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Exhibit 10.13
BNSF RAILWAY COMPANY
LEASE OF LAND FOR CONSTRUCTION/REHABILITATION OF
TRACK
THIS LEASE OF LAND FOR
CONSTRUCTION/REHABILITATION OF TRACK ("Lease") is made as of
the 22 nd day of
June, 2006 ( "Effective Date" ), by and between BNSF
RAILWAY COMPANY , a Delaware corporation (hereinafter called "
Railroad" ), and E Energy Adams, LLC. a(n) a limited
liability corporation, formed under the Laws (as hereinafter
defined) of Nebraska, (hereinafter, whether one part or more,
called " Industry ").
RECITALS
A. Railroad owns or controls
certain land situated at or near the railway station of Adams,
County of Gage, State of Nebraska, as described or shown on the
print hereto attached, dated 5/11/05, marked Exhibit
"A" , and made a part of this Lease (" Premises
").
B. Railroad and Industry have
entered into that certain Industry Track Agreement (" Track
Agreement ") dated effective June 22, 2006, relating to
the operation and maintenance of that certain Railroad Track (as
defined in the Track Agreement) and that certain Industry Track (as
defined in the Track Agreement)(the Railroad Track and Industry
Track to be collectively referred to herein as the " Track
") located on or near the Premises to serve the Plant (as defined
in the Track Agreement).
C. The parties desire to
enter into this Lease to allow Industry to occupy the Premises for
the construction of the Track and the performance of certain
activities related to the Track.
AGREEMENTS
NOW THEREFORE, in
consideration of the mutual covenants contained herein, the parties
agree as follows:
LEASE OF PREMISES
1. (a) Railroad hereby lease to Industry, subject to all
rights, interest and estates of third parties, and upon the terms
and conditions set forth below, the Premises for the Permitted Uses
(as hereinafter defined).
(b) In the event Industry
requires access to and from the Premises by use of the Railroad
Track or Railroad’s property adjacent to the Premises,
Railroad hereby grants Industry a non-exclusive license and
permission to enter upon Railroad’s property for such
purpose. Railroad shall, at its sole discretion, designate the
location or route to be used by Industry. For the purposes of this
Lease, the designated access, whether specifically defined or not,
is included in the definition of Premises
PERMITTED USES
2. Industry shall use the Premises exclusively as a site for
(i) the performance of Routine Activities (as hereinafter
defined) and (ii) Major Construction (as hereinafter defined)
related to
the Track and for no other purposes (collectively, the "
Permitted Uses "). Industry shall provide all relevant
information to Railroad’s inquiries regarding the use or
condition of the Premises. Railroad may enter the Premises at any
time Railroad desires to inspect the Premises. For purposes of this
Lease:
(a) " Routine
Activities " shall mean Industry’s normal maintenance and
operation of the Track that does not include Major Construction.
Routine Activities shall be deemed to include, but no be limited
to, those normal maintenance and operating activities further
described in the Track Agreement so long as such normal maintenance
and operating activities described in the Track Agreement do not
involve Major Construction.
(b) " Major
Construction " shall mean planning, designing, construction,
erection, installation, modification, repair, maintenance,
reconstruction, rehabilitation, reinstallation, removal, relocation
or replacement of the Track that includes: (i) activities
requiring the excavation of soil that would alter or disturb the
Premises; (ii) activities requiring the use of heavy machinery
within fifty (50) feet of the Track or upon the Premises;
(iii) activities involving the Fouling (as hereinafter
defined) of the Track; (iv) activities creating a significant
risk of the Fouling of the Track; or (v) activities requiring
the sheltering of the Industry’s Facilities (as hereinafter
defined) or Equipment (as hereinafter defined) in shelters located
closer than 25 feet from the nearest portion of the Track. In
addition, the parties agree that all activities on the Premises
prior to the Revenue Commencement Date (as hereinafter defined)
shall be deemed to be "Major Construction" even if such activities
do not include activities described in (i), (ii), (iii),
(iv) or (v) above.
(c) " Revenue Commencement
Date " shall mean the first date that initial
construction/rehabilitation of the Track is complete to the point
that railroad cars can operate over the Track.
