PRP.10.3.020 Mandatory Lease Provisions

Every lease shall:

(a) Describe the land being leased with a description of sufficient detail to meet the recording requirements of the Land Titles and Records Office;

(b) State the parties to the lease;

(d) State the effective date of the lease;

(e) State the purpose of the lease and authorized uses of the leased premises (i.e., agricultural, business, governmental, recreational, residential, WEEL or wind and solar resource purposes);

(f) State how much rent is due;

(g) State when rent is due;

(h) State who receives rent and the place of payment;

(i) State what form of payment is acceptable;

(j) State whether any late payment charges or special fees apply, including the rate of interest to be charged if the lessee fails to make timely payments;

(k) If lease payments are to be made directly to the Tribe, the Lease shall state that the tribe shall maintain documentation of the Lease payments that are sufficient to enable the Secretary to discharge the trust responsibility to the United States.

(l) State whether lessee is required to pay any additional fees, taxes, and assessments associated with the use of the Leased premises.

(m) State the following: "If the leased premises are within an Indian irrigation project or drainage district, except as provided by 25 CFR 171, the lessee shall pay all operation and maintenance charges that accrue during the lease term. The lessee shall pay these amounts to the appropriate office in charge of the irrigation project or drainage district.";

(n) State whether any due diligence requirements apply;

(o) State whether a performance bond is required and the form of bond that is acceptable;

(p) State any insurance requirements;

(q) Address whether permanent improvements may be constructed; the general type of improvements authorized and whether plans of development or construction schedules are required; address ownership of improvements; identify the party or parties responsible for constructing, operating, maintaining, and managing improvements during the lease term; and address removal of improvements;

(r) State the rights to inspection of property and records;

(s) State any mitigation measures or reclamation and restoration plan required as a result of the environmental review process;

(t) State whether there shall be rental reviews or adjustments, how and when they shall be done, who shall make them, when any adjustments shall be effective, and how disputes regarding adjustments shall be resolved;

(u) State whether livestock may be kept on the land (if the lease is for residential or recreational purposes, the lease shall state that no livestock may be kept on the land);

(v) State that the lessee shall not encroach onto neighboring property and that ongoing trespass onto neighboring property shall be grounds for cancellation of the lease;

(w) State that the lessee holds the United States and the Tribe harmless from any loss, liability, or damages resulting from the lessee's use or occupation of the leased premises;

(x) State that the lessee indemnifies the United States and the Tribe against all liabilities or costs relating to the use, handling, treatment, removal, storage, transportation, or disposal of hazardous materials, or the release or discharge of any hazardous material from the leased premises that occurs during the lease term, regardless of fault, with the exception that the lessee is not required to indemnify the Tribe for liability or cost arising from the Tribe's negligence or willful misconduct.

(y) State that if historic properties, archeological resources, human remains, or other cultural items not previously reported are encountered during the course of any activity associated with this lease, all activity in the immediate vicinity of the properties, resources, remains, or items shall cease, and the lessee shall contact BIA and the Tribe with jurisdiction over the land to determine how to proceed and appropriate disposition;

(z) State the governing law, which may include this Code, the Tribe's laws and applicable federal statutes and regulations; and list other laws and ordinances applicable to the lease;

(aa) State that the lease is subject to cancellation in accordance with the enforcement procedures contained in Subchapter PRP.10.5;

(bb) State any other negotiated remedies for lease cancellation or termination;

(cc) State the process for Amendment, which shall be in writing signed by both parties, and with the consent of any mortgagee; and

(dd) State the respective addresses at which the lessee and the lessor respectively agree to accept all notifications, including any required service of process, relating to the lease and the process by which the parties can update such addresses if needed.