SUBSURFACE UNDERGROUND GAS STORAGE LEASEAND AGREEMENT
(With Landowner; Long Form)
This Subsurface Underground Gas Storage Lease and Agreement (the “Storage
Agreement” or “Agreement”) is entered into effective _____, between _____ (the “Lessor”),
whose address is _____, and _____, its successors and assigns, whose address is _____, (the
“Lessee”).
1. Grant of Lease: Lessor, for and in consideration of the payments provided below and
other valuable consideration, the receipt and sufficiency of which is acknowledged, lea ses to
Lessee, and Lessee leases from Lessor, the exclusive right, on the terms and conditions of this
Agreement, to inject and store natural gas in and withdraw and remove natural gas from the
zones or formations underlying the surface of the lands described in Exhibit “A” (the
“Property”). The zones and formations are referred to as the “Storage Reservoir.” Lessee is a lso
granted all rights incident to the injection, storage, withdrawal, and removal, includi ng without
limitation the following:
a. The right to use the Storage Reservoir as an Underground Gas Storage Reservoir,
to use, produce, or sell any currently producible gas or other hydrocarbons within the Storage
Reservoir, and to store and remove natural gas in the Storage Reservoir and retain possession and
ownership of all natural gas so stored, as personal property, subject, however, to an obligation on
the part of Lessee to pay a royalty to Lessor equal to a fraction, determined by di viding the
amount of acreage of the Property covered by this Agreement by the total acreage covere d by
this Agreement plus all underground gas storage agreements overlying the Storage Reservoir, of
_____ of the value of any quantity of gas withdrawn from the Storage Reservoir in excess by
more than seven-tenths of one percent (0.7%) of the quantity of gas injected into the Storage
Reservoir (the “Royalty”), proportionately reduced to the percentage of oil and gas minera l rights
in the Property owned by Lessor if less than 100% ownership. This Royalty shall be payable, if
at all, as a single one-time payment within a period of thirty (30) days following the expiration of
termination of this Agreement. The quantities of gas withdrawn and injected shall be adjusted
for water content. The value of gas withdrawn in excess of the quantity of gas injected shall be
determined as of the date of expiration or termination of this Agreement on the basis of the price
paid on that date by _____ at the wellhead for gas of similar quality in _____. If on that date
_____ is not purchasing natural gas for resale in _____, the value shall be the price set forth in
Natural Gas Intelligence, “Monthly Contract Index,” under _____, minus the then current firm
transportation rate for _____ backbone transportation capacity, including fuel, published in the
month of the expiration or termination of this Agreement.
2. Rent and Signing Bonus: On execution and delivery of this Agreement by Lessor to
Lessee, Lessee shall pay to Lessor a signing bonus in the amount of $_____.
a. Payment Options. By initiating one of the two rental payment options set forth
below, Lessor has elected to have rental paid to Lessor by Lessee in accordance with the initialed
option.
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_____OPTION 1:
(i) Primary Period. An amount equal to _____ percent (determined by dividing _____
acres, the acreage of the Property, by _____ acres, the total acreage of all Property
overlying the Storage Reservoir and as to which a Storage Agreement will be taken by
Lessee, (the “Payment Percentage”) of $_____, payable in advance on the first day of the
Primary Period and on each anniversary date of the first day of the Primary Period that
follows.
(ii) Secondary Period. An amount equal to the Payment Percentage times $______,
with credit given for the proportionate amount of any annual payment made during the
Primary Period for the unexpired portion of the year for which Primary Period payment
has been made up to the first day of the Secondary Period, payable on the first day of the
Secondary Period and on each anniversary of the first day of the Secondary Period
thereafter up to the earlier of the first day of the ninth year of the Secondary Peri od or the
first day of the year following the year in which cumulative Annual Gross Revenue (as
defined below) equals or exceeds the sum of $_____ (the “Percentage Payment
Commencement Date”). Commencing on the Percentage Payment Commencement Date ,
Lessee shall pay to Lessor an amount equal to the Payment Percentage of _____% of the
Annual Gross Revenue, payable as follows: (1) On or before the Percentage Payment
Commencement Date and on or before each anniversary of that date, Lessee shall pay
Lessor as a minimum annual payment an amount equal to the Payment Percentage t imes
$_____ in advance (the “Advance Payment”), which Advance Payment shall be
nonrefundable; and, (2) within 90 days following the last day of the year of the
Percentage Payment Commencement Date and each following year, Lessee shall pay
Lessor the balance, if any, of the rent due for the previous year less the Advance Payment
paid by Lessee on the first day of such year.
