PUEBLO OF ISLETA

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PUEBLO OF ISLETA

LEASING LAW

CHAPTER 100

GENERAL PROVISIONS

101 – Authority

This Pueblo of Isleta Leasing Law (“Leasing Law”) is enacted by the Tribal Council

pursuant to Article V, Section 2, Subsections (k) and (l) of the Pueblo’s Constitution, and is subject

to, and will be effective upon the date of approval of this Leasing Law by the U.S. Secretary of the

Interior pursuant to Helping Expedite and Advance Responsible Tribal Home Ownership of 2012,

P.L. 112-151(codified at 25 U.S.C. § 415(h) (“HEARTH Act”) in accordance with Section 108

hereof.

102 – Scope

(a) This Leasing Law shall apply to all Leases of Pueblo Trust or Restricted Lands specified

in (c) below entered into on or after the Effective Date of this Leasing Law. In accordance with

the HEARTH Act, this Leasing Law does not apply to any lease for the exploration development,

or extraction of any mineral resource, which requires approval by BIA.

(b) This Leasing Law does not apply to individually owned land, Permits of Pueblo Trust

or Restricted Land or to Tribal Land Assignments, which may be granted, transferred and

terminated only in accordance with Tribal Law.

Public Purpose Leases of Pueblo Trust or Restricted Lands, as hereinafter defined. Chapters 100

through 300, and 800 through 1100 generally apply to all Leases, except as otherwise expressly

provided in this Leasing Law. Provisions specifically applicable to (a) Business Leases and Public

Purpose Leases appear at Chapter 400, (b) Agricultural Leases appear at Chapter 500, (c)

Residential Leases appear at Chapter 600, and (d) WEEL and WSR Leases appear at Chapter 700.

(d) Nothing contained herein shall be construed to affect any Lease that has been entered

into prior to the Effective Date of this Leasing Law or any Lease approved by the Secretary under

25 U.S.C. 415 after the Effective Date.

103 – Purpose

The purposes of this Leasing Law are to:

(a) Recognize and assert the authority of the Pueblo to grant Leases, establish

streamlined procedures for Environmental Review, and provide for the

management and enforcement of Leases with respect to Pueblo Trust or Restricted

Land;

(b) Promote self-determination, encourage economic development and selfsufficiency, assist tribal members to obtain affordable and suitable housing,

facilitate and control the use of the Pueblo’s agricultural, wind and solar resources,

and increase business activity and employment on the lands of the Pueblo; and

104 – Definitions

For purposes of this Leasing Law:

(a) Agricultural Land means Pueblo Trust or Restricted Land suited or used for the

production of crops, livestock or other agricultural products, or Pueblo Trust or

Restricted Land suited or used principally to support the surrounding agricultural

community.

(b) Agricultural Lease means a Lease of Agricultural Land for farming, grazing or

associated agricultural purposes not designated/defined as a Business Lease.

December 3, 1993 (107 Stat. 2011, 25 U.S.C. 3701 et seq.), as amended on

November 2, 1994 (108 State, 4572).

(d) Assignment means an agreement between a Lessee and an assignee, whereby the

assignee acquires all or some of the Lessee’s rights, and assumes all or some of the

Lessee’s obligations, under a Lease. This defined term does not mean or apply to

a Tribal Land Assignment.

(e) Authorized Official means the Governor, a Lieutenant Governor or other person

authorized to execute Leases or Lease Documents by Tribal Law.

(f) BIA means the Bureau of Indian Affairs of the U.S. Department of the Interior.

(g) Best Interest of the Pueblo means a determination by the Tribal Council that the

inclusion or waiver of any Lease term, or the taking or omitting to take any action

with respect to a Lease by or on behalf of the Pueblo, furthers the economic, social,

environmental or other interests and objectives of the Pueblo.

(h) Business Day means Monday through Friday, excluding federally recognized

holidays and other days that the offices of the Pueblo are closed to the public.

(i) Business Lease means any Lease that is not defined and covered as an Agricultural

Lease, Residential Lease, WEEL, WSR Lease or Public Purpose Lease under this

Leasing Law. Business Leases may be for commercial, industrial, retail,

entertainment, office, manufacturing, storage, distribution, waste-to-energy or

other business purposes. Business Leases may authorize the construction of singlepurpose or mixed use projects designed for use by any number of occupants.

(j) Cancellation means Pueblo action to end a Lease pursuant to this Leasing Law.

(l) Day means a calendar day, unless otherwise specified.

(k) Consent or consenting means written authorization by the Pueblo concerning a

specified action.

(m) Environmental Review Process means the process for conducting Pueblo

environmental review under Chapter 1100 of this Leasing Law to assess whether a

proposed Leasehold Use will have a Significant Effect on the Environment.

