RESTRICTIVE COVENANT (ASH LANDFILL RESTRICTION) BETWEEN THE NAVAJO NATION AND THE SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT

Transcription

1 Page 1 f 17 When recrded, return t: Salt River Prject Attentin: Legal Services Mail Statin PAB4TA P.. Bx Phenix, Arizna RESTRCTVE CVENANT (ASH LANDFLL RESTRCTN) BETWEEN THE NAVAJ NATN AND THE SALT RVER PRJECT AGRCULTURAL MPRVEMENT AND PWER DSTRCT ARZNA PUBLC SERVCE CMPANY TUCSN ELECTRC PWER CMPANY NEVADA PWER CMPANY d/b/a NV Energy DEPARTMENT F WATER AND PWER F CTY F LS ANGELES THS RESTRCTVE CVENANT (ASH LANDFLL RESTRCTN) ( Restrictin ) is made and entered int by and between THE NAVAJ NATN (r the Natin ) and SALT RVER PRJECT AGRCULTURAL MPRVEMENT AND PWER DSTRCT, ARZNA PUBLC SERVCE CMPANY, TUCSN ELECTRC PWER CMPANY, NEVADA PWER CMPANY d/b/a NV Energy AND THE DEPARTMENT F WATER AND PWER F CTY F LS ANGELES (hereinafter cllectively, tgether with their successrs and assigns, referred t as Lessees, and singly referred t as Lessee ) and is apprved by the Secretary f the nterir n this day f., The Natin and Lessees are hereinafter cllectively referred t as the Parties r individually as Party.

2 Page 2 f 17 RECTALS WHEREAS, the Natin and the Lessees are parties t that certain Extensin Lease f cntempraneus date herewith (the Lease ), fr which a Memrandum f Extensin Lease is recrded with the United States Department f the nterir Land Titles & Recrds ffice at dcument n. The Lease is fr an electrical generatin facility cmmnly knwn as the Navaj Generating Statin lcated in prtins f the Navaj Natin and Ccnin Cunty, Arizna (the Leased Premises ). WHEREAS, pursuant t the Lease, the Lessees will clse in place material n, in and under an Ash Dispsal Area lcated within a prtin f the Leased Premises. WHEREAS, the Natin has evidenced by Reslutin CJN dated June 29, 2017, apprved this Restrictin, which Restrictin is an exhibit t r is referenced in the freging Lease upn the terms and cnditins set frth in the Reslutin, and in cnsideratin fr the Lease, as the Natin deems t be in the best interests f the Natin. WHEREAS, the Lessees have applied r will apply fr the grant f rights-f-way and easements fr the Leased Premises, including the Ash Dispsal Area defined herein belw, frm the Secretary by ne r mre 323 Grants. The Natin has cnsented t said 323 Grants pursuant t Reslutin CJN-33-17, subject t the apprval f the terms and cnditins f each 323 Grant by the Natin. Thse rights-f-way and easements granted t the Lessees by the Secretary under each 323 Grant, including fr the Ash Dispsal Area, are intended t be and shall be additinal and supplementary t, separate and independent frm, and nt cnditined upn the leasehld rights leased t the Lessees under the Lease, including as t this Restrictin. WHEREAS, this Restrictin, when recrded with respect t the Leased Premises, is intended t cmply with the United States envirnmental regulatins 40 C.F.R (i), relating t a ntatin in the real prperty recrds regarding these Restrictins with respect t the clsure f cal cmbustin residual units ( CCR ), which is hw the Ash Landfill has been and is being used, and 40 C.F.R (d)(iii), with respect t the existence f these pst-clsure restrictins n the Ash Landfill and ther prtins f the Leased Premises as nted herein. WHEREAS, the United States Department f the nterir, Bureau f ndian Affairs is apprving this Restrictin pursuant t its authrity granted in 25 U.S.C. 84. NW THEREFRE, the Natin and Lessees desire t enter int this Restrictin. 1. DEFNTNS. (A) (B) Ash Dispsal Area means that prtin f the Leased Premises legally described n Exhibit A heret. Ash Landfill means that prtin f land n the Ash Dispsal Area that cntains the cal cmbustin residuals frm peratin f the Navaj Generating Statin described n Exhibit A heret.

3 Page 3 f 17 (C) (D) (E) (F) (G) Ash Landfill Restrictin means the restrictins, servitudes and prhibitins created by this Restrictin. Effective Date means the date that the Secretary has apprved this Restrictin, which shall be inserted n page ne f this Restrictin. Lease Term means the 35-year term f the Lease as t the Ash Dispsal Area, which shall expire n December 22, Secretary means the Secretary f the nterir r his r her authrized representative r such persn r agency as he r she may expressly designate t perfrm the functins specified in this Restrictin t be perfrmed by the Secretary r such Federal agency as may succeed t the duties f the Secretary under the Lease and this Restrictin. 323 Grants means, singularly r cllectively, ne r mre grants f rights-fway and easements under the Act f February 5, 1948 (62 Stat. 17, 18, 25 U.S.C ), the Act f March 3, 1879 (20 Stat. 394, 5 U.S.C. 485), as amended, and the Acts f July 9, 1832, and July 27, 1868 (4 Stat. 564, 15 Stat. 228, 25 U.S.C. 2), and such current regulatins prmulgated thereunder as are applicable, including 25 C.F.R. 1.2 and Part 169, t Lessees. Ash, cal ash, cal cmbustin residuals and CCR when used in this Restrictin are synnymus terms. 2. ASH DSPSAL AREA RESTRCTN. (A) (B) (C) (D) There is hereby impsed upn the Ash Landfill in perpetuity a restrictin, servitude, prhibitin, burden and cvenant running with the land as fllws: The Ash Landfill is restricted by any and all use, ccupancy, develpment and ther similar and related restrictins and limits impsed by 40 C.F.R. Title 40, Part 257; (d), (i) and (j) and all successr federal regulatins theret. n accrdance with the Lease, but withut limitatin as t the Lease Term, Lessees shall have the right t place fencing, signage and ther barriers and ntices they deem necessary t cmply with the restrictins and requirements in Sectin 2(A) until Lessees have ntified the Natin in writing that Lessees are relinquishing the authrity t place fencing, signage and barriers n the Ash Landfill. Signage and ntices shall be psted in bth English and Navaj. Use f the Ash Dispsal Area shall nt disturb the integrity f the final cver, liner(s), r any ther cmpnent f the cntainment system, r the functin f the mnitring systems. N ther disturbance t the Ash Landfill shall be allwed unless it is first demnstrated t the satisfactin f the Lessees that disturbance f the final cver, liner, r ther cmpnent f the cntainment system, including any remval f CCR, will nt increase the ptential threat t human health r the envirnment. The

