AmBendix D

leasing Materials
Leasing Materials

This page intentionally lejt blank

D-2 December 1997
Model lease ABulication Package

General Information for Lease Applicants

Once a decision has been made to close or realign an installation, property maybe made available for

interim use, if it can be done in compliance with environmental requirements and without adversely

affectig the DoD Component mission, including conversion activities. An Interim Lease is a short-term

lease that makes no commitment for future use or ultimate disposal and is usually entered into prior to final

reuse and disposal decisions. The Applicant should provide the information requested in the Application

Package as completely as possible. No specific form is required. Upon receipt of the application, the

Military Department will perform an internal review of the proposed use. If the application did not contain

sufficient information or if the review triggers a requirement for additional information, this information will

be requested from the applicant as soon as possible. Site-specific environmental, natural, cultural, or

operational reviews may require restrictions on the proposed use or consideration of alternative uses.

Reasons for Interim Leases

Interim leases are intended to be used in appropriate cases to permit public and private commercial activity

to begin prior to completion of the final reuse and disposal environmental review under the National

Environmental Policy Act (NEPA) of 1969, as amended (42 USC 4321 ef seq.). In many cases this review

requires an Environmental Impact Statement and issuance of a Record of Decision (ROD), which take

considerable time to complete. The NEPA review will result in a final decision on disposal or reuse.

Whether interim leasing is appropriate depends on a wide variety of site-specific conditions that include

compatibility with ongoing military missions, disposal-related activities, environmental analysis and factors

affecting the property requested, and the intended use of the property.

Lessee Under an Intefi”m Lease

The Military Department usually leases property for interim use to the Local Redevelopment Authority (if so

empowered to receive property) or, if there is none, to the local government in whose jurisdiction the

property is wholly located or to another local govenunent agency or a State government agency designated

for redevelopment purposes by the chief executive officer in the State. Requests for leases directly to other

eligible entities may be approved by the Military Department Representative in exceptional circumstances.

Exclusive Possession by Lease

Licenses, permits, or rights-of-entry will not be used as a substitute for a Lease, in circumstances where the

proposed grantee is to be given exclusive possession of DoD property. However, non-exclusive use may be

granted in accordance with standard Military Department procedures, for example, for conferring nonpossessory access for single, specified purposes (e.g., conducting an open house or air show; doing nonintrusive surveys of the premises; or setting up potential Lessee equipment+ut not commencing benefiaal

operations-pending finalization of a lease).

Internal Review

The application information and the proposed use will be reviewed by the Military Department. This

review will, in some instances, trigger additional site-specific questions that will be provided to the

Applicant.

December 1997 D-3
Model Lease Application Package

Lease-Specific Environmental Review

The National Environmental Policy Act (NEPA) must also be complied with for all leasing actions.

Environmental impact analysis, using the Military Department’s environmental impact analysis process as

implemented in current Military Department and Council on Environmental Quality regulations or

directives, is required prior to malting a decision to enter into an interim lease. Proposed interim uses,

including any improvements to the leased property, may not foreclose later consideration of any

reasonable disposal and reuse alternative by the Military Department. Absent compelling circumstances,

the Military Department will not permit improvements that will significantly affect the quality of the

human environment and therefore require preparation of a separate EIS. In addition, other site-specific

environmental, cultural or historic reviews may require restrictions on use or special compliance

requirements provisions in the lease. Secretarial findings regarding wetlands (E.O. 11990) and floodplains

(E.O. 11988) will be made when required. All applicable natural and cultural resource protection

requirements will be considered prior to making the decision to enter into an interim use lease and

appropriate restrictions, to the extent required, will be included within the lease.

Environmental Baseline Survey and Finding of Suitability to Lease

CERCLA requires notice indicating if the property has been the site of a release, storage, or disposal of

hazardous substances. The Environmental Baseline Survey (EBS) and Finding of Suitability to Lease (FOSL)

will be performed prior to the interim lease. These documents will provide the applicable notices to the

Lessee or its Sublessees at the inception of the lease. The EBS also documents the environmental condition of

the premises at the start of the lease, including the status and plans for any required environmental

remediation under tke Installation Restoration Program (IRP). A close-out environmental condition smwey

and report will be the basis for restoration requirements at the termination of the interim lease.

Environmental regulators will be notified and included in the process, including receiving copies of

workable draft documents and partiapating in on-board reviews.

A. Applicant Information

1. General Information

Provide name, address, and telephone number of the Applicant and, if applicable, the name, address, and

telephone number of a representative authorized to act on behalf of the Applicant during the course of the

project.

2. Experience and Background

Provide copies of instruments establishing the Applicant as an entity with the legal capacity to enter into

leases and other binding contractual obligations.

a. Governmental entities should provide enabling legislation or other charters.

b. Corporations should provide the name and address of an authorized representative and

evidence of current corporate status.

c. Partnerships/Joint Ventures should provide the name and address of an authorized

representative and evidence of current partnership/joint venture status.

d. A sole proprietor should provide current address and summary of business activity.

3. Financial Capability (Note: The Applicant maybe requested by the Military Department to

provide the following information. Private-sector financial data will be held in confidence, where

necessary, upon request).

a. If the Applicant is a corporation or limited partnership it must provide a recent finanaal

statement.

b. If the Applicant is an individual or partnership it must provide a recent personal financial

statement.

D-4 December 1997
DoD Base Reuse Implementation Manual

c. A preliminary budget and estimated operating costs and sources of funds for the proposed

activities on the leased property.

4. Signing of Application

The Application must be signed by an official authorized to act on behalf of the potential Lessee. If the

Lessee is a corporate or governmental entity then the signature must show the offiaal capacity of the signer.

5. Compatibility with Redevelopment Plan

a. If the Applicant is the LRA, it will provide a statement certi$ing that the proposed lease is

compatible with its redevelopment plan.

b. If the Applicant is not the LRA, it must consult with the LRA and should provide a

recommendation on the proposed lease from the LRA, including a statement of compatibility

with the redevelopment plan.

B. Intended Use

1. Subleasing

State whether the Applicant intends to use the property or sublease the property to a third party, and if SO,

identify the prospective Sublessees, if known.

2. Be&on Date

State when the Applicant wants the lease to begin.

3. Lease Term

State the requested duration of the lease.

4. Property Description

Identify the location of the property requested on a map of the facility and provide the following

information:

a. The approximate acreage requested; and

b. Identification of any buildings or other improvements requested.

