Professional Documents
Culture Documents
WITNESSETH:
THAT WHEREAS. pursuant to that certain Order of the Public Service Commission of
West Virginia (the "PSC") issued on January 1 I. 2010. in Case No. 09-0360-E-CS (the "PSC
Order"). Pinnacle is committed to establish and fund a decommissioning fund C'Fund") to ensure
that money will be available to the Commission for the "Decommissioning" (hereinafter defined)
of the wind turbines. including all lowers, blades. nacelles and transformers, and related wind
power facilities, then dedicated for the sole use of Pinnacle and not others (collectively the
"Wind Power Facilities"). to be constructed by Pinnacle at Pinnacle's wind farm development
near the Town of Keyser in Mineral County. West Virginia (the "Pinnacle Wind Fann at
NewPage") in the event of the occurrence of a Decommissioning Fund Event; and
WHEREAS. the Parties desire to enter into this Agreement to set forth their respective
rights and responsibilities with regard to the Decommissioning of the Wind Power Facilities and
the establishment of the Fund, including the periodic review and adjustment, if necessary, of the
aggregate amount of the Security for the benefit of the Fund. and the procedures to he followed
by the Commission in making claims against the Fund for Decommissioning costs and expenses;
1. Term. This Agreement shall commence as of the date first written above and shall
continue until terminated as hereinafter provided. hut in no event shall exceed the maximum
term permitted by law.
For purposes of this Agreement, "Decommissioning" the Wind Power Facilities shall
me~n. ~hc ~ismal~tlillg and removal (tor otTsite reuse, recycling or disposal) of all Wind Power
Facilities, including the removal of wind turbine foundations to a depth of approximately three
feet below surface grade and the regrading and reseeding of disturbed areas in accordance with
standard practices in the wind industry, but not including any activities with respect to Leased
Facilities undertaken without the consent of the landowner to such property or without any
required access rights from such landowner. Prior to commencing the Decommissioning of the
Wind Power Facilities pursuant to this Agreement, the Commission shall consult with the owner
or owners of the property or properties on which the Wind Power Facilities are located regarding
the scope of Decommissioning and to secure any required rights of entry or temporary easements
tor such Decommissioning activities.
3. Decommissioning Fund.
(b) Initial Balance. Prior to commencing construction ofthe Wind Power Facilities,
GL Garrad Hassan ("IJ!itial Consultant") shall analyze and prepare a report, based on reasonable
assumptions consistent with industry standards, setting forth an amount deemed sufficient to
cover the estimated current net costs of Decommissioning the Wind Power Facilities, which shall
he calculated as the excess of (a) one hundred and five percent (I 05%) of the estimated cost of
Decommissioning the Wind Power Facilities, minus (b) the estimated salvage value of the Wind
Power Facilities ("Net Decommissioning Cost"). Net Decommissioning Cost will be established
in all periodic updates in a manner consistent with the initial report. The components of the Net
Decommissioning Cost will be determined as of a reasonable decommissioning date detennincd
by the Consultant, and will be stated in current year dollars as of the Periodic Report Date.
Within thirty (30) days of receiving the Initial Consultant's written report on the then current Net
Decommissioning Cost. Pinnacle shall provide a copy of the Initial Consultant's report to the
Commission. I Pinnacle will within sixty (60) days of provid ing the Initial Consultant's report to
the Commission. furnish to the Agent to be held for the benefit of the Fund (i) an irrevocable
letter of credit issued by a U.S. commercial bank (or a foreign bank with a U.S. branch) having
total assets of at least $10 billion and a credit rating equal to or better than "A-" by S&P and an
I Receipt. on January 25. 2011. of a copy of the January J 9. 20 II, initial report of the Initial Consultant regarding
Decommissioning is hereby acknowledged by the Commission.
equivalent credit rating by Moody's or Fitch. (ii] a performance bond underwritten by a surety
licensed and authorized to do business in the State of West Virginia (to which additional parties
may he listed as dual beneficiaries), (iii) cash or cash equivalents placed in escrow with excess
amounts payable to Pinnacle. or (iv) another security instrument reasonably satisfactory to the
Commission (any of (i). (ii). (iii) or (iv), the "Sccurity"). The Security shall he in an amount
equal to the Net Decommissioning Cost; provided. however, that if the Net Decommissioning
Cost is zero or less than zero (salvage value exceeds 105% of the current Decommissioning
costs). Pinnacle shall not be required to post Security.