(n) Fair Market Rental means the amount of rental income that a leased tract of Pueblo

Trust or Restricted Land would most probably command in an open and

competitive market, or as determined by competitive bidding.

(o) Governor means the Governor of the Pueblo of Isleta.

(p) Holdover means circumstances in which a Lessee remains in possession of the

leased Premises after the Lease term expires.

(q) IPHA means the Isleta Pueblo Housing Authority.

(r) Lease means a written contract between the Pueblo and a Lessee, whereby the

Lessee is granted a right to possess Pueblo Trust or Restricted Land for a specified

purpose and duration., The Lessee’s right to possess will limit the Pueblo’s right to

possess the leased Premises only to the extent provided in the Lease. A Lease may

be a ground Lease (undeveloped land) or a Lease of developed land (together with

the Permanent Improvements thereon).

(s) Lease Document means a Lease, Amendment, Assignment, Sublease, or Leasehold

Mortgage.

(t) Leasehold Mortgage means a mortgage, deed of trust, or other instrument that

pledges a Lessee’s Leasehold interest as security for a debt or other obligation owed

by the Lessee to a Mortgagee.

(u) Leasing Officer means the Governor or other official designated by the Governor

or Tribal Council in accordance with Tribal Law to negotiate and administer a

Lease on behalf of the Pueblo. Different Leasing Officers may be designated for

different forms of Leases, such as Business, Agricultural or Residential Leases.

(v) Leasehold Use means any use, improvement, development or activity contemplated

to occur on Pueblo Trust or Restricted Land pursuant to an existing or proposed

Lease.

(w) Lessee means a person or entity who has acquired a legal right to possess Pueblo

Trust or Restricted Land by a Lease granted under this Leasing Law.

(x) LTRO means the appropriate Regional Land Titles and Records Office of the BIA.

(y) LRO means the Pueblo Surveying and Mapping Division, or other Pueblo agency

authorized under Tribal Law to record and maintain records pertaining to Pueblo

Trust or Restricted Land for the purposes of this Leasing Law.

(z) Mortgagee means the holder of a Leasehold Mortgage.

(aa)

NEPA means the National Environmental Policy Act of 1969, 42 U.S.C.

4321 et seq.

(bb)

Notice of Violation means a letter notifying a Lessee of a violation of a

Lease and providing the Lessee with a specified period of time to show cause why

such Lease should not be cancelled for the violation. A 10-day show cause letter is

one type of notice of violation.

(cc) Permanent Improvements means buildings, other structures, agricultural facilities,

wind or solar testing or generation facilities, and associated infrastructure attached

to the leased Premises.

(dd) Permit means a written, non-assignable agreement between the Pueblo and the

Permittee, whereby the Permittee is granted a temporary, revocable privilege to use

Pueblo Trust or Restricted Land, for a specified purpose.

(ee) Permittee means a person or entity who has acquired a privilege to use Pueblo

Trust or Restricted Land by a Permit.

(ff) Premises means the specifically identified parcel(s) or tract(s) of Pueblo Trust or

Restricted Land that is subject to a particular Lease.

(gg) Public means, for purposes of an Environmental Review pursuant to Chapter 1100,

(a) any Tribal Member of the Pueblo maintaining a residence on Pueblo Trust and

Restricted Land, and (b) any person holding an interest in land contiguous to a

proposed Leasehold which may reasonably be expected to experience a Significant

Environmental Effect from the intended Leasehold Use.

(hh) Public Purpose Lease means a Lease, other than a Residential Lease, for religious,

educational, recreational or other purpose primarily for the social or cultural

betterment of the Pueblo community, rather than a commercial or profit-making

purpose.

(ii) Pueblo means the Pueblo of Isleta. When this Leasing Law refer to action to be

taken by the Pueblo, such action may be taken by the Governor, Tribal Council or

their designee(s), including the Leasing Officer or Responsible Official, as

appropriate to the specific action at issue.

(jj) Pueblo Trust or Restricted Land means any tract, or interest therein:

(1) to which the United States holds title in trust for the benefit of the Pueblo; or

(2) that the Pueblo holds title to, but can alienate or encumber only with the

approval of the United States because of limitations in the conveyance

instrument or other limitations under federal law.

(kk) Residential Lease means a Lease for affordable housing purposes and other

housing programs established by the Pueblo and/or IPHA on Pueblo Trust or

Restricted Land, but shall not include any Lease designated as a Business Lease by

Tribal Council.

Secretary means the Secretary of the U.S. Department of the Interior.

(mm)

(ll) Responsible Official means the person designated from time to time by the

Governor and/or Tribal Council in accordance with Tribal Law to conduct

Environmental Reviews, and to perform duties and take the actions specified in

Chapter 1100 hereof. A different Responsible Official may be designated for

different forms of Lease, e.g. Business, Agricultural or Residential.

