Preliminary Decision City and Borough of Sitka ADL Easement AS

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STATE OF ALASKA Department of Natural Resources Division of Mining, Land and Water Southeast Regional Office Preliminary Decision City and Borough of Sitka ADL 108707 Easement AS 38.05.850 I. Requested Authorization An application dated December 14, 2016 was received from the City and Borough of Sitka (Applicant) requesting an easement along an approximate 1000 section of the western end of the existing Nelson Logging Road approximately 6.5 miles north from the City of Sitka. Applicant requests the easement to realign and widen the existing road to eliminate blind corners, enhance public safety, and reduce soil erosion runoff into the Starrigavan Creek estuary. This realignment and maintenance project also includes replacing two bridges across Starrigavan Creek. And a pedestrian walkway will be added parallel to the road along the estuary by Starrigavan Bay. Proposed Action The Southeast Regional Office of DNR, Division of Mining, Land and Water (DMLW) intends to issue the applicant a public easement for the building and maintenance of the Nelson Logging Road, for its entirety, approximately 1.2 miles. II. Statutory Authority AS 38.05.035, AS 38.05.850 and Alaska Administrative Code 11 AAC 55. III. Administrative Record Case file ADL 108707 is the administrative record for this case, which is to be combined with ADL 106242. Also, incorporated by reference is the Northern Southeast Area Plan 2002. IV. Scope of the Decision The scope of administrative review for this authorization [AS 38.05.035(e)(1), (2)] is limited to (1) reasonably foreseeable, significant effects of the uses to be authorized; (2) applicable statutes and regulations; (3) the facts pertaining to the land or resources; and (4) issues that are material to the determination that issuing the authorization will best serve the interest of the State of Alaska. Preliminary Decision Page 1 of 10 City and Borough of Sitka ADL 108707

V. Location Information Geographic Location Subject parcel is state-owned upland, approximately 6.5 miles north of Sitka, Baranof Island, near Old Sitka, East of Starrigavan Bay. Legal Description Lot 1, US Survey No. 5530 & Lot 2, US Survey No. 3607 Township and Range Copper River Meridian, Township 55 South, Range 63 East, Sections 2 & 3. Latitude and Longitude (DD) 57.1310N, 135.3715W at turnoff from Halibut Point Road Other Land Information i. Municipality: City and Borough of Sitka ii. (ANCSA) Regional Corporation: Sealaska Corporation iii. Village Corporation: Shee Atika, Inc. iv. Federally Recognized Tribe: Central Council of the Tlingit and Haida Indian Tribes and Sitka Tribe of Alaska VI. Land Status Information Title State of Alaska owns the land and mineral estates for the project area within Lot 1, US Survey No. 5530, and the land estate only in Lot 2, US Survey No. 3607, except for those rights-of-way reserved by the Federal Government, notably right-of-way A060912. 1 Planning and Classification Per 11 AAC 55.040(c), A classification identifies the primary use for which the land will be managed, subject to valid existing rights and to multiple use. The proposed site is subject to the Northern Southeast Area Plan 2002 (NSEAP), and is located within Management Units: B-9, Starrigavan Bay, State Historic Site; and B-11 Starrigavan Valley, Sitka. The area within B-9 is designated as Public Facilities-Retain (Pr). B-11 is designated as Pr and Public Recreation and Tourism-Undeveloped (Ru). The NSEAP states that all land use activates will be conducted with appropriate planning 1 RPT 8945 DNR Realty Services Preliminary Decision Page 2 of 10 City and Borough of Sitka ADL 108707

