October 7, 2016 Hon. Kathleen H. Burgess Secretary New York State
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George M. Pond Partner October 7, 2016 Hon. Kathleen H. Burgess Secretary New York State Public Service Commission 3 Empire Plaza Albany, New York 12223 Re: Greenidge Pipeline LLC and Greenidge Pipeline Properties Corporation Case 15-T-0586 Dear Secretary Burgess: On behalf of Greenidge Pipeline LLC and Greenidge Pipeline Properties Corporation (collective, the “Certificate Holders”), enclosed please find copies of all easements and/or proof of easement for the Facility, for filing with the Commission in the above referenced proceeding: Respectfully submitted, /s/ George M. Pond Attorney for Greenidge Pipeline LLC and Greenidge Pipeline Properties Corporation William Little, Esq. (w/encl.) 80 State Street – Albany, New York 12207 barclaydamon.com [email protected] Direct: 518.429.4232 Fax: 518.427.3486 Also Admitted In: District of Columbia 12589260.1 GROUND LEASE AGREEMENT Iv THIS GROUND LEASE ("Lease") is made this /fl~ day of /bn l , 2Ql.6 ("Effective Date"), between GARY E. HENDERSON, with an address of 56 Austin Street, Rochester, NY 14606 (hereinafter called "Landlord'') and GREENIDGE PIPELINE, LLC, a tVt?J.V Vo., L limited liability company, with offices at 590 Plant Road, Dresden, NY 14441 (hereinafter called "Tenant"). WITNESSETH: For and in consideration of the sum of Ten and 00/100 Dollars ($10.00) and other good and valuable consideration paid, the receipt and sufficiency of which is hereby acknowledged, and in consideration of the premises, the mutual covenants and agreements hereinafter set forth, Landlord and Tenant agree as follows: 1. LEASED PREMISES, TERM, TERMINATION RIGHT. Landlord does hereby demise and let unto Tenant, and Tenant does hereby lease and take from Landlord, for the term and upon the terms and conditions set forth in this Lease, the premises, as is, situated in the Town of Milo, County of Yates and State of New York, being part of property tax identification number 50.04-1-6, and more particularly described in Exhibit "A" and shown on Exhibit "B" attached hereto and made a part hereof (hereinafter called "Premises"), together with the easements, rights and appurtenances in connection therewith or thereunto belonging, to have and to hold the same for the term of ninety-nine (99) years ("Term"), commencing on the Effective Date. Tenant shall have the right to terminate this Lease prior to the expiration of the Term by giving Landlord written notice of such termination six ( 6) months prior to the effect of the termination. Tenant shall also have the right to terminate this Lease at any time if it fails to obtain the Approvals (as defined in Section 3 hereof) or if Empire Pipeline LLC does not consent to having Tenant tap into its existing gas pipeline located on the Premises. It being understood and agreed that, in the event Tenant requires, in Tenant's sole discretion, the use of only a portion of the Premises as described in Exhibit "A" and shown on Exhibit "B'', Tenant and Landlord agree to amend this Lease and the definition of the Premises described herein, and to provide such amended exhibits as may be necessary to effectuate such change. 2. RENT. Upon the Effective Date, Tenant agrees to pay to Landlord, without necessity of prior notice or demand, and without diminution, deduction or setoff whatsoever, rent for the entire Term in the amount of $15,000.00, to be paid in annual rental payments in the amount of Three Thousand Seven Hundred Fifty Dollars ($3,750.00) until paid in full. 9550373.3 3. STRUCTURES AND COMPLIANCE WITH LAWS. Tenant, at its sole cost and expense, shall construct improvements on the Premises, including, but not limited to, a gas pipeline tied into an existing pipeline owned by Empire Pipeline LLC and a metering station, as approximately shown on Exhibit "C", attached hereto. Tenant shall have the ability to make all necessary alterations and improvements to the pipeline and metering station as is reasonably required for their proper use and function. Landlord agrees to reasonably cooperate with Tenant in connection with Tenant's efforts to obtain all permits and the approvals Tenant deems necessary as well as any other permits or approvals that Tenant must obtain in connection with the development, construction, and equipping of the improvements ("Approvals"). Tenant covenants that the structure or structures erected or to be erected on the Premises shall comply with all requirements, regulations or laws of any department of the Federal Government or the State of New York or any municipality or government agency. Tenant agrees that should notice of non-compliance with any requirements, regulation or law be given Tenant or Landlord by any department of the Federal Government or the State of New York or any milnicipality or government agency, Tenant shall make such alterations as are necessary to comply with the relevant requirement, regulation or law or to commence such action as necessary to effect compliance within thirty (30) days of receipt