Commencing on the first day of the year after commencement of the Secondary Period
and on each anniversary of that date, the amount payable by Lessee to Lessor prior to t he
Percentage Payment Commencement Date shall be increased by _____%, and the amount
of the Advance Payment shall be increased by _____%. Commencing the first
anniversary of the Percentage Payment Commencement Date, and each year following,
the Advance Payment payable by Lessee to Lessor shall be increased by _____%.
_____ OPTION 2:
(i) Primary Period. An amount equal to _____ percent (determined by dividing _____
acres, the acreage of the Property, by _____ acres, the total acreage of all Property
overlying the Storage Reservoir and as to which a Storage Agreement will be taken by
Lessee) (the “Payment Percentage”) of $_____, payable in advance on the first day of the
Primary Period and on each anniversary date of the first day of the Primary Period
thereafter.
(ii) Secondary Period. An amount equal to the Payment Percentage times $_____ for
each of years one through five of the Secondary Period and times $_____ for each of
years six through ten of the Secondary Period, with credit given for the proportionate
amount of any annual payment made during the Primary Period for the unexpired portion
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of the year for which the Primary Period payment has been made up to the first day of the
Secondary Period, payable on the first day of the Secondary Period and on each
anniversary of the first day of the Secondary Period thereafter up to the first day of the
eleventh year of the Secondary Period. Commencing on the first day of the eleventh year
of the Secondary Period an amount equal to the Payment Percentage of _____% of the
Annual Gross Revenue (as defined below), payable as follows: (1) On or before the first
day of the eleventh year of the Secondary Period and on each anniversary date of the first
day of the Secondary Period thereafter, Lessee shall pay Lessor as minimum annual
payment an amount equal to the Payment Percentage times $_____ in advance (the
“Advance Payment”), which Advance Payment shall be nonrefundable, and (2) within
90 days following the last day of the eleventh year of the Secondary Period and each yea r
of the Secondary Period thereafter, Lessee shall pay Lessor the balance, if any, of the rent
due for the previous year less the Advance Payment paid by Lessee on the first day of the
year. Commencing on the first day of the first year after commencement of the
Secondary Period and on each anniversary thereof through the sixth year of the
Secondary Period, the amount payable by Lessee to Lessor shall be increased by _____%.
Commencing on the first day of the seventh year of the Secondary Period and on each
following anniversary through the tenth year of the Secondary Period, the amount of
$_____, against which the Payment Percentage is applied, shall be increased by _____%.
Commencing with the first anniversary of the commencement of the Secondary Period,
and each year thereafter up to the first anniversary of the eleventh year of the Sec ondary
Period, the Advance Payment payable by Lessee to Lessor shall be increased by _____%.
Commencing with the first anniversary of the eleventh year of the Secondary Period, and
each year following, the Advance Payment payable by Lessee Lessor shall be increased by _____%.
b. Definitions.
“Annual Gross Revenue” as used in this Agreement shall mean all gross income derived
from the storage of natural gas by Lessee in the Storage Reservoir, whether or not injecte d
through, or by use of facilities located on, the Property, including, without limitation: (1)
compensation received for maintaining the availability of natural gas storage space; (2) all
revenues received from third parties as a fee for the storage, injection and/or withdra wal of
natural gas during the Secondary Period year; but shall specifically exclude use of actual fuel gas
consumed by Lessee in connection with the storage operation, and any sale by Lessee of any
asset other than gas; and, (3) the total excess of the price received for gas sold (other than gas
consumed as fuel gas), if any, which was stored in the Storage Reservoir, over the price paid for
gas purchased and stored in the Storage Reservoir, determined on a first in/first out invent ory
accounting basis. Lessee shall not contract with any Affiliate (as defined) for storage se rvices or
sales of gas on terms which are less favorable to Lessee than the average of contract s with third
parties. “Affiliates” shall mean (1) persons directly or indirectly controlling, controll ed by or
under common control with Lessee or (2) partners or employees of Lessee. The term “control”
(including the terms “controlled by” and “under common control with”) means the possession,
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direct or indirect, of the power to direct or cause direction of the management and policies of a
person, whether through ownership of voting securities, by contract or otherwise.
