of all the Permittee's obligations then accrued hereunder; upon the payment (if applicable at time of surrender) of any unexpended balance of the amount agreed by Permittee to be expended for prospecting, exploration and development work in paragraph 2(d) hereof; and upon a showing satisfactory to the Secretary of the Interior or his authorized representative, that full provision has been made for the conservation and protection of the property. Upon such surrender and compliance with the terms hereof, Permittee's bond and the surety thereon shall be suitably exonerated. If this permit has been recorded, Permittee shall file a recorded release with its application for surrender. (r) Reports.—Permittee shall furnish the Superintendent and Permittter detailed and complete written reports of the prospecting, exploring and developing done, and all available information concerning the nature and value of products as herein defined, as follows: (1) As to areas for which an application for a lease is filed, Permittee shall furnish this information with the application for the lease. (2) As to areas for which an application for a lease is not filed, Permittee shall furnish this information within thirty (30) days after this permit is terminated or lands are surrendered thereunder. (s) Bond.-Before this permit becomes effective Permittee shall furnish to Superintendent an acceptable surety bond in the amound of Twenty Thousand Dollars ($20,000.00). (t) Cancellation and Forfeiture. When in the opinion of the Secretary of the Interior of his authorized representative, there has been a violation of any of the terms and conditions of this permit, or the applicable regulations, the Secretary or his authorized representative may at any time after thirty (30) days' notice to Permittee, specifying the violations, and after a hearing if Permittee shall so request within thirty (30) days of receipt of notice, declare this permit void. (u) Definition of Products. The term "products", as used herein, means hot water, steam, by-products thereof, and steam condensates produced, derived or obtained from the lands covered hereby for generation of electrical or other power. (v) Special Conditions.-This prospecting permit is exclusive to Permittee for all products as defined herein, as it is recognized that much time and expenditure of substantial amounts of money and effort are necessary in order to properly and systematically prospect, explore and develop the properties, in which Permittee should be protected if valuable reserves are found. No other permit or right shall be given to anyone else on any unsurrendered portion of the lands covered by this permit as to the products covered hereby so long as this permit is in effect or on lands which may be covered by a lease or leases given pursuant hereto so long as such lease or leases are in force or effect. At the end of the term of this permit, Permittee shall release all of the remaining lands embraced under this permit, except lands already leased or for which lease applications have been filed. (w) Insurance.-Permittee agrees to carry insurance covering all persons working for Permittee in, on, or in connection with the property covered by this permit as will fully comply with the provisions of the statutes of the State of Nevada, covering workmen's compensation and occupational disease, as are now in force or as they hereafter be changed or amended. Further, Permittee agrees to comply with all of the terms and provisions of all applicable laws of the State of Nevada and of the United States as now exist or as hereafter be changed or amended. Further, Permittee agrees to comply with all of the terms and provisions of all applicable laws of the State of Nevada and of the United States as now exist or as hereafter amended, pertaining to social security, unemployment compensation, wages, hours and conditions of labor, and to indemnify and hold Permitter and the United States harmless from payment of any damages occasioned by Permittee's failure to comply with said laws. Permittee shall pay all taxes lawfully assessed against its property interests or operations hereunder. (x) Interest of Governmental Employee.-No permit, lease, assignment thereof, or interest therein, will be approved to any employee or employees of the United States, whether connected with the Indian Service or otherwise, and no employee of the Interior Department shall be permitted to acquire any interest in any mineral lease covering restricted Indian lands by ownership of stock in corporations having such leases or in any other manner. (y) Federal Trust Responsibilities.—Nothing contained in this permit shall operate to delay or prevent a termination of Federal Trust responsibilities with respect to the land during the term of this permit; however, such termination shall not serve to abrogate this permit or any leases thereunder. In the event of such termination, all powers, duties or other functions of the Secretary of the Interior or his authorized representative shall terminate, and the responsibility for enforcing compliance with the covenants of this permit shall be assumed by Permitter, its successor or assigns. In Witness Whereof, the said parties have caused this instrument to be duly executed on the day and year first above mentioned. PYRAMID LAKE PAIUTE INDIAN TRIBE, By LAWRENCE B. WILLIAMS STATE OF NEVADA, COUNTY OF WASHOE Before me, a notary publie, on this 2d day of February, 1962 personally appeared Lawrence A. Williams and Flora Smith to me known to be the identical persons who executed the within and foregoing permit, and acknowledged to me that they