4 Page 4 f 17 demnstratin must be certified by a qualified prfessinal engineer, and Lessees shall prvide ntificatin t the Executive Directr f The Navaj Natin Envirnmental Prtectin Agency that the demnstratin has been placed in the perating recrd and n the wners r peratr's publicly accessible nternet site, which after Surrender f the Ash Dispsal Area shall be the Natin. Upn written request by the Natin, the Representative (defined belw) hwever, shall maintain that website fr the Natin after Surrender. (E) N prtin f the surface f the Ash Landfill ther than designated and engineered strm water cntainment pnds apprved by a registered prfessinal engineer may be used fr surface water r ther liquid strage/retentin, r any activity r structure that may affect the landfill r material/sil lcated under the surface, including withut limitatin, any building r ther structure fr which the landfill as clsed is nt designed t supprt r which may puncture r impair any envirnmental prtectin system such as a lining r barrier. 3. PERPETUAL TERM. The term and effectiveness f the Ash Landfill Restrictin and the ther prvisins f this Restrictin shall be perpetual. Withut limitatin, this Restrictin shall remain in effect lnger than the Lease Term and shall survive the terminatin r extinguishment f the Lease r any 323 Grant. 4. NDEMNTY F LESSEES. (A) (B) (C) (D) All r prtins f the Ash Dispsal Area may be surrendered t the Natin prir t the end f the Lease Term. The Natin agrees t indemnify, hld harmless and defend Lessees frm and against any and all claims by third parties f damages, liabilities r expenses which any Lessee may incur, r t which any Lessee may be subjected, resulting frm the actins f the Natin, any plitical subdivisin, any tribal enterprise, tribal business, tribal crprate entity, r its tribal members r residents arising ut f r related t the Ash Dispsal Area after Surrender in accrdance with the Lease and any future imprvements placed theren cmmencing n the earlier f the Surrender f any prtin f the Ash Dispsal Area r the date the Lease Term ends. The Natin agrees t indemnify, hld harmless and defend Lessees frm and against any and all claims by third parties fr damages, liabilities r expenses which any Lessee may incur, r t which any Lessee may be subjected arising ut f r related in any manner t use f the Ash Dispsal Area by the Navaj Natin r, after Surrender f the Ash Dispsal Area third parties fr any purpse prhibited by Sectin 2. Expenses shall include, withut limitatin, any additinal remediatin csts impsed upn any Lessee by any gvernment entity r administrative r judicial actin r decisin. This indemnity shall survive in perpetuity and be effective ntwithstanding the terminatin r expiratin f the Lease r any 323 Grant.

5 Page 5 f 17 (E) Nthing in this Restrictin shall limit any indemnity rights amng the Parties set frth in the Lease. 5. ENFRCEMENT. (A) Prir t Surrender f the Ash Dispsal Area, and subject t the prvisins f Sectin 5(B) belw, the Lessees may enfrce this Restrictin in any manner prvided fr herein r by law r in equity, including, but nt limited t: (i) (ii) (iii) (iv) (v) T seek legal actin t prevent any persn's right t ccupy r use the Ash Landfill r any prtin theref in vilatin f this Restrictin; T take actin (including pursuant t any legal means) t abate any vilatin f this Restrictin; requiring any persn, at the persn's expense, t remve any structure r imprvement n the Ash Landfill in vilatin f this Restrictin and t restre that affected prtin f the Ash Landfill t its previus cnditin and, upn failure f that persn t d s, the Lessee(s) r its designee shall have the right t enter the prperty, remve the vilatin and restre the prperty t substantially the same cnditin as previusly existed and any such actin shall nt be deemed a trespass, s lng as the Lessee(s) secure written permissin frm the Divisin Directr f the Natin s Divisin f Natural Resurces (r any successr divisin) prir t taking that actin, which apprval shall nt be unreasnably withheld, cnditined r delayed; prhibiting thrugh any lawful means any persn wh fails t cmply with the terms and prvisins f this Restrictin frm cntinuing r perfrming any further activities in vilatin f Sectin 2 f this Restrictin; filing a suit at law r in equity t enjin a vilatin f this Restrictin, t cmpel cmpliance with this Restrictin, t recver mney damages r t btain ther relief as t which the Lessees may be entitled. (B) (C) All rights and remedies f Lessees under this Restrictin r at law r in equity are cumulative, and the exercise f ne right r remedy by Lessees shall nt waive Lessees' right t exercise anther right r remedy. Fr purpses f this Restrictive Cvenant, Lessees shall act as a grup thrugh a representative r cmmittee f representatives (the Representative ). Decisins and actins f the Representative shall be binding n the Lessees. Ntwithstanding the prvisins f Sectins 5(A) r this 5(B), the Lessees shall prvide the Natin with at least ninety (90) days advance ntice f the cmmencement f an actin pursuant t Sectin 5(A) (except in the case f an actin pursuant t Sectin 5(D), in which case n advance ntice need be given) and shall prvide the Natin with an pprtunity t cure the default r breach, whether by the Natin r any ther persn r entity. Fllwing Surrender f the Ash Dispsal Area t the Natin in accrdance with the Lease, the Natin shall use diligent effrts at the Natin s expense t assure

6 Page 6 f 17 cmpliance by it and any users r ccupants f the Leased Premises (whether invited r uninvited, temprary r permanent) with the prvisins f these Restrictins, including t exercise any f the remedies nted in this Sectin 5 against any users r ccupants. After Surrender f the Ash Dispsal Area, except as nted in Sectin 5(D) belw, befre the Lessees (acting thrugh the Representative) may exercise any rights r remedies nted in Sectin 5(A) abve, they must first prvide the Natin with a written ntice f the breach by the Natin r any ther persn r entity with these Restrictins, which ntice shall specify with particularity the nature f the alleged breach r failure. The Natin shall have ninety (90) days t cure the breach r failure r t cmmence cure. f the Natin cmmences the cure within that ninety (90) day perid, the Natin shall have as lng as is reasnably necessary t diligently cmplete that cure. f the Natin des nt cure the breach r failure in cmpliance with thse bligatins, Lessees may pursue all rights and remedies independently frm the Natin, in accrdance with the Sectin 18 f the Lease (ther Breaches and Defaults), which is herein incrprated int this Restrictin via Sectin 11 (ncrprated Prvisins), and any effrts f the Natin shall nt limit r preclude the rights f any Lessee hereunder r restrict its right f indemnificatin by the Natin r thers. (D) (E) The freging restrictins shall nt limit the right f Lessees t seek r undertake immediate legal actin t reslve any cnditin r situatin that pses an imminent threat t health, safety r the envirnment. After expiratin f the Lease Term, the Natin shall have exclusive right t enfrce the prvisins f this Restrictin except t the extent that applicable United States federal law requires cntinued enfrcement by the Lessees. 6. APPLCABLE LAW. (A) (B) Ntwithstanding any prvisin f the Navaj Natin Cde, any ther Navaj Natin law, r relevant federal, state r tribal case law precedent, any activities f the Lessees under this Restrictin shall be gverned exclusively by federal law r, if federal law des nt apply, the laws f the State f Arizna. Any and all matters r claims in dispute between the Parties t this Restrictin, whether arising frm r relating t this Restrictin, r arising frm alleged extracntractual facts prir t, during, r after the Effective Date, including, withut limitatin, fraud, misrepresentatin, negligence r any ther alleged trt r vilatin f the cntract, shall be gverned by, cnstrued, determined and enfrced exclusively in accrdance with federal law r, if federal law des nt apply, the laws f the State f Arizna, regardless f the legal thery upn which the matter is asserted and ntwithstanding any prvisin f the Navaj Natin Cde, any ther Navaj Natin law, r relevant federal, state r tribal case law precedent. Where federal law incrprates r applies the substantive law f the state in which the dispute r activities at issue ccurred r in which the federal curt is lcated, this Lease shuld be cnstrued and enfrced t require incrpratin f the laws f the State f Arizna.