(c) Periodic Review and Adjustment. No later than thirty (30) days after the fifth
th
(5 Ih ) anniversary of the date of this Agreement and each subsequent fifth (5 ) anniversary of the
date ofthis Agreement (each a "Periodic Renort Date") Pinnacle shall deliver to the Commission
an updated report, prepared by the Initial Consultant or another consultant with a favorable
reputation in the wind industry. to whom the Commission docs not reasonably object within
thirty (30) days after receiving notice of the appointment (the "ronsultant"), who Pinnacle has
retained to review the then current Net Decommissioning Cost and such report shall be deemed
approved by the Commission upon the earlier to occur of receipt of written approval from the
Commission or the passage of sixty (60) days after delivery of such report, unless the
Commission objects to the report. in writing, prior to such approval. It fo llowing any such
approved periodic review. the amount of the Security is no longer equal to the amount required
pursuant to Section 3(h) hereof. then Pinnacle will. within sixty (60) days of the Commission's
approval of the report. amend the amount of the existing Security or obtain replacement Security
in the amount and meeting the requirements set forth in subsection (b), above, and such security
shall be the Security hereunder.
(d) Duty to Maintain Fund. Pinnacle agrees to maintain Security. payable to the Fund.
in an amount at least equal to the Net Decommissioning Cost as the same may be adjusted from
time to time as herein provided. as reduced by the amount of any draws made on the Security as
a result of Commission Claims. Pinnacle may from lime to time change the form of Security by
delivering substitute Security to the Agent. If the provider of the Security shall at any time issue
a notice or cancellation or non-renewal of the Security. Pinnacle shall promptly obtain and
maintain another substitute Security in an amount not less than the most recently determined Net
Decommissioning Cost. which Security shall be subject to and governed by the terms of this
Agreement in the same manner and to the same extent as the previously provided Security, If at
any time the Fund is entitled to draw upon or receive payment pursuant to the Security pursuant
to the terms thereof tor any reason other than the occurrence of a Decommissioning Fund Event.
the proceeds of such draw or other payment shall he deposited in thc Fund and disbursed to the
Commission or to Pinnacle only pursuant to the tcnns of this Agreement.
(c) Commission's Right to Review. The Commission shall have the right, at its
expense. to conduct an independent review of any Consultant's report. including to select and
contract with its own expert(s) tor the review of such Consultant's report. and Pinnacle agrees to
reasonably cooperate, and cause the Consultant to reasonably cooperate. in the Commission's
and the Commission's expert's review of the report.
3
(a) Leased Properties. Pinnacle has entered into one or more lease agreements with
owners of property on which turbines that arc part of the Wind Power Facilities will be located.
(the "L.~ascd Properties"). Pinnacle is obligated under existing lease agreements for the Leased
Properties to decommission the turbines. and certain additional Wind Power Facilities. located
on sueh properties within a stated period or periods following the expiration, surrender or
termination of the respective leases or upon the occurrence of certain other specified events (each
a "LcaseDecOImnissioning Ev.enf·). The lessors under one or more of such leases have reserved
the right to decommission the portion or the Wind Power Facilities located on their respective
properties if Pinnacle (ails to do so within the allotted time following a Lease Decommissioning
Event. In addit ion. one or more current or future lenders to Pinnacle may reserve the right under
eertain circumstances to perform Pinnacle's obligations under one or more of such leases.
