Operating and Reclamation Security Clause Samples

Operating and Reclamation Security. Prior to the commencement of Phase 3, Lessee shall furnish the requisite security. Said security must be in favor of Lessor to protect Lessor against any and all loss due to ▇▇▇▇▇▇’s failure to complete reclamation of all affected area pursuant to the Decommissioning and Reclamation Plan; payment of any amount of Rent that is past due and owing to Lessor pursuant to this Lease; or, if security remains following reclamation and payment of owed Rent, ▇▇▇▇▇▇’s failure to pay contractors, subcontractors, or other who provided goods and services to Lessee in relation to the Leased Premises. Security for the Decommissioning and Reclamation Plan shall be based on the cost for completion of the Decommissioning and Reclamation Plan, as agreed upon by the Parties or mutually agreed third party, determined prior to commencement of construction, plus fifteen percent (15%) including, but not limited to, costs to transport and deposit all materials to a recycling or disposal facility, net of salvage value) or as otherwise requested by Lessor. The period of liability of said Phase 3 and Phase 4 security shall not terminate until all terms and conditions of the approved Decommissioning and Reclamation Plan have been completed in accordance with Sections 4.4 and 6.4; any amount of Rent that is past due and owing to Lessor is paid; the expiration of the timeframe under applicable law for filing of lien claims; written notice by Lessee to Lessor certifying the satisfaction of such events; and the written consent of Lessor regarding release of such security, which consent will not be unreasonably withheld. Following the period of liability of such security, the applicable security will be released by Lessor.