7 Page 7 f 17 (C) This Sectin 6 shall survive any terminatin f the Lease r the expiratin f the Lease Term in perpetuity. 7. NAVAJ NATN AUTHRZATNS. (A) (B) As authrized by Reslutin CJN f the Navaj Natin Cuncil dated June 29, 2017, the Navaj Natin has apprved this Restrictin and is authrized t enter int this Restrictin, in its entirety. As authrized by Reslutin CJN f the Navaj Natin Cuncil dated June 29, 2017, and ntwithstanding any prvisin f the Navaj Natin Cde, any ther Navaj Natin law, r relevant federal, state r tribal case law precedent: (i) (ii) (iii) (iv) The Natin affirmatively waives the applicatin f the laws f the Navaj Natin, and agrees t the applicatin f federal law and, where federal law des nt apply, the laws f the State Arizna, as prvided in Sectin 6. The Natin affirmatively waives the jurisdictin f the Navaj Natin curts and agrees that: (1) the remedies set frth in Sectin 18 f Lease (and incrprated by reference herein in Sectin 9) are the exclusive remedies t address Disputes amng the Parties and claimed breaches f this Restrictin; and (2) the federal curts, and, where federal law des nt apply, the Arizna state curts, and n ther curts, shall have exclusive jurisdictin t cnsider and decide disputes r claimed breaches f this Restrictin, as prvided in Sectin 18 f the Lease. The Natin affirmatively waives and cnsents t the waiver f svereign immunity frm suit by the Lessees, as prvided in Sectin 8. The Natin affirmatively cvenants that it will nt, directly r indirectly, Regulate r attempt t Regulate the Lessees, as prvided in Sectin 26 f the Lease (Natin s Agreement nt t Regulate Lessees), as incrprated by reference int this Restrictin. (C) This Sectin 7 shall survive in perpetuity and be effective ntwithstanding the terminatin r expiratin f the Lease r any 323 Grant. 8. LMTED WAVER F SVEREGN MMUNTY. f any Party brings an actin as permitted in this Restrictin and names the Natin as a party in that actin: (1) the Natin may be jined in the actin; and (2) the Natin waives any claim t svereign immunity frm that actin. As used in this Sectin, the term actin includes the assertin f any claim, cunterclaim r crss-claim in any curt permitted by this Restrictin. This Sectin shall survive in perpetuity and be effective ntwithstanding the terminatin f the Lease r any 323 Grant. Prvided, hwever, this waiver by the Natin des nt extend t (1) any party ther than the Lessees r (2) third parties bringing claims against the Natin. 9. SUCCESSRS AND ASSGNS.

8 Page 8 f 17 This Ash Landfill Restrictin is a cvenant running with the land pursuant t 40 C.F.R (i) and as an equitable servitude fr the several benefit f each Lessee and their successrs and assigns. Each persn r party that presently has r in the future acquires any right, title r interest, whether legal, equitable r beneficial, in the Ash Dispsal Area, r any part theref, agrees t abide by all f the prvisins f this Restrictin. This Restrictin shall nt merge int the Lease, any 323 Grant r ther instrument r estate in the Ash Dispsal Area. The terms and cnditins cntained herein, including withut limitatin, the Natin s waiver f svereign immunity in Sectin 8, shall extend t and be binding upn the successrs, heirs, assigns, executrs, administratrs, sublessees (at any level), emplyees and agents f any Party. 10. RECRDATN. This Restrictin shall be recrded in the applicable public recrds set frth in Schedule 1 t this Restrictin. 11. NCRPRATED PRVSNS. The prvisins f Sectins 18 (ther Breaches and Defaults), except as nted in Sectin 5(D) abve, 26 (Natin s Agreement Nt T Regulate Lessees), 40 (Estppel Certificates), and 45 (Waiver f Jury Trial) f the Lease are incrprated int this Restrictin by this reference as if stated herein in full, and references in that incrprated language t the Lease shall mean this Restrictin, and references t a Lessee r a Party t the Lease shall mean the Lessees r Parties t this Restrictin, with ther cnfrming changes as are apprpriate, mutatis mutandis. 12. EXECUTN N CUNTERPARTS. This Restrictin may be executed in any number f cunterparts, and each executed cunterpart shall have the same frce and effect as an riginal instrument and as if all f the Parties t the aggregate cunterparts had signed the same instrument. Any signature page f this Restrictin may be detached frm any cunterpart theref withut impairing the legal effect f any signatures theren, and may be attached t ther cunterparts f this Restrictin identical in frm heret but having attached t it ne r mre additinal signature pages. 13. ESTPPEL CERTFCATES. During the riginal Lease Term n request f a Party heret each f the Parties shall deliver apprpriate estppel certificates t ne r mre ther Parties within frty-five (45) days f a written request. 14. RECTALS. The Recitals are incrprated int this Restrictin.

9 Page 9 f 17 Schedule 1 RECRDNG FFCES A duplicate riginal f this instrument shall be recrded r filed in the fllwing recrds and each Party shall execute and deliver, in recrdable frm, such further dcuments, supplements, certificatins and reslutins t cause the same t be recrded r renewed: US Department f the nterir, Land Titles and Recrds ffice Navaj Natin Land Department Administratin, GS Sectin Navaj Natin Envirnmental Prtectin Agency Ccnin Cunty Recrder, Arizna LeChee Chapter Albuquerque, New Mexic Windw Rck, Navaj Natin (Arizna) Windw Rck, Navaj Natin (Arizna) Flagstaff, Arizna LeChee, Arizna [EXECUTN PAGES FLLW]

10 Page 10 f 17 N WTNESS WHEREF, the Parties have caused this Restrictin t be executed as f the date first abve written. THE NAVAJ NATN By: Date: Russell Begaye, President Navaj Natin f STATE F ARZNA ) ) ss. Cunty f ) in. le freging instrument was acknwledged befre me this / day f,2017 by Russell Begaye, the President f the Navaj Natin, n behalf f the CARMEUTA TRACY Ntary Pubfc-State at Arizna APACHE CUNTY My Cmmissin Expires March 29,2019 Ntary Public d My cmmissin expires:

11 Page 11 f 17 N WTNESS WHEREF, the Parties have caused this Restrictin t be executed as f the date first abve written. ATTEST: LESSEES: ARZNA PUBLC SERVCE CMPANY 7 By:,/tLya- - David A, Hansen ts: Vice President, Fssil Generatin Date: L> J&<i jll STATE F ARZNA ) ) ss. Cunty f Maricpa ) The freging instrument was acknwledged befre me this jfy? ^-day f i " " > r, 2017 by David A. Hansen, the Vice President, Fssil Generatin f Arizna M lie Service Cmpany, an Arizna crpratin, n behalf f the cmpany. /A// 7^/ T -j7 p/ml. NWry Public My cmmissin expires: * KAREN MCLUGHLN < Ntary Public * Arizna r. 1 Maricpa Cunty My Cmm. Expires ct 15, 2018 i v #ii) p>i iiii fi <u w eu c *

12 Page 12 f 17 N WTNESS WHEREF, the Parties have caused this Restrictin t be executed as f the date first abve written. DEPARTMENT F WATER AND PWER F THE CTY F LS ANGELES BY BARD F WATER AND PWER CMMSSNERS By Title Date And: BARBARA E. MSCHS Bard Secretary CALFRNA ALL-PURPSE ACKNWLEDGMENT A ntary public r ther fficer cmpleting this certificate verifies nly the identity f the individual wh signed the dcument t which this certificate is attached, and nt the truthfulness, accuracy, r validity f that dcument State f Califrnia ) Cunty f ) n befre me, persnally appeared, wh prved t me n the basis f satisfactry evidence t be the persn(s) whse name(s) is/are subscribed t the within instrument and acknwledged t me that he/she/they executed the same in his/her/their authrized capacity(ies), and that by his/her/their signature(s) n the instrument the persn(s), r the entity upn behalf f which the persn(s) acted, executed the instrument. certify under PENALTY F PERJURY under the laws f the State f Califrnia that the freging paragraph is true and crrect. WTNESS my hand and fficial seal. Signature (Seal)

13 Pnge 13 f 17 N WTNESS WHEREF, the Parties have caused this Restrictin t be executed as f the date first abve written. ATTEST: NEVADA PWER CMPANY d/b/a NV Energy fcretary r Assistant Secretaiy By: Paul Caudill ts: President and Chief Executive fficer Date: STATE F NEVADA Cunty f naxgwiie ) ) ) ss. The freging instrument was acknwledged befre me this -7J\ day f ^pyg^, 2017 by Paul Caudill, the President and Chief Executive fficer f Nevada Pwer Cmpany d/b/a NV Energy, a Nevada crpratin, n behalf f the cmpany. Ntaiy Public My cmmissin expires: fa St.-7-*^ S&, LYNN D lnncent... llla/y pubkc - Slals l Nvada fi'fi-iv.'i Rttaiil n Wastes Caiy VsgjSX M: H-lpm-E>pliMUayg.aK

14 :':ye 14 f 17 N WTNESS WHEREF, the Parties have caused this Restrictin t be executed as f the date first abve written. ATTEST AND CUNTERSGNED: Secretary SALT RVER PRJECT AGRCULTURAL MPRVEMENT AND PWER DSTRCT By: Michael Hummel ts: Deputy General Manager Resurces & Finance Date: 6 STATE F ARZNA Cunty f Maricpa ) ) ss. ) The freging instrument was acknwledged befre me this ^ day f «2017 by Michael Hummel, the Deputy General Manager Resurces & Finance f the Salt River Prject Agricultural mprvement and Pwer District, n behalf f the district. My cmmissin expires: ' z. Nk* - Ntarwrublic ffiitts : KaiS t Vi 3ln/j ii SHAVAN Z. BENEDCT Mlaiy Public - Slate f Arizna PNAL CUNTY My Cmmissin Expires March 14,2019 SALT RVER PRJECT AGRCULTURAL MPRVEMENT AND PWER DSTRCT FR THE USE AND BENEFT F THE UNTED STATES ATTEST AND CUNTERSGNED: Secretary STATE F ARZNA Cunty f Maricpa ) ) ss. ) By: Michael Hummel ts: Deputy General Manager Resurces & Finance Date: The freging instrument was acknwledged befre me this day f 2017 by Michael Hummel, the Deputy General Manager Resurces & Finance f the Salt River Prject Agricultural mprvement and Pwer District, n behalf f the district. My cmmissin expires: Ntary Public

15 Page 15 f 17 N WTNESS WHEREF, the Parties have caused this Restrictin t be executed as f the date first abve written. ATTEST: TUCSN ELECTRC PWER CMPANY Witness By: Mark Mansfield ts: Vice President Energy Resurces Date: June 29,2017 STATE F ARZNA ) ) ss. Cunty f Pima ) The freging instrument was acknwledged befre me this 29th day f June, 2017 by Mark Mansfield, the Vice President Energy Resurces f Tucsn Electric Pwer Cmpany, an Arizna crpratin, n behalf f the cmpany. My cmmissin expires : iff Ntary Public 1 -^v ft ' < ' v ' v/1 DANA K, DURAK h Ntary Public-Arizna i 7 Pima Cunly My Cmm. Expires Sep 25, 2010 \

16 Page 16 f 17 RESTRCTVE CVENANT BETWEEN THE NAVAJ NATN AND THE SALT RVER PRJECT AGRCULTURAL MPRVEMENT AND PWER DSTRCT, ARZNA PUBLC SERVCE CMPANY, TUCSN ELECTRC PWER CMPANY, NEVADA PWER CMPANY, AND DEPARTMENT F WATER AND PWER F CTY F LS ANGELES UNTED STATES DEPARTMENT F THE NTERR Bureau f ndian Affairs THE WTHN RESTRCTVE CVENANT between THE NAVAJ NATN and THE SALT RVER PRJECT AGRCULTURAL MPRVEMENT AND PWER DSTRCT, ARZNA PUBLC SERVCE CMPANY, TUCSN ELECTRC PWER CMPANY, NEVADA PWER CMPANY, and DEPARTMENT F WATER AND PWER F CTY F LS ANGELES, fr lands f the Natin lcated within the frmal Navaj ndian Reservatin is hereby apprved pursuant t authrity delegated frm the Secretary f the interir t the Secretary f ndian Affairs by Directr Bureau f ndian Affairs Department f the nterir Date f Apprval STATE F ARZNA ) ) ss. CUNTY F ) The freging instrument was acknwledged befre me this day f, 2017, by., the authrized representative f the Secretary f the nterir, United States Department f the nterir, fr and n behalf theref. My Cmmissin Expires: Ntary Public