including the obligation to decommission the Wind Power Facilities. The Parties hereto
acknowledge and expressly agree that the decommissioning of any Leased Facilities pursuant to
and consistent with the requirements of such lease shall meet the requirements of
Decommissioning hereunder and that the Commission shall bc entitled to draw upon the Fund to
pay for the Decommissioning of any of the Wind Power Facilities that arc situated on property
leased hy Pinnacle only if Pinnacle and all other persons or entities then possessing a right or
obligation to decommission such facilities shall tail or refuse to exercise such right or fulfill sueh
obligation when the same arises and within the time allotted or permitted under the terms ofany
applicable lease or other document. including applicable eure periods and such reasonable
extensions of time as may be agreed to by the parties to sueh leases or documents. Pinnacle
agrees that. unless caused by Force Majeure (hereinafter defined) or except as otherwise
provided herein. if all of the Wind Power Facilities that are located on a leased parcel of land
("Leas~_Facilitic~() shall cease to generate electric power for a period of 24 or more consecutive
months and diligent efforts are not being made to remedy such generation interruption, upon
written notice by the Commission to Pinnacle ("Lea~~_Facilili_~s Abal)donmentJ~Jotice"). the
Lease Facilities located on such leased property shall be presumed to be at the end of their useful
life and to have been abandoned. Within thirty (30) days of receipt of a Lease Facilities
Abandonment Notice. Pinnacle may give written notice to the Commission ("Lease Facilities
Compliance Notice") that: (i) Pinnacle will resume generating electric power from the Lease
Facilities within thirty (30) days of receipt of the Lease Facilities Abandonment Notice; (ii)
Pinnacle will not resume generating electric power from the Lease Facilities within such thirty
(30) day period. but is diligently pursuing all repair and maintenance activities necessary to
resume generation of electric power as soon as reasonably practicable; or (iii) such interruption is
the result of compliance with a governmental or utility order. If Pinnacle provides the
Commission with a Lease Facilities Compliance Notice pursuant to clauses (ii) or (iii) of the
preceding sentence. the Lease Facilities Compliance Notice shall set forth an estimated date for
resumption of service and supporting documentation regarding the cause of the generation
interruption; provided that Pinnacle may extend the estimated dale of resumption of generation
by providing subsequent supporting documentation of the continuing impediment to generation
and Pinnacle's efforts to overcome such impediment. If Pinnacle provides a Lease Facilities
Compliance Notice and H..esumes generating electric power during the period set forth in the
Lease Facilities Compliance Notice. including any pcnnitted extensions. then Pinnacle shall have
no obligation to Decommission the Lease Facilities by reason of the Lease Facilities
Abandonment Notice. A "Decommissioning Fund Event" shall occur if either (x) Pinnacle fails
to timely issue a Lease Facilities Compliance Notice and fails to Decommission the Lease
Facilities within one (I) year of the receipt of a Lease Facilities Abandonment Notice, (y)
Pinnacle timely provides a Lease Facilities Compliance Notice pursuant to clause (i) of this
Section 4(a), but does not resume electric generation within thirty (30) days of receipt of a Lease
Facilities Abandonment Notice and does not Decommission the Lease Facilities within onc (1)
year of receipt of a Lease Facilities Abandonment Notice, or (z) Pinnacle timely provides a
Lease Facilities Compliance Notice pursuant to clauses (ii) or (iii) of this Section 4(a). but does
not either resume elect ric generat ion or Decommission the Lease Facilit ies within one (I ) year 0 f
receipt of a Lease Facilities Abandonment Notice. Not less than thirty (30) days after delivery
by the Commission to Pinnacle ofa second written notice notifying Pinnacle of the occurrence of
the Decommissioning Fund Event ("Notice of Claim"), the Commission may seck to
Decommission the Lease Facilities and may submit a claim or claims to the Agent for the
payment or reimbursement from the Fund of the cost of Decommissioning the Lease Facilities.
timely provides a Pinnacle Facilities Compliance Notice pursuant to clauses (ii) or (iii) of this
Section 4(h), but does not either resume electric generation or Decommission the Pinnacle
Facilities within one (I) year of receipt of a Pinnacle Facilities Abandonment Notice. Not less
than thirty (30) days after delivery by the Commission to Pinnacle of a Notice of Claim, the
Commission may seek to Decommission the Pinnacle Facilities and may submit a claim or
claims to the Agent for the payment or reimbursement from the Fund of the cost of
Decommissioning the Pinnacle Facilitics.
