24. Information, Reports, Records and Inspections

(a) Reports

(i) Whether the work is performed directly by the Supply System or by others, the Supply System will provide the Commission with regular, special, and final reports on its undertakings under this contract, containing such technical, economic and progress information as the Commission may request, and in such form and at such times as may be required or approved by the Commission. It is the intent of the Commission to collaborate with the Supply System in determining the form and frequency of such reports.

(ii) All information contained in the reports provided for under this Section (a) of this Article 24 shall be the property of the Commission. The Commission may distribute from time to time the data contained in such reports and the other information provided for under this contract throughout the Commission and to others for such use or uses as the Commission sees fit, consistent with its then existing policy on such matters. The Supply System may retain and use copies of such reports, subject to the provisions of Articles 17, Patents, and 16, Security.

(b) Records

The Supply System agrees to maintain in necessary detail plant and equipment and operating accounts for its activities under this contract which will facilitate the preparation and issuance of reports on operating costs, and on plant and equipment. The system of accounts employed by the Supply System shall be satisfactory to the Commission and in accordance with the uniform system of accounts of the Federal Power Commission. The Supply System will keep records of all technical, progress, and economic information and data developed by the Supply System in connection with its activities under this contract. The Supply System will also maintain a set of accounts, showing the receipt, use, and disposition of all Government property coming into the possession of the Supply System under this

contract.

(c) Inspections

The Commission and its representatives shall have the right to inspect and audit the work, records, reports, information and data of the Supply System relating to its activities under this contract at all reasonable times and places.

By

THE UNITED STATES OF AMERICA,

UNITED STATES ATOMIC ENERGY COMMISSION,

WASHINGTON PUBLIC POWER SUPPLY SYSTEM.

By

Attest:

EXHIBIT A

INDENTURE OF LEASE EXECUTED BY UNITED STATES OF AMERICA ATOMIC ENERGY COMMISSION AND WASHINGTON PUBLIC POWER SUPPLY SYSTEM

This Indenture of Lease, entered into this day of

1962, between the United States of America (hereinafter called the "Government"), represented herein by the United States Atomic Energy Commission (hereinafter called the "Commission"), and the Washington Public Power Supply System (hereinafter called the "Supply System"), a municipal corporation, joint operating agency and publicly owned utility organized under the laws of the State of Washington.

RECITALS

(a) The Government, acting by and through the Commission, is presently constructing at its Hanford Works in the vicinity of Richland, Washington, a new production reactor (hereinafter called the "NPR") which will produce energy in the form of steam suitable for the generation of electric power.

(b) The Supply System is authorized by law to construct, acquire and operate works, plants and facilities for the generation of electric power. The Supply System proposes to construct an electric power generating plant (hereinafter called the "Generating Plant") having an ultimate capacity of approximately 860 gross megawatts, in the immediate vicinity of the NPR.

(c) The Commission, pursuant to authority contained in the Atomic Energy Act of 1954, as amended, on 1962, entered into a contract (hereinafter called the "Operating and Construction Contract") to sell to the Supply System excess steam energy produced by the Commission incident to the Commission's operation of the NPR.

(d) The Commission is authorized to lease to the Supply System land in the vicinity of the NPR and rights appurtenant thereto as hereinafter described to be used as the site for the construction and operation by the Supply System of the Generating Plant.

INSTRUMENT OF LEASE

1. Conveyance of Interest in Land

The Government, lessor, for and in consideration of the rents, covenants, conditions, warranties, and agreements herein contained as assumed by the Supply System, lessee, does hereby demise and lease to the Supply System property of the Government situated in the County of Benton, State of Washington, and within the Federally owned area known as the Hanford Operations Area, United States Atomic Energy Commission, all as more particularly described in Article 2 hereof.

2. Description of Leasehold and Related Facilities

(a) A tract of land, commencing at the Southeast corner of Section 28, Township 14 North, Range 26 East, Willamette Meridian (said point being located by reference to the Washington Coordinate System, South Zone, at Coordinates North 486,994.01, and East

2,236,672.11); thence North 57°27'18" West 3,693.94 feet; thence North 67°11'41" West 1,175 feet more or less to a point on the line of ordinary high water on the right bank of the Columbia River, which point is the True Point of Beginning; thence South 67°11'41" East 1,175 Feet more or less to a point (said point being located by reference to the Washington Coordinate System, South Zone, at coordinates North 488,981.21 and East 2,233,558.23); thence North 22°48′19′′ East to a point (said point being located by reference to the Washington Coordinate System, South Zone, at coordinates North 489,580.40 and East 2,233,810.17); thence North 67°11'41" West 950 feet more or less to a point on the line of ordinary high water on the right bank of the Columbia River; thence Southwesterly along the said line of ordinary high water to the point of beginning; containing 15.85 acres more or less.

ALSO, the shorelands of the Columbia River, abutting on the abovedescribed property.

EXCEPTING, the right of way of the Hanford railroad as now located across the above-described property, said right of way being 50 feet wide, being 25 feet on each side of the centerline of said railroad as now constructed.

(b) Together with and as a part of this Lease, there is included a right of ingress and egress to and from the above-mentioned tract, over and above the Government-owned roads, streets and railways located within the Hanford Operations Area, subject to such security limitations and regulations as the Commission may issue from time to time. The Supply System's right to the use of said roads, streets and railways shall not be exclusive but shall be of equal standing with that of the Commission's employees and other authorized personnel using said roads, streets and railways. The Supply System may construct, connect and maintain spur tracks at locations to be mutually agreed upon by the parties to serve the tract. The Supply System may construct and maintain in the vicinity of the tract such additional roads as it may require for the construction and operation of the Generating Plant, subject to such reasonable standards for construction and maintenance as the Commission may prescribe.

