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Date: 3/15/2001Sender: "Engineering Branch Hilo" <[email protected]>To: "Alyson Yim" <[email protected]>ee: "Dean Nakano" <[email protected]>bee: Alyson K VimPriority: NormalSubjeet:Geothermal Leases with small parcels landowners

Author: "Engineering Branch Hilo" <[email protected]> at STATEHIUSDate: 3/15/2001 2:28:05 PMPriority: Normalbcc: Alyson K Vim at -DLNR_LANDTo: "Alyson Yim" <[email protected]> at STATEHIUScc: "Dean Nakano" <[email protected]> at STATEHIUSSubject: Geothermal Leases with smaUQ?rcels landowners

Hi Alyson:

Today I spoke to Barry Mizuno and he brought up the subject ofthe small parcel landowner lease agreements in the R-4 MiningLease area. A landowner called to ask Barry's help inremoving the lease agreement off of the escrow documents atthe Bureau. These lease agreements were recorded at theBureau. Barry also stated that their lawyer looked over theagreement and their portion of the release would not be aproblem as long as authorized persons for the listed companiessigned off. The lawyer also stated that the State of Hawaiiis also listed in the lease agreement and the State would alsohave to do something to able to release on the leaseagreement.

I already talked to Nakano about this and this should also bepassed on to the AG.

If you have any questions to any of the above, please call.

Eric

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Stephen J. MenezesATTORNEY AT LAW

TRANSMITTAL MEMORANDUM

441 Kipuni Street Hila, Hawaii 96720

Tel (808)934-8916 Fox (808)934-8916e-mail:[email protected]

TO:

March 17, 2001

Barry MizunoPuna Geothermal VentureP.O. Box 30Pahoa, HI 96778

RE: Memorandum of Geothermal Lease and Agreement

Copy June I, 1985 Memorandum of Geothermal Lease andAgreement: State/PGV, recorded Book19058, Page 188

TRANSMITTED FOR:

(x) Your in£ormation and files( ) Your signature and return( ) Your signature and forwarding( ) Your further necessary action( x) SEE REMARKS BELOW

REMAP...KS:

Barry,

Per our conversationYour approvalYour review and commentPer your requestFiling/Recording

Here's the Memorandum of Geothermal Lease and Agreementbetween the State of Hawaii and Puna Geothermal Venture. Exhibit~N' lists the affected tax map key parcels. Let me YillOW whetheryou want to obtain cancellation for all the parcels or just forthe Mervin Ikeda parcel, TMK: (3}1-4-019-009.

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LESSOR:

STATE OF H:\\l.'.a.11

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LESSEE:

PUNA GEOTHERMAL VE:--<TURE, .l HawaiiCe ne ra Par trver srvio

SEE EXHIBIT "AU AT-:-:\CHED HERETO AND MADE, A r.\RT ~::rcc.O<=

All that certain tract of Land situated in the County of Hawaii, Stc tc of r'~~""aii. being, to-wit:

WITSC:SS:=:TH:

THIS .VlE.'.\OR.-\NDU.',\ OF GE07HERMAL LEASE AND AGR.Ec:tlEt-iT rT'.Jd~ c.'!ectivc os of l st dayat. June, 1:'&5, bv .Jn~ bC:..-Jecn the St a te of !-law;ui r-er c inaf tr-r c a l le c "Le ssor " (whether oneor more), and Puna ~0the;-mal Venture, a Hawaii general partners~i;;, hereinafter ca llec "Les.see.n

1. For and in cc.:1s:der2.!:c~ c: :~,c sur» of ten .-J0Jlars ('310.001. receiot of whlch i~ ~erebv

3cklOw!edgeJ, anc of the covenan t s and agreements hcrc ir.af te r ccntamer', Lessor does grant,lease, le t and dernise exclusively un t o Le5S~, its successors and ass igr.s ~he follow·jng ce scr ibe dLand (her e inaf ter referred to as the "leased Land") for the purposes and with the sole and exclusiverisht 0:' exploring, drilling, mining and operating for geothermal st e a rn, geothermal fluids, or by­products thereof; and taking, storing. removing and disposing of same, whether for the productionof energy, hydroponic or o trver cornn.er cial I.::::S. anc' uses a .... c: purposes incidental.thereto; togetherwith the right to construe! any and all ta ci lit ie s on the leased land 3S may ~e necessary fer theseo perat ions including but not limited te pipe lines, power-lines, tanks, power stations, ponds, r oadsand structures thereon to explore Ior , proouce, save, take care of and disoose of ge ctberrna l steam,geothermal fluids, or by-products thereof, on or from the leased land or other bnd leased by Lesseeor in which Lessee may have an inter est in 'he vicinity of the leased land. :md the right to useLessee's wells to inject gas, water, air or o tbe r substances into the subsurface z one s.

Dy Th--r rna) Power Co mparvy. a Cdi:orn:::lCor pora tlon, ~ Op<:rator

./

and containing '279.377 acres, more or less.

2. This Lease Agreement (Short Fo rrn) is made upon the terms. covenant,s and cood.t ions ~..::t

forth in that certain Geothermal Le e.se and Agr~r..ent bear in]; even date herewith by and be twe e nthe said parties hereto, covering the real property above described, which Ge{)thermai Lease :mdAgreement is by this r c Ie r encc incorwra ted herein and made :l par t hereof i:o .. 11 r e cpc c rs ;:>,

though the same were fully set forth h<-rcin.