17 Page 17 f 17 Exhibit A Legal Descriptin f the Ash Dispsal Area and Ash Landfill (Ccnin Cunty, Arizna)

18 TJ EXTENSN LEASE - EXHBT E/RESTRCTVE CVENANT - EXHBT A NAVAJ GENERATNG STATN LANDS EXHBT "E ASH LANDFLL LAKE PWELL PRJECT CNTRL PNT NAD 83 (2007) 36 55' "N ' "W NGS CNTRL PNT "WEATHER" PD GP0073 THS PRJECT NAVAJ GENERATNG STATN ASH DSPSAL STE EXHBT "E" SEE SHEET 2 F 2 <5 C3 GLENN CANYN DAM & a PAGE S/ WESTERN / ^> / TRANSMSSN SYSTEM SUTHERN TRANSMSSN SYSTEM CP 'p is>. cft TWNSHP 37 NRTH % G TWNSHP 41 NRTH %. TWNSHP 40 NRTH TWNSHP 39 NRTH NAV. Ajq % % Cl TWNSHP 38 NRTH KABT PRJECT CNTRL PNT NAD 83 (2007) 36 47' "N ' "W ZLNEZ MESA >- Z >- Z> -? ^ J < CAL LADNG STATN > NEAR THE MNE % Z RANGE 16 EAST ZLNEZ MESA CMMUNCATN STE TWNSHP 39 NRTH PRJECT CNTRL PNT NAD 83 (2007) 36 47' "N ' "W NGS CNTRL STATN "TALL MTN MCRWAVE TWER' PD GP0648 KAYENTA ft? CAL CNVEYR FRM MNE T LADNG STATN A.<>> <b PEABDY WESTERN CAL CMPANY LEASED LANDS ENGNEER'S AFFDAVT STATE F ARZNA ) ) SS. CUNTY F MARCPA ) STAN DCKEY, BENG DULY SWRN, STATES THAT HE S A REGSTERED LAND SURVEYR; THAT HE MADE THE SURVEY F A PRPSED RGHT-F-WAY AS DESCRBED AND SHWN N THS MAP, T BE GRANTED T HEREN AFTER DESGNATED THE "APPLCANT"; THAT SURVEY F SUCH RGHT-F-WAY WAS MADE UNDER HS SUPERVSN AND UNDER APPLCANT'S AUTHRTY, CMMENCNG JUNE, 2011 AND ENDNG CTBER, 2011; THAT SUCH SURVEY S ACCURATELY REPRESENTED N THS MAP. ARZNA SURVEYRS CERTFCATE, STAN DCKEY ARZNA REGSTERED SURVEYR N , D HEREBY CERTFY THAT THS SURVEY PLAT AND THE ACTUAL SURVEY N THE GRUND AND FELD NTES UPN WHCH T S BASED WERE PERFRMED BY ME R UNDER MY DRECT SUPERVSN DURNG THE MNTHS F JUNE 2011 T CTBER 2011 AND THAT T S TRUE AND CRRECT T THE BEST F MY KNWLEDGE AND BELEF. 6, tp 4* RALRAD PATH j BLACK MESA AND LAKE PWELL RALRAD TWNSHP 36 NRTH ' 1 RANGE 6 EAST PRJECT CNTRL PNT NAD 83 (2007) 36 22' "N ' "W NGS CNTRL STATN "PRESTN" PD GP0586 MENKP SWTCHYARD MENKP-EL-DRAD TRANSMSSN LNE i TWNSHP 33 1/2 NRTH TWNSHP 33 NRTH TWNSHP 32 NRTH SUTHERN TRANSMSSN SYSTEM NAVAJ NATN BUNDARY J RANGE 7 EAST L RANGE 8 EAST CAMERN Sj Qd.Q C -3r TWNSHP 35 NRTH TWNSHP 34 NRTH TUBA CTY TWNSHP 31 NRTH TWNSHP 30 NRTH TWNSHP 29 NRTH TWNSHP 28 NRTH V i \ TWNSHP 27 NRTH - j RANGE 9 EAST \ RANGE 10 EAST \ ) PRESTN MESA CMMUNCATN STE RANGE 11 EAST MENKP NAVAJ NATN BUNDARY RANGE 12 EAST 0 FT FT FT FT PRJECT CNTRL PNT NAD 83 (2007) 31 51' "N RANGE /2 EAST ' "W NGS CNTRL PNT C 510" PD FQ0508 cp <2 RANGE 13 EAST Z *? RANGE 14 EAST RANGE 15 EAST RANGE 16 EAST PRJECT CNTRL NAD 83 (2007) 36 26' "N ' "W CP RANGE 17 EAST - PRJECT CNTRL PNT NAD 83 (2007) 36 32' "N ' "W NGS CNTRL PNT "CAL MNE" PD GP0632 PRJECT CNTRL PNT NAD 83 (2007) 36 3T "N ' "W NGS CNTRL PNT "DEVL" PD GP0632 RANGE 18 EAST STAN DCKEY RLS#32224 EXPRES 3/31/16 SUBSCRBED AND SWRN BEFRE ME THS 20 NTARYPUBLC APPLCANTS AFFDAVT STATE F ARZNA ) ) SS. CUNTY F MARCPA ), DAY F, HEREBY CERTFY THAT AM THE PRESDENT F HEREN AFTER CALLED THE "APPLCANT": THAT STAN DCKEY SUBSCRBED THE FREGNG AFFDAVT WH ARE EMPLYED AS THE ENGNEERS BY THE APPLCANT; THAT THE SURVEY F THE RGHT-F-WAY S ACCURATELY REPRESENTED N THE ACCMPANYNG MAP AND WAS ADPTED BY THE APPLCANT N THE DAY F LCATN F THE LNE AND THAT THE MAP HAS BEEN PREPARED T BE FLED FR THE APPRVAL F THE BUREAU F NDAN AFFARS. SUBSCRBED AND SWRN BEFRE ME THS 20 NTARYPUBLC DAY F AS THE DEFNTE cj) Lfi.N. 9 & % r STAN DCKEY P M Y FR NT, REGSTRATN EXPRES: P USE NLY SURVEY DVSN E)\MF LAND DEPARTMENT REVSN: 0 JB NUMBER: P SCALE: 1 "=30000' DRAWNG SZE: 24x36 CUSTMER: B. DRST DEPARTMENT: BASELAD GEN CHK'D BY: D.S.D. SHEET: 1 F 2 FLE: P NGSL-323-EXHBT-E DWG FELD DATE: JUNE 2011 CREW CHEF: J.M./E.G. CMPL. DATE: 05/20/2017 EXHBT "E EXHBT "E" ASH LANDFLL NAVAJ GENERATNG STATN LANDS V/N SVY TECH: C.V.F. FNAL NSPECTN / SSUE DATE:

19 EXTENSN LEASE - EXHBT E/RESTRCTVE CVENANT - EXHBT A a SURVEYRS NTES: ABBREVATNS LEGEND (TYPCAL) SECTN T.# R.# TWNSHP# RANGE# G.& S.R.M. C/L R/W W.C. (R) (C) BLM NGS FND LS RLS GLA & SALT RVER MERDAN CENTERLNE RGHT F WAY WTNESS CRNER RECRD DATA CALCULATED DATA BUREAU F LAND MANAGEMENT NATNAL GEDETC SURVEY FUND LAND SURVEYR REGSTERED LAND SURVEYR SYMBL/LNE LEGEND 4 FND BLM BRASS CAP AS NTED FND BRASS CAP AS NTED SET BRASS STAMPED LS 32224" (SEE NTE 8) PSTNAL SECTN CRNER (CRDNATE ESTABLSHED FRM BLM WTNESS CRNERS PER FLED PLAT) < >DGTZED SECTN CRNER T11013 (CRDNATE DGTZED FRM U.S.C. & G.S 1: MAPS) FENCE BARB WRE FENCE CHAN LNK TE T SECTN CRNER \ CNTRLNG MNUMENTS RGHT F WAY BUNDARY LNE ASH LANDFLL LMTS SECTN LNE PRTRACTED \ UNSURVEYED SECTN LNE DGTZED FRM U.S.C. & G.S 1: MAPS NAVAJ TRBAL TRACT 1) BASS F BEARNGS S THE ARZNA STATE PLANE CRDNATE SYSTEM, CENTRAL ZNE (0202) WTH GEDETC RECKNNG PERFRMED UTLZNG REAL TME KNEMATC (RTK) GLBAL PSTNNG SYSTEM (GPS) METHDS RGNATNG FRM NGS CNTRL STATN "WEATHER" (PD GP0073). 2) DSTANCES (UNLESS THERWSE NTED) ARE GRD DSTANCES DERVED FRM RTK GPS MEASUREMENTS. NGS CNTRL STATN "WEATHER" HAS A PUBLSHED CMBNED FACTR (GRUND T GRD) F ) THS SURVEY WAS CNDUCTED N THE ARZNA STATE PLANE CRDNATE SYSTEM, T PTMZE THE RELATVE PSTNNG F THE LCATED FACLTES AND FUND CRNERS. CARE HAS BEEN TAKEN T PRDUCE GRUND (SURFACE) AREAS. A GRD T GRUND SCALE FACTR F WAS USED T DERVE THE GRUND (SURFACE) ACREAGES FR NEW EASEMENTS N THS THS AREA. GRD ACREAGES WERE MULTPLED BY THE GRD T GRUND SCALE FACTR SQUARED ( ) T PRDUCE GRUND (SURFACE) ACREAGES. 4) FELD SURVEY FR THS PRJECT WAS PERFRMED JUNE F 2011, AND MAY F ) DSTANCES NTED AS (R) ARE GRUND DSTANCES. DSTANCES AND BEARNGS NTED AS AS (R) ARE TAKEN FRM THE NAVAJ GENERATNG STATN PRJECT 323 GRANT RECRDED FEBRUARY 24,1970 N DCKET 352, PAGES , F THE CCNN CUNTY RECRDERS FFCE, CCNN CUNTY, ARZNA. SAD 323 GRANT S ALS RECRDED FEBRUARY 16,1970 N DCKET 317, PAGES , F THE NAVAJ CUNTY RECRDERS FFCE, NAVAJ CUNTY, ARZNA. 6) MNUMENTS FUND DURNG THS FELD SURVEY ARE ACCEPTED UNLESS THERWSE NTED HEREN. FUND MNUMUMENT CHARACTERSTCS AND THE THER REASNABLE LCATN WERE N AGREEMENT WTH AN UNRECRDED BUNDARY SURVEY AND CRDNATE MAP (DRAWNG # A-665-9) BY EARLE V. MLLER PERFRMED FR SALT RVER PRJECT N CTBER F 1969 AND BLM PLATS 1344-AA FLED 7/7/2000,1336-E FLED 7/14/ ) THE PURPSE F THS DRAWNG S T UTLNE CURRENT LMTS / CNDTNS F THE NAVAJ GENERATN STATN AND APURTENANT FACLTES, AND T DELNEATE NEW EASEMENTS (UPN PRPER APPLCATN AND APPRVAL) FR THE AREA AND FACLTES UTLZED N THE PERATN AND MANTENACE F THE NAVAJ GENERATN STATN. 8) MNUMENTS NTED AS SET WLL BE SET UPN APPRVAL F A NEW 323 GRANT WTH EXHBTS BASED UPN THS SURVEY. rj ' A PRTN F SECTNS 5 & 6, T40N, R10E, UNSURVEYED SECTNS 29, 30, 31 & 32, T41N, R10E, GLA AND SALT RVER MERDAN, CCNN CUNTY, ARZNA RAD BETWEEN PLANT STE AND ASH DSP0SALSTE FND BRASS CAP CRNER #5 E.V. MLLER 1969 n. cm n [30 ASH DSPSAL STE i t S: ^ D N 89s59'46" E ' (C) & e e e iri Q W 5K = C t 9 J SET 1/2" REBAR W/ BRASS CAP STAMPED "RLS 32224" SEE NTE 8 FND DESTRYED MNUMENT N VCNTY (CRNER #6 E.V. MLLER 1969) in n 0 lx c( x 25 S 89 39'51" W ' 30 *L29 S 89 39'20" W ' 30 A * > Ar*. V 1\ ~ b j 5/ C c lx ASH DSPSAL STE ASH DSPSAL STE in $ X 0 c X5*. n " x WJ n 0 * T41N.R9E T41N, R10E X 0 N 0 T11013 C > 0 i ii. i EXHBT "E ASH LANDFLL LMTS AREA= SEE NTE ACRES GRD ACRES GRUND * x<% V * () 0 m N 00 in 5 0 c L ASH DSPSAL STE () AREA= SEE NTE ACRES GRD ACRES GRUND c S> <#/ i: a At- LAKE GLENN CANYN DAM PAGE c cm f\l r-4 CLL <D gg VCNTY MAP LAKE PUMP STATN THS PRJECT ASH DSPSAL STE in C U,s ut ( x N E 1 () H N. c L N N 1 [31 C 5, 0 N j N ri t c. ^ > 0 X" < () S89 39'54"E '(R) S b - 0 FND BRASS CAP 0 S 89 59'52" E ' CRNER #8 E.V. MLLER 1969 i i<; t QClh Q - 2 i w b Pi P FND BRASS CAP 0 CRNER #7 E.V. MLLER 1969 P «< 00 W ASH DSPSAL STE cr> N >Q c ^ S 90 00'00" E ' () D<tJ s; f e C0i-4 n 5 Q ASH LANDFLL LMTS (). 35 K * () p fe r- 0 t 0 - < 0 : N C () Z- in 0 n c i: m 8D 5 w C : U C X C () [32] [36 Ss (73H H T41N, R9E T41N, R10E?b 4/ SG P () 0^t, 05 N in { 0 % ' () S 89 39'20" W ' *. C 35 1 S 89 39'58" W ' S89 40'34"W ' 31 N 89 39'43" E ' \ ' N E \ ^ v i S 89*40 34 W N 89*39 43 E N 89*39 43 E S 89*39 58 W K S 89*39 58 W K W.C. S 14 20'18" E ' in. 05 ASH LANDFLL LMTS T40N, R9E T40N, R10E 05 _ in C cy, 05 nl in T11Q18 C CD x! ^ t n T11Q18 n ^'S «( NAD 83 (2007) 36 53' "N ' "W FND BLM BRASS CAP W 1/4 CR SEC 6 T. 40 N., R. 10 E. NAVAJ GENERATNG STATN LANDS EXHBT "E ASH LANDFLL 6~~ il c () H. S 90 00'00" W ' < x- in c X C/3 n n C in FND BRASS CAP in FND BRASS CAP CRNER #10 E.V. MLLER ' ' 5' CRNER #9 E.V. MLLER 1969 * s S 89 39'54" W ' (R) Si S 89 59'46" W ' 03 5* ẋ X- cm l C 05 C 3^ l" X- ASH DSPSAL STE CL u & <0 cj) Lfi.N ; 0 d/. LU i <0 u C Cj -1/0 r ^0 NAD 83 (2007) 6 STAN m 36 53' "N DCKEY < 111 2n2.1170"W 5 a i re FND BLM BRASS CAP W 1/4 CR SEC 5 T. 40N..R.10E. 6 T T11013 T11013 PLANT STE P M Y FR NT, REGSTRATN EXPRES: P USE NLY ASH HAUL RAD X c C3 LU c > LU cm SHEET: 2 F 2 DEPARTMENT: BASE LAD GEN. CHK'D BY: D.S.D. CUSTMER: B. DRST FLE: P NGSL-323-EXHBT-E DWG FELD DATE: JUNE 2011 CREW CHEF: J.M./E.G. V/N SVY TECH: C.V.F. CMPL. DATE: 05/20/2017 FNAL NSPECTN / SSUE DATE: X U) < < H (0 0 < (0 < H Ul LU H > < X LU