5. Description of Activities

Provide a detailed description of the activities proposed to be undertaken under an interim lease. Include an

explanation of whether this would be a new business or the relocation or expansion of an existing business.

If this is a relocation or expansion of an existing business, provide the name and address of the existing

business.

6. Environmental Information

a. If such activity will result in the generation of hazardous waste as defined by the Resource

Conservation and Recovery Act, provide the following

1. A description of the waste stream(s);

2. An estimate of the quantity generated per month;

3. A description of the program to manage hazardous waste; and

4. Identification of the method(s) of treahnent or disposal.

2. If such activity will require the Applicant to use hazardous substances, as defined by the

Comprehensive Environmental Response, Compensation, and Liability Act, or petroleum

products or their derivatives, provide the following

December 1997 D-5
Model Lease Application Package

3.

1. A description of the hazardous substances or petroleum products to be used in such

activity;

2. An estimate of the quantity of such substances to be stored on-site at any one time;

3. A description of the program to manage hazardous substances and petroleum products or

their derivatives; and

4. A description of the manner such substances will be stored, including whether

Underground or Aboveground Storage Tanks (USTs/ASTs) will be used.

If such activity will result in the discharge of wastewater to an accumulation, collection or drainage

system, provide the following:

a. A description of the antiapated constituents of such wastewater;

b. An estimate of the quantity of such wastewater generated per day;

c. A description of the controls that will be used to limit the quantity or constituency of such

wastewater;

d. Identification of any applicable effluent limitations or standards applicable to the proposed

activity; and

e. Identification of the receiving wastewater treatment facility or receiving water of the United

States.

4. If such activity will result in the emission of air pollutants, provide the following

a. Identification of all air emissions, including hazardous air pollutants, resulting from such

activities and identification of their sources;

b. An estimate of the quantity of emissions and hazardous air pollutants per year; and

c. Identification of any emission sources presently owned by the Military Department that the

Lessee will need for its afivities.

5. If such activity will result in the application of pesticides, as defined by the Federal Insectiade,

Fungicide, and Rodentiade Act, provide the following

a. Identification of all such pesticides that will be applied on the property;

b. An estimate of the quantity of pestiades to be applied to the property per year;

c. Identification of the applicator who will be applying such pestiades to the property.

6. If any of the property requested will be used for residential purposes or is of the type commonly used by

children under the age of 7 years, identify the environmental consultant who will be responsible for

identification and abatement of lead-based paint hazards, if any, on the property.

C. Operational Requirement’

1. Identify the approximate amount of electriaty required and the expected provider of such service;

2. Identify the type and approximate amount of fuels, e.g., natural gas, propane, heating oil, required and

the expected provider(s) of such fuels;

3. Identify the amount of potable water required and the expected provider of such water;

4. Identify the approximate requirements for wastewater treatment and the expected provider of such

service;

5. Identify any other requirements for utility services, e.g., telephone, cable TV, required and the expected

provider of such service; amd

D-6 December 1997
DoD Base Reuse Implementation Manual

6. Describe any construction, improvements or other alterations to the property required to enable any of

the services described in response to the preceding requests to be delivered or provided to the property.

7. Describe any construction, improvements or other alterations to the property proposed to carry out

Lessee activities on the property.

D. Public Benefit Rental Discount

If Applicant is requesting less than fair market rental, please provide the following additional information

1. A description of the economic impact of closure.

2. A description of the financial condition of the community and the prospects for redevelopment.

3. A description of how the interim lease will contribute to the short-term job creation and economic

development of the base and the community, including projected number and type of jobs created.

4. A statement as to why the interim lease should be granted at below the estimated fair market value, and

what discount is proposed.

5. A description of why fair market value is unobtainable or not compatible with the public benefit.

December 1997 D-7
Model Lease Application Package

This page intentionally lej? blank

D-8 December 1997
Guide for Military lle~artment Internal

Review of Interim lease Reuuests

[Some of these considerations may not apply at all installations.]

A. ProjectProcessing

1. Project name: (Identify the property requested and the Applicant’s name);

2. Date expression of interest received: ,

3. Date initial Application package mailed/delivered to Applicant )

4. Date Application package received from AppIicant ,

5. Date follow-up Application package mailed/delivered to Applicant {

6. Date follow-up Application package received from Applicant /

7. Date Finding of Suitability to Lease (FOSL) and Environmental Baseline Survey (EBS) or Supplemental

EBS initiated ,

8. Date notification of initiation of FOSL and EBS or Supplemental EBS mailed to regulators: /

9. Date workable draft of FOSL provided to regulators /

10. Date workable draft of EBS or Supplemental EBS mailed to regulators: I

11. Date regulator comments to the FOSL/EBS received: /

12. Date FOSL signed and notice provided to the public

B. Applicant Information

1. Interim lease requested by

❑ Local Redevelopment Authority

❑ State or local government

•l Private party

❑ Other (Describe in detail)

2. Legal status and capaaty documented by

❑ Reference to State Law (provide citation);

❑ Certificate of Incorporation, Articles of Incorporation and By-laws;

❑ Partnership/Joint Venture Agreement;

December 1997 D-9
Guide for Military Department Internal Review of Lease Requests

•l Other

3. If Applicant is a corporation, did it provide

a. Evidence of current corporate status; and

b. Name and address of an authorized representative?

•l Yes.

❑ No.

4. If Applicant is a partnership/joint venture, did it provide:

a. Evidence of partnership/joint venture status; and

b. Name and address of an authorized representative?

•l Yes.

❑ No.

5. If Applicant is a sole proprietor, did it provide

a. A current address; and

b. Summary of business activity?

El Yes.

tl No.

C. Lease Administration

1. Name, address and telephone number of the Applicant’s representative(s) responsible for managing the

leasing effort

2. Will the Lessee operate the property or sublease to a third party?

❑

❑

Operate

Sublease. If the Applicant will sublease, identify the prospective Sublessee:

3. Date the Applicant requested the lease to begin

4. Requested duration of the lease:

•1 _ years; or

•1 _ months.

D. Property Information

1. Tract No.(s) and Name, if any (Segment maps, Master Plan designations)

D-1 O December 1997
DoD Base Reuse lm~iementation Manual

2. Acreage:

3. GeneraI character of the land requested:

4. Are Government buildings and improvements included in the property?

❑ No.

❑ Yes. If yes, identify and describe all buildings, facilities and irnprovements, e.g., size and

condition, and attach copy of floor plan, if applicable.