and implementation to avoid or minimize adverse effects on fish, wildlife, or their habitats. 2 The goal of land designated as Pr is to be reserved and retained by the state for specific infrastructure to serve state interests. The goal of land designated as Ru is to retain such lands in state or municipality ownership for dispersed recreation or tourism. This designation applies to areas where developed facilities are generally not necessary other than trails, trail signs, primitive campsites, and other minor improvements. 3 The Pr designation converts to Reserved use land classification. And the Ru designation converts to Public recreation land classification. The NSEAP lists the resources and uses in B-9 as follows: The Alaska Heritage Resources Survey (AHRS) reports seven prehistoric sites located in or near this unit: a petroglyph and a shell midden. The parcel is a state historic site, administered by DPOR under ILMA 39505. 4 And in B-11 as: Parcel occupies a fairly narrow valley and its adjoining steep sideslopes. The valley is drained by Starrigavin Creek, an anadromous stream. Except for the steeper portions of the tract which contain stands of western Hemlock and Sitka Spruce, most of the parcel has been previously logged. It is now used for public recreation, including a city gun range (ADL 101753), an Alaska Trooper gun range (ADL 106562), an ATV staging area, and trail (ADL 106087). A portion of the NW1/4 of Section 2 is under lease (ADL 106053) to the U.S. Forest Service for their campground. Parcel was selected for community recreation purposes. A road accesses the valley (ADL 106242). 5 The road that accesses the valley (ADL 106242) is the existing Nelson Logging Road, the subject road which is planned for realignment and widening. The improvements to the road will increase safety, reduce runoff into the Starrigavan Creek estuary, and enhance public access to the types of recreation identified in the NSEAP. Additionally, the applicant will add an approximately 1500 long recreational footpath from Halibut Point Road east to a pedestrian bridge across Starrigavan Creek. This footpath will utilize the old road north of the realigned portion, further enhancing the public recreational opportunities in the area. Furthermore, the applicant has developed an Archaeological Monitoring 2 NSEAP chap.2, p.10 3 NSEAP chap.3, p.3 4 NSEAP chap.3, p.216 5 NSEAP chap.3, p.217 Preliminary Decision Page 3 of 10 City and Borough of Sitka ADL 108707

and Discovery Plan that establishes procedures for the monitoring, reporting, and handling of any historic or cultural resources that are discovered during construction. The Applicant will continue to develop and finalize the Plan in consultation with the State Historic Preservation Office. Mineral Orders The prospective easement area is not covered by a mineral order. (AS 38.05.185, 300). Traditional Use Finding AS 38.05.830 requires the consideration of effects that the proposed easement will have on the density of the population near the proposed site, and potential for conflicts with the traditional uses of the land that could result from the easement. The proposed easement area is within the organized City and Borough of Sitka, and thus, does not require a traditional use finding. VII. Third Party Interests The United States Forest Service has a Federally reserved right-of-way (right-of-way A060912) that coincides with the existing Nelson Logging Road. VIII. Background The subject land and that surrounding the proposed easement was formerly used for logging, and was acquired by the State in 1982 through a National Forest Community Grant (AA 2311). 6 In 1997, DNR issued an easement (ADL 106242) to the Applicant for further development of the Nelson Logging Road, the same road that is proposed to be realigned and widened under this easement application (ADL 108707). The road is primarily used for access to recreational trails and the gun range at the road s eastern end. After the as-built survey is completed for this ADL, it will be combined as an amendment to the pre-existing easement, ADL 106242. Related Actions ADL 106242 is an easement issued to the Applicant in 1997 for the eastern portion of the Nelson Logging Road. 6 82-2031 Sitka Recording District, Book 58, Page 424 Preliminary Decision Page 4 of 10 City and Borough of Sitka ADL 108707

LAS 31662 is an application for a permit from the U.S. Forest Service to store dismantled bridges, which are to be replaced under this ADL, on state land at an unused rock pit on the north side of the Nelson Logging Road near its eastern end, until they can be used again on trials managed by the Forest Service. ADL 39505 is an inter-agency management agreement by which DNR DMLW assigned some surface management decisions to Division of Parks and Outdoor Recreation (DPOR) for an approximate 60 acres of land south of Starrigavan Creek estuary. The Old Sitka State Historical Park comprises about 51 acres of the parcel, and The Old Sitka National Historic Landmark is located at the northwestern tip of the parcel on Starrigavan Bay. IX. Agency Review DNR provided notice and requests for input regarding the proposed easement to relevant state agencies in March and early-april of 2017. On March 9, DPOR commented that there was no problem with realignment. On April 7, 2017, ADF&G commented that: The road relocation will improve fish habitat by reducing floodplain constriction. The CBS proposes to remove trees from the easement which will impact fish habitat by reducing the supply of wood to the stream. Therefore, we recommend the CBS place some of the trees in the floodplain to provide fish habitat function in the riparian area. We are available to assist the CBS with tree placement design. DNR Response to ADF&G: DNR communicated with CBS concerning this issue and CBS has developed a plan in coordination with ADF&G for placement of some trees in the floodplain to function as fish habitat. Indeed, ADF&G has issued a permit to the applicant for placement of trees in the floodplain with ADF&G s guidance. 7 The Applicant is also required to contact and inform Alaska Division of Forestry if any commercial grade trees (hemlock or spruce trees, 8 or more in diameter) are to be removed from state land. 7 ADF&G Permit # FH17-I-0065 Preliminary Decision Page 5 of 10 City and Borough of Sitka ADL 108707