executed the same in their official capacity as Chairmen of the Pyramid Lake Paiute Tribe as its free and voluntary act and deed for the uses and purposes therein set forth. [SEAL] My commission expires: March 11, 1966. STATE OF NEVADA, COUNTY OF WASHOE ROBERT LELAND, Notary Public. On this 2d day of February, 1962, before me personally came Phillip D. Daires known to me, who being duly sworn, did depose and say that he is Vice-President of Western Geothermal, Inc., the corporation described in and who executed the above instrument; that he knows that seal of said corporation; that it was so affixed by authority conferred by said corporation, and that he signed his name thereto by like authority. [SEAL] KENNETH P. DILLON, Notary Public in and for the said County and State. My commission expires: September 22, 1962. The Bureau of Indian Affairs of the Department of the Interior has reviewed the foregoing prospecting permit and has no objection to it. U.S. DEPARTMENT OF THE INTERIOR, BUREAU OF INDIAN AFFAIRS [Nevada Indian Agency, Stewart, Nevada] AMENDMENT TO PROSPECTING PERMIT (STEAM AND HOT WATER) This Amendment, made and entered into this 3rd day of August, 1962, by and between the Pyramid Lake Paiute Tribe, party of the first part, hereinafter called Permitter, whose address is Nixon, Nevada, and Western Geothermal, Inc., a Nevada corporation, party of the second part, hereinafter called Permittee, whose address is c/o Vargas, Dillon & Bartlett, 195 South Sierra Street, Reno, Nevada. Whereas, Permitter and Permittee under date of February 2, 1962, entered into a Prospecting Permit (steam and hot water) which incorporated therein as Exhiibt B, a form of steam and hot water Lease, said Permit requiring the approval of the Secretary of the Interior; and Whereas, the need has been indicated for certain modifications therein and in said Exhibit B thereto, to conform the same to the provisions of 25 U.S. Code, Sec. 415, and 25 Code of Federal Regulations, Part 131, relating to surface leases; and Whereas, the parties hereto desire by this Amendment to effect the required modifications; Now therefore, for the considerations expressed in the above-referenced Permit, it is agreed by and between the parties hereto as follows: 1. The first sentence of Paragraph 2(c) of the Permit, page 3, entitled Preference is modified to read as follows: "(c) Preference.-Permittee may at any time during the term of this permit obtain a lease or leases, each of which shall cover not less than ten (10) acres nor more than 2,560 acres of lands embraced in this permit, covering the exclusive right therein for extraction, refinement, other processing, removal and use of products as defined herein, subject to valid rights therein for other purposes, and nonexclusive use of surface areas reasonably required for convenient operations under such lease or leases (including, but not by way of limitation, power plant sites, roads and utility rights of way), for a term of twenty-five (25) years with, at the option of Lessee, a renewal for an additional term of twenty-five (25) years." 2. Paragraph II of the Lease entitled Term, page 2, is modified to read as follows: "II. Term.-Subject to the other provisions herein contained, this Lease is for a term of 25 years from the date of its approval with, at the option of Lessee, a renewal for an additional term of twenty-five (25) years." 3. Paragraph III (1) of the Lease, entitled Royalty, pages 2 and 3, is modified to read as follows: "III. Definition.-Superintendent refers to the official in charge of the Nevada Indian Agency, Stewart, Nevada. "In consideration of the foregoing, the Lessee agrees: "(1) Royalty.-To pay, or cause to be paid, to the Superintendent for the use and benefit of lessor, a royalty as follows: Twelve and one-half (12%) percent of the gross proceeds from the sale or other disposition of products (including by-products) derived or obtained from the leased land less cost of delivery if delivery is not made on the leased land, as supported by metering records and books of account which shall be maintained in accordance with usual industry practice, and which shall be available for reasonable inspection by lessor or any of its authorized agents. The sales price of products hereunder shall be not less than fair market value of such products. Lessee shall have the right to co-mingle, for the purpose of utilizing, selling or processing the produtcs produced from the leased land with products produced from other lands, and to meter or gauge the production from the leased land and to compute and pay lessor royalty on the basis of such production as so determined. Lessee shall not be required to account to lessor for or to pay any royalty on products produced by lessee on the leased land which are not utilized, saved or sold, or which are used by lessee in producing products hereunder. All royalty accruing for any month shall be due and payable before the twenty-fifth (25th) day of the following month, each payment to be accompanied by a supporting statement of gross receipts and metering records." 4. Paragraph III (14) of the Lease entitled Relinquishment of supervision by the Secretary of the Interior is modified as follows: “(14) Relinquishment of Supervision by the Secretary of the Interior.