5. Existing or preceding land use:

6. Proposed use: (as described in the Application)

7. United States property interest:

g Fee simple absolute

❑ Easement

❑ Leasehold

El Other

8. Identify and describe in detail, e.g., owner, duration, property affected, termination provisions, etc., any

encumbrances on the property

❑ Easements

❑ Leaseholds

•l Licenses

❑ Permits

❑ Others

9. Jurisdiction

❑ Exclusive Federal Jurisdiction

❑ Concurrent Federal Jurisdiction

❑ Proprietary Status

10. Is jurisdiction to be retroceded?

•l Yes.

❑ No.

If there has already been a retrocession of Federal jurisdiction, indicate the date retrocession was

final. If a retrocession action is pendina identify the status of that effort.

December 1997 D-1 1
Guide for Military Department Internal Review of Lease Requests

E. Operational Factors

1. Is the property currently available for leasing?

❑ Yes.

❑ No. If no, will it be available in time to meet the Applicant’s needs?

•l Yes.

❑ No.

2a. Does the Stewart B. McKinney Homeless Assistance Act apply to this action?

❑ No.

❑ Yes. If yes, has the necessary screening been completed and is the property available for leasing

to the Applicant?

❑ No.

•l Yes.

2b. Does the Base Closure Community Redevelopment and Homeless Assistance Act of 1994 apply to this

action?

❑ No.

❑ Yes. If yes, has the property been designated for homeless use in the local redevelopment plan?

❑ No.

❑ Yes. If yes, has I-IUD approved the homeless assistance provisions of the plan?

❑ No.

•l Yes.

3. Were utilities; e.g., electrici~, natural gas/propane/heating oil, potable water, wastewater heatment,

telephone, cable TV, etc., requested by the Applicant and, if so, are they available?

❑ No.

❑ Yes. If yes, identify the type, quantity, and provider of such services.

4. Will the DoD Component be providing services on a reimbursable basis?

•l No.

•l Yes. If yes, identify the instrument used to establish the term under which such services will be

provided.

5. Are there any security, access, parking or other operational issues?

❑ No.

•l Yes, please state.

D-12 December 1997
DoD Base Reuse Implementation Manual

F,

1.

2.

3.

4.

Environmental Factors

Has the activity proposed by the Applicant been analyzed for environmental impacts under the

applicable environmental impact analysis process?

❑ No. If no, estimate the time to complete such analysis

❑ Yes. If yes, what document was produced?

El

•J

•1

Environmental Impact Statement (EIS)

(attach justification for allowing interim use and proceeding with action);

Environmental Assessment/Finding of No Significant Impact (EA/FONSI); or

Categorical Exclusion (CATEX): (cite the authority for the CATEX)

Is further environmental study required?

❑ No.

❑ Yes.

Has the Base-wide Environmental Baseline Survey (EBS) or a site-specific EBS been completed?

❑ No. If no, estimate the time to complete such analysis:

❑ Yes. The EBS identified the following environmental concerns:

Were hazardous substances stored, released or disposed of on the property in excess of the applicable

amounts; i.e., 1,000 kgs or hazardous substance and 1 kg for acutely hazardous substances?

❑

•1

No.

Yes. If yes, provide the information required by 40 CFR Part 373:

5. Have remedial actions been taken so that the property is considered safe for the proposed use?

•l Yes.

❑ No. If not, estimate the estimated time to complete such action and

if the proposed action could take place prior to such action, provide details and justification for

leasing the property in its current condition, including any restrictions on access or use:

December 1997 D-1 3
Guide for Military Department Internal Review of Lease Requests

6.

7.

&

9.

10.

11.

Are there any sites or areas of concerns subject to the Installation Restoration Program lccated on the

DroDertv? ‘ ‘a’

•1

No.

Yes. Conditions may need to be included in the lease.

Was the property contaminated with ammunition, explosives or chemicai weapons?

❑ No.

❑ Yes. If yes, has the property been decontaminated using the most appropriate technology

consistent with the proposed use of the property? Will the action require approval by the

Deparhnent of Defense Explosive Safety Board (DDESB)?

•l Yes.

❑ No. However, transfer to another Federal Agency for compatible use of surface

decontaminated real property would be appropriate, subject to limitations, restrictions

and prohibitions to ensure personnel and envtionxnental protection.

Will access rights to implement any monitoring plan be required?

❑ No.

•l Yes.

Will the Applicant generate hazardous wastes, as defined the Resource Conservation and Recovery Act

(RCRA), as a result of the proposed activity?

❑ No.

❑ Yes. If yes, identify all waste streams and quantities:

Does the Applicant possess a U.S. EPA hazardous waste generator identification number that would

permit waste generation on the requested property?

❑ No.

❑ Yes. The U.S. EPA Generator ID No. is

Does the proposed use include the storage or disposal of non-DoD hazardous or toxic materials? If so,

determine whether Title 10, USC 2692 is applicable to this lease.

❑ No.

•l Yes, explain.

❑ Covered by exception ❑ Industrial-type facility; ❑ Other

❑ Waiver granted.

D-1 4 December 1997
DoD Base Reuse Implementation Manual

12.

13.

14.

15.

16.

17.

18.

Does the Applicant propose to use any existing Underground Storage Tank (UST) or Aboveground

Storage Tank (AST) on the prope~?

❑

•1

No. If no, does the Applicant intend to install its own USTS or ASTS?

❑ No.

•l Yes.

Yes. If yes, are existing tanks in compliance with current laws and regulations and appropriate

for such use?

❑ No.

❑ Yes.

Will the activity involve use of substances covered by the Toxic Substances Control Act?

•l Yes.

❑ No.

Will the Lessee’s activities on the leased property result in a discharge of wastewater to an accumulation,

collection or drainage system?

❑ No.

❑ Yes. If yes, is the quantity greater than one million gallons per day?

❑ No.

•l Yes.

Can the existing wastewater collection and heatment system accommodate such discharges without

adverse operational or environmental impacts?

❑ Yes.

❑ No. If not, are there other options? Describe.

Has the Applicant applied for or obtained a National Pollutant Discharge Elimination System (NPDES)

Permit or State equivalent from the EPA/appropriate State agency?

•l Yes.

H No. If not, state whether the Applicant must have an NPDES Permit or State equivalent to

operate.

•l Yes.

❑ No.

Would the Applicant’s operations result in a violation of a NPDES Permit or State equivalent held by the

United States?