20 EXTENSN LEASE - EXHBT E/RESTRCTVE CVENANT - EXHBT A ASH DSPSAL STE THE FLLWNG PARCEL BENG DESCRBED WTH GRD DSTANCES AND BEARNGS N THE ARZNA STATE PLANE CRDNATE SYSTEM, CENTRAL ZNE (0202), NRTH AMERCAN DATUM F 1983, EPCH A PARCEL F LAND LCATED N SECTNS 5 AND 6, TWNSHP 40 NRTH, RANGE 10 EAST, AND SECTNS 29, 30, 31 AND 32 (UNSURVEYED), TWNSHP 41 NRTH, RANGE 10 EAST, GLA AND SALT RVER MERDAN, CCNN CUNTY, ARZNA, MRE PARTCULARLY DESCRBED AS FLLWS: CMMENCNG AT THE WEST QUARTER CRNER F SECTN 6, TWNSHP 40 NRTH, RANGE 10 EAST, BENG A BUREAU F LAND MANAGEMENT BRASS CAP, FRM WHCH THE NRTHWEST CRNER F SAD SECTN 6, BEARS NRTH 00 DEGREES 19 MNUTES 31 SECNDS WEST, A DSTANCE F FEET; THENCE NRTH 66 DEGREES 45 MNUTES 42 SECNDS EAST, A DSTANCE F FEET, T THE PNT F BEGNNNG, BENG A BRASS CAP MARKED CRNER N. 10 ; THENCE NRTH 00 DEGREES 00 MNUTES 20 SECNDS WEST, A DSTANCE F FEET T A PNT N THE SUTH LNE F SECTN 31, TWNSHP 41 NRTH, RANGE 10 EAST, FRM WHCH PNT THE SUTH QUARTER CRNER F SAD SECTN 31, BEARS NRTH 89 DEGREES 39 MNUTES 58 SECNDS EAST, AT A DSTANCE F FEET; THENCE CNTNUNG NRTH 00 DEGREES 00 MNUTES 20 SECNDS WEST, A DSTANCE F FEET T A PNT N THE SUTH LNE F SECTN 30, TWNSHP 41 NRTH, RANGE 10 EAST, FRM WHCH PNT THE SUTHWEST CRNER F SAD SECTN 30, BEARS SUTH 89 DEGREES 39 MNUTES 51 SECNDS WEST, AT A DSTANCE F FEET, ALS FRM WHCH PNT THE SUTHEAST CRNER F SAD SECTN 30, BEARS NRTH 89 DEGREES 39 MNUTES 51 SECNDS EAST, AT A DSTANCE F FEET; THENCE CNTNUNG NRTH 00 DEGREES 00 MNUTES 20 SECNDS WEST, A DSTANCE F FEET, T A BRASS CAP MARKED CRNER N. 5 ; THENCE NRTH 89 DEGREES 59 MNUTES 46 SECNDS EAST, A DSTANCE F FEET T A PNT N THE WEST LNE F SECTN 29, TWNSHP 41 NRTH, RANGE 10 EAST, FRM WHCH PNT THE SUTHWEST CRNER F SAD SECTN 29, BEARS SUTH 00 DEGREES 23 MNUTES 27 SECNDS EAST, Page 1 f 5

21 EXTENSN LEASE - EXHBT E/RESTRCTVE CVENANT - EXHBT A AT A DSTANCE F FEET, ALS FRM WHCH PNT THE NRTHWEST CRNER F SAD SECTN 29, BEARS NRTH 00 DEGREES 23 MNUTES 27 SECNDS WEST, AT A DSTANCE F FEET; THENCE CNTNUNG NRTH 89 DEGREES 59 MNUTES 46 SECNDS EAST, A DSTANCE F FEET, T A PNT; THENCE SUTH 00 DEGREES 00 MNUTES 20 SECNDS EAST, A DSTANCE F FEET T A PNT N THE NRTH LNE F SECTN 32, TWNSHP 41 NRTH, RANGE 10 EAST, FRM WHCH PNT THE NRTHWEST CRNER F SAD SECTN 32, BEARS SUTH 89 DEGREES 39 MNUTES 20 SECNDS WEST, AT A DSTANCE F FEET, ALS FRM WHCH PNT THE NRTHEAST CRNER F SAD SECTN 32, BEARS NRTH 89 DEGREES 39 MNUTES 20 SECNDS EAST, AT A DSTANCE F FEET; THENCE CNTNUNG SUTH 00 DEGREES 00 MNUTES 20 SECNDS EAST, A DSTANCE F FEET, T A BRASS CAP MARKED CRNER N. 7 ; THENCE SUTH 89 DEGREES 59 MNUTES 52 SECNDS EAST, A DSTANCE F FEET, T A BRASS CAP MARKED CRNER N. 8 ; THENCE SUTH 00 DEGREES 00 MNUTES 43 SECNDS WEST, A DSTANCE F FEET T A PNT N THE SUTH LNE F SECTN 32, TWNSHP 41 NRTH, RANGE 10 EAST, FRM WHCH PNT THE SUTH QUARTER CRNER F SAD SECTN 32, BEARS NRTH 89 DEGREES 39 MNUTES 20 SECNDS EAST, AT A DSTANCE F FEET, ALS FRM WHCH PNT THE SUTHWEST CRNER F SAD SECTN 32, BEARS SUTH 89 DEGREES 39 MNUTES 20 SECNDS WEST, AT A DSTANCE F FEET; THENCE SUTH 00 DEGREES 00 MNUTES 43 SECNDS WEST, A DSTANCE F FEET, T A BRASS CAP MARKED CRNER N. 9 ; THENCE SUTH 89 DEGREES 59 MNUTES 46 SECNDS WEST, A DSTANCE F FEET T A PNT N THE WEST LNE F SECTN 5, TWNSHP 40 NRTH, RANGE 10 EAST, FRM WHCH PNT THE WEST QUARTER CRNER F SAD SECTN 5, BEARS SUTH 00 DEGREES 23 MNUTES 41 SECNDS EAST, AT A DSTANCE F FEET, ALS FRM WHCH PNT THE NRTHWEST CRNER F SAD SECTN 5, BEARS NRTH 00 DEGREES 23 MNUTES 41 SECNDS WEST, AT A DSTANCE F FEET; THENCE SUTH 89 DEGREES 59 MNUTES 46 SECNDS WEST, A DSTANCE F FEET, T THE PNT F BEGNNNG. Page 2 f 5