(nn) Significant Effect on the Environment means a substantial, or potentially

substantial, adverse change in the environment, including land, air, water, minerals,

flora, fauna, ambient noise, cultural areas and objects of historic or cultural

significance.

(oo) Sublease means a written agreement by which the Lessee grants to an individual

or entity a right to possession and use of Pueblo Trust or Restricted Land no greater

than that held by the Lessee under the Lease.

(pp) Surety means one who guarantees the performance of another.

(qq) Termination means action by the Pueblo to end a Lease.

(rr) Trespass means any unauthorized occupancy, use of, or action on any Pueblo Trust

or Restricted Land.

(ss) Tribal Council Authorization means a duly adopted Tribal Council Resolution,

tribal ordinance, or other appropriate tribal document authorizing the specified

action.

(tt) Tribal Council means the Tribal Council of the Pueblo of Isleta.

(uu) Tribal Council Resolution means a resolution of the Tribal Council duly adopted

in accordance with Tribal Law.

(vv) Tribal Court means the Pueblo of Isleta Tribal Court.

(ww)

Tribal Land Assignment means a Tribal Council Authorization, agreement

or other action or document recognized under Tribal Law that conveys to (a) tribal

member(s), a family of tribal members, a tribal entity, or a wholly owned tribal

corporation, any right to possess or use a particular parcel or tract of Pueblo Trust

or Restricted Land in accordance with Tribal Law, other than a Lease.

(xx) Tribal Law means the body of non-federal law that governs lands and activities

under the jurisdiction of the Pueblo, including ordinances or other enactments by

the Pueblo’s Tribal Council, Tribal Court rulings, and generally recognized Pueblo

custom and tradition.

(yy) Violation means a failure to take an action, including payment of compensation,

when required by the Lease, or to otherwise not comply with a term or condition of

the Lease. This definition applies for purposes of enforcement of a Lease under this

Leasing Law no matter how “violation” or “default” is defined in the Lease.

(zz) WEEL means a wind energy evaluation Lease authorizing short term possession

of Pueblo Trust or Restricted Land for the purpose of installing, operating and

maintaining, instrumentation and associated infrastructure, such as meteorological

towers, to evaluate wind resources for electrical generation.

(aaa) WSR Lease means a Lease that authorizes possession of Pueblo Trust or

Restricted Land for the purpose of installing, operating and maintaining

instrumentation, facilities and associated infrastructure, such as wind turbines and

solar panels, to harness wind power and solar power to generate and supply

electricity for resale (i) on a for-profit or not-for-profit basis; (ii) to a utility serving

the public generally; or (iii) to users within the local community on or near Pueblo

Trust or Restricted Land.

105 – Applicable Law

(a) In addition to this Leasing Law itself, Leases approved under this Leasing Law:

(1) are subject to applicable federal laws;

(2) are subject to applicable Tribal Law; and

(3) are not subject to state law or the law of a political subdivision thereof, except

if (a) particular state law is expressly made applicable by federal or Tribal Law,

or the interpretive use of state law is elected pursuant to paragraph (b) of this

section.

(b) Unless prohibited by federal law, the parties to a Lease may agree to interpret the

terms of such Lease in accordance with state or local law, in the absence of federal

or Tribal Law, if:

(1) the particular Lease includes a provision to this effect; and

(2) the Pueblo expressly agrees to the interpretive application of state or local law;

provided that such reference to state law for purposes of Lease interpretation

shall not in any event be deemed to consent to or grant to the state of any

jurisdiction over the Pueblo or its Trust or Restricted Lands.

sovereign immunity, unless the Pueblo expressly states its intention to waive

sovereign immunity in the Lease.

106 – Applicable Taxes

(a) Subject only to applicable federal law, Permanent Improvements on the leased

Premises, without regard to ownership of those Permanent Improvements, are not

subject to any fee, tax, assessment, levy or other charge imposed by the State of

New Mexico or any political subdivision thereof; provided that such Permanent

Improvements may be subject to taxation under the Pueblo’s Possessory Interest

Tax and other Pueblo taxes, as may apply.

(b) Subject only to applicable federal law, activities under a Lease conducted on the

leased Premises are not subject to any fee, tax assessment, levy, or other charge

(e.g. business use, privilege, public utility, excise, gross revenue taxes) imposed by

the State of New Mexico or any political subdivision thereof; provided that such

activity may be subject to Pueblo Gross Receipts Tax and other Pueblo taxes, as

may apply.

Lease is not subject to any fee, tax assessment, levy, or other charge imposed by

the State of New Mexico or any political subdivision thereof; provided that such

leasehold may be subject to the Pueblo’s Possessory Interest Tax and other Pueblo

taxes, as may apply.

