CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE
BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE COMMISSION.
Exhibit 10.4.27
AMENDMENT TO GEOTHERMAL LEASE
This Amendment to the Geothermal Lease (the "Lease") dated
June 27, 1988, by and between Xxxxxxx Xxxxxx, Xxxxxx Xxxxxx, and Xxxxx Xxxxxxxx,
Trustees and Beneficiaries of the Xxxxxx Trust ("Lessor"), and Far West Capital,
Inc., a Utah corporation on behalf of itself and its Assignee, Steamboat
Development Corp. ("Lessee") is entered into this _______ day of January 1992.
RECITALS
A. Because of changes in the rates which Sierra Pacific Power
Company is willing to pay to purchase power from geothermal developers and the
cost to construct binary geothermal power plants, the Lessee has requested
Lessor, and Lessor has agreed, to amend the Lease to reduce the royalties to
Lessor to make it economically feasible to develop a geothermal power plant on
the leased premies.
NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and performances provided in the Lease and this Amendment, the parties
agree to amend the Lease as follows:
Section 3.(b) Royalty is deleted in its entirety and the following
is inserted in lieu thereof:
(b) Royalty
On or before thirty days after receipt of revenues from Sierra Pacific
Power Company representing sale of power following commencement of commercial
operation under the Power Purchase Agreement and thereafter on a monthly basis,
the Lessee shall pay to the Lessor:
(1) With respect to a geothermal power plant producing from 1 to
12 MW of net salable capacity a royalty of ***% of gross revenues from
the sale of power for the first 10
*** Confidential material redacted and filed separately with the Commission.
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years of commercial operation, ***% of gross revenues from the sale of
power for years 11 through 20, and ***% of gross revenues from the sale
of power thereafter.
(2) With respect to any geothermal power plant which has a net
salable capacity in excess of 12 MW and less than 18 MW, the royalty on
that increment of capacity in excess of 12 MW and less than 18 MW will be
***% of gross revenues from the sale of power for the first 10 years of
commercial operation, ***% of gross revenues for years 11 through 20, and
***% of gross revenues thereafter. Royalties on the first 12 MW of net
saleable capacity shall continue to be paid the rate provided in
paragraph (1).
(3) With respect to any geothermal power plant which has a net
salable capacity of 18 MW or greater, the royalty on that increment of
capacity of 18 MW or greater will be ***% of gross revenues from the sale
of power for the first 10 years of commercial operation, ***% of gross
revenues for years 11 through 20, and ***% of gross revenues thereafter.
The royalties provided for in this paragraph (3) for years 1 through 20
will be further reduced if by *** of ***% if the plant is on line before
November 1, 1995. The royalties rates provided in paragraphs (1) and (2)
above shall continue to be paid on the first 12 MW of net saleable
capacity and 12 MW to 18 MW of net saleable capacity as provided herein.
IN WITNESS WHEREOF, the parties hereto have executed this
Amendment to Geothermal Lease as of the day and year first above written.
LESSOR: TRUSTEES AND BENEFICIARIES OF THE
XXXXXX LEASE
/s/ Xxxxxxx Xxxxxx
----------------------------------------
XXXXXXX XXXXXX
*** Confidential material redacted and filed separately with the Commission.
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/s/ Xxxxxx Xxxxxx
---------------------------------------
XXXXXX XXXXXX
/s/ Xxxxx Xxxxxxxx
--------------------------------------
XXXXX XXXXXXXX
LESSEE: FAR WEST CAPITAL, INC.
By:_________________________________
Its:___________________________
STEAMBOAT DEVELOPMENT CORP.
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