22 EXTENSN LEASE - EXHBT E/RESTRCTVE CVENANT - EXHBT A A GRD T GRUND SCALE FACTR F WAS USED T CALCULATE THE GRUND (SURFACE) ACREAGES. GRD ACREAGES ARE MULTPLED BY THE GRD T GRUND SCALE FACTR SQUARED ( ) T PRDUCE GRUND (SURFACE) ACREAGES. SAD PARCEL CNTANNG ACRES N THE ARZNA STATE PLANE CRDNATE SYSTEM, CENTRAL ZNE (0202), NRTH AMERCAN DATUM F 1983, EPCH 2007 AND BENG GRUND (SURFACE) ACRES. EXHBT E1 AREA ASH LANDFLL LMTS THE FLLWNG PARCEL BENG DESCRBED WTH GRD DSTANCES AND BEARNGS N THE ARZNA STATE PLANE CRDNATE SYSTEM, CENTRAL ZNE (0202), NRTH AMERCAN DATUM F 1983, EPCH A PARCEL F LAND LCATED N SECTNS 5 AND 6, TWNSHP 40 NRTH, RANGE 10 EAST, AND SECTNS 31 AND 32 (UNSURVEYED), TWNSHP 41 NRTH, RANGE 10 EAST, GLA AND SALT RVER MERDAN, CCNN CUNTY, ARZNA, MRE PARTCULARLY DESCRBED AS FLLWS: CMMENCNG AT THE SUTHWEST CRNER F THE ASH DSPSAL STE BENG A BRASS CAP MARKED CRNER N. 10, FRM WHCH THE NRTHWEST CRNER F THE ASH DSPSAL STE BENG A BRASS CAP MARKED CRNER N. 5, BEARS NRTH 00 DEGREES 00 MNUTES 20 SECNDS WEST, A DSTANCE F FEET; THENCE NRTH 00 DEGREES 00 MNUTES 20 SECNDS WEST, ALNG THE WEST LNE F THE ASH DSPSAL STE A DSTANCE F FEET T THE PNT F BEGNNNG; THENCE CNTNUNG NRTH 00 DEGREES 00 MNUTES 20 SECNDS WEST ALNG THE WEST LNE F THE ASH DSPSAL STE, A DSTANCE F FEET T A PNT N THE SUTH LNE F SECTN 31, TWNSHP 41 NRTH, RANGE 10 EAST, FRM WHCH PNT THE SUTH QUARTER CRNER F SAD SECTN 31, BEARS NRTH 89 DEGREES 39 MNUTES 58 SECNDS EAST, AT A DSTANCE F FEET; THENCE CNTNUNG NRTH 00 DEGREES 00 MNUTES 20 SECNDS WEST ALNG THE WEST LNE F THE ASH DSPSAL STE, A DSTANCE F FEET; THENCE NRTH 68 DEGREES 29 MNUTES 28 SECNDS EAST, A DSTANCE F FEET; Page 3 f 5

23 EXTENSN LEASE - EXHBT E/RESTRCTVE CVENANT - EXHBT A THENCE SUTH 58 DEGREES 33 MNUTES 26 SECNDS EAST, A DSTANCE F FEET T A PNT N THE WEST LNE F SECTN 32, TWNSHP 41 NRTH, RANGE 10 EAST, FRM WHCH PNT THE NRTHWEST CRNER F SAD SECTN 32, BEARS NRTH 00 DEGREES 23 MNUTES 27 SECNDS WEST, AT A DSTANCE F FEET; THENCE SUTH 00 DEGREES 23 MNUTES 27 SECNDS EAST, ALNG THE WEST LNE F SAD SECTN 32, A DSTANCE F FEET T A PNT, FRM WHCH PNT THE SUTHWEST CRNER F SAD SECTN 32 BEARS SUTH 00 DEGREES 23 MNUTES 27 SECNDS EAST AT A DSTANCE F FEET; THENCE SUTH 90 DEGREES 00 MNUTES 00 SECNDS EAST, A DSTANCE F FEET; THENCE SUTH 00 DEGREES 00 MNUTES 00 SECNDS EAST, A DSTANCE F FEET T A PNT N THE SUTH LNE F SECTN 32, TWNSHP 41 NRTH, RANGE 10 EAST, FRM WHCH PNT THE SUTH QUARTER CRNER F SAD SECTN 32, BEARS NRTH 89 DEGREES 39 MNUTES 20 SECNDS EAST, AT A DSTANCE F FEET, ALS FRM WHCH PNT THE SUTHWEST CRNER F SAD SECTN 32, BEARS SUTH 89 DEGREES 39 MNUTES 20 SECNDS WEST, AT A DSTANCE F FEET; THENCE CNTNUNG SUTH 00 DEGREES 00 MNUTES 00 SECNDS EAST, A DSTANCE F FEET; THENCE SUTH 90 DEGREES 00 MNUTES 00 SECNDS WEST, A DSTANCE F FEET T A PNT N THE WEST LNE F SECTN 5, TWNSHP 40 NRTH, RANGE 10 EAST, FRM WHCH PNT THE WEST QUARTER CRNER F SAD SECTN 5, BEARS SUTH 00 DEGREES 23 MNUTES 41 SECNDS EAST, AT A DSTANCE F FEET, ALS FRM WHCH PNT THE NRTHWEST CRNER F SAD SECTN 5, BEARS NRTH 00 DEGREES 23 MNUTES 41 SECNDS WEST, AT A DSTANCE F FEET; THENCE CNTNUNG SUTH 90 DEGREES 00 MNUTES 00 SECNDS WEST, A DSTANCE F FEET, T THE PNT F BEGNNNG. A GRD T GRUND SCALE FACTR F WAS USED T CALCULATE THE GRUND (SURFACE) ACREAGES. GRD ACREAGES ARE MULTPLED BY THE GRD T GRUND SCALE FACTR SQUARED ( ) T PRDUCE GRUND (SURFACE) ACREAGES. SAD PARCEL CNTANNG ACRES N THE ARZNA STATE PLANE CRDNATE SYSTEM, CENTRAL ZNE (0202), NRTH AMERCAN DATUM F 1983, EPCH 2007 AND BENG GRUND (SURFACE) ACRES. Page 4 f 5

24 EXTENSN LEASE - EXHBT E/RESTRCTVE CVENANT - EXHBT A? xs A 3222VR' EY %^>A. \l-h^ REGSTRATN EXPRES Page 5 f 5