❑ Yes.

❑ No.

Will approval of the Application result in the use of pesticides on the property? (See tie Federal

Insectiade, Fungicide, and Rodenticide Act and State pestiade regulations.)

❑ No.

❑ Yes. Restrictions may need to be incorporated into the lease.

December 1997 D-1 5
Guide for Militaw Department Internal Review of Lease Reauests

19. Will the proposal result in emissions of criteria air pollutants, their precursors or hazardous air

pollutants?

❑ No.

❑ Yes. If yes, does the Applicant intend to install new equipment and

independently obtain any permits necessary to operate?

•l Yes.

❑ No. If no, does the Applicant seek to use equipment currently operated under permits

held by the Military Deparhnent?

❑ No.

❑ Yes. Lf yes, describe the conditions that must be satisfied before the Applicant

could operate such equipment

20. Do the proposed activities require a conformity determination under the Clean Aix Act?

❑ This action does not require a written conformity determination in accordance with EPA’s rule

because:

•l The installation is in an attainment area.

❑ The action falls within an exemption in the rule. Attach documentation of the

applicability of the exemption.

❑ This action is not exempt from the conformity regulation. Attach conformity determination.

Describe the mitigation requirements or other restrictions, if any, that must be incorporated in

the outgrant document

21. Are there improvements with Asbestos-Containing Material (ACM)?

❑ No.

❑ Yes, attach condition and type.

22. Are there improvements constructed prior to 1978 that are considered to contain lead-based paint or that

have been determined to contain lead-based paint?

❑ No.

❑ Yes, Attach survey results.

Are these improvements the type that children under age seven frequently inhabit?

❑ No.

❑ Yes, notice and restriction required.

23. Is there radon or polychlorinated biphenyls (PCBS) present?

❑ No.

❑ Yes.

D-16 December 1997
DoD Base Reuse Implementation Manual

24. Do any Federal or State tlueatened or endangered species inhabit the requested property or does it

include any critical or sensitive habitat as defined the Endangered Species Act?

❑ No.

❑ Yes. If yes, could the proposal jeopardize any such species or the habitat of any such species?

•1

•1

No.

Yes. This action jeopardizes threatened or endangered speaes or the habitat of such

species. Accordingly, restrictions may need to be-incorp&ated into the outgrant

document to protect the species or habitat.

25. Will the activity jeopardize fish and wildlife species or habitat integral to Congressionally authorized

mitigation or General Plans, or recommendations in Fish and Wildlife reports prepared under the

provisions of the FWCA that a Military Department has agreed to?

•1

•1

No.

Yes. Conditions may need to be included in the lease.

26. Is the property in a Coastal Zone Management Area?

❑ No.

❑ Yes. If yes, has a determination been made that the proposed action is consistent with the

approved State Coastal Zone Management Plan?

❑ No.

•l Yes.

27. Is the requested property within a 100-year floodplain? (See E.O. 11988.)

H No.

❑ Yes. Conditions may need to be included in the lease.

28. Are there any jurisdictional wetlands located on the property?

❑ No.

❑ Yes. This property includes a wetlands area and falls under the purview of Executive Order

11990; accordingly, conditions may need to be included in the lease.

December 1997 D-17
Guide for Militarv Department Internal Review of Lease Reauests

29. Has the property been surveyed for historical and cultural resources?

❑ No. The survey will be completed by

U Yes. If yes, were there historical or cultural resources identified on the property?

❑ No.

❑ Yes. If yes, has consultation occurred under Section 106 of the National Historic

Preservation Act?

•l No.

•l Yes. Conditions may need to be included in the lease.

30. Have Native American graves or artifacts been identified on this property? (See the American Indian

Religious Freedom Act and Native American Graves Protection and Repatriation Act.)

a No.

❑ Yes. Restrictions may need to be incorporated into the lease to protect these resources.

31. Have archaeological sites or resources been identified on this property? (See the Antiquities Act;

Archaeological and Historical Preservation Act and Archaeological Resources Protection Act.)

❑ No,

Cl Yes. Conditions may need to be included in the lease.

32. Will the proposed lease impact an area designated under the Wild and Scenic Rivers Act?

❑ No.

❑ Yes. Conditions may need to be included in the lease.

33. Would any other special-purpose environmental laws be applicable to the proposed activity?

❑ No.

a Yes. If yes, identify such laws and describe tieir effect on the proposed activities

D-1 8 December 1997
Model lease Provisions

The Military Departments will execute interim leases that incorporate certain standard provisions tailored to

the specific poliaes of the individual Departments. Each of the Military Departments have developed model

lease documents. Copies can be obtained by contacting the applicable Military Deparbnent base closure

office. See Appendix G for contact information. Site-specific environmental, cultural, historical, and

operational requirements and restrictions will be added to the model interim lease provisions following

review of the proposed use and further analysis of its impacts. It is the responsibility of the applicant to

make sure that all lease provisions are understood and the condition of the premises proposed for lease are

known prior to lease execution. Stmdard provisions include:

1. Use of the premises

The lease will state what purposes and uses are approved.

2. Term of lease

In the past, the term of an interim lease could only last for up to five years, including options to renew.

Recently, Section 2833 of theNIl&496 granted the Department the authority to enter into interim leases

with terms that extend beyond the expected completion date for the disposal Environmental Impact

Statement (EIS). This is true even if final property disposal is consequently delayed because the lessee’s use

of the property differs from that outlined in the Record of Decision (ROD). This authority, however, is only

available if the proposed lease can be supported by a CATEX or an EA/FONSI. A policy memorandum

implementing this new authority can be found on page D-28.

3. Termination

In addition to the right to terminate for non-compliance with the lease conditions, the Military Department

reserves the right to terminate the lease and remove the tenant in the event of national emergency as

declared by the President or the Congress of the United States. Unless special circumstances justify a shorter

period, the Lessee will be provided with no less than 30 days’ notice that termination is necessary and will be

provided a reasonable time to vacate the premises.

4. Consideration

a. Public Benefit Discounted Rental. If the Lessee meets certain public benefits criteria, to the

extent authorized bylaw, the Military Department may approve consideration less than the fair

market rental of the leasehold interest. If the consideration is less than fair market value, then

Lessee receipts from third parties; e.g., Sublessee rental, must be used for protection,

maintenance, repair, improvement, and costs related to the installation to include LRA marketing

and management activities.

b. Fair Market Value Rental. If the Lessee does not qualify for a public benefit rental reduction,

then the total consideration, in cash or in kind, will not be less than the estimated fair market

rental of the leased interest. The fair market value of the leased interest should take into account

the property, the reshictions on use and access to the property, the terms and degree of

Government control in the lease document, the termination rights, and any other specifics of the

type of use.