(i) To the extent that it may lawfully do so and provided that the Commission is
not in breach of this Agreement, Pinnacle hereby authorizes and grants to the Commission, its
employees and agents, permission to enter upon the Leased Properties, as an invitee or assignee
of Pinnacle and subject to Pinnacle's rights and obligations under the affected real property
leases, tor the purpose of preparing for and carrying out the Decommissioning of such facilities
upon the occurrence ofa Decommissioning Fund Event. To the extent that, as ofthe date hereof:
Pinnacle does not possess the authority to grant the Commission access to and over the parcels
on which the Leased Facilities are located, Pinnacle agrees that it will secure access rights for the
Commission to carry out the Decommissioning in a commercially reasonable manner with
respect to the Leased Properties, which rights shall be subject to reasonable restrictions and
enforceable by the Commission as a third party beneficiary. Prior to entering upon any of the
parcels on which the Leased Facilities are located, the Commission shall confer with the owner
or owners of such tracts and confirm its authority to enter onto such properties and the scope of
Decommissioning for such Leased Facilities.
(ii) With respect to the Allegany Tract. provided that the Commission is not in
breach of this Agreement, Pinnacle hereby authorizes and grants to the Commission, its
employees and agents, an easement to enter upon the Allegany Tract for the purpose of preparing
for and carrying out the Decommissioning of the Wind Power Facilities located thereon upon the
occurrence ora Decommissioning Fund Event.
(a) On and after the tenth (1 nIh) Business Day (as hereinafter defined) following
service of a Notice of Claim on Pinnacle. subject to Section 5(b) below, the Commission may
submit a claim to the Agent for the payment or reimbursement from the Fund of the
Commission's actual cost of Decommissioning the Wind Power Facilities (whether Lease
Facilities or Pinnacle Facilities. or both), as reduced by the actual salvage value of the Wind
Power Facilities to be Decommissioned received by the Commission at the time such claim is
made (the "Commission (Iaim"). The Commission or the Agent shall then, on behalf of the
Fund. request a draw upon, or other payment under, the Security, pursuant to the claim
requirements thereof (including, without limitation, certification that a Decommissioning Fund
Event has occurred, that all required notices hereunder have been properly issued and timely
served on Pinnacle and that ten days have lapsed from the Notice of Claim). The Agent shall
have no obligation to disburse any amount from the Fund unless, until, and to the extent funds
are available in the Fund. As used in this Agreement, "Business Da..)'." shall mean any day other
6
than a Saturday, Sunday or any other day on which U.S. banks arc authorized or required by law
or executive order to remain closed.
(b) During the ten (10) Business Day Notice of Claim period. Pinnacle may provide
written notice to the Commission and the Agent of its intent to oppose the Commission Claim
(the "Pinnacle Qp...P...Qsition N{)ti~~"). The Commission shall not submit the Commission Claim to
the Agent if the Commission has received the Pinnacle Opposition Notice within such ten (10)
Business Day period. If any dispute arising t1"<)111 a Pinnacle Opposition Notice regarding the
Commission's right to submit a Commission Claim to the Agent. the amount of such claim.
and/or the Commission's right to receive a disbursement of funds from the Fund results in
litigation before a COUl1 or tribunal of competent jurisdiction. then (a) ifPinnac1e is the prevailing
party. each party shall pay its own costs and expenses in connection with such dispute and (b) if
the Commission is the prevailing party, then the Commission will be entitled to payment ofall of
its costs and expenses in connection with such dispute (including reasonable attorney fees) by
Pinnacle.
(c) All funds obtained by the Commission under this Agreement shall be used by the
Commission solely tor the Decommissioning of the Wind Power Facilities and for no other
purposes. including decommissioning activities not required for Decommissioning. Any funds
disbursed to the Commission under this Agreement that remain after the occurrence of" a
Termination Event shall be promptly returned to Pinnacle, its successors or assigns. without any
requirement that Pinnacle make a demand tor the return of such unused funds and any Security
then remaining for the benefit of the Fund will be cancelled and released or terminated.
is made by the PSC or the court, as the case may be. The Agent shall disburse such amounts as
promptly as practicable, and any remaining Security shall be cancelled and released or
terminated. Notwithstanding the foregoing, no new Commission Claims will be accepted by the
Agent after the occurrence ofany Termination Event.
Greensburg PA 1560I
Fax: 304.257.0777
Tel: 304.257.0777
150 Armstrong St
Keyser, WV 26726-3500
Fax: 304-778-0768
Tel: 304-788-5921
Ifto the Agent: To such address for Agent as may be set forth in Schedule A or to
such other address as the Agent may have furnished to the parties
in writing.