107 – Permitted Term

(a) No Lease shall be approved under this Leasing Law more than 12 months prior to

the commencement of the term of such Lease.

(b) The term of a Business Lease or WSR Lease shall not exceed 25 years, except that

any Lease may include an option to renew for up to two additional terms, each of

which may not exceed 25 years.

investment in the improvement of the leased Premises is required, in which case

the term may not exceed 25 years.

(d) The term of a Public Purpose Lease or a Residential Lease may not exceed 75 years.

(e) The term of a WEEL shall not exceed the period described in Section 704 hereof.

108 – Effective Date

This Leasing Law shall go into effect and apply from and after the date of its approval by

the Secretary or her or his authorized designee pursuant to 25 U.S.C. § 415(h).

201 – Leasing Information

CHAPTER 200

OBTAINING A LEASE

Information concerning the leasing of Pueblo Trust or Restricted Land, including the Lease

negotiation and approval process established under this Leasing Law, may be obtained from the

Governor, a Leasing Officer or other source designated by the Governor or Tribal Council.

202 – Leasing Proposals

The Pueblo may invite proposals for Leases with respect to Pueblo Trust or Restricted Land

approved by the Tribal Council and may consider unsolicited Lease proposals, at its discretion.

Lease proposals shall be initially reviewed by the Leasing Officer under the supervision of the

Governor and in consultation with the Tribal Council. Whether to pursue development of any such

proposal and negotiation of a Lease shall be determined based on the substance and merits of each

proposal by the Governor and Tribal Council.

203 – Negotiation of Leases

The Leasing Officer may negotiate proposed terms and conditions of a Lease with a

proposed Lessee. Such terms and conditions shall address all material features of the proposed

Leasehold Use and shall be consistent with the generally applicable requirements of Chapter 300

of this Leasing Law, and any other requirements applicable to a specific form of Lease described

at Chapters 400 through 700, as the case may be. If the Leasing Officer is satisfied with the terms

and conditions of a proposed Lease, he or she shall forward such proposed Lease to the Governor

and Tribal Council for consideration and approval.

204 – Lease Approval

All Leases must be approved by the Tribal Council prior to execution by the Authorized

Official. The Tribal Council shall document its approval of a Lease by duly adopted Tribal

Council Resolution, and such approval may be:

(a) following completion of the Environmental Review Process; or

(b) subject to completion of the Environmental Review Process, but without further

Tribal Council Authorization required.

205 – Execution of Leases

A Tribal Council approved Lease shall be executed by an Authorized Official. A Lease

shall be effective upon execution, unless otherwise provided in the terms and conditions of such

Lease.

206 – Amendments, Assignments, Subleases and Leasehold Mortgages

Any amendment to a Lease must be approved by Tribal Council Resolution, and any

Assignment, Sublease or Leasehold Mortgage, must be consented to or approved by Tribal Council

Authorization, unless the terms and conditions of the Lease expressly provide otherwise.

207 – Recording, Administration and Enforcement

208 – Permits

Leases shall be recorded in accordance with Chapter 800 of this Leasing Law, and

administered and enforced in accordance with Chapter 900 hereof.

If an intended access or use of Pueblo Trust or Restricted Land does not require the right

of possession of such land, such access or use may be authorized by a Permit granted pursuant to

any Tribal Council Authorization in lieu of a Lease granted under this Leasing Law, and this

Leasing Law will not apply to such Permit.

CHAPTER 300

REQUIRED LEASE TERMS AND CONDITIONS

301 – Required Lease Terms

(a) Except as otherwise expressly provided in this Chapter 300, or in Chapters 400,

500, 600 or 700, as applicable to a particular form of Lease, all Leases must

identify:

(1) the Premises being leased;

(2) the purpose of the Lease and authorized uses of the leased Premises;

(3) the parties to the Lease;

(4) the term of the Lease;

(5) the ownership of any Permanent Improvements on, or to be constructed on, the

Premises and the responsibility for constructing, operating, maintaining, and

managing Permanent Improvements under and in accordance with this Leasing

Law;

(6) rent and other payment requirements and late payment charges, including

interest;

(7) due diligence requirements under and in accordance with this Leasing Law;

(8) insurance requirements under and in accordance with this Leasing Law; and

(9) bonding requirements under and in accordance with this Leasing Law, if any.

If a performance bond is required, the Lease must state that the Lessee must

obtain the consent of the Surety for any legal instrument that directly affects

such Surety’s obligations and liabilities.

(b) Where a representative executes a Lease on behalf of the Lessee, the Lease must

identify the Lessee being represented and the authority under which the action is

taken.