X. Access Physical and Legal Access Public access and use of the prospective easement area shall be maintained at all times with only reasonable exceptions during construction and maintenance operations. Access To and Along Public Waters: Pursuant to AS 38.05.126(a), the public has a constitutional right to free access to, and use of, navigable or public waters of the State of Alaska. XI. Environmental Considerations It is our management responsibility to protect the overall public interest if there is a reasonable expectation that a hazardous condition, or hazardous, toxic or radiological material or contamination from such material exists or is known to exist on the land proposed for lease. There are no hazardous conditions known to exist at the proposed site. The applicant is expected to inspect the prospective lease site and familiarize itself with the condition and quality of the land. The state makes no representations and no warranties, express or implied, concerning the existence or absence of any hazardous substances, hazardous wastes, contaminants, or pollutants on the land. The State of Alaska does not assume any liability for the removal of hazardous substances, hazardous wastes, contaminants, or pollutants, nor for the remediation of the site should such substances ever be identified. Starrigavan Creek, ADF&G Stream No. 113-41-10150, and several unnamed tributaries that are catalogued or known to be fish spawning areas, may be impacted by the construction activities. The applicant has obtained six fish habit permits from ADF&G for this project. The permits proscribe mitigation measures to reduce soil erosion and impacts on fish habitat. 8 Indeed, the realignment of the road at its western end is partially designed to improves bank stabilization along Starrigavan Creek and reduce soil erosion runoff. XII. Performance Guaranty In accordance with 11 AAC 96.060, performance guaranties are means to assure performance and to provide ways to pay for corrective action if the permittee fails to comply with the requirements set forth in the project plans and easement. The amount of the performance guaranty is based on the scope and the nature of the activity and the potential cost of restoring the site. 8 ADF&G Fish Habitat Permit # FH17-I-0060, FH17-I-0061, FH17-I-0062, FH17-I-0063, FH17-I-0064, and FH17- I-0065 Preliminary Decision Page 6 of 10 City and Borough of Sitka ADL 108707

A performance guaranty will not be required for this project. The risk of losses to the state associated with this project are low, and the applicant has developed management plans to mitigate foreseeable risks, such as damage to fish habitat, and the discovery of historical or cultural resources (USACE POA-2017-086). XIII. Insurance Insurance is a means to protect the state from liabilities incurred through the use of state property, or from damage to state property as a result of accidental or catastrophic events. This type of protection is necessary in the event of an accident or negligence that was consequentially connected to activities conducted on state land, and/or if the state is named in a lawsuit as a result of an accident or negligence. Commercial General Liability Insurance: Such policy shall have minimum coverage limits of $1,000,000 combined single limit per occurrence. Workers' Compensation Insurance: The Applicant shall provide and maintain, for all its employees, Workers' Compensation Insurance as required by AS 23.30.045. Where applicable, coverage must comply with any other statutory obligations, whether Federal (i.e., U.S.L.&H., or, Jones Act) or other state laws in which employees are engaged in work on the leased premises. The insurance policy must contain a waiver of subrogation clause in favor of the State of Alaska. If the Applicant s general liability policy contains higher limits, we shall be entitled to coverage to the extent of such higher limits. Certificates of Insurance must be furnished to us prior to the issuance of this lease and must provide for a notice of cancellation, non-renewal, or material change of conditions in accordance with policy provisions. The Applicant must provide for a 60- day prior notice to the State of Alaska before they cancel, not renew or make material changes to conditions to the policy. Failure to furnish satisfactory evidence of insurance, or lapse of the policy, is a material breach of this lease and shall be grounds, at the option of the State of Alaska, for termination of the lease. XIV. Survey Upon receiving an Early Authorization from DNR, the Applicant shall conduct an as-built survey acceptable to the standards of the DMLW Survey Section prior to the expiration of the Grantee s Entry Authorization for the all improvements authorized under this permit. At a minimum, the as-built survey will include all the Nelson Logging Road from Halibut Point Road to the gun range. The Applicant will be responsible for all costs associated with conducting the survey. XV. Fees/Appraisal Fee Narrative: Per 11 AAC 05.010(e)(12) the fee will be a one-time fee of $50 per acre, to be paid after the completion of the as-built survey. Preliminary Decision Page 7 of 10 City and Borough of Sitka ADL 108707