— Nothing contained in this lease shall operate to delay or prevent a termination of Federal trust responsibilities with respect to the land by the issuance of a fee patent or otherwise during the term of the lease; however, such termination shall not serve to abrogate the lease. The owners of the land and the lessee and his surety or sureties shall be notified by the Secretary of the Interior of any such change in the status of the land. After notice of relinquishment has been received by lessee, this lease is subject to the following further conditions: "(a) All rentals and royalties accruing shall be paid directly to lessor or its successors in title. “(b) If at the time supervision is relinquished by the Secretary of the Interior as to all lands under this lease, and lessee has made all payments due under the lease and has fully performed all obligations on its part to be performed up to the time of such reliqnuishment, then the bond given to secure the performance of the lease and on file in the Indian Office shall be of no further force or effect and shall, upon request, be suitably exonerated, and lessor shall have the right to demand an appropirate bond in lieu thereof." 5. The following provisions shall be added to the lease and shall be designated as Paragraph III (24) and Paragraph III (25) respectively: "(24) Violations of lease.-It is understood and agreed that violations of this lease shall be acted upon in accordance with the regulations in 25 C.F.R., Part 131. The lessee agrees that it will not use or cause to be used any part of the leased premises for any unlawful conduct or purpose." “(25) Upon Whom Binding.-It is understood and agreed that the covenants and agreements hereinbefore mentioned shall extend to and be binding upon the heirs, assigns, successors, executors and administrators of the parties to this lease. While the leased premises are in trust or restricted status, all of the lessee's obligations under this lease, and the obligations of its sureties are to the United States as well as to the owner of the land." In witness whereof, the said parties have caused this instrument to be duly executed on the day and year first above mentioned. STATE OF NEVADA, COUNTY OF WASHOE Before me, a notary public, on this 3rd day of August, 1962, personally appeared Lawrence B. Williams and Flora Smith of Nixon, Nevada, to me known to be the identical person who executed the within and foregoing document, and acknowledged to me that he executed the same in his official capacity as Chairman of the Pyramid Lake Paiute Tribe as its free and voluntary act and deed for the uses and purposes therein set forth. [SEAL] My commission expires: March 11, 1966. ROBERT LELAND, STATE OF CALIFORNIA, COUNTY OF SAN FRANCISCO On this 25th day of July, 1962, before me personally came Ralph K. Davies known to me, who being duly sworn, did depose and say that he is President of WESTERN GEOTHERMAL, INC., the corporation described in and who executed the above instrument; that he knows the seal of said corporation; that it was so affixed by authority conferred by said corporation and that he signed his name thereto by like authority. JOSEPHINE L. BUCKLEY. Notary Public in and for said County and State. The Bureau of Indian Affairs of the Department of the Interior has reviewed the foregoing amendment to prospecting permit and has no objection to it. EVANS, KITCHEL & JENCKES, MR. BOYD L. RASMUSSEN, Director, DEAR SIR: On behalf of Phelps Dodge Corporation we hereby object to and protest the temporary segregation and subsequent withdrawal of public and acquired lands from entry, exploration, discovery, location, occupation, and purchase under the mining laws of the United States applicable to metalliferous minerals, which are valuable or potentially valuable for geothermal resources, under the revised notice of proposed withdrawal and reservations of lands dated March 21, 1967, and published in the Federal Register, Vol. 32, No. 57, pages 4506 and 4507, on Friday, March 24, 1967. With respect to the lands described therein, the revised notice does not conform to several of the requirements of the regulations set forth in 43 C.F.R. 2311.1-1 relating to the filing of applications, and their contents. Subsection (b) (4) requires a statement of the gross acreage within the exterior boundaries of the requested withdrawal or reservation, and net public land, water, or public land and water acreage covered by the application. Subsection (b) (7) requires a statement of the estimated period during which the proposed withdrawal or reservation will remain in effect. Subsection (b) (11) requires the citation of the statutory or other authority for the type of withdrawal or reservation requested. These requirements were formally adopted and promulgated by the Bureau of Land Management, and should control its actions. They properly and reasonably provide for the protection of the public and the metalliferous minerals industry, which is so vital to the economy of the United States. The provisions of the revised notice result in a failure to give proper notice to the public and the metalliferous minerals industry of the duration of the proposed withdrawals, the specific descriptions of the lands affected, and the authority under which the proposed withdrawal would be made. This last point is of particular importance because of the many statutes, executive orders, secretary's orders, and regulations applicable to public lands, some of which are inconsistent or in conflict with others. With respect to the public and acquired lands not described in the notice, the revised notice is objectionable because of the following provisions: "Lands which in the future are determined to be potentially valuable for geothermal resource development will be deemed to be temporarily segregated as of the time a notation is made on the tract books that the lands have been classified as potentially valuable for geothermal resource development by the |