To the extent that it does not interfere with the use of the premises for the purpose and scope of this Lease, as provided in Article 8 hereof, the Commission may, but shall not be obligated to, relocate, close, vacate, alter, widen, extend, grade, improve, repair, maintain and regulate the use of the said roads, streets and railways, and may, at any time or times, provide alternate ingress and egress ways to said tract over specific roads, streets or railways of the Commission within the Hanford Operations Area.

(c) Together with and as a part of this Lease, and subject to its terms and conditions, there is further included an easement of right of way for electric transmission lines and their supporting structures over, across, and upon a strip of land 125 feet wide, being 62.5 feet on each side of a centerline to be mutually agreed upon by the parties extending across the Hanford Operations Area from the Generating Plant in the direction of the Vantage electric substation to the boundary of the Federally owned area, subject, however, to the following:

(1) Rights of way for existing power lines, water lines, telephone lines, roads, railroads, and fences of the United States or its licensees, and

(2) The right of the United States or its licensees to construct, operate, and maintain power lines, water lines, telephone lines, roads, railroads and fences across the easement granted herein.

3. Term of Lease

This Lease shall be effective commencing at midnight on the date of its execution and, unless sooner terminated in accordance with Article 6 hereof, shall continue in effect for a term coextensive with the term of the Operating and Construction Contract.

4. Payment of Rent

The Supply System shall pay to the Commission as rent for the property, both real and personal leased hereunder, and for the easements, licenses, privileges and rights obtained under this instrument, the sum of $1,000.00 for the first annual period and the sum of $10.00 for each succeeding annual period during the term hereof, all such payments to be made in advance, in lawful money of the United States, payable at the offices of the Commission in Richland, Washington, without notice or demand therefor from the Commission. 5. Warranty of Quiet Enjoyment

The Commission agrees that, conditioned upon the Supply System's performing the agreements herein contained on its part, it shall, and may at all times during the term hereby granted, peacefully and quietly have, hold and enjoy the premises, without any manner of let, suit, trouble or hindrance of or from all persons claiming, or to claim by, through, or under the Government.

6. Termination

(a) This Lease is made subject to the condition that if there should occur any of the events hereinafter provided in this paragraph, the Commission may terminate this Lease under the conditions and in the manner hereafter stated and sue for and recover all rents and damages accruing hereunder, or may sue and recover without terminating the Lease; Provided that, upon any such termination, the term hereof shall expire and thereupon or at any time thereafter, the Commission may re-enter and take possession of the premises without compensation to the Supply System on account of such termination.

(1) In the event the Supply System uses the leased land in a manner not in substantial compliance with the covenants and purposes provided herein or discontinue its use of such land for such purposes, and such misuse or disuse continues for sixty (60) days after written notice thereof has been given by the Commission to the Supply System, the Commission may, upon the expiration of said sixty (60) days or at any time thereafter, by giving the Supply System fifteen (15) days written notice, terminate this Lease, and this Lease shall expire upon the date specified in such notice.

(2) In the event the Supply System shall become insolvent, make an assignment for the benefit of creditors, file a petition in bankruptcy, seek the benefit of any bankruptcy, composition or insolvency law, or be adjudged bankrup, or if a receiver or trustee of the property of the Supply System shall be appointed, the Commission may immediately or at any time thereafter, by written notice to the Supply System, terminate this Lease and

this Lease shall expire upon the date specified in such notice; Provided that, if such default be cured by the Supply System prior to the termination date specified in such notice, this Lease shall remain in full force and effect if the provisions of the preceding subparagraph (1) do not apply.

(b) Subject to the provisions of Article 7 hereof, the Supply System shall, on or before the effective date of termination or expiration of this Lease, regardless of the method or cause thereof, quietly and peaceably vacate and remove from the premises all personal property, goods and effects of the Supply System, not affixed to the land and not used primarily in the operation of the Generating Plant and return possession of the premises to the Government; Provided that, in the event the Supply System fails to so remove said residual property, such property shall become the property of the Government without liability of any kind.

7. Ownership, Removal or Disposition of Property and Option to Acquire (a) All alterations, additions and improvements to the premises made by the Supply System, including the Generating Plant, shall be and remain the proprty of the Supply System during the term of this Lease, irrespective of the manner in which they may be attached to the land. If, prior to the expiration or termination of this Lease, the Commission and the Supply System agree upon and execute an extension or renewal of this Lease or any new lease covering the same premises, all such alterations, additions and improvements shall remain the property of the Supply System during the term thereof.

(b) The Supply System shall have the right to occupy the premises for a period of one hundred twenty (120) days following the expiration or termination of this Lease, for the purpose of removing, and to remove, at its own expense, all alterations, additions and improvements to the premises which were made by it; Provided, however, that the Government may, at its option, take title and possession of such alterations, additions and improvements. If the Government elects to take title and possession, it shall so notify the Supply System in writing prior to the termination or expiration of this Lease and such alterations, additions or improvements shall thereupon become and be the property of the Government, free of all encumbrances, without cost to the Government; Provided, however, that if this Lease is terminated pursuant to Article 6 hereof prior to the expiration of the term provided for in Article 3 hereof, then and in that event the title to such alterations, additions or improvements shall be subject to a charge in the amount of the outstanding indebtedness of the revenue bonds issued by the Supply System to finance such alterations, additions and improvements for which provision for repayment has not at that time been made.

8. Purpose and Scope of Lease

The Supply System covenants with the Commission that the leased premises shall be occupied and used solely for the construction and operation of an electric power generating plant and for the marketing of electric power so produced, pursuant to and in accordance with the Construction and Operating Contract, which contract is incorporated herein by reference and made a part hereof. The Supply System covenants that it will comply with the provisions of the Operating and