(d) " Fouling" or
"Fouled" shall mean the existence, movement or placement of
equipment and/or personnel on the Track or within twenty-five
(25) feet vertically or laterally of the centerline Track, or
any other activity which in Railroad’s sole opinion may
interfere with any operations of Railroad.
TERM
3. Unless earlier terminated as hereinafter provided, this Lease
shall be in force for a term commencing on the Effective Date and
shall automatically continue thereafter until terminated by either
party giving to the other thirty (30) days’ written
notice of its desire to terminate the Lease. Notwithstanding the
foregoing, upon the expiration or earlier termination of the Track
Agreement, Railroad may, in its sole discretion upon notice to
Industry, immediately terminate this Lease.
RENTAL
4. Industry shall pay to Railroad, prior to the Effective Date
of this Lease, a one-time sum of $500 for the lease of the
Premises.
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COMPLIANCE WITH LAWS AND RAILROAD REQUIREMENTS
5. (a) Industry shall be responsible for obtaining, without
expense to Railroad, all necessary real property rights and public
authority and permission, including applicable permits for the
maintenance and operation of the Premises provided Industry obtains
prior written consent from Railroad.
(b) Industry has examined the
Premises and accepts the condition thereof "AS IS" and shall
exercise its rights and fulfill its obligations under this Lease in
full compliance with all laws, statutes, regulations, ordinances,
orders, covenants, restrictions, or decisions of any court of
competent jurisdiction (referred to herein as " Law " or "
Laws "), including without limitation all Environmental Laws
(as hereinafter defined), relating to the use of the Premises,
Track, Facilities or Equipment.
(c) Prior to entering the
Premises, Industry shall and shall cause its contractor(s) to
comply with all Railroad’s applicable safety rules and
regulations. Prior to commencing any Major Construction or Routine
Activities on the Premises, Industry shall complete and shall
require its contractor(s) to complete the safety-training program
at the Railroad’s Internet Website
"http://contractororientation.com". This training must be completed
no more than one year in advance of Industry’s entry of the
Premises.
(d) Prior to any contractor
of Industry entering the Premises, Industry shall cause each such
contractor to enter into and comply with Railroad’s standard
Contractor’s Right of Entry Agreement (" Right of Entry
Agreement ") in the form attached hereto as Exhibit
"D" and incorporated herein by this reference.
USE AND MAINTENANCE OF PREMISES
6. (a) Industry shall at all times, and at its sole risk
and expense, maintain, or cause to be maintained, the Premises,
Track and all Facilities and Equipment (if any) in a safe and
satisfactory condition, in compliance with all applicable Laws and
in a condition satisfactory to Railroad. Industry shall not cause,
permit, commit, or maintain any waste or nuisance in or about the
Premises.
(b) Maintenance for the
purpose of this Lease includes, but is not limited to,
responsibility for providing property drainage along the relevant
portion of the Track and for keeping the Track free and clear of
snow, ice, vegetations, structures, and other obstacles.
Maintenance also includes, but is not limited to, responsibility
for the maintenance of grade crossing warning devices, passive
warning signs, stop signs, gates, fences, barriers, roadways and
roadway construction, track drainage facilities, lighting, track
signals and signal maintenance.
(c) If Industry installs any
gates or fencing across the Track, or the track scale, unloading
pits, loading or unloading device, adjustable loading dock,
warehouse door, or any other structure (collectively, "
Facilities ") affecting the Track, Industry shall be solely
responsible for assuring the safe and satisfactory condition of the
same and shall not allow any Facilities to be a source of danger to
the safe operation of the Track. Industry shall also be solely
responsible for assuring the safe and satisfactory condition of all
of Industry’s equipment
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touching, used in conjunction with or affecting the Track ("
Equipment ") and shall not allow any Equipment to be a
source of danger to the safe operation of the Track. Before
utilizing or unloading any equipment spotted onto the Track,
Industry shall inspect the same and all other Equipment and
Facilities for the safety of persons working on or about these
items to assure compliance with the foregoing. Industry shall
utilize all Facilities, Equipment and spotted equipment so as not
to adversely affect the safe and efficient operation over the
Track. Industry shall, among other things: keep any gates across
the Track open whenever necessary, in Railroad’s sole
judgment, to enable Railroad to safely and efficiently operate over
the Track; keep unloading pits securely covered when not in actual
use and at all times when the Track is being switched by Railroad;
keep all doors firmly secured; and keep adjustable loading docks at
warehouses securely fastened in an upright position when not in
actual use and at all times when the Track is being switched by
Railroad.
(d) Railroad may require for
safety purposes that Industry, at its sole cost and expense,
provide flagmen, lights, traffic control devices, automatic warning
devices, or any such safety measure that Railroad deems appropriate
in connection with Industry’s use of the Premises for the
Permitted Uses identified in Section 2 above. Industry
shall reimburse Railroad within thirty (30) days of receipt of a
bill rendered for all such costs expended by Railroad, including
but not limited to the furnishing of Railroad’s Flagman and
any vehicle rental costs incurred. The cost of flagger services
provided by the Railroad, when deemed necessary by the
Railroad’s representative, will be borne by the Industry. The
estimated cost for one (1) flagger is $600.00 for an eight (8)
hour basic day with time and one-half or double time for overtime,
rest days, and holidays. The estimated cost for each flagger
includes vacation allowance, paid holidays, Railroad and
unemployment insurance, public liability and property damage
insurance, health and welfare benefits, transportation, meals,
lodging and supervision. Negotiations for Railway labor or
collective bargaining agreements and rate changes authorized by
appropriate Federal authorities may increase actual or estimated
flagging rates. The flagging rate in effect at the time of
performance by the Contractor hereunder will be used to calculate
the actual costs of flagging pursuant to this paragraph.
(e) Industry shall notify
Railroad’s representative Roadmaster Lloyd Hide at telephone
402-458-7637, five (5) days prior to commencing any
construction or rehabilitation of the Track on the Premises.
(f) All alterations,
additions, or betterments to the Premises, other than the rails and
the ties shall upon construction become the sole property of
Railroad.
(g) Industry agrees that
Railroad shall not be required to furnish to Industry any water,
light, power or any other services in connection with the use of
the Premises.
(h) Notwithstanding anything
contained herein to the contrary, in the event of any conflict
between the terms of this Lease and the Track Agreement with regard
to the use and maintenance of the Premises the most stringent
provision or requirement applicable to the Industry will
control.
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DEFINITION OF COST AND EXPENSE
7. (a) For purposes of this lease, "cost" or "costs" or
"expense" or "expenses" includes, but is not limited to, actual
labor and material costs including all assignable additives and
material and supply costs at current value where used.
(b) All invoices are due
thirty (30) days after the date of invoice. In the event that
Industry shall fail to pay any monies due to Railroad within thirty
(30) days after the invoice date, then Industry shall pay
interest on such unpaid sum from thirty (30) days after its
invoice date to the date of payment by Industry at an annual rate
equal to (i) the greater of (a) for the period January 1
through June 30, the prime rate last published in The Wall
Street Journal in the preceding December plus two and one-half
percent (2 1 / 2 %), and for the
period July 1 through December 31, the prime rate last published in
The Wall Street Journal in the preceding June plus two and
one-half percent (2 1
/ 2 %),
or (b) twelve percent (12%), or (ii) the maximum rate
permitted by applicable Law, whichever is less.
RIGHT OF RAILROAD TO USE
8. Railroad excepts and reserves the right to be exercised by
Railroad and any other parties who may obtain written permission or
authority from Railroad:
(a) to maintain, renew, use,
operate, change, modify and relocate any existing pipe, power,
communication lines and appurtenances and other facilities or
structures of like character upon, over, under or across the
Premises;
(b) to construct, maintain,
renew, use, operate, change, modify and relocate any tracks or
additional facilities or structures upon, over, under or across the
Premises; or
(c) to use the Premises in
any manner as the Railroad in its sole discretion deems
appropriate, provided Railroad uses all commercially reasonably
efforts to avoid material interference with the use of the Premises
by Industry for the Permitted Uses specified in
Section 2 above.
