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Cooperative Development - Doing the Deal

Stan Webb, Energy and Mineral Development in Indian Country

KRoad/First Solar Moapa Project - BIA Transaction Summary

Option to Lease

An Option to Lease was executed by developer KRoad Moapa (“KRoad”) and the Moapa Band's Section 17 Corporation in June 2010. The agreement was later assigned from the Corporation to the Band (“Moapa”), and its term was extended as supporting documentation for the Lease was being completed and various other agreements were being negotiated and re-negotiated.

Lease Supporting Documents

In 2011, a contract appraisal was approved by OST's Office of Appraisal Services and a review of the negotiated economic terms was provided by BIA's Office of Energy and Economic Development; these reviews “approved” the original negotiated terms whereby Moapa was to receive an initial Basic Rent (substantially higher than the BLM combined Basic Rent and Capacity Fee in Clark County, Nevada), adjusted at a rate of 3%/year and made subject to re-appraisal at the end of the 35-year primary term.

The NEPA process was initiated in 2011 (and the Project was subsequently added to the Department's Priority List), culminating in a Record of Decision executed by Secretary Salazar in June 2012, covering both the BIA actions (the approval of a Ground Lease and the issuance of six related Grants of Easement) and a related BLM right-of-way action for a generation tie line.

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