(1) the obligations of the Lessee and its Sureties to the Pueblo are also enforceable

by the United States, so long as the land remains Pueblo Trust or Restricted

Land;

(2) there must not be any unlawful conduct, creation of a nuisance, illegal activity,

or negligent use or waste of the leased Premises;

(3) the Lessee must comply with all applicable laws, ordinances, rules, regulations,

and other applicable legal requirements;

(4) if historic properties, archeological resources, human remains, or other cultural

items not previously reported are encountered during the course of any activity

associated with this Lease, all activity in the immediate vicinity of the

properties, resources, remains, or items will cease and the Lessee will contact

the Leasing Officer and any other Pueblo official with jurisdiction to determine

how to proceed and appropriate disposition;

(5) the Leasing Officer has the right, at any reasonable time during the term of the

Lease and upon reasonable notice, in accordance with Section 805, to enter the

leased Premises for inspection and to ensure compliance; and

(6) the Leasing Officer may, at his or her discretion, treat as a Lease violation any

failure by the Lessee to cooperate with the Leasing Officers’ request to make

appropriate records, reports, or information available for the Leasing Officer’s

inspection and duplication.

(d) Unless the Lessee would be prohibited by law from doing so, the Lease must also

contain the following provisions:

(1) the Lessee holds the United States and the Pueblo harmless from any loss,

liability, or damages resulting from the Lessee’s use or occupation of the leased

Premises; and

(2) the Lessee indemnifies the United States and the Pueblo against all liabilities or

costs relating to the use, handling, treatment, removal, storage, transportation,

or disposal of hazardous materials, or the release or discharge of any hazardous

material from the leased Premises that occurs during the Lease term, regardless

of fault, with the exception that the Lessee is not required to indemnify the

Pueblo for liability or cost arising from the Pueblo’s negligence or willful

misconduct.

(e) The Leasing Officer may treat any provision of a Lease Document that violates

Tribal Law or federal law as a violation of the Lease.

(f) Unless the Tribal Council determines that it is in the Best Interest of the Pueblo to

waive or omit such provision, the Lease may include a provision requiring the

Lessee to give preference with respect to employment and contracting on Pueblo

Trust or Restricted Land to tribal members and tribal member owned businesses.

302 – Permanent Improvements to Premises

(a) The Lessee may construct Permanent Improvements under a Lease if the Lease

specifies, permits, or provides for the development of:

(1) a plan that describes the type and location of any Permanent Improvements to

be constructed by the Lessee; and

(2) except for Residential Leases, a general schedule for construction of the

Permanent Improvements, including dates for commencement and completion

of construction.

(b) A Lease must specify who will own any Permanent Improvements the Lessee

constructs during the Lease term and may specify under what conditions, if any,

Permanent Improvements the Lessee constructs may be conveyed to the Pueblo

during the Lease term. In addition, the Lease must indicate whether each specific

Permanent Improvement the Lessee constructs will:

(1) remain on the leased Premises, upon the expiration, cancellation, or termination

of the Lease, in a condition satisfactory to the Pueblo, and become the property

of the Pueblo;

(2) be removed within a time period specified in the Lease, at the Lessee’s expense,

with the leased Premises to be restored as closely as possible to their condition

before construction of the Permanent Improvements; or

(3) be disposed of by other specified means.

provide the Pueblo with an option to take possession of and title to the Permanent

Improvements if the improvements are not removed within the specified time

period.

(d) The Leasing Officer may take appropriate enforcement action to ensure removal of

the Permanent Improvements and restoration of the Premises at the Lessee’s

expense:

(1) in consultation with the Governor and Tribal Council; and

(2) before or after expiration, termination, or cancellation of the Lease.

(e) The Leasing Officer may collect and hold any performance bond until removal and

restoration are completed.

303 – Due Diligence Requirements For Permanent Improvements

(a) If Permanent Improvements are to be constructed on the premises, the Lease must

include due diligence requirements that require the Lessee to complete design, and

construction of any Permanent Improvements within the schedule specified in the

Lease or general schedule of construction, and a process for changing the schedule

by mutual consent of the parties. If construction does not occur, or is not expected

to be completed, within the time period specified in the Lease, the Lessee must

provide the Leasing Officer with an explanation of good cause as to the nature of

any delay, the anticipated date of construction of the Permanent Improvements, and

evidence of progress toward commencement of construction.

(b) Failure of the Lessee to comply with the due diligence requirements of the Lease is

a violation of the Lease and may lead to cancellation of the Lease under Sections

903 and 905.

Council determines that such waiver is in the best interest of the Pueblo.

(d) The requirements of this section do not apply to Public Purpose Leases, Residential

Leases, or WSR Leases.

304 – Description of Leased Premises

(a) A Lease must describe the leased Premises by reference to an official or certified

survey, if possible. If the leased Premises cannot be so described, the Lease must

include one or more of the following:

(1) a legal description;

(2) a survey-grade global positioning system description; or

(3) another description prepared by a registered land surveyor that is sufficient to

identify the leased Premises.