CLEARANCES
9. (a) Industry shall not place, permit to be placed, or
allow to remain, any permanent or temporary material, structure,
pole, container, storage vessel, above-ground or underground tank,
or other obstruction within 8 1
/ 2 feet
laterally from the center (nine and one-half (9-1/2) feet on either
side of the centerline of curved track) or within 24 feet
vertically from the top of the rail of the Track (" Minimal
Clearances "), provided that if any Law requires greater
clearances than those provided for in this Section 9 ,
then Industry shall strictly comply with such Law. However, lateral
or vertical clearances which are less than Minimal Clearances but
are in compliance with applicable Laws will not be a violation of
the Section 9 , so long as Industry strictly complies
with the terms of any such Law.
(b) Railroad or
Industry’s operation over the Track with Railroad’s
knowledge of an unauthorized reduced clearance will not be a waiver
of the covenants of Industry contained in this
Section 9 or of Railroad’s right to recover and
be indemnified and defended against such damages to property or
injury to or death of persons, that may result therefrom.
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(c) Industry shall not place
or allow to be placed any freight car within 250 feet of either
side of any at-grade crossings on the Premises.
INDEMNIFICATION
10. (a) The provisions of this Section 10 shall
apply to Industry throughout the term of this Lease; provided,
however, the provisions of Exhibit "B" attached
hereto and incorporated herein by this reference, shall also apply
to Industry during: (i) all periods of Major Construction to
the extent Industry self-performs all or any portion of such Major
Construction, and (ii) all periods during which
Industry’s contractor(s) are on the Premises and Industry has
failed to cause its contractor(s) to timely enter into and fully
comply with Railroad’s Right of Entry Agreement.
(i) INDUSTRY
SHALL RELEASE, INDEMNIFY, DEFEND, AND HOLD RAILROAD AND
RAILROAD’S AFFILIATED COMPANIES, PARTNERS, SUCCESSORS,
ASSIGNS, LEGAL REPRESENTATIVES, OFFICERS, DIRECTORS, SHAREHOLDERS,
EMPLOYEES AND AGENTS (COLLECTIVELY, THE "INDEMNITEES") HARMLESS
FROM AND AGAINST ALL CLAIMS, LIABILITIES, FINES, PENALITIES, COSTS,
DAMAGES, LOSSES, LIENS, CAUSES OF ACTION, SUITS, DEMANDS, JUDGMENTS
AND EXPENSES (INCLUDING, WITHOUT LIMITATION, COURT COSTS,
ATTORNEYS’ FEES AND COSTS OF INVESTIGATION, REMOVAL AND
REMEDIATION AND GOVERNMENTAL OVERSIGHT COSTS) ENVIRONMENTAL OR
OTHERWISE (COLLECTIVELY, "LIABILITIES") ARISING OUT OF OR RELATED
TO (IN WHOLE OR IN PART) ANY CLAIM THAT BY VIRTUE OF THE USE OF THE
TRACK CONTEMPLATED IN THIS LEASE, UNDER CERCLA OR OTHER
ENVIRONMENTAL LAWS, RAILROAD IS (I) AN "OWNER", "OPERATOR",
"ARRANGER" OR "TRANSPORTER" OF THE TRACK, OR (II) OTHER THAN A
COMMON CARRIER WITH RESPECT TO THE TRACK, REGARDLESS OF ANY
NEGLIGENCE OR STRICT LIABILITY OF ANY INDEMNITEE.
(ii) IF ANY
EMPLOYEE OF INDUSTRY OR INDUSTRY’S OFFICERS, AGENTS,
INVITESS, LICENSEES, EMPLOYEES, OR CONTRACTORS, OR ANY PARTY
DIRECTLY OR INDIRECTLY EMPLOYED BY ANY OF THEM, OR ANY PARTY THEY
CONTROL OR EXERCISE CONTROL OVER (COLLECTIVELY, "INDUSTRY PARTIES")
CLAIMS HE OR SHE IS AN EMPLOYEE OF ANY INDEMNITEE, INDUSTRY SHALL
INDEMNIFY AND HOLD THE INDEMNITEES HARMLESS FROM AND AGAINST ANY
LIABILITIES ARISING OUT OF OR RELATED TO (IN WHOLE OR IN PART) ANY
SUCH CLAIM INCLUDING, BUT NOT LIMITED TO, CLIAMS RELATED TO
PROCEEDINGS UNDER OR RELATED TO THE FEDERAL EMLOYERS’
LIABILITY ACT, THE SAFETY APPLIANCE ACT, THE BOILER INSPECTION ACT,
THE OCCUPATIONAL SAFETY AND
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HEALTH ACT, THE RESOURCE CONSERVATION AND RECOVERY ACT, AND ANY
SIMILAR STATE OR FEDERAL STATUTE AND REGARDLESS OF ANY NEGLIGENCE
OR STRICT LIABILITY OF ANY INDEMNITEE RELATED TO SUCH CAUSES OF
ACTION.
(b) Upon written notice from
Railroad, Industry agrees to assume the defense of any lawsuit or
other proceedings brought against any Indemnitee by any entity,
relating to any matter covered by this Lease for which Industry has
an obligation to assume liability for and/or save and hold harmless
any Indemnitee. Industry shall pay all costs incident to such
defense, including, but not limited to, attorneys’ fees,
investigators’ fees, litigation and appeal expenses,
settlement payments, and amounts paid in satisfaction of
judgments.
PERSONAL PROPERTY WAIVER
11. ALL PERSONAL PROPERTY, INCLUDING, BUT NOT LIMITED
TO, FIXTURES, EQUIPMENT, OR RELATED MATERIALS UPON THE PREMISES
WILL BE AT THE RISK OF INDUSTRY ONLY, AND NO INDEMNITEE WILL BE
LIABLE FOR ANY DAMAGE THERETO OR THEFT THEREOF, WHETHER OR NOT DUE
IN WHOLE OR IN PART TO THE NEGLIGENCE OF ANY INDEMNITEE.
INSURANCE
12. (a) The provisions of this Section 12 shall
apply to Industry throughout the term of this Lease, provided,
however, the provisions of Exhibit "C" , attached
hereto and incorporated herein by this reference, shall also apply
to Industry during: (i) all periods of Major Construction, to
the extent Industry self-performs all or any portion of such Major
Construction, and (ii) all periods during which
Industry’s contractor(s) are on the Premises and Industry has
failed to cause its contractor(s) to timely enter into and fully
comply with Railroad’s Right of Entry Agreement. Throughout
the term of this Lease, Industry shall at its sole cost and expense
procure and maintain the following insurance coverage:
A. Commercial General
Liability Insurance. This insurance shall contain broad form
contractual liability with a combined single limit of a minimum of
$1,000,000 each occurrence and an aggregate limit of at least
$2,000,000. Coverage must be purchased on a post 1998 ISO
occurrence or equivalent and include coverage for, but not limited
to, Bodily Injury and Property Damage and Products and completed
operations. The definition of insured contract shall be amended to
remove any exclusion or other limitation for any work being done
within 50 feet of railroad property.
B. Workers
Compensation and Employers Liability insurance including coverage
for, but not limited to:
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Industry’s statutory liability under the
worker’s compensation Laws of the state(s) in which the work
is to be performed. If optional under State Law, the insurance must
cover all employees anyway.
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Employers’ Liability (Part B) with
limits of at least $500,000 each accident $500,000 by disease
policy limit, $500,000 by disease of each employee.
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(b) In addition to the foregoing, the
following other requirements shall apply to this
Section 12:
Any insurance policy shall be
written by a reputable insurance company with a current
Best’s Guide Rating of A- and Class VII or better, and
authorized to do business in the state(s) in which the service is
to be provided. If any portion of the operation is to be
subcontracted by Industry, Industry shall require that the
subcontractor provide and maintain insurance coverage as set forth
herein.
Prior to commencing operations
governed by this Lease, Industry shall furnish to Railroad an
acceptable certificate(s) of insurance including an original
signature of the authorized representative evidencing the required
coverage, endorsements, and amendments and referencing the contract
audit/folder number if available. The policy(ies) shall contain a
provision that obligates the insurance company(ies) issuing such
policy(ies) to notify Railroad in writing at least 30 days
prior to any cancellation or non-renewal with such provisions
indicated on the certificate of insurance. In the event of a claim
or lawsuit involving Railroad arising out of this agreement,
Industry will make available any required policy covering such
claim or lawsuit.
Failure to provide evidence as
required by this Section 12 shall entitle, but not
require, Railroad to terminate this Lease immediately. Acceptance
of a certificate that does not comply with this
Section 12 shall not operate as a waiver of
Industry’s obligations hereunder. The fact that insurance
(including, without limitation, self-insurance) is obtained by
Industry shall not be deemed to release or diminish the liability
of Industry including, without limitation, liability under the
indemnity provisions of this Lease. Damages recoverable by Railroad
shall not be limited by the amount of the required insurance
coverage.
(c) For purposes of this
Section 12 , Railroad shall mean "Burlington Northern
Santa Fe Corporation", "BNSF RAILWAY COMPANY" and the subsidiaries,
successors, assigns, and affiliates of each.
ENVIRONMENTAL
13. (a) " Environmental Law(s) " shall mean any federal,
state, or local law, statute, ordinance, code, rule, regulation,
policy, common law, license, authorization, decision, order, or
injunction which pertains to health safety, any Hazardous Material
(as hereinafter defined), or the environment (including but not
limited to ground, air, water, or noise pollution or contamination,
and underground or above-ground tanks) and shall include, without
limitation, the Resource Conservation and Recovery Act 42 U.S.C.
§6901 et seq., the Comprehensive Environmental Response.
Compensation and Liability Act of 1980, 42 U.S.C. §9601 et
seq. (" CERCLA "); the Hazardous Materials Transportation
Act, 49 U.S.C. §1801 et seq.; the Federal Water Pollution
Control Act, 33 U.S.C. §1251 et seq.; the Clean Air Act, 42
U.S.C. §7401 et seq.; the Toxic Substances Control Act, 15
U.S.C. §2601 et seq.; the Safe Drinking Water Act,
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42 U.S.C. §300f et seq.; the Emergency Planning and
Community Right-to-Know Act, 42 U.S.C. 11001 et seq.; the Federal
Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. 136 to 136y;
the Oil Pollution Act, 33 U.S.C. 2701 et seq.; and the Occupational
Safety and Health Act, 29 U.S.C. 651 et seq.; all as have been
amended from time to time, and any other federal, state, or local
environmental requirements, together with all rules, regulations,
orders, and decrees now or hereafter promulgated under any of the
foregoing as any of the foregoing now exist or may be changed or
amended or come into effect in the future.
(b) " Hazardous
Material(s) " shall include but shall not be limited to any
substance, material or waste that is regulated by any Environmental
Law or otherwise regulated by any federal, state, or local
governmental authority because of toxic, flammable, explosive,
corrosive, reactive, radioactive or other properties that may be
hazardous to human health or the environment including without
limitation asbestos and asbestos-containing materials, radon,
petroleum and petroleum products, urea formaldehyde foam
insulation, methane, lead-based paint, polychlorinated biphenyl
compounds, hydrocarbons or like substances and their additives or
constituents, pesticides, agricultural chemicals, and any other
special, toxic, or hazardous substances, materials or wastes of any
kind, including without limitation those now or hereafter defined,
determined or identified as "hazardous chemicals," "hazardous
substances," "hazardous materials," "toxic substances," or
"hazardous wastes" in any Environmental Law.
(c) Industry shall strictly
comply with all Environmental Laws. Industry shall not maintain any
treatment, storage transfer or disposal facility, or underground
storage tank, as defined by Environmental Laws, on the Premises.
Industry shall not release or suffer the release of oil or
Hazardous Materials, as defined by Environmental Laws, on or about
the Premises.
(d) Except as authorized in
advance in writing by Railroad, Hazardous Materials are not
permitted on the Premises. Any Hazardous Materials so permitted by
Railroad shall be place, generated, used, received, maintained,
treated, stored and disposed of by Industry in a manner consistent
with good engineering practice and in strict accordance with all
Environmental Laws. Use or storage on the Premises of any Hazardous
Materials that are not previously authorized by Railroad in writing
in advance of such use or storage is a breach of the Lease.