XVI. Term EA Term: Three years, or shorter if deliverables are provided prior to the EA expiration. Easement Term: Until unused for the purposes expressed in this decision. XVII. Economic Benefit and Development of State Resources AS 38.05.850(a) requires that in the granting of easements DNR give preference to the use of the land that will be of greatest economic benefit to the state and the development of its resources. XVIII. Discussion As discussed in section VI above, the proposed easement on state-owned upland and the use of the area is compatible with the land classification in the NSEAP. The easement request is to realign and improve the existing Nelson Logging Road to improve public safety, and to reduce soil erosion runoff into Starrigavan Creek. These goals are consistent with the management plan for the area and the public interest. The proposed project is near an important archeological site, and may contain important historical and cultural resources. To address these concerns and to ensure the any resources that may be discovered are handled appropriately, the Applicant has developed an Archaeological Monitoring and Discovery Plan with input from the State Historical Preservation Office. With these considerations, the Southeast Regional Office of DNR, Division of Mining, Land and Water is prepared to issue Applicant an easement over the subject lands. It is thus recommended that the applicant be issued a public easement for the Nelson Logging Road in Copper River Meridian, Township 55 South, Range 63 East, Sections 2 & 3, subject to the terms and conditions stated below and in the Easement. XIV. Recommendation Authorization Type and Term Pursuant to AS 38.05.850, we recommend the issuance of a public easement to the applicant for the construction and maintenance of the Nelson Logging Road, until unused for the purposes stated in this decision. Special Stipulations and the terms and conditions set forth therein (Attachment 2). This is a preliminary decision and subsequent public review may result in changes or disapproval of the proposed action altogether. Preliminary Decision Page 8 of 10 City and Borough of Sitka ADL 108707

PUBLIC NOTICE, FINAL DECISION AND APPEAL PROCESS: In accordance with the provisions of AS 38.05.945, public notice seeking comments on this preliminary decision will be given to: City and Borourgh of Sitka, Sealaska Corporation; Central Council of the Tlingit and Haida Indian Tribes, Shee Atika Corportation, and those parties that have previously requested written notice. We will also request that the Angoon and Juneau Post Offices post the notice. It will be available on the internet as the Alaska Online Public Notice website, which can be accessed at www.state.ak.us. The public is invited to comment on this preliminary decision. Comments must be received in writing by the DNR Division of Mining, Land & Water by mail at 400 Willoughby Avenue, P.O. Box 111020, Juneau, AK 99811-1020; by fax at (907) 465-3886; or by electronic mail to adam.moser@alaska.gov by the close of business on September 11, 2017 to ensure consideration. Please include your mailing address and telephone contact. In order to establish appeal rights regarding this decision, you are required by law to meaningfully participate in the decision process by commenting on the decision, in writing, prior to the comment deadline. Following the deadline, all timely written comments will be considered, and DNR may modify this decision based on public comments received. If DNR determines that public comments in response to this notice indicate the need for significant changes to the decision, additional public notice will be given. If no significant changes are required, the preliminary decision, after any necessary minor changes, will be issued as a final decision. A copy of the final decision, along with instructions on filing an appeal, will be sent to all persons who comment on the preliminary decision. Persons who do not submit written comments during the comment period will have no legal right to appeal the final decision. Preliminary Decision Page 10 of 10 City and Borough of Sitka ADL 108707

Attachment A: Development Plan

Figure 3: Project plan for upgrades and realignment to the Nelson Logging Road Supplemental letter to the City and Borough of Sitka, Nelson Logging Road Upgrades Cultural Resource Report, July 2017

Figures Figure 1: Recommended boundaries for SIT-00964 (SLC, 2017: pp 78-79) Supplemental letter to the City and Borough of Sitka, Nelson Logging Road Upgrades Cultural Resource Report, July 2017

Attachment B STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINING, LAND AND WATER ADL 108707 City and Borough of Sitka Public Easement THIS EASEMENT is granted this day of, 20 by and between the STATE OF ALASKA, acting by and through the Department of Natural Resources, Division of Mining, Land and Water, Southeast Regional Office hereinafter referred to as the Grantor, whose address is 400 Willoughby Avenue, P.O. Box 111020, Juneau, Alaska, 99811, and the City and Borough of Sitka whose address is 100 Lincoln Street, Sitka, AK 99835, is hereinafter referred to as the Grantee. WHEREAS, it is understood and agreed that, as a condition to the granting of said easement, this easement shall be used for no purpose other than: The development and maintenance of the Nelson Logging Road over and across portions of the following described state lands: Within the Copper River Meridian, Township 55 South, Range 63 East, Sections 2 & 3, approximately 1.2 miles in length, with a width of approximately 60 and containing approximately 4.3 acres, more or less. IN accordance with the provisions of AS 38.05.850, and the rules and regulations promulgated thereunder, the grantor hereby reserves a public easement over and across the above described state land within the Sitka Recording District as shown on the Development Plan identified as Attachment B revealing the easement location granted herein.