(b) Each description must be of sufficient detail to meet recording requirements of the

BIA’s LTRO in accordance with 25 C.F.R. Part 150.

305 – Compatible Retained Uses

A Lease may reserve the right of or Permit the Pueblo to use, or authorize others to use,

the leased Premises for other uses compatible with the purpose of the Lease and consistent with

the terms of the Lease. Any such use or authorization by the Pueblo will not reduce or offset the

monetary compensation for the Lease.

306 – Determination of Rental Amount

(a) A Lease of Pueblo Trust or Restricted Land may provide for the payment of any

amount or rent or other compensation negotiated by the Pueblo through the Leasing

Officer, and approved by Tribal Council, if the Tribal Council Authorization

expressly states that:

(1) the negotiated compensation is satisfactory to the Tribal Council;

(2) the Tribal Council waives valuation; and

(3) the Tribal Council has determined that accepting such negotiated compensation

and waiving valuation is in the Pueblo’s best interest.

(b) The Tribal Council may request, in writing, that the Leasing Officer determine fair

market rental, in which case the Leasing Officer will use a valuation method in

accordance with Section 307. After providing the Tribal Council with the fair

market rental appraisal or analysis, the Leasing Officer will defer to the Tribal

Council’s decision to agree to any rent or other payment amount negotiated by the

Pueblo.

Officer will require that the Lease provide for fair market rental based on a

valuation in accordance with Section 307.

(d) Residential Leases or Public Purpose Leases may provide for nominal rent.

307 – Determination of Fair Market Rent

(a) Except as provided in Section 306, or in any other provisions of Chapters 500, 600,

or 700, as may apply in a particular case, the Leasing Officer will use a market

analysis, appraisal, or other appropriate valuation method to determine the fair

market rental before he or she submits a business Lease, to the Tribal Council for

approval.

(b) The Leasing Officer will either:

(1) prepare, or have prepared, a market analysis, appraisal, or other appropriate

valuation method; or

(2) use an approved market analysis, appraisal, or other appropriate valuation

method provided by the Pueblo or Lessee.

appropriate valuation method only if it:

(1) has been prepared in accordance with the Uniform Standards of Professional

Appraisal Practice promulgated by the Appraisal Standards Board of the

Appraisal Foundation or another recognized valuation method; and

(2) complies with Pueblo policies regarding appraisals, including third-party

appraisals.

(d) The Pueblo may use competitive bidding as a valuation method if approved by the

Tribal Council.

308 – Time For Payment of Rent

(a) A Lease must specify the dates on which all rent and other payments are due.

(b) Unless the Lease provides otherwise, payments may not be made or accepted more

than one year in advance of the due date.

Lessee receives an advance billing or other notice that a payment is due.

309 – Lease must Specify Recipient of Rent

(a) A Lease must specify whether the Lessee will make payments directly to the Pueblo

(direct pay) or to the Secretary in accordance with 25 C.F.R. Part 115.

(b) If the Lease provides that the Lessee will directly pay the Pueblo, then:

(1) the Lease must include provisions for proof of payment upon the Secretary’s

request; and

(2) direct payments must continue through the duration of the Lease.

unless the Lessee receives notice of a change of recipient or address from the

Pueblo or BIA.

(d) Unless the Lease provides otherwise, compensation payments may not be made

payable directly to anyone other than the Pueblo or the Secretary.

310 – Medium of Payment

(a) When payments are made directly to the Pueblo, the form of payment must be

acceptable to the Pueblo.

(b) When payments are made to the Secretary, its preferred method of payment is

electronic funds transfer payments in accordance with 25 C.F.R. Part 162. The

Secretary will also accept:

(1) money orders;

(2) personal checks;

(3) certified checks; or

(4) cashier’s checks.

(d) The Secretary will accept third-party checks only from financial institutions or

federal agencies.

311 – Alternative Form of Rent

A Lease may provide for:

(a) alternative forms of compensation, including but not limited to, in-kind

consideration and payments based on percentage of income; or

(b) varying types of compensation at specific stages during the life of the Lease,

including but not limited to fixed annual payments during construction, payments

based on income during an operational period, and bonuses;

312 – Notice of Payment Due Not Required

if the Tribal Council determines any form of compensation described in clause (a) or (b) of this

section is in the Pueblo’s best interest and approves the Lease providing for such form of

compensation.

The Leasing Officer may issue invoices to a Lessee in advance of the dates on which

payments are due under a Lease. The Lessee’s obligation to make these payments in a timely

manner will not be contingent on whether invoices are issued, delivered, or received.

