Common use of Conditional Lease Clause in Contracts

Conditional Lease. If all or a part of the leased area is land that has been selected by the State of Alaska under laws of the United States granting lands to the State of Alaska, but the land has not been patented to the State of Alaska by the United States, then this lease is a conditional lease as provided by law until the patent becomes effective. If for any reason the selection is not finally approved, or the patent does not become effective, any rental, royalty, or other production or profit-based payments made to the state under this lease will not be refunded.