“Primary Period” as used in this Agreement shall mean the period commencing on the
earlier of (Date) or the date of issuance of a final Certificate of Public Conveni ence and
Necessity for the gas storage project by _____, and shall continue until the date on which t he
Secondary Period commences.
“Secondary Period” as used in this Agreement means the period commencing on the
earlier of the date of commencement of commercial gas storage operations for the Storage
Reservoir or (Date). The date of commencement of commercial gas storage operations as used
in this Agreement shall mean the earlier of the date on which Lessee begins providing gas
storage services for contract storage customers or 12 months following the date on which Lessee
commences the injection of Cushion Gas into the Storage Reservoir. “Cushion Gas” as used in
this Agreement shall mean that volume of natural gas injected into and retaine d in the Storage
Reservoir, from time to time, to maintain pressure in the facilities as necessa ry for prudent
storage operations.
3. Term: This Storage Agreement shall continue for a term of _____ years from and after
the first day of the Secondary Period and so long as the Storage Reservoir is used for
underground storage of natural gas or the removal or injection of natural gas with no continuous
period of non-use of two (2) consecutive years. The term “non-use” as used in this paragraph
shall mean both no injection of gas into and no withdrawal of gas from the Storage Rese rvoir.
Non-use shall not be deemed to have occurred if there was either injection of gas int o or
withdrawal of gas from the Storage Reservoir within the relevant period. Nothing in this
paragraph or Storage Agreement shall obligate or require Lessee to use or continue to use the
Storage Reservoir. Lessee shall notify Lessor in writing of the existence of any continuous
period of non-use of two (2) or more consecutive years.
Lessee shall be entitled to extend this Storage Agreement for a further _____ year term
on the same terms and conditions set forth in this Agreement except for rental and exc ept that
there shall be no further option to extend, by delivering written notice of its intent t o extend to
Lessor not sooner than one (1) year and not later than three (3) months prior to expiration of t he
initial _____ year term. If Lessee sends written notice of intent to extend to Le ssor, Lessee and
Lessor shall meet and endeavor in good faith to negotiate a new fair market renta l for the
extended term within a period of thirty (30) days following Lessor’s receipt of Lessee’s notice of
intent to extend. If Lessee and Lessor do not meet or cannot agree upon a fair market re ntal for
the extended term within that thirty (30) day period, the fair market rental shall be established by
arbitration in the manner set forth in paragraph 19 below.
4. Limits on Use of Surface: Lessee shall have no right to enter on the surface of the
Property or within _____ feet below the surface of the Property.
5. Lessee Indemnity and Restoration:
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a. Lessee shall defend, indemnify and hold harmless Lessor, any of its officers,
employees, governing body members, and agents from and against any and all claims, demands,
losses, damages, liabilities, fines, charges, penalties, administrative and judicial proceedings and
orders, judgments, remedial actions of any kind, and all costs and expenses incurred, including
without limitation, reasonable attorneys’ fees and costs of defense arising, directly or indi rectly,
in whole or in part, out of Lessee’s activities or facilities or improvements inst alled by the
Lessee, for any reason whatever and without limitation, except to the extent arising from or
caused by the intentional or willful misconduct or sole negligence of the Lessor, its offi cers,
employees, and agents.
b. Cleanup. Lessee agrees to be responsible for any cleanup, in accordance with any
applicable local, state or federal laws, rules or regulations, of the Property resulting from spills
by Lessee or the introduction of substances by Lessee which are defined as of the date of t his
Agreement in the Resource Conservation and Recovery Act as “Hazardous Waste” in or on the
Property during the construction, operation, and maintenance of the gas storage project. Lessee
shall also be responsible for cleanup, in accordance with any applicable local, stat e or federal
laws, rules or regulations, of the Property resulting from spills by Lessee, or the introduction of
substances by Lessee defined by future legislation as Hazardous Waste.