This easement shall terminate when the Grantor determines that it is no longer used for maintaining the Nelson Logging Road for public access, or is revoked because of violations of the terms, conditions and stipulations of this easement. The Grantee and entry persons who may exercise the rights and privileges granted by this document shall comply with all regulations now in effect or as hereafter established by the Division of Mining, Land & Water, all other federal, state or local laws, regulations or ordinances applicable to the area herein granted. In addition, the Grantee shall maintain the premise in a neat and orderly manner and shall adopt and apply such safety measures as shall be necessary, proper and prudent with respect to the use to which the land is subjected. In the event that the easement granted shall in any manner conflict with or overlap a previously granted easement the Grantor recognizes that the easement granted herein shall be used in such a manner as not to interfere with the peaceful use and enjoyment of the previously issued easement or right-of-way. The State of Alaska shall be forever wholly absolved from any liability for damages which might result from any claims, suits, loss, liability and expense for injury to or death of persons and damage to or loss of property arising out of or in connection with this easement. NOW THEREFORE, in accordance with the provisions of AS 38.05.850 and the rules and regulations promulgated thereunder and in accordance with the conditions and stipulations of this easement including all documents that are incorporated by reference, the Grantee is authorized to operate and maintain said easement. IN WITNESS WHEREOF, the Grantor has signed this easement on the day and year first above written. [Signature Page Follows] ADL 108707, City and Borough of Sitka, Public Easement Page 2 of 9

STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES GRANTOR Benjamin M. White, Southeast Regional Manager Division of Mining, Land and Water STATE OF ALASKA ) ) ss. Judicial District ) THIS IS TO CERTIFY THAT ON THIS day of, 20, before me personally appeared Benjamin M. White, Southeast Regional Manager of the Department of Natural Resources, Division of Mining Land and Water, known by me to be the person named in and who executed said document and acknowledged voluntarily signing the same. Notary Public in and for the State of Alaska My Commission expires: ADL 108707, City and Borough of Sitka, Public Easement Page 3 of 9

GRANTEE STATE OF ALASKA ) ) ss. Judicial District ) THIS IS TO CERTIFY THAT ON THIS day of, 20, before me personally appeared, known by me to be the person named in and who executed said document and acknowledged voluntarily signing the same. Notary Public in and for the State of Alaska My Commission expires: RECORDING FEE: RETURN TO: THIS IS OFFICIAL STATE BUSINESS, NO CHARGE Alaska Department of Natural Resources Division of Mining, Land and Water Southeast Regional Office 400 Willoughby Ave, 4 th Floor P.O. Box 111020 Juneau, AK 99811 ADL 108707, City and Borough of Sitka, Public Easement Page 4 of 9

ADL 108707 Attachment A Easement Stipulations 1) Authorized Officer. The Authorized Officer (AO) for the Department of Natural Resources (DNR), Division of Mining, Land and Water (DMLW) is the Southeast Regional Manager or designee. The AO may be contacted at 400 Willoughby Avenue, PO Box 111020, Juneau, Alaska 99811-1020 or 907-465-3400. 2) Alaska Historic Preservation Act. The Alaska Historic Preservation Act (AS 41.35.200) prohibits the appropriation, excavation, removal, injury, or destruction of any Stateowned historic, prehistoric (paleontological) or archaeological site without a permit from the Commissioner. Should any sites be discovered during the course of field operations, activities that may damage the site will cease and the Office of History and Archaeology in the Division of Parks and Outdoor Recreation shall be notified immediately at (907) 269-8721. 3) Indemnification. Unless specified herein, Grantee assumes all responsibility, risk and liability for all activities of Grantee, its employees, agents, invitees, contractors, subcontractors, or licensees directly or indirectly conducted in connection with this authorization, including environmental and hazardous substance risks and liabilities, whether accruing during or after the term of this authorization as stated herein. Grantee shall defend, indemnify and hold harmless the State of Alaska, its employees and agents, from and against any and all suits, claims, actions, losses, costs, penalties and damages of whatever kind or nature, including all attorney's fees and litigation costs, arising out of, in connection with, or incident to any act or omission by Grantee, its employees, agents, invitees, contractors, subcontractors, or licensees, unless the sole proximate cause of the injury or damage is the negligence or willful misconduct of the State or anyone acting on the State's behalf. Within 15 days Grantee shall accept any such cause or action or proceeding upon tender by the State. This indemnification shall survive the termination of the authorization. 4) Valid Existing Rights. This authorization is subject to all valid existing rights in and to the land covered under this authorization. The State of Alaska makes no representations or warranties, whatsoever, either expressed or implied, as to the existence, number or nature of such valid existing rights. 5) Fees. The Grantee shall pay a one-time fee of $50 per acre. This fee is subject to adjustment based on changes in the DNR's fee regulations. 6) Reservation of Rights. a) The DMLW reserves the right to grant additional authorizations to third parties for compatible uses on or adjacent to the land under this authorization. Authorized concurrent users of State land, their agents, employees, contractors, subcontractors, and licensees shall not interfere with the operation or maintenance activities of each user. b) The DMLW may require authorized concurrent users of State land to enter into an equitable agreement regarding concurrent use. ADL 108707, City and Borough of Sitka, Public Easement Page 5 of 9