313 – Adjustments of Rental Amount

(a) Unless the Lease provides otherwise, no periodic review of the adequacy of

compensation or adjustment is required (1) for an Agricultural Lease, Residential

Lease, WSR Lease or Public Purpose Lease, or (2) for a Business Lease if the Tribal

Council states in a Tribal Council Resolution or other Tribal Council Authorization

that it has determined that not having compensation reviews and/or adjustments is

in the Pueblo’s best interest.

(b) If for a Business Lease the condition in clause (2) of paragraph (a) of this section

is not met, a review of the adequacy of compensation must occur at least every fifth

year, in the manner specified in the Lease. The Lease must specify:

(1) when adjustments take effect;

(2) who can make adjustments;

(3) what the adjustments are based on; and

(4) how to resolve disputes arising from the adjustments.

consent to the adjustment, unless the Lease provides otherwise.

314 – Payments Required in Addition to Rent

The Lessee may be required to pay additional fees, taxes, and assessments associated with

the use of the Premises, as determined by the Pueblo, and specified in a Lease. The Lessee must

pay these amounts to the appropriate office at the Pueblo or to any other party specified in the

Lease.

315 – Performance Bond

Unless waived by Tribal Council Resolution, the Lessee of a Business Lease or WSR Lease

must provide a performance bond issued by a Surety licensed to do business in New Mexico and

named in the current list of Companies Holding Certificates as Acceptable Sureties on Federal

Bonds as published in Federal Circular 570 by the Audit Staff Bureau of Accounts, U.S. Treasury

Department.

(a) The performance bond must be in an amount reasonably sufficient to secure the

contractual obligations including:

(1) payment of rent expected to be due over a reasonable period before other

enforcement actions can take effect;

(2) the construction of any required Permanent Improvements; and

(3) the restoration and reclamation of the leased Premises to their condition at the

start of the Lease term or some other specified condition.

(b) The performance bond must be deposited with the Leasing Officer, and made

payable only to the Pueblo, and may not be modified without the Pueblo’s approval.

performance bond requirements to reflect changing conditions, including

consultation with and approval by the Governor and Tribal Council before the

adjustment.

(d) The Leasing Officer may require that the Surety provide any supporting documents

needed to show that the performance bond will be enforceable, and that the Surety

will be able to perform the guaranteed obligations.

(e) The performance bond must require the Surety to provide notice to the Leasing

Officer at least 60 days before canceling a performance bond. This will allow the

Leasing Officer to notify the Lessee of its obligation to provide a substitute

performance bond and require collection of the bond before the cancellation date.

Failure to provide a substitute performance bond is a violation of the Lease.

316 – Insurance

(a) Except as provided in Section 605 with respect to a Residential Lease, the Lessee

shall provide insurance from a nationally accredited insurance company

satisfactory to the Pueblo covering all foreseeable risks and interests of the Pueblo

including, as appropriate, property, casualty, general and relevant special liabilities,

business interruption, and such other risks and interests that may apply, in amounts

satisfactory to the Pueblo. The policy shall (1) include the Pueblo and United States

as additional insureds on liability coverage, and (2) cover the Pueblo’s interest in

all Permanent Improvements and other property as they may appear. The forms of

coverage shall be satisfactory to the Pueblo.

(b) As necessary and appropriate, the Leasing Officer shall consult with the Pueblo’s

insurance broker or agent to determine the appropriate coverages and forms of

insurance to be provided by the Lessee to protect the Pueblo’s interests, and shall

report on such consultations to the Tribal Council with respect to its consideration

of a proposed Lease for approval.

317 – Option to Renew

(a) If the Lease provides for an option to renew, the Lease must specify:

(1) the time and manner in which the option must be exercised or is automatically

effective;

(2) that confirmation of the renewal will be submitted to the Leasing Officer, unless

the Lease provides for automatic renewal;

(3) whether Pueblo consent to the renewal is required;

(4) that the Lessee must provide notice of the renewal to the Leasing Officer and

any Sureties and Mortgagees;

(5) the additional consideration, if any, that will be due upon the exercise of the

option to renew or the start of the renewal term; and

(6) any other conditions for renewal (e.g., that the Lessee not be in violation of the

Lease at the time of renewal).

(b) The Leasing Officer will record any renewal of a Lease in the LRO and LTRO.

318 – Subleases, Assignments and Encumbrances

(a) Except as otherwise expressly allowed by the terms and condition of an approved

Lease, any Sublease, Assignment or Leasehold Mortgage shall be valid only if

approved by Tribal Council Resolution and executed by the Governor or other

Authorized Official.