c. Lessee agrees to sample and test the groundwater from any groundwater well
utilized by Lessor on the Property prior to Lessee’s drilling of the initial injection or withdrawal
well for its gas storage project. Lessee shall be given access to Lessor’s groundwater we ll or
wells for the purpose of collecting an appropriate sample and will have such sample te sted for
methane, ethane, and ethene in accordance with EPA Method RSK SOP-175 and for chloride,
manganese, sulfate, and conductance (the “Protocol”) by a qualified independent testing la b, as
selected from time to time in writing by Lessee, (the “Lab”), all at Le ssee’s sole cost and
expense. The Lab shall be instructed to mail the results of such baseline testing i n duplicate to
both Lessor and Lessee. Lessee shall, additionally, perform sampling and testing, in acc ordance
with the Protocol and through the Lab, within thirty (30) days after completion of the drill ing of
each injection or storage well for any well utilized by Lessor within a distance of one thousand
(1,000) feet of Lessee’s proposed injection or storage well, at Lessee’s sole cost and expense ,
with the results of such testing to be mailed in duplicate to both Lessor and Lesse e. Lessee will
provide to Lessor groundwater test kits, and Lessor shall be entitled, not more often than onc e
every six months, to sample and have tested, in accordance with the above Protocol and by Lab,
any groundwater well utilized by Lessor on the Property, at Lessee’s expense, with the resul ts of
the test being mailed in duplicate by the Lab directly to Lessor and Lesse e. Should the results of
any testing show the presence of contaminants above the baseline level as establishe d by
Lessee’s initial sampling and testing, Lessee shall be entitled to access t o the affected
groundwater well for the purpose of having additional sampling and testing performed by the
Lab.
d. Lessee agrees not to inject into the Storage Reservoir gas of a quality which wil l
result in a mix of stored gas of less than pipeline quality natural gas standards.
6. Insurance:
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a. Prior to the commencement of gas storage operations and thereafter so long as
this Storage Agreement is in effect, Lessee shall place in effect and maint ain Commercial
General Liability insurance with a combined single limit of _____ Million Dollars ($_____) for
each occurrence covering the Project Parcels as defined in paragraph 6.g. An umbrella l iability
policy or policies may be used to obtain the total limit. All insurance companie s issuing the
required insurance shall have a Best’s rating of _____ or better. Lessor shall be included as an
additional insured on the policies of insurance of Lessee and shall be provided with a c ertificate
of insurance providing for thirty (30) days prior notice of any modification or termination of the
insurance.
b. In the event the Commercial General Liability insurance described in paragraph
6.a. ceases to be available in whole or in part, or for any other reason at the option of Lessee,
Lessee may elect to substitute all or part of the insurance coverage specified in paragraph 6.a.
with an irrevocable letter of credit drawn on a national bank, or the cash equivale nt in a blocked
account deposited in a national bank. The combination of insurance, letter of credit and/or cash
deposit shall total _____ Million Dollars ($_____) for the Project Parcels, defined in 6.g. below.
Any letter of credit, provided pursuant to this paragraph 6.b. shall be subject to the further
provisions of paragraph 6.e. below. Any cash deposit provided pursuant to this paragraph 6.b.
shall be subject to the further provisions of paragraph 6.f. below.
c. Prior to the commencement of gas storage operations and thereafter so long as
this Storage Agreement is in effect, Lessee shall place in effect and maint ain Environmental
Impairment Liability insurance, including first party cleanup and third party liabili ties with a
limit of liability of _____ Million Dollars ($_____) for each occurrence covering the Project
Parcels, defined in 6.g. below. An umbrella liability policy or policies may be used to obtain the
total limit. The foregoing Environmental Impairment Liability insurance shall be maintained in
effect for an additional term of one (1) year following termination of this Storage Agreeme nt.
All insurance companies issuing the required insurance shall have a Best’s rating of _____ or
better. Lessor shall be a named insured on the policies of insurance of Lessee and shal l be
provided with a certificate of insurance providing for thirty (30) days prior notice of any
modification or termination of the insurance.
d. In the event that the Environmental Impairment Liability insurance described in
paragraph 6.c. ceases to be available in whole or in part, or for any other reason at t he option of
Lessee, Lessee may elect to substitute all or part of the insurance coverage spe cified in paragraph
6.c. with an irrevocable letter of credit drawn on a national bank, or the cash equivale nt in a
blocked account deposited in a national bank. The combination of insurance, letter of c redit,
and/or cash deposit shall total _____ Million Dollars ($_____) for the Project Parcels, defined i n
6.g. below. Any letter of credit provided pursuant to this paragraph 6.d. shall be subject to t he
further provisions of paragraph 6.3. below. Any cash deposit provided pursuant to this
paragraph 6.d shall be subject to the further provisions of paragraph 6.f. below.
e. If a letter of credit is provided pursuant to paragraph 6.a. or 6.d., this paragraph
6.e. shall apply. A certified copy of the original letter of credit shall be provided to Lessor. The
applicable letter of credit may be presented if the Lessor has a claim tha t is covered by the risks
and in the amounts described in paragraphs 6.a. or 6.d. (the “Covered Risk”). The letter of cre dit
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shall be documentary in form and shall require Lessor to present one of the following
documents:(1) A consent for payment executed by Lessee;
(2) An arbitration award indicating that the Lessor is entitled to compensation for a Covered Risk, if any dispute is arbitrated by agreement of the Lessor
and Lessee; or,
(3) A judgment indicating that the Lessor is entitled to compensation for a Covered Risk.
f. If a cash deposit in a blocked account is provided pursuant to paragraph 6.a. or
6.d., this paragraph 6.f. shall apply. A withdrawal from the blocked account shall require the
signature of Lessor, on the one hand, and Lessee, on the other hand. Lessee shall provide Lessor
any documents needed by Lessor to obtain and perfect an interest in the cash deposit a ccount
since it is the express intent of the Lessor and the Lessee that the cash de posit account will be
held for the benefit of Lessor in the event that Lessor is entitled to compensation for a Covered
Risk. Lessor shall be entitled to proceeds from the cash deposit account if Lessor satisfi es one of
the following conditions:
(1) A consent for payment is executed by Lessee;
(2) An arbitration award indicating that the Lessor is entitled to compensation for a Covered Risk, if any dispute is arbitrated by agreement of the Lessor
and Lessee; or,
(3) A judgment indicating that the Lessor is entitled to compensation for a Covered Risk.
g. As used in this paragraph 6., “Project Parcels” means all of the parcels over which
easements are obtained for Lessee’s gas storage facility connecting to the gas storage facility,
and all related facilities which are a part of the _____ storage project, including underground gas
storage leases.
7. Ad Valorem Taxes: If, and to the extent that ad valorem real property taxes assessed
against the Property (including without limitation any taxes assessed against the mi nerals or base
gas value) are increased as a result of Lessee’s use of the Property, Lessee shall be re sponsible
for their payment. Lessee shall be responsible for payment of any personal property taxes
assessed against the personal property of Lessee installed under the terms of this Agreeme nt,
which shall be billed separately from any taxes assessed against the real property of Lessor.
8. Payments: All payment provided for in this Agreement, following the initial payment
referred to, may be made by check mailed directly to Lessor(s) at the addresses set out in
paragraph 16.
If at any time there be as many as four (4) parties entitled to any payments from Le ssee
under the terms of this Agreement, Lessee may withhold payment until all those partie s
designate, in writing to Lessee, a common agent to receive all payments due.
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9. Proportionate Reduction: If the Lessor owns a less interest than the entire and
undivided fee simple estate in the Storage Reservoir, the various payments referred to i n this
Storage Agreement shall be proportionately reduced.
10. Release: Lessee, at its option, may at any time quitclaim and surrender all of the
Property and Storage Reservoir, or any portion of it, in which event this Storage Agreement shal l
be at an end as to that portion of the Property and Storage Reservoir surrendered and
quitclaimed, and Lessee shall be relieved of all obligations under this Agreement except the
obligations then accrued, including an obligation on the part of Lessee to fully restore the
Property to its condition prior to commencement of gas storage activities by Lessee.
11. Force Majeure: Performance of the covenants and conditions imposed on Lessee in this
Agreement shall be excused while, and to the extent that, Lessee is hindered in or pre vented from
compliance in whole or in part, by war, riots, strikes, walkouts, action of the elements, laws,
rules, and regulations of any federal, state, municipal or other governmental agency or a ny other
cause beyond the control of the Lessee, whether similar or dissimilar to those specific ally
enumerated, without regard to whether the cause exists at the date of this Agreement or later
arises; provided, however, that Lessee shall provide written notice to Lessor of any clai m of
suspension or excuse of Lessee’s obligations under this paragraph, specifying with particularity
the act, event, or condition giving rise to the claim of suspension or excuse and specifying the
date on which the act, event, or condition arose.
12. Warranty of Title: Lessor hereby warrants and agrees to defend the title to the Property
and Storage Reservoir and should Lessor later acquire any additional rights, title, or i nterests in
or to the Storage Reservoir or Property, it shall be subject to the provisions of this Agreement to
the same extent as if owned by Lessor at the date of this Agreement. Lessor agrees that Lessee
shall have the right at any time to redeem for the Lessor, by payment, any deed of t rust,
mortgage, taxes, or other liens on this Property, in the event of default of payment by the Le ssor,
and shall be subrogated to the rights of the holder; and, Lessor agrees that any payments ma de by
the Lessee shall be deducted from any amounts of money which may become due the Lessor
under the terms of this Storage Agreement.
13. Commingling: To the extent Lessor owns any rights, title, or interests in and to the
minerals underlying the Property, Lessor expressly consents to commingling of stored gas with
any remaining native gas which may exist within the Storage Reservoir.
14. Default: Should Lessor claim that a default has been made by Lessee in the payment of
any sum due to Lessor under the terms of this Agreement, or in the performance of any other
term or condition of this Agreement, Lessor shall provide written notice of that occurrenc e to
Lessee. If the claimed default is not contested or cured by Lessee within a peri od of thirty (30)
days following Lessee’s receipt of Lessor’s written notice, or, if the default is not cura ble within
the 30-day period, if Lessee has not either contested or commenced the cure of the default within
the 30-day period and diligently prosecutes the cure to completion, Lessor may declare thi s
Lease and Agreement terminated and may pursue any and all remedies availabl e at law or in
equity.
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15. Binding Effect: This Storage Agreement shall extend to and be binding on the heirs,
assigns, executors, administrators, personal representatives, and successors of the Lessor and
Lessee. Either of them may assign, transfer, and convey, either in whole or in part, i ts ownership
or interest in the land, rights, privileges, and Property covered by this Storage Agreeme nt; but no
change in ownership of the Property shall be binding on the Lessee until the instrument
conveying title shall have been properly recorded in the Official County Records and a certified
copy shall have been furnished to the Lessee.
16. Notices: Any notices or requests required or permitted by this Agreement shall be
deemed sufficient as to delivery if given in writing, deposited in the United State s mails,
registered, return receipt requested, addressed to the other party as follows:
Lessor:
Lessee:
17. Compliance: Lessee shall comply with any and all terms and conditions (including
without limitation any mitigation measures) set forth in any Certificate of Public Convenience
and Necessity issued by the _____ Public Utilities Commission for operation of the Storage
Reservoir as a gas storage facility. Lessee shall not be considered to not be in c ompliance with
any such term or condition unless found not to be in compliance by final action of that body or a
court with proper jurisdiction, and shall be afforded a period of thirty (30) days to commence and
thereafter diligently prosecute actions to remedy the non-compliance prior to bei ng in default
under this Agreement.
18. Drilling: Drilling through the zones and horizons comprising the Storage Reservoir
could adversely affect the integrity of the natural gas storage reservoir in the Property to be
utilized by Lessee in its storage and withdrawal operations. In consideration of the foregoing,
Lessor, to the extent Lessor may be a mineral owner, agrees not to drill through or into or grant
others the right to drill through or into the zones and horizons comprising the Storage Reservoir,
without Lessee’s prior written consent. Lessee will not withhold its consent unless the propose d
operations could potentially damage or drain the Storage Reservoirs and any proposed lease or
agreement does not contain protective measures and indemnifications that in Le ssee’s reasonable
judgment protect Lessee from damage or loss. Should a dispute arise as to the reasonableness of
any withholding of consent to drill by Lessee, such dispute shall be resolved by arbitration in t he
manner set forth in paragraph 19.
19. Arbitration: Any disputes between the parties to the Agreement as to the interpretation
or enforcement of any of its terms or provisions shall be resolved by arbitration before a panel of
three arbitrators, with each party appointing one arbitrator and the two arbitrators so appoint ed
appointing a third arbitrator. The decision of any two arbitrators shall be binding on the part ies.
Each party shall bear the fees and costs of its appointed arbitrator. The fees a nd costs of the third
arbitrator and the attorneys fees of the party prevailing in the arbitration shall be determined and
ordered paid by the losing party to the prevailing party in the arbitration award. Exc ept as
otherwise expressly provided in this Agreement, the arbitration shall be conducted in accorda nce
with the commercial arbitration rules of the American Arbitration Association.
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20. Governing Law: This Agreement, its validity, construction and all rights under it shall
be governed by the laws of the State of _____ with venue in _____ County.
Date:
Lessee
Date: Lessor
(Acknowledgments)
[Exhibit A: Description of Property subject to and covered by the Agreement]