c) The AO reserves the right to modify these stipulations or use additional stipulations as deemed necessary. Grantee will be notified in writing prior to the implementation of any change in the terms or conditions exercised by the AO under this provision. Grantee will be afforded the opportunity to review and comment regarding the effect of any proposed change to this authorization. Failure of the Grantee to notify the AO of any change to current officers or addresses shall not be sufficient grounds to invalidate the AO s compliance with this notification process. 7) Public Access. The Grantee shall not close landing areas or trails in the vicinity of this authorization. The ability of all users to use or access State land or public water must not be restricted in any manner. 8) Limits of Access. a) This authorization applies only to access within the project area, not access to the project area. b) No additional access trails or roads are allowed on State lands outside the authorized area without the express permission of the AO. 9) Destruction of Markers. All survey monuments, witness corners, reference monuments, mining claim posts, bearing trees, National Register of Historic Places plaques, interpretive panels and unsurveyed lease corner posts shall be protected against damage, destruction, or obliteration. The Grantee shall notify the AO of any damaged, destroyed, or obliterated markers and shall reestablish the markers at the Grantee s expense in accordance with accepted survey practices of the DMLW. 10) Compliance with Governmental Requirements; Recovery of Costs. The Grantee or entry person shall, at its expense, comply with all applicable laws, ordinances, regulations, rules and orders, and the requirements and stipulations included in this authorization. Grantee shall ensure compliance by its employees, agents, contractors, subcontractors, licensees, or invitees. 11) Other Authorizations. The issuance of this authorization does not alleviate the necessity of the Grantee to obtain all other required authorizations for this activity. Failure to obtain said authorizations shall constitute a violation of this authorization, subject to action as described herein. 12) Proper Location. This authorization is for activities on State land managed by the DNR DMLW and does not authorize any activities on private lands, Federal lands, Native lands, municipal lands or lands which are owned or managed by other offices and agencies of the State of Alaska and/or the DNR. The Grantee is responsible for proper location on site. 13) Fire Prevention, Protection and Liability. The Grantee and all entrypersons shall take all reasonable precautions to prevent and suppress forest, structure, brush and grass fires, and shall assume full liability for any damage to State land and State structures resulting from the negligent use of fire. The State of Alaska is not liable for damage to the Grantee s personal property and is not responsible for forest fire protection of the Grantee s activity. To report a wildfire call 911 or 1-800-237-3633. ADL 108707, City and Borough of Sitka, Public Easement Page 6 of 9