(b) Leases may by their express terms authorize Subleases and Assignments, in whole

or part, without approval from the Pueblo, provided the following conditions are

met:

(1) Except for Residential Leases, a copy of the Sublease or Assignment is

promptly provided to the Leasing Officer;

(2) there is no uncured default under the terms of the Lease or violation of this

Leasing Law by the Lessee;

(3) any limitations and restrictions on the use of the leased Premises shall apply to

any Subtenant or assignee;

(4) the proposed assignee or sublessee provides evidence of financial capacity to

perform the Lease in accordance with its terms reasonably satisfactory to the

Pueblo; and

(5) the Lessee shall continue to be responsible for, and shall not be or be deemed

released or relieved from, any of its obligation under the Lease.

This Subsection 318(b) shall in no way relieve the Lessee or any sublessee or

assignee from performing and carrying out their duties in accordance with all of the

terms and conditions of the Lease.

leasehold or subleasehold, as the case may be, for the purpose of financing the

development and improvement of the leased Premises. Unless otherwise expressly

allowed under the terms and conditions of the Lease, the grant of any such

Leasehold Mortgage shall require approval by the Tribal Council and a written

consent executed by the Governor or other Authorized Official.

(d) If the lien granted by a Leasehold Mortgage is foreclosed and the approved

encumbrancer is the purchaser of the Leasehold, the approved encumbrancer may

assign the Lease without approval by the Pueblo, provided that the assignee agrees

in writing to be bound by all the terms and conditions of the Lease. If the Lease so

provides, the class of such assignees may be limited to tribal members, tribal

entities or enterprises, or another specified group of potential assignees. If the

purchaser of the Leasehold is other than the approved encumbrancer, the

Assignment shall require Tribal Council approval and a written consent executed

by the Governor or other Authorized Official, provided that the assignee agrees in

writing to be bound by all terms and conditions of the Lease.

319 – Access to Leased Premises

A Lease may address access to the leased Premises by roads or other infrastructure, as long

as the access complies with applicable statutory and regulatory requirements, including 25 C.F.R.

Part 169. Roads or other infrastructure within the leased Premises do not require compliance with

25 C.F.R. Part 169 during the term of the Lease, unless otherwise stated in the Lease.

320 – Waiver or Modification of Requirements

Any term or provision described in this Chapter 300 may be waived or modified by the

Tribal Council if it determines such waiver or modification of the term or provision is in the Best

Interest of the Pueblo.

401 – Designation as Business Lease

CHAPTER 400

BUSINESS AND PUBLIC PURPOSE LEASES

As provided in Sections 501 and 601, Leases of Agricultural Land or for residential

purposes may be designated as Business Leases by Tribal Council if their purpose is primarily to

make a profit or further economic development, rather than typical agricultural leasing or

affordable/public housing purposes.

402 – Business Lease Requirements

Certain generally required terms and conditions of a Business Lease are set forth in Chapter

300; provided that particular requirements of Chapter 300 may be waived or modified with respect

to a particular Business Lease pursuant to Section 320.

403 – Public Purpose Leases

Public Purpose Leases shall conform to the requirements of Chapter 300, subject to

Section320.

CHAPTER 500

AGRICULTURAL LEASE

SPECIFIC PROVISIONS

501 – Leases Covered

(a)

In addition to other generally applicable provisions of this Leasing Law,

Agricultural Leases and Leases of Agricultural Land designated by Tribal Council as Business

Leases pursuant to Subsection (c), are subject to the provisions of this Chapter 500.

(b)

This Leasing Law, including this Chapter 500, does not apply to agreements and

transactions between tribal members or entities wholly owned by tribal members, with respect to

the use of a Tribal Land Assignment held by one of them other than an Agricultural Lease. Such

non-Agricultural Lease agreements and transactions are excluded from the scope of this Leasing

Law and are subject only to other applicable Tribal Law.

(c)

The Tribal Council may designate a Lease of Agricultural Land as a Business

Lease, rather than an Agricultural Lease, if it is granted primarily for purposes of revenue

generation and economic development, rather than a typical Leasehold Use for use of Agricultural

Land.

(d)

A Lease of Pueblo Trust or Restricted Land that is subject to a Tribal Land

Assignment to a non-tribal member or non-member owned entity is covered by this Leasing Law

and shall be granted and administered as an Agricultural Lease in accordance with Section 504

below.

502 – Management Plan

Agricultural Land that is subject to an Agricultural Lease and a Lease of Agricultural Land

designated as Business Lease shall be managed in accordance with the goals and objectives of any

agricultural management plan developed by the Pueblo and, as applicable, AIARMA.

503 – Tribal Law

Without limitation to the general application of Tribal Law or Section 105 of this Leasing

Law, Tribal Laws regulating Agricultural Land, including those relating to land use, environmental

protection, historic and cultural preservation, irrigation and water use, grazing or other aspects of

the possession and use of Agricultural Land, shall apply to all Agricultural Leases and Leases of

Agricultural Land designated as a Business Lease.

504 – Leasing of Agricultural Lands subