Utah Admin. Code R850-170-1300 - Lease Assignments and Subleases
1. Assignments.
(a) A lessee may only assign a renewable
energy lease if the agency consents to the assignment. Any assignment made
without such approval is voidable at the agency's option.
(b) On the effective date of an assignment,
the assignee is bound by the terms of the lease to the same extent as if the
assignee were the original lessee, any conditions in the assignment to the
contrary notwithstanding.
(c) An
assignor must provide the agency with a copy of the assignment document, which
must be a sufficient legal instrument, properly executed, with the lease
number, the land involved, the name and address of the assignee, and the
interest transferred clearly indicated.
(d) As a condition of the approval of an
assignment, the agency shall require:
(i) the
assignee to accept the most current applicable lease form unless continuation
of the existing form is clearly in the best interests of the trust
beneficiaries; and
(ii) the
assignee be satisfactory to the agency.
2. Subleases.
(a) A lessee may only sublease a renewable
energy lease if the agency consents to the sublease. A sublease made without
such approval is voidable in the agency's discretion.
(b) The lessee must indemnify the agency for
actions or inactions of the sublessee and the agency may look to either the
lessee or the sublessee for compliance with the lease.
(c) The agency may require lessee and
sublessee to provide annual financial documentation that clearly identifies the
revenue generated on the property by sublessee and the revenue paid by
sublessee to lessee.
(d) A lessee
must provide the agency with a copy of the sublease document, which must be a
sufficient legal instrument, properly executed, with the lease number, the land
involved, the name and address of the sublessee, and the interest subleased
clearly indicated.
(e) The agency
may charge the lessee sublease rates based on the then current market rental
value of the subject property, the revenue paid by sublessee to lessee, and
such other factors as the agency deems reasonable.
Notes
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