14) Fuel and Hazardous Substances. No fuel or hazardous substances are to be stored on the subject parcel unless approved by a special stipulation. Prior written approval from the AO is required for a change in this restriction and may include additional stipulations. 15) Spill Notification. a) The Grantee or entryperson shall immediately notify the Department of Environmental Conservation (DEC) by telephone, and immediately afterwards send DEC a written notice by facsimile, hand delivery, or first class mail, informing DEC of: any unauthorized discharges of oil to water, any discharge of hazardous substances other than oil; and any discharge or cumulative discharge of oil greater than 55 gallons solely to land and outside an impermeable containment area. If a discharge, including a cumulative discharge, of oil is greater than 10 gallons but less than 55 gallons, or a discharge of oil greater than 55 gallons is made to an impermeable secondary containment area, the Grantee or entryperson shall report the discharge within 48 hours, and immediately afterwards send DEC a written notice by facsimile, hand delivery, or first class mail. Any discharge of oil greater than one gallon up to 10 gallons, including a cumulative discharge, solely to land, must be reported in writing on a monthly basis. The posting of information requirements of 18 AAC75.305 shall be met. Scope and Duration of Initial Response Actions (18 AAC 75.310) and reporting requirements of 18 AAC 75, Article 3 also apply. The Grantee or entryperson shall supply DEC with all follow-up incident reports. Notification of a discharge must be made to the nearest DEC Area Response Team during working hours: Anchorage (907) 269-3063, fax (907) 269-7648; Juneau (907) 465-5340, fax (907) 465-2237. The DEC oil spill report number outside normal business hours is (800) 478-9300. b) The Grantee or entryperson shall immediately notify the AO of any spill or discharge that is reported to DEC. c) The Grantee or entryperson shall immediately notify the AO of any pollution or explosion in the project area. 16) Site Maintenance. The area subject to this authorization shall be maintained in a neat, clean and safe condition, free of any solid waste, debris or litter. 17) Site Disturbance. Unless specified herein: a) Site disturbance shall be kept to a minimum to protect local habitats. All activities at the site shall be conducted in a manner that will minimize the disturbance of soil and vegetation and changes in the character of natural drainage systems. b) Brush clearing is allowed, but shall be kept to the minimum necessary to conduct or complete the authorized activity. Removal or destruction of the vegetative mat outside of the authorized area is not allowed. c) The Grantee shall conduct all operations in a manner which will prevent unwarranted erosion and siltation. Any such erosion or siltation shall be repaired in a manner satisfactory to the AO at the Grantee s expense. 18) Waste Disposal. All waste generated during construction activities under this authorization shall be removed or otherwise disposed of as required by State and Federal law. On-site waste disposal is prohibited, unless specified herein. Waste in this paragraph means all discarded matter, including, but not limited to, human waste, trash, garbage, litter, oil drums, petroleum, ashes and discarded equipment. ADL 108707, City and Borough of Page 7 of 9 Sitka, Public Easement

19) Inspections. Authorized representatives of the State of Alaska shall have reasonable access to the subject parcel for purposes of inspections. The Grantee may be charged fees under 11 AAC 05.010(a)(7)(M) for routine inspections of the subject parcel, inspections concerning non-compliance and a final close-out inspection. 20) Request for Data. For purposes of information and review, the DMLW at any time during normal business hours, may require the Grantee to furnish data related to preconstruction or construction activities undertaken in connection with the project. The Grantee shall furnish the required data as soon as possible or as otherwise required under the terms of the authorization. 21) Changes in Conditions. Unforeseen conditions arising during construction of the project may make it necessary to revise or amend these stipulations. In this event, the AO and the Grantee will attempt to agree as to what revision or amendments shall be made. If they are unable to agree, the DMLW Director shall have final authority to determine those revisions or amendments. 22) Fine Tuning. Any changes in the alignment of the project area will require the prior written approval of the AO. The AO reserves the discretionary authority to require a redetermination of the State's best interest for any significant proposed changes. 23) Amendment or Modification. To amend or modify the uses allowed under this authorization, the Grantee shall submit a request in writing to the AO. Any amendment or modification must be approved by the AO and may require additional fees. 24) Assignment. This authorization may not be transferred or assigned without the prior written consent of the AO. 25) Change of Address or Officers. Any change of address or authorized officers appointed by the Grantee must be submitted in writing to the AO. 26) Removal of Improvements and Site Restoration. Upon termination of this authorization, whether by abandonment, revocation or any other means, the Grantee shall within 30 days remove all improvements from the area herein granted, except those owned by the State, and the site shall be restored to a condition acceptable to the AO. Should the Grantee fail or refuse to remove said structures or improvements within the time allotted, they shall revert to and become the property of the State; however, the Grantee shall not be relieved of the cost of the removal of the structures, improvements and/or the cost of restoring the area. 27) Violations. a) Pursuant to 11 AAC 96.145, a person who violates a provision of an authorization issued under this chapter (11 AAC 96) is subject to any action available to the DNR for enforcement and remedies, including immediate revocation of the authorization, civil action for forcible entry and detainer, ejectment, trespass, damages, and associated costs, or arrest and prosecution for criminal trespass in the second degree. The DNR may seek damages available under a civil action, including restoration damages, compensatory damages, and treble damages under AS ADL 108707, City and Borough of Sitka, Public Easement Page 8 of 9