December 1997 D-1 9
Model Lease Provisions

In some circumstances, the Military Departments may authorize the fair market rental consideration to be

offset for maintenance, protection, repair, improvement, or restoration. Lessees may maintain, protect,

repair, improve and restore Government facilities on leased properties, exteriors as well as interiors, as

well as the leased premises, as all or part of the rental. These obligations may extend to the entire

installation. Offsets are applicable only to those activities that are in addition to the routine maintenance,

protection and repair requirements of any Lessee. In any case, the value of the rental offset and/or any

cash rent reserved to the Government must be equal to or exceed the fair market value of the leased

interest granted. Environmental, cultural, and historical activities can be included in rental offsets,

including restoration. Rent will not be offset for the value of stictures unless title will be vested in the

United States. Improvement should be viewed more broadly as improvement to the premises; e.g.,

upgrade of roads, landscaping, or capital improvements, beyond repair or maintenance. Environmental

remediation must be accomplished in consonance with applicable environmental laws and regulations.

5. Notice

The lease will set out how official notice wiIl be given and state the address for written notices. Under any

lease, the Lessor and Lessee will have occasion to provide the other with formal correspondence and notices.

6. Authorized representatives

The lease may provide for delegation of day-to-day lease administration functions to authorized individuals.

7. Supervision of the premises

The leased premises are under the supervision of a Government official, who is responsible for the use and

occupation of the premises.

8. Applicable rules and regulations

The Lessee and any Sublessees are required to comply with all Federal, State and local laws, regulations and

standards that are applicable when the lease is executed or may become applicable to the Lessee’s activities

on the leased premises later. These include laws and regulations on the environment, construction of

facilities, healti, safety, food service, water supply, sanitation, use of pesticides, and licenses or permits to do

business. The Lessee and any Sublessee are responsible for obtaining and paying for permits required for its

operations under the Lease.

9. Condition of the premises

The lease states that the Lessee has inspected the premises, understands the condition, and understands that

the United States is not providing any warranties or promises to make any alterations, repairs, or additions

thereto. The Military Department and the Lessee will jointly conduct an inventory and condition survey, to

include the environmental condition, prior to lease execution by either party. The inventory and condition

surveys will be documented in a report prepared by the Military Department, signed by both parties, which

will be attached to the lease. The report may note items identified in the EBS, as well as any other

environmental conditions that may not be specifically identified in the EBS report. The report will

acknowledge leasehold conditions. At the conclusion of the lease period, the Military Department and the

Lessee will jointly conduct a close-out survey. The Military Department will prepare a close-out report. All

significant variances from the original report should be clearly documented. This close-out report will

constitute the basis for settlement by the Lessee for any leased property shown to be lost, damaged or

destroyed.

10. Transfers, assignments, and subleasing

Provision 10a. should be used for leases that are not a master lease. Provision 10b. should be used for

master leases.

D-20 December 1997
DoD Base Reuse Implementation Manual

a. The Lessee may not assign or transfer the lease to another party without the approval of the

Military Department. Subleasing will be authorized subject to approval of the sublease by the

Military Department. The Military Department will conduct its negotiations with the Lessee, not

the Sublessee(s). Sublease rental will be negotiated between the Lessee and Sublessee and may

be different in amount or expressed differently than that in the prime lease. The term of a

sublease will be no longer than that in the prime lease, so that expectations of continued tenancy

after disposal will not be created. The provisions of the sublease must not be inconsistent with the

provisions of the prime lease and the sublease must state that it is subject to the prime lease. In

case of any conflict between the instruments, the prime lease will control.

b. The Lessee may not assignor transfer the lease to another party without the approvaI of the

Military Department. The Lessee is not required to obtain Military Deparbnent approval of

subleases, unless the sublease involves the use of hazardous materials under 10 U.S.C. 2692, but

must provide a copy of all subleases to the Military Department. The Military Department will

conduct its negotiations with the Lessee, not the Sublessee(s). Sublease rental will be negotiated

between the Lessee and Sublessee and maybe different in amount or expressed differently than

that in the prime lease. The term of a sublease will be no longer than that in the prime lease, so

that expectations of continued tenancy after disposal wiIl not be created. The provisions of the

sublease must not be inconsistent with the provisions of the prime lease and the sublease must

state that it is subject to the prime lease. Ih case of any conflict between the insh-uments, the

prime lease will control.

11. Utilities

The Military Department must be reimbursed for the cost of any utilities provided. Utility issues vary

widely with the specific situations of the installation. The Lessee should develop plans for assumption of the

utilities by the local utility provider or other qualified entity.

12. Protection of the property

The Lessee is obligated to keep the premises in good order and in a clean, safe condition by and at the

expense of the Lessee. The Lessee is responsible for any darnage that maybe caused to property of the

United States by the activities of the Lessee under this lease.

13. Insurance

If a lease authorizes the Lessee to possess and use Government-owned improvements, the Lessee must

insure such improvements for full insurable value, where practicable, to assure future Government use.

State governmental entities are usually not required to provide liability insurance. Self-insurance maybe

satisfactory for qualified governmental entities. Other entities may be required to obtain liability insurance.

14. Right to enter

The Government has the right to enter the premises for any Government purpose, including the right to

inspect the premises for compliance with the conditions of the lease and for compliance with environmental,

safety and other laws, even if the Government is not the enforcement agency. Except in unusual situations,

notice of these entries will be given.

15. Indemnity/hold harmless clause

The United States is not responsible for damages to property or injuries to persons caused by the Lessee’s

use of the premises or for damages to the property of the Lessee. The Lessee will be expected to ind@

the United States from such claims. This does not including damages due to t-he fault or negligence of the

United States or its contractors.

December 1997 D-21
Model Lease Provisions

16. Restoration

At the end of the lease, the Lessee will be expected to vacate the premises, remove the Lessee’s property and

restore the premises or pay the United States for the cost of restoration loss in lieu of restoration, at the

option of the United States. hy properly of the Lessee not removed maybe removed by the United States

or become property of the United States.

17. Non-discrimination

Leases require non-discrimination in all operations, programs or activities conducted on the leased premises.