(e) Industry shall give
Railroad immediate notice to Railroad’s Resource Operations
Center at (800) 832-5452 of any release of Hazardous Materials
on or from the Premises and to Railroad’s Manager
Environmental Leases at (785) 435-2386 for any violation of
Environmental Laws, or inspection or inquiry by governmental
authorities charges with enforcing Environmental Laws with respect
to Industry’s use of the Premises. Industry shall use its
best efforts to promptly respond to any release on or from the
Premises. Industry also shall give Railroad’s
Manager-Environmental Leases immediate notice of all measures
undertaken on behalf of Industry to investigate, remediate, respond
to or otherwise cure such release or violation and shall provide
Railroad’s Manager-Environmental Leases copies of all reports
and/or data regarding any investigations or remediations of the
Premises. In the event that Railroad has notice from Industry or
otherwise of a release or violation of Environmental Laws on the
Premises which occurred or may occur during the term of this Lease,
Railroad may require Industry, at Industry’s sole risk and
expense, to take timely measures to investigate, remediate, respond
to or otherwise cure such release or violation affecting the
Premises, Railroad’s adjoining property or Railroad’s
right-of-way.
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(f) Industry shall promptly
report to Railroad in writing any conditions or activities upon the
Premises which create a risk of harm to persons, property or the
environment and shall take whatever action is necessary to prevent
injury to person or property arising out of such conditions or
activities; provided, however, that Industry’s reporting to
Railroad shall not relieve Industry of any obligation whatsoever
imposed on it by this Lease. Industry shall promptly respond to
Railroad’s request for information regarding said conditions
or activities.
(g) Railroad and their
respective agents and representatives shall have a right of entry
and access to Premises: (i) at any time an actual or suspected
emergency exists and (ii) at any reasonable time, upon prior
written notice, and, at Industry’s election, with a
representative of Industry present, for the purposes of
(a) inspecting the documentation relating to Hazardous
Materials or environmental matters maintained by Industry or any
occupant of the Premises and (b) ascertaining whether Industry is
in compliance with its obligations under this
Section 13 .
(h) Prior to the termination
of this Lease, Railroad may, at Railroad’s option, require
Industry to conduct an environmental audit of the Premises through
an environmental consulting engineer acceptable to Railroad, at
Industry’s sole costs and expense, to determine if any
noncompliance or environmental damage to the Premises has occurred
during Industry’s occupancy thereof. The audit shall be
conducted to Railroad’s satisfaction and a copy of the audit
report shall promptly be provided to Railroad for its review.
Industry shall pay all expenses for any remedial action that may be
required as a result of said audit to correct noncompliance or
environmental damage, and all necessary work shall be performed by
Industry prior to the termination of this Lease.
ALTERATIONS
14. Industry may not make any alterations of the Premises or
permanently affix anything to the Premises or any buildings or
other structures adjacent to the Premises without Railroad’s
prior written consent.
NO WARRANTIES
15. RAILROAD’S DUTIES AND WARRANTIES ARE LIMITED TO
THOSE EXPRESSLY STATE IN THIS LEASE AND SHALL NOT INCLUDE ANY
IMPLIED DUTIES OR IMPLIED WARRANTIES, NOW OR IN THE FUTURE. SO
REPRESENTATIONS OR WARRANTIES HAVE BEEN MADE BY RAILROAD OTHER THAN
THOSE CONTAINED IN THIS LEASE. INDUSTRY HEREBY WAIVES ANY AND ALL
WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE PREMISES WHICH
MAY EXIST BY OPERATION OF LAW OR IN EQUITY, INCLUDING, WITHOUT
LIMITATION, ANY WARRANTY OF MERCHANTABILITY, HABITABILITY OR
FITNESS FOR A PARTICULAR PURPOSE.
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QUIET ENJOYMENT
16. RAILROAD DOES NOT WARRANT ITS TITLE TO THE PREMISES NOR
UNDERTAKE TO DEFEND INDUSTRY IN THE PEACEABLE POSSESSION OR USE
THEREOF, NO COVENANT OF QUIET ENJOYMENT IS MADE.
DEFAULT
17. (a) If Industry creates or maintains any condition,
including without limitation, any environmental condition, on or
about the Premises, which in Railroad’s sole judgment
interferes with or endangers the operations of Railroa
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