3. This Lease shall remain in force for a term.,p.! dL:i~~frarttthe.,ga~ hereof. and elmer aslong therea!teJ as geothermal re sovrces are produced irom said land or so lont; as opera tions are

'conducted on said land or so long as this Lease is kept in force under any other provision of saidGeothermal Resources Le ase , all 2S particularly set forth thcr e ir. arid subject to ter mina tion astherein provided.

u. This Lease and all its rer rns, ccodit icns and st ipv la t ions sh:lll extend to and be ~indir.g upont:1e heirs, executor s, adrn ir.is tra tors, successors and assigns of ~ht: par t ic s :.cr~to,

IN WITNESS WHEREOF, the part ier hereto have caused this ,-\gree~~nt :0 be dulv executed as ofthe date Ilrst her e inabove written.

By:

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AFi"cR RECORDATION RETURN ro.Thermal Power Company601 Ca Iifornia Stree t

San Francisco, CA 9u I ~3.';~t~: .Jd~et -\. ~ooG

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19U5~STI\TE OF C.\L1FORNLA,

City ane' County of~ ~,.,1i'C: .70

ON j¢~ b . ~9 8S. bc Iorc me, :~e :.J[:der~!;;01e(j. a ."J~:a:\' r'~blic in a'ld ~:>rt hc ~ald St~te, per sorva lly appe arcd J " n,,-,,¢-i\. •.-cnown to :1'C :Q be :h"

P~~~ice")t , al''\Ij :':r:'''c:; V"p' 0 • kf\own to 111" tobe the Secrc~",-v of ,!,;i";7\c,l ?oye:: .-~:L-.- ~he Cor por a t io nthat executed the within ins trurne n t, known to me to OX: the per sons who e xccu tco thewithin Instrument, on behalf of the Corpora tion herein narnc d, :lnd a cknow le dg co to methat 5UC:' Corporation executed the within ln str urnen t pur suant to lt s b v-Iaw s or "r e so lutl on of it, board of directors.

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WITNESS my hond and o!flcial se e l,

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niIRD TAXAnON DI\1SlON

All tho se cer t a in per c .. \~ 01 Lsnc, ~~rtion 01 the land de scr ib e o inar.d -. 'ec by Royal Patent No. gl/;-. Land Comm is s.or. A....·ard No.o' J, ""?aJ1a ~ to C. Ka.'1aina), ~ltull1e lying M1d ~ing a t Kapoh,-,.Drs tr ict of Puna. County and St e r e 01 Ha w aii more particularlyde scr ibe-c below;

Tu Map Key

1.rx><: ~Jon PlAt Pl1l'ce.l !'lacs----I II 16 II 10.S)0

I II 16 9 9.70 Q

J 4 16 10 s , ~:;I 4 1s 10 3.46;I 4 17 12 1. 3711 II I s 9 1;.7771 4 i 7 s 4.%;

1 II~ . 4 6.907~.

1 Ii 21 2 1.6:2II 21 .;~ ;

I II 1s 3.0161 II iz 4 ::.0921 4 Il J.:'4 ;

1 4 H ::' 13.4"&J 4 !l'. : 3 '.11:1J 4 1E 5.jGSI IJ 19 :~~.S7~

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I II 1s S 4 • .3731 II 19 I 8.3 09

1 II 19 2 19.89':'I II 16 2 ~.4n

I I; 16 g 1.33::'I II 17 £, t.l Q I'"

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SubtotaJ I 150.477

or Pr f n r It.", fj:-\SATrS?ACTOllY

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19058rJj 01 tbose cer ta rn pereels 01 land (to por t ion 01 the land de scr ibcd inr.nd co ver ec by Royal ~att'nt No. 31:'7, ~nd ":ommi1,ion :\ward 1'\0.t.559, :'pana J to C. Kana ina, situa te at Kapoho, Puna. Hawaii, a.. dRo yxl Patent No. 7~!), Land Commission Award No. IIl1n, A~na 3to H. Ka.:ama, situate at Hal~kamahjna, Puna, Hawaii more partir.J­lar ly descr ioeo bc low:

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2020

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J7 . 5026.231

23.733

All of these ( -rt s in parcels 01 land (a portion of tnt' lane dc scr ibe c inAnd covered t· Royal Patent No. 41197. Land Commission Awur o No.S55?, Land P_I~en! No. 8177, Apllna 5 to C. Kanalna. s it ue t e atKapoho, Puna, 111111-all rr.or e oartlcula~:y d~KribeG below:

Tax MllP t(e:-

Zooe ~JCJ') P1al Par ce l ."-.c:es

I 16 i 6.020I 4 16 13 2.COSI II 16 4.4311 II 16 6 3. I(,!I 4 17 7 :.335I 4 17 2 i·.3"4I 4 17 ·9 4.3611 4 Ii 10 4.J16I 4 19 9 J .704I 4 16 17.9091 4 17 3 32.10 I1 4 17 1 J 7.4661 4 16 3 6.011

Subtot&! m 1O.~. 167

Subtotal 150.4;'7Subtot.:li II 23.733Subtotal III IC'.I61

Grand Tot..u 279.377

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