If the Lease will be for less than fair market value, then the Lessee is considered to be receiving Federal

financial assistance and the lease will contain certain required assurances.

18. Subject to easements

The United States or its predecessor in title may have granted easements, road and utility rights-of-way, or

other such rights. The Lease is granted subject to these outstanding rights. Any new easements will be

coordinated with the Lessee.

19. Rental adjustment

If the United States must revoke the lease, except for the Lessee’s non-compliance, decrease the size of the

leased premises, or materially affect the use available, then rental, if applicable, maybe adjusted.

20. Waste

The Lessee must not commit waste of any kind or in any manner substantially change the contour or

condition of the premises except as authorized in wridng by the Military Department.

21. Disputes clause

The provision establishes a procedure for resolving claims.

22. Environmental protection

The DoD Policy on the Environmental Review Process to Reach a Finding of Suitability to Lease (FOSL),

contained in the Deputy Secretary of D@nse Memorandum “Fast Track Cleanup at Closing hstallations,” Mizy 18,

1996, includes the follm”ng set of model lease provisions that speczjically address environmental protection issues:

1. The sole purpose(s) for which the Leased Premises and any involvements thereon maybe used, in the

absence of written approval of the Government for any other use, [insert intended use of the Leased

Premises]. [See Use of the Premises.]

2. The Lessee shall neither transfer nor assign this Lease or any interest therein or any property on the

Leased Premises, nor sublet the Leased Premises or any part thereof or any property thereon, nor grant any

interest, privilege, or license whatsoever in connection with this Lease without the prior written consent of

the Government. Such consent shall not be unreasonably withheld or delayed. Every sublease shall contain

the Environmental Protection provisions herein. [See Trar+rs, assignments, and subleasing.]

3. The Lessee and any Sublessee shall comply with the applicable Federal, State, and local laws, regulations,

and standards that are or may become applicable to Lessee’s activities on the Leased Premises. [See

Applicable rules and regulations.]

4. The Lessee and any Sublessee shall be solely responsible for obtaining at its cost and expense any

environmental permits required for its operations under the Lease, independent of any existing permits.

D-22 December 1997
DoD Base Reuse Implementation Manual

5. The Government’s rights under this Lease specifically include the right for Government officials to

inspect upon reasonable notice the Leased Premises for compliance with environmental, safety, and

occupational health laws and regulations, whether or not the Government is responsible for enforcing

them. Such inspections are without prejudice to the right of duly constituted enforcement officials to

make such inspections. The Government normally will give the Lessee or Sublessee twenty-four (24)

hours prior notice of its intention to enter the Leased Premises unless it determined the entry is required

for safety, environmental, operations, or security purposes. The Lessee shall have no claim on account of

any entries against the United States or any officer, agent, employee, or contractor thereof. [See Right to

enter.]

NOTE: USE THE FOLLOWNG PROVISION 6. IF THE LEASED PROPERTY IS PART OF A NATIONAL

PRIORITIES LIST (NPL) SITE; ADAPT TO CLEANLJP AGREEMENTS TO SUIT CLEANUPS UNDER

STATE REGULATORY AUTHORITIES (E.G., A NON-NPL SITE).

6. The Government acknowledges that [insert name of military installation] has been identified as a

National Priorities List Site under the Comprehensive Environmental Response, Compensation and

Liability Act (CERCLA) of 1980, as amended. The Lessee acknowledges that the Government has

provided it with a copy of the [insert name of military installation] Federal Facility Agreement (FFA)

entered into by the United States Environmental Protection Agency (EPA) Region [insert number], the

State of [insert name of State], and the Military Department and effective on [insert date], and will

provide the Lessee with a copy of any amendments thereto. The Lessee agrees that should any conflict

arise between the terms of such agreement as it presently exists or may be amended (“FFA,” “Interagency

Agreement,” or “IAG”) and the provisions of this Lease, the terms of the FFA or IAG will take

precedence. The Lessee further agrees that notwithstanding any other provision of the Lease, the

Government assumes no liability to the Lessee or its Sublessees or licensees should implementation of the

FFA interfere with the Lessee’s or any Sublessee’s or licensee’s use of the Leased Premises. The Lessee

shall have no claim on account of any such interference against the United States or any officer, agent,

employee or contractor thereof, other than for abatement of rent.

NOTE: USE THE FOLLOWING PROVISION 7. IF A FEDERAL FACILITIES AGREEMENT (FFA) OR

INTEl?MGENCY AGREEMENT (L4G) APPLIES TO THE PROPERTY BEING LEASED (E. G., AN NPL

SITE).

7. The Government, EPA, and the [insert name of State agency] and their officers, agents, employees,

contractors, and subcontractors have the right, upon reasonable notice to the Lessee and any Sublessee,

enter upon the Leased Premises for the purposes enumerated in this subparagraph and for such other

purposes consistent with any provision of the FFA:

a. to conduct investigations and surveys, including, where necessary, drilling, soil and water

sampling, test-pitting, testing soil borings and other activities related to the [insert name of

military installation] Installation Restoration Program, FFA or IAG;

b. to inspect field activities of the Governnumt and its contractors and subcontractors in

implementing that [insert name of military installation] IN?, FFA or IAG;

c. to conduct anv test or survey required by the EPA or [insert name of State agency] relating to

to

the impleme&tion of the %A & environmental conditions at the Leased P~exr&es or to verify

any data submitted to the EPA or [insert name of State agency] by the Government relating to

such conditions;

d. to construct, operate, maintain or undertake any other response or remedial action as required

or necessary under the [insert name of military installation] IRP or the FFA or L4G, including,

but not limited to monitoring wells, pumping wells, and treatment facilities.

December 1997 D-23
Model Lease Provisions

NOTE: USE THE FOLLOWNG ALTERNATE PROVISION 7. IF THE INSTALLATION RESTORATION

PROGRAM (IIW’) OR OTHER ENVIRONMENTAL INVESTIGATION APPLIES TO THE PROPERTY

BEING LEASED (E. G., A NON-NPL SITE).

7. The Government and its officers, agents, employees, contractors, and subcontractors have the right,

upon reasonable notice to the Lessee and any Sublessee, to enter upon the Leased Premises for the

purposes enumerated in this subparagraph:

a. to conduct investigations and surveys, including, where necessary, drilling, soil and water

sampling, test-pitting, testing soil borings and other activities related to the [insert name of

military installation] Installation Restoration Program (IRP);

b. to inspect field activities of the Government and its contractors and subcontractors in

implementing the [insert name of military installation] IRP;

c. to conduct any test or survey related to the implementation of the IRP or environmental

conditions at the Leased Premises or to verify any data submitted to the EPA or [insert name of

State agency] by the Government relating to such conditions;

d. to constict, operate, maintain or undertake any other response or remedial action as requked

or necessary under the [insert name of military installation] IRP, including, but not limited to

monitoring wells, pumping wells and treatment facilities.

