PD BACKGROUND REPORT (PL-SPP-2022-000012)

Home

being respectively, a survey description and survey map prepared by the Survey Division, Department of Accounting and General Services, State of Hawaii, designated C. S . F. No . 25, 805 and dated July 31, 2020, and TMK No . (3) 2-1-013 : 002 portion, hereinafter referred to as the "License Area. " The terms and conditions under which this License is issued are as follows : TO HAVE AND TO HOLD the License Area unto the Licensee for the term of twenty (20) years, commencing on the lst day of October, 2021, up to and including the 30th day of September, 2041, unless sooner terminated as hereinafter provided, the Licensor reserving and the Licensee yielding and paying to the Licensor at the Office of the Department of Land and Natural Resources, Honolulu, Oahu, State of Hawaii, a license fee as provided hereinbelow, payable in advance, without notice or demand, in equal semi-annual installments on October lst and April lst of each and every year during the term as follows : A. For the first ten (10) years, the sum of THIRTY TWO THOUSAND DOLLARS ($32, 000 . 00) per annum, or a royalty rate of the sum of SIXTY FIVE CENTS ($ . 65) per ton of material removed per annum as may be retroactively adjusted, whichever is higher ("license fee") . B. The license fee shall be reopened and redetermined on the tenth (10`h) year of the license term. C. Determination of fee upon reopening of the license fee . The license fee for any ensuing period shall be the fair market rental at the time of reopening. Except as provided herein, the provisions in Hawaii Revised Statutes chapter 658A, shall be followed. At least six (6) months prior to the time of reopening, the fair market rental shall be determined by a staff appraiser or independent appraiser, as allowed by law, whose services shall be contracted for by the Licensor, and the Licensee shall be promptly notified by certified mail, return receipt requested, of the fair market rental as determined by Licensor ' s appraiser; provided, that should the Licensee fail to notify Licensor in writing within thirty (30) days after receipt thereof that Licensee disagrees with the fair market rental as determined by Licensor ' s appraiser and that Licensee has appointed its own appraiser to prepare an independent appraisal report, then the fair market rental as determined by Licensor ' s appraiser shall be deemed to have been accepted by Licensee and shall be the fair market rental as of the date of reopening. If Licensee has notified Licensor and appointed his appraiser as 824680 1.Doc PRELIM.APPR'D. 2 Department of the Attorney General