09.45.730 or 09.45.735 for violations involving injuring or removing trees or shrubs, gathering geotechnical data, or taking mineral resources. b) If a person responsible for an unremedied violation of 11 AAC 96 or a provision of an authorization issued under this chapter (11 AAC 96) applies for a new authorization from the DNR under AS 38.05.035 or 38.05.850, the DNR may require the applicant to remedy the violation as a condition of the new authorization, or to begin remediation and provide security under 11 AAC 96.060 to complete the remediation before receiving the new authorization. If a person who applies for a new authorization under AS 38.05.035 or 38.05.850 has previously been responsible for a violation of this chapter or a provision of an authorization issued under this chapter, whether remedied or unremedied, that resulted in substantial damage to the environment or to the public, the DNR will consider that violation in determining the amount of the security to be furnished under 11 AAC 96.060 and may require the applicant to furnish three times the security that would otherwise be required. 28) The State assumes no responsibility for maintenance of structures constructed within public easements on state lands, and it assumes no liability for injuries of damages contributable to construction within public easements. 29) Permittee shall adhere to the procedures establish in its Archaeological Monitoring and Discovery Plan. ADL 108707, City and Borough of Sitka, Public Easement Page 9 of 9

Department of Natural Resources Division of Mining Land & Water Southeast Regional Office 400 Willoughby Avenue, 4 th Floor PO Box 111020 Juneau, Alaska 99811-1020 Main: (907) 465-3400 TDD: (907)269-8411 Fax: (907)465-3886 Entry Authorization ADL 108707 City and Borough of Sitka herein known as the Grantee, is issued this Entry Authorization authorizing the use of state land within: Legal Description: Copper River Meridian, Township 55 South, Range 63 East, Sections 2 & 3. The Development Diagram (Attachment 1) depicts the subject area. This Entry Authorization is issued for the purpose of authorizing the following: An Easement for the realignment and maintenance to the Nelson Logging Road This authorization is effective beginning, 2017 and ending, 2020 unless sooner terminated. This Entry Authorization is issued subject to the following: Acceptance of the terms and conditions of the draft Easement (Attachment 1), which will be executed once all requirements of the Entry Authorization have been met; Proof of insurance as described in stipulations below. The non-receipt of a courtesy billing notice does not relieve the Grantee from the responsibility of paying fees on or before the due date. In addition to the terms and conditions of the draft Easement (Attachment 1), all activities shall be conducted in accordance with the following stipulations: 1. Appraisal. It is the responsibility of Grantee to obtain and submit the required Fair Market Value Appraisal for this site to DMLW no later than one month before the expiration of this authorization. The appraisal is to be completed by a qualifying firm acceptable to DMLW. Please contact DMLW s Appraisal Unit before conducting the appraisal at (907) 269-8512. The final easement will not be issued until the appraisal has been accepted by the DMLW Appraisal Unit. DMLW, at its discretion, may require the Grantee to obtain and submit a new Fair Market Value Appraisal for this site at five-year intervals. The appraisal is to be completed at Grantee s expense by a qualifying firm acceptable to DMLW. Entry Authorization

ADL 108707 2. Survey. The Grantee shall submit a Record of Survey format As-built acceptable to the standards of the Survey Section prior to the expiration of this Entry Authorization. At a minimum, the as-built survey will include all the Nelson Logging Road from Halibut Point Road to the gun range. Please contact the DMLW Survey Section at 907-269-8523 to obtain survey instructions within 30 days of the execution of this Entry Authorization. A survey instruction fee may be required in accordance with 11 AAC 05.010(a)(13). The Grantee is required to submit a preliminary draft as-built survey prior to the expiration of this authorization to allow adequate time for the State s review and approval of a final as-built survey. The final easement will not be issued until the survey has been approved by the DMLW. DNR has the authority to implement and enforce these conditions under AS 38.05.850. Any correspondence on this authorization may be directed to the Department of Natural Resources, Division of Mining, Land and Water, Southeast Region, 400 Willoughby Avenue, Juneau, Akaska, 99811-1020, Phone: 907-465-3400. I have read and understand all of the foregoing and attached stipulations. By signing this authorization, I agree to conduct the authorized activity in accordance with the terms and conditions of this authorization. Signature of Grantee or Authorized Representative Title Date Grantee s Address City State Zip Contact Person Home Phone Work Phone Signature of Authorized State Representative Title Date Attachment 1: Development Diagram Attachment 2: Draft Easement Page 2 of 2