8. The Lessee agrees to comply with the provisions of any heaith or safety plan in effect under the IRP or

the FFA during the course of the any of the above described response or remedial actions. Any

inspection, survey, investigation, or other response or remedial action wiJl, to the extent practicable, be

coordinated with representatives designated by the Lessee and any Sublessee. The Lessee and Sublessees

shall have no claim on account of such entries against the United States or any officer, agent, employee,

contractor, or subcontractor thereof. In addition, the Lessee shall comply with all applicable Federal,

State, and local occupational safety and health regulations.

9. The Lessee further agrees that in the event of any assignment or sublease of the Leased Premises, it

shall provide to the EPA and [insert name of State agency] by certified mail a copy of the agreement or

sublease of the Leased Premises (as the case may be) within fourteen (14) days after the effective date of

such transaction. The Lessee may delete the financial terms and any other proprietary information from

the copy of any agreement of assignment or sublease furnished pursuant to this condition.

10. The Lessee shall strictly comply with the hazardous waste permit requirements under the Resource

Conservation and Recovery Act, or its [insert name of State] equivalent. Except as specifically authorized

by the Government in writing, the Lessee must provide at its own expense such hazardous waste

management facilities, complying with all laws and regulations. Government hazardous waste

management facilities will not be available to the Lessee. Any violation of the requirements of this

condition shall be deemed a material breach of this Lease.

11. DoD Component accumulation points for hazardous and other wastes will not be used by the Lessee

or any Sublessee. Neither will the Lessee or Sublessee permit its hazardous wastes to be comrningled

with hazardous waste of the DoD Component.

12. The Lessee shall have a Government-approved plan for responding to hazardous waste, fuel, and

other chemical spills prior to commencement of operations on the Leased Premises. Such plan shall be

independent of [insert name of military installation] and, except for initial fire response and/or spill

containment, shall not rely on use of installation personnel or equipment. Should the Government

provide any personnel or equipment, whether for initial fire response and/or spill containment, or

otherwise on the request of the Lessee, or because the Lessee was not, in the opinion of the said officer,

conducting timely cleanup actions, the Lessee agrees to reimburse the Government for its costs.

D-24 December 1997
DoD Base Reuse Implementation Manual

13. The Lessee shall not construct or make or permit its Sublessees or assigns to constructor make

substantial alterations, additions, or improvements to or installations upon or otherwise modify or alter

the Leased Premises in any way that may adversely affect the cleanup, human health, or the environment

without the prior written consent of the Government. Such consent may include a requirement to provide

the Government with a performance and payment bond satisfactory to it in all respects and other

requirements deemed necessary to protect the interests of the Government. For construction or

alterations, additions, modifications, improvements or installations (collectively “work”) in the proximity

of operable units that are part of a National Priorities List (NPL) Site, such consent may include a

requirement for written approval by the Government’s Remedial Project Manager. Except as such written

approval shall expressly provide otherwise, all such approved alterations, additions, modifications,

improvements, and installations shall become Government property when annexed to the Leased

Premises.

14. The Lessee shall not conduct or permit its Sublessees to conduct any subsurface excavation, digging,

drilling or other disturbance of the surface without the prior written approval of the Government.

15. The Lessee shall strictly comply with the hazardous waste permit requirements under the Resource

Conservation and Recovery Act (RCFL4), or its State equivalent and any other applicable laws, rules or

regulations. The Lessee must provide at its own expense such hazardous waste storage facilities that

comply with all laws and regulations as it may need for such storage. Any violation of the requirements

of this provision shall be deemed a material breach of the Lease.

In addition, there maybe site-speczj5c restrictions or provisions, such as to protect endangered species, resti”ct use of

wetlands, support coastal zone management phns, or limit floodplain activities.

23. Environmental baseline survey

See discussion above.

24. Taxes

As required by law, any and all taxes imposed by the State or its political subdivisions upon the property or

interest of the Lessee in the premises shall be paid promptly by the Lessee. Although the property of the

United States is not taxed, if and to the extent that the property owned by the Government is later made

taxable by State or local governments under an Act of Congress, the lease maybe renegotiated.

25. Covenant against contingent fees

The Lessee warrants that no person or selling agency has been employed or retained to solicitor secure this

lease upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee,

excepting bona fide employees or established commercial or selling agencies maintained by the Lessee for

the purpose of securing business.

26. Officials not to benefit

No member of or delegate to Congress or resident commissioner shall be admitted to any share or part of

this lease or to any benefits to arise therefrom. This does not cover an incorporated company if the lease is

for the general benefit of such corporation or company.

27. Accounts and records

The accounts and records of the Lessee will be subject to review and audit.

December 1997 D-25
Model Lease Provisions

28. Modification/agreement

The written lease is the full agreement. Any modifications must be in writing.

29. No commitments for future use

Interim use leases will contain provisions disavowing any right or expectation for the interim user or its

tenants or subtenants to acquire the leased prop-. Interim leases maybe entered into prior to the

completion of the final reuse or disposal decisions, including, if applicable, the issuance of the ROD or prior

to implementation of the action identified in the ROD.

30. Lease signature authority

At the time of execution of the lease, the Lessee will furnish certification of authority to sign the lease.

D-26 December 1997
DoD Base Reuse Implementation Manual

@

oiv=IcE OF THE UNDER SECRETARY OF DEFENSE

u

3000 DEFENsE PENTAGON

WASHINGTON DC 20301-3000

12 Juti NM

ACOUtSITlON AN O

TECHNOLOG Y

MEMOIWNDUM FOR ASSISTANT SECRETARY OF THE ARMY (INSTALLATIONS,

IXXHSTICS AND ENVIRO~

ASSISTANT SECNZ1’ARY OF THE NAVY (INSTALLATIONS

AND ENvIRo~

ASSISTANT SECRETARY OF THE AIR FORCE (MANPOWER,

RESERVE AFFAIRS, INSTALLATIONS AND ENVIRONMENT)

SUBJECR Authority to Lease Property Requiring Environtncntal Rexnediation

The National Defense Authorization Act for FY 96 contains an amendment to the

Comprehensive Environmental Response, Compensation, and Liability Act of 19S0 (CERCLA)

concerning the Department’s ability to enter into long-term leases at base closure and realignment

sites while environmental restomtion is ongoing.