8. Assignment. Pinnacle may assign its rights and obligations under this Agreement (as
collateral security or otherwise) (a) for financing purposes or (b) to a person or entity acquiring
all or substantially all of the assets relating to the Pinnacle Wind Farm at New Page who agrees
to be bound by all terms and conditions of this Agreement, in either case without the consent of
the Commission. and the Commission shall execute such consents to assignment and other
documents as Pinnacle or its assigneets) may request from time to time. it being intended that
any such consents to assignment and other documents may be relied upon by any assignees or
prospective assignees. or any prospective and/or subsequent purchaser or transferee of all or a
part of Pinnacle's interest in the Wind Power Facilities.
9. State Decommissioning. If at any time (a) the State of West Virginia or the Federal
Government enacts laws or regulations regarding the decommissioning of the Wind Power
Facilities and (b) the termination of this Agreement will not result in a violation of the PSC
Order. then the Commission's right to Decommission the Wind Power Facilities shall terminate
upon Pinnacle's written notice thereof to thc Commission. and such termination shall be a
"Termination Event" hereunder.
10. Future Obligations. The parties hereto acknowledge and agree that (a) appropriation of
funds by the Commission is a governmental function that the Commission cannot contractually
commit itself in advance 10 perform: (b) the Commission's obligations under this Agreement
shall not constitute a general obligation of the Commission; and (c) the Commission's obligations
under this Agreement shall not constitute either a pledge of the full faith and credit or the taxing
power ofthe Commission.
11. Miscellaneous. The provisions of this Agreement may be waived. altered. amended or
supplemented. in whole or in part. only by a writing signed by the Parties. This Agreement shall
be governed by and construed under the laws of the State of West Virginia. Each Party
irrevocably waives any objection on the grounds of venue. forum non-conveniens or any similar
grounds and irrevocably consents to service or process by mail or in any other manner permitted
by applicable law and consents to the jurisdiction of the courts located in Mineral County in the
State of West Virginia. The Parties further hereby waive any right to a trial by jury with respect
to ~U1y lawsuit or judicial proceeding arising or relating to this Agreement. No party to this
Agreement is liable 10 any other party to the extent that the performance of its obligations under
the terms of this Agreement is interfered with. delayed. restricted or prevented. in whole or in
r
part. because 0 tire. earthquake. flood. tornado or other natural disasters or acts of God. war.
terrorism. strikes or other labor disputes. electrical outages. equipment or transmission failure.
any law. order. proclamation, regulation. ordinance. action. demand or requirement of any
government agency or other causes reasonably beyond its control {"Force Maieurc"). or because
of the suspension of operations of all or a portion of the Wind Power Facilities tor routine
maintenance. overhaul. upgrade. or reconditioning. This Agreement may be executed in one or
more counterparts. each of which shall be deemed an original. but all of which together shall
constitute one and the same instrument. All signatures of the parties to this Agreement may be
transmitted by facsimile. and such facsimile will. tor all purposes. he deemed to he the original
signature of such party whose signature it reproduces. and will he binding upon sueh party. If
any provision of this Agreement is determined to be prohibited or unenforceable by reason of
any applicable law or a jurisdiction. then such provision shall. as to such jurisdiction. be
ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions thereof and any such prohibition or uncnforceability in such jurisdiction
shall not invalidate or render unenforceable such provisions in any other jurisdiction.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date set forth above.
10
Schedule A
Approved Agents
BB&T
PO Box 789
Keyser, WV 26726
M&T Bank
67 North Main Street
Keyser, WV 26726
Exhibit A-I
DATI:: ,20
ADDRESS:
ADDRESS:
NOTlCE OF CLAIM HAS BEEN PROPERLY ISSUED AND TIMELY SERVED AND
SERVED. TEN BUSINESS DAYS HAVE LAPSED FROM THE DATE OF SERVICE
OR
.., "THIS LETTER OF CREDIT WILL EXPIRE IN LESS THAN THIRTY (30) DAYS.
PAYMENT OFS
SPECIAL CONDITIPNS:
ALL ISSUING BANK CHARGES ARE FOR THE ACCOUNT OF THE APPLICANT.
