Common use of Project Area Clause in Contracts

Project Area. The Possum Kingdom Dam and Lake Project is licensed by FERC as Project No. 1490. The Project Area is included within the area which is subject to regulation by FERC as a result of the provisions of said license and is subject, but not limited to, the following provisions: a. Lessee will make no use of the Project Area or the Leased Premises which would endanger health, create a nuisance or otherwise be incompatible with overall recreational use of the Lake, as determined by the Brazos River Authority in its sole discretion. b. Lessee shall take all reasonable precautions to ensure that the construction, operation and maintenance of structures or facilities on the Project Area or the Leased Premises will occur in a manner that will protect the scenic, recreational and environmental values of the Lake as determined by Lessor in its sole discretion. c. Lessee will not place any structure or Improvement of any kind within twenty five feet (25’) horizontally of the edge of Possum Kingdom Lake at normal maximum surface elevation [i.e., the one thousand foot (1,000’) above mean sea level contour] without prior written approval of the Brazos River Authority, which approval, in the sole discretion of the Brazos River Authority, may be given only for the following: (i) landscape plantings; (ii) noncommercial piers, landings, boat docks or similar structures and facilities; and (iii) embankments, bulkheads, retaining walls or similar structures for erosion control to protect the existing shoreline. Brazos River Authority approvals may also be subject to the prior approval by the FERC, and Lessee shall bear all expenses of any applications for approval of the FERC and the sole risk of rejection. d. Structures in place or under construction as of May 15, 1980, or whose construction had been explicitly approved by Brazos River Authority as of May 15, 1980, within the Project Area may remain in place, and such structures or Improvements may be altered as specifically approved by Brazos River Authority, provided that such alteration may not encroach further toward the shoreline than the existing structure. EXCEPT FOR STRUCTURES CONSTRUCTED PURSUANT TO PARAGRAPH 17.5 C ABOVE, ALL OTHER EXISTING OR FUTURE STRUCTURES WITHIN THE PROJECT AREA WILL BE CONSIDERED VIOLATIONS OF THIS LEASE, AND THE BRAZOS RIVER AUTHORITY RESERVES THE RIGHT, UPON REASONABLE NOTICE TO LESSEE AND AT THE EXPENSE OF LESSEE, TO REMOVE SUCH STRUCTURES, AND LESSEE RELEASES LESSOR AND WILL HOLD LESSOR HARMLESS FROM ALL DAMAGES, CLAIMS OR LOSSES INCURRED BY LESSEE RESULTING FROM ANY VIOLATION OF FERC REGULATIONS AS ADOPTED OR AMENDED FROM TIME TO TIME.