Section 2834 of the Act clariiles that Section lo of CERCLA dces not apply to

leases at Department of Defense installations regardless of whether the lessee has agreed to

purchase the property or whether the duration of the lease is longer than 55 years. The

amendment also requires tha~ in the case of leases at base closure and realignment sites entered

into after September 30, 1995, the Department, in consultation with the Administrator of the

Environmental Protection Agency, shti make a determination that the property is suitable for

lease, that the uses contemplated for the lease are consistent with protection of human health and

the envimntners~ and that there are adequate assurances that the United States will take ~

remedial action referred to in Section 120(h)(3)(B) that has not been taken on the date of the

lease. Please note that this language codifies the existing “Finding of Suitability to m“

process. At active installations, the Sewices should continue to support leases with appropriate

documentation of the environmental condition of the leased property with respect to CERCLA

hazardous substances in accordance with DoDD 4165.6, “Real Property Acquisition,

ManagetnenL and DSposalV and existing Service procedures.

Leasing is one of the most important community reinvestment teds available to the

Department because it enables Local Redevelopment Authorities to achieve rapid economic

recovery and helps the Military Depamnents to reduce their caretaker costs. It is my hope that

tlds amendme~ which clariiies the legislative intent on this issue+ will erase any doubt about the

Department’s authority to lease property requiting entirtmmental rerncdiation pursuant to

CERCLA. PIease ensure that your base closure staffs are aware of thk amendment.

Q2-.4X

Robert E. Bayer

&

principal Assistant Deputy-under Secretary

(~dusrna[ Affairs-s Installations) -

w

Deeember 1997 D-27
Leasing Policies

OFFICE OF THE UNDER SECRETARY OF DEFENSE

- DEFENSE PENTAGON

WASHINGTON, DC 20301 -30G0

lIJUM M

MEMOIWNDUM FOR ASSISTANT SECRETARY OF THE ARMY (INSTALLATIONS,

LOGISTICS AND ENVIRONMENT)

ASSISTANT SECRETARY OF THE NAVY (INSTALLATIONS

AND ENVIRONMENT)

ASSISTANT SECRETARY OF THE AIR FORCE (MANPOWHL

RESERVE AFFAIRS, INSTALLATIONS AND

ENVIRONMENT)

SUBJECT: Interim Leases of Property At Bases Approved for Closure or Realignment

One obstacle to early reuse of closing bases was the presumption that interim

Itise ~nmi couId not extend much beyond the completion date for the National

Environmental Policy Act (NEPA) analysis. The availabiliv of ordy short-term

interim leases (five years or less) often discouraged potential investors ffom kasing

‘: base closure property for fear they would be unable m recoup their investment. in

response, Congress enacted Section 2833 of the National Defenst Authorization Act

; for FY 1996 (P.L. 104-106, 110 Stat. 559), which authorizes longer term interim

leases. This new authority is designed for use in those situations where a short-term

interim lease is inadequate to capitalize on reuse opportunities.

Section 2833 authorizes interim lease terms that extend beyond tbe expected

completion date for the disposal Environmental Impact Statement (EIS). This is true even if

.firud property disposal is consequently delayed because the lessee’s use of the proptmy

differs fium that outlined in the Record of Decision (ROD). Accordingly, the lease

provision concerning “Termination” (the Military Department’s right to terminate the lease

‘if the interim use is incompatible with the final reuse or disposrd decisions) contained in

Appendix D of the DoD Base Reuse Impkmentation Manual (DoD 4165.66-M) need no

longer be included in interim leases (unless the Military Department concerned specifically

wishes to do so). In additiom the five-year limitation on interim lease terms currently

contained in 32 CFR Part 91 .7(g)(3) is no longer relevant and will be eliminated when that

~egulation is revised. As of the date of this memorandum, decisions on the duration of an

‘interim kase may be determined by the Mtikary Departments on a case-by-case basis,

takkg into consideration site-specific factors and the following requirements of Section

2833:

Section 2833 authority is not to be used when the proposed lease provides for activities

that will either significantly affect the quality of the human environment or make

impossible the selection of any reasonable fti disposal rdtemative. In other words, this

D-28 December 1997
DoD Base Reuse Implementation Manual

1

authority is available on] y if the proposed lease can be supported by a categorical

exclusion (CATEX) or a finding of no significant impact @%’FONSI).

● Prior consultation with the Local Redevelopment Authority (LRA) concerned is a

prerequisite for a kase approved under this authority.

In addition to providing for longer term kases, Section 2833 facilitates kasing in two othes

important respects:

s It limits the scope of any environmental analysis required to support a proposed interim

kase to those activities authorized under the lease, and the cumulative “npacts of other

past, preser% and reasonably foreseeable future actions during the period of the proposed

lease. Put simply, this provision allows a more expeditious completion of NEPA

requirements to support interim leasing by focusing any necessary environmental impact

analysis on lease activities alone, and not disposal and reuse issues.

● It permits building modification demolitio~ and new con~ction, if such activities can

be supported by an environmental assessment and tinding of no significant impact

OWFONSI), and do not preclude the selection of any reasonable final disposal

alternative. Decisions on whether to allow such activities maybe made by the Military

Department concerned on a case-by+ase basis, but in general, lessees should not be

permitted to: (a) irreversibly alter buildings integral to any reasonable final disposal

alternative so as to make them unusable for any purpose under active consideration; or (b)

construct new, permanent structures on areas of the installation presentl y set aside for

recreational purposes or preserved as namral or open space. For example, under this

provisiow an interim lessee would be permitted to modify a buiMing so long as the

modifications are wrrsistent with anY f~ disposal alternative still under considetioru

or capable of b+mg removed, at the lessee’s expense, without causing permanent darnage.

interim leasing can bean important too! to help cmnrnunities attract new businesses

to adaptable facilities on closing installations. This new provision will facilitate interim

leasing in a variety of circumstances previously believed to be problematic due to NEPA

requiremen~. I urge you to take fidl advanrage of this new authority.

&aY&.

Principal Assis~t Deputy-Under Secretary

(Industrial Atlhirs and Installations)

Dwember 1997 D-29
Leasing Policies

This page intentionally left blank

D-30 December 1997