[OPTIONAL PROVISION: IT IS A CONDITION OF THIS LETTER OF CREDIT
THAT IT SHALL BE DEEMED AUTOMATICALLY EXTENDED. WITHOUT
AMENDMENT. FOR ADDITIONAL PERIOD(S) OF FROM THE EXPIRY
DATE HEREOF. OR ANY FUTURE EXPIRATION DATE UNLESS AT LEAST __
( ) DAYS PRIOR TO ANY EXPIRATION DATE WE NOTIFY YOU B)'
CERTIFi-ED MAIL (RETURN RECEIPT REQUESTED) OR BY ANY OTHER
RECEIPTED MEANS THAT WE ELECT NOT TO RENEW OR EXTEND THE
EXPIRY DATE OF THIS LETTER OF CREDIT FOR ANY SUCH ADDITIONAL
PERIOD.]
~---
AUTHORIZED SIGNATURE
Exhibit A-2
BOlld
Bond Number: [ 1
Beneficiary: L
Address:
Surety: L__
Address:
KNOW ALL MEN BY THESE PRESENTS. that we. Surety named above. arc held
and firmly hound unto Obligee and Beneficiary, each named above, in Net Decommissioning
Cost, not to exceed the maximum amount of this bond (this "Bond") stated above (the
"Maximum Amount"). tor the payment of which Net Decommissioning Cost. O[ performance of
the Decommissioning of the Wind Power Facilities up to such value. we bind ourselves. our
heirs. executors. administrators. personal representatives. successors. and assigns. joint ly and
severally. firmly by these presents. subject to the terms and conditions below. Where Surety is
composed of entities acting as co-sureties. we. the co-sureties. bind ourselves. our successors and
assigns, in the amount of such Net Decommissioning Cost, not to exceed the Maximum Amount.
joint ly and severally as well as severally only for the purpose of allowing a joint action or actions
against any or all of us. and for all other purposes each co-surety hinds itself: jointly and
severally with Beneficiary. for the payment of the Net Decommissioning Cost not to exceed the
Maximum Amount. or performance of the Decommissioning of the Wind Power Facilities up to
such value.
WHEREAS. Obligee is a limited liability company of the State 01' Delaware and
authorized to do business in the State of West Virginia.
I, If Obligee Decommissions the Wind Power Facilities. then Surety and Obligee shall have
no obligation under this Bond.
') If no breach or default by County exists under the Decommissioning Agreement. then
Surety's obligation under this Bond shall arise after:
2.1 County first provides advance written notice to Obligee. pursuant to the terms of
the Decommissioning Agreement. and advance written notice to Surety that
Beneficiary is considering declaring a Decommissioning Fund Event. Surely
may. within live (5) business days after receipt of County's notice. request a
conference among Beneficiary, County, Obligee and Surety. I I' Surety timely
requests such a conference. Beneficiary and County shall attend. Unless
Beneficiary agrees otherwise, any conference requested under this Section 3.1
shall be held within ten (10) business days of Surety's receipt of County's notice.
I f Beneficiary. County. Ohligee and Surety agree. Obligee shall be allowed a
reasonable time to Decommission the Wind Power Facilities, but such an
agreement shall not waive County's right. if any. subsequently to declare a
Decommissioning Fund Event:
2.3 County signs (a) a written release. to be held in escrow by the Agent. pursuant to
which County releases Obligee and Surety for amounts expended by County
necessary to complete Decommissioning of the Wind Power Facilities in excess
of Maximum Amount and (b) a waiver of claims as against Obligee and Surety
relating to Decommissioning ofthc Wind Power Facilities.
2.4 County shall have completed Decommissioning of the Wind Power Facilities and
submitted to Surety documentation of actual, direct costs expended in such
Decommissioning.
3. When the conditions of Section 2 have been met, Surety shall promptly and at Surety's
expense take one of the following actions, in its sale discretion, and provide written
notice to Beneficiary of the actions elected:
3.1 Arrange lor Obligee, with the consent of Beneficiary, to perform and complete the
Decommissioning of the Wind Power Facilities:
3.2 Undertake to perform and complete the Decommissioning of the Wind Power
Facilities itself: through its agents or independent contractors:
3.3 A tier investigation, determine the amount for which it may bc liable to
Beneficiary and, as soon as pract icable after the amount is determined, make
payment to Beneficiary by deposit of the actual amount specified under Section
3.6 into the Fund established pursuant to Section 3(a) of the Decommissioning
Agreement: or
3.4 Deny liability in whole or in part and notify Beneficiary, citing the reasons for
denial.
4. If Surety docs not proceed as provided in Section 4 with reasonable promptness. Surety
shall be deemed to be in default on this Bond seven days after receipt of an additional
written notice from Beneficiary to Surety demanding that Surety perform its obligations
under this Bond. and Beneficiary shall be entitled to enforce any remedy available to
Beneficiary. I f Surety proceeds as provided in Sections 3.3 or 3.4, and Beneficiary
refuses the payment or Surety has denied liability, in whole or in part, without further
notice Beneficiary shall he entitled to enforce any remedy available to Beneficiary.
5. If Surety elects to act under Section 3.1 or 3.2, then the liability of Surety shall be
discharged by payment. succession of payments, or other expenditure made in
Decommissioning ofthe Wind Power Facilities hereunder, amounting in the aggregate to
the Net Decommissioning Cost, which in no event shall exceed the Maximum Amount.
even if Decommissioning is incomplete at such time. whereupon County shall be
obligated to complete the Decommissioning of the Wind Power Facilities. without
recourse to Surety or Obligee.
6. Surety's expenditures under Sections 5 and 3.1 or 3.2 include additional legal. design
professional and delay costs relating to Decommissioning of the Wind Power Facilities.
8. The Surety may cancel the bond by sending notice of cancellation by certified mail to
Beneficiary and Obligee. The Obligee may terminate this Bond by sending written notice
to Beneficiary and to Surely :'0 days prior to the proposed date oftermination.
9. The Surety shall not be liable to Beneficiary, County or others for obligations ofObligee
that arc unrelated to the Decommissioning Agreement. No right of action shall accrue on
this Bond to any person or entity other than Beneficiary or its heirs, executors,
administrators, successors and assigns.
10. Any proceeding. legal or equitable, under this Bond may he instituted in any court of
competent jurisdiction in the location in which the Decommissioning work or part or
such work is located and shall be instituted within one year utter a declaration of a
Decommissioning Fund Event of which Beneficiary provides notice to Surety pursuant to
Section 3. I I' the provisions of this Section arc void or prohibited by law. the minimum
period of limitation available to sureties as a defense in the jurisdiction of the suit shall be
applicable.
11. All communications hereunder shall be in writing and shall be deemed to be duly given
and received: (a) upon tiel ivery, if delivered personally. or upon confirmed transmirtal, if
by facsimile: (h) on the next Business Day if sent by overnight courier: or (c) four (4)
Business Days after mailing if mailed by prepaid registered mail, return receipt requested.
to the appropriate notice address set forth below or at such other address as the Agent or
any party hereto may have furnished to the other parties in writing by registered mail,
return receipt requested.
If to Surety: l_~ __ ~ __ ]
Attention: [ ~__~
J
L_ _ ]
l.. - ]
Fax: [~ ~_]
Tel: L ~_]
If to Obligee: [_"__ .1
Attention: [_____ __
1__
[_" J
Fax: [ ~""_]
Tel: [ ---~~ .- ---
]
If to the Beneficiary: [ ~_J
Attention: L_~__J
..
[-
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]
Fax: [~ _ _ ~J
Tel: [- - - - - - ]
12. This Bond has been furnished to comply with the PSC Order. Any provision in this Bond
conflicting with any legal requirement thereunder shall be deemed deleted hcrcfrom and
provisions conforming to such Icgal requirement shall be deemed incorporated herein.
Whcn so furnished, the intent is that this Bond shall be construed as a statutory bond and
not as a common law bond.
13. This Bond shall be governed by and construed in accordance with the laws ofthe State of
West Virginia and any reference herein to Beneficiary or Surety in the singular shall
include all entities in the plural who or which are signatories under the Beneficiary or the
Surety heading below.
14. Capitalized terms used, hut not defined, in this Bond shall have the meanings ascribed in
the Decommissioning Agreement.
IN WITNESS WHEREOF. Beneficiary and Surety have set their hands and seals to this
Bond.
Beneficiary
Attest:
By:
Name:
Title:
as to
Secretary [Title]
AFFIX
CORPORATE
SEAL
Surety
Attest:
By:
Name:
Title:
as to
Secretary [Title 1
AFFIX
CORPORATE
SEAL
Agent's Address:
21