of notice or within the time required by said requirement, regulation or law. 4. LIENS. During the term of this Lease, Tenant agrees not to suffer the Premises or any structural or improvement thereon to become subject to any lien, charge or encumbrance whatsoever, except for such public utility easements as are incident to the type of improvement so constructed. If a mechanic's lien is filed against the Premises for labor or material alleged to have been furnished thereto or for Tenant or to or for someone claiming under Tenant, Tenant shall promptly within sixty ( 60) days of the date of filing, discharge or post a bond satisfactory to Landlord to assure the discharge of same, and shall provide to Landlord notice thereof in writing. If a mechanic's lien is filed against the Premises for labor or material alleged to have been furnished thereto or for Landlord or for someone claiming under Landlord, Landlord shall promptly within sixty ( 60) days of the date of filing, discharge or post a bond satisfactory to Tenant to assure the discharge of same. 5. TRANSFER OF TENANT'S INTEREST IN LEASE. (a) Tenant shall have the right to assign this Lease in whole and all of the rights of Tenant hereunder and/or to sublease the whole or any part of the Premises to reputable tenants with Landlord's prior written consent, which consent will not be unreasonably withheld, provided (i) that at the time of making such assignment or sublease, there is no default under any of the agreements, terms, covenants and conditions hereof on the part of Tenant to be performed; (ii) that such assignment or sublease shall be in writing, duly executed and acknowledged by Tenant, in form and content acceptable to Landlord and in proper form for recording; (iii) that in the case of an assignment, such assignment shall include the then unexpired balance of the term of this Lease; and (iv) that, upon either party' s request, the assignment shall be promptly - 2 - 9550373.3 recorded and a copy of such assignment, certified by the recording officer, shall be delivered to Landlord as soon as reasonably possible after the recordation of the same. (b) Tenant shall have the right to mortgage, or issue another proper instrument in the nature thereof, this Lease as security for any bona fide debt, provided that any such conveyance or encumbrance shall be in favor of a private person or any lending entity authorized to do business in the State of New York, provided, further, that no holder of any mortgage or pledge of this Lease or of Tenant's interest hereunder, nor anyone claiming by, through or under any such mortgage or pledge, shall, by virtue thereof, acquire any greater right to cure or remedy Tenant's defaults, become entitled to a new lease in the event of termination of this Lease, and no mortgage or pledge of this Lease or of Tenant's interest hereunder by Tenant, or Tenant's successors or assigns, shall be valid, unless (i) at the time of making such mortgage or pledge, there is no default under any of the agreements, terms, covenants and conditions of this Lease on the part of Tenant to be performed or observed; (ii) such mortgage or pledge shall be subject to all the agreements, terms, covenants and conditions of this Lease; and (iii) Tenant shall make reasonable efforts to provide written notice to Landlord of any such mortgage. 6. ESTOPPEL STATEMENT. (a) Within ten (10) days after request by Tenant, Landlord, from time to time and without charge, shall deliver to Tenant or to a person, firm or corporation specified by Tenant, a duly executed and acknowledged instrument, certifying: (i) that this Lease is unmodified and in full force and effect, or if there has been any modification, that the same is in full force and effect as modified, and identifying the date of any such modification; and (ii) whether Landlord knows or does not know, as the case may be, of any default by Tenant in the performance by Tenant of the terms, covenants and conditions of this Lease, and specifying the nature of such defaults, if any. Such certification shall not estop Landlord from thereafter asserting any existing default of which Landlord did not have actual knowledge on the date of execution thereof. (b) Within ten (10) days after request by Landlord, Tenant, from time to time and without charge, shall deliver to Landlord, or to a person, firm or corporation specified by Landlord, a duly executed and acknowledged instrument, certifying: (i) that this Lease is unmodified and in full force and effect, or if there has been any modification, that the same is in full force and effect as modified, and identifying the date of any such modification; (ii) whether Tenant knows or does not know, as the case may be, of any default by Landlord in the performance by Landlord of the terms, covenants and conditions of this Lease, and specifying the nature of such defaults, if any; - 3 - 9550373.3 ' ' (iii) whether or not there are any then existing permitted set-offs or defenses by Tenant, and if so, specifying them; and (iv) the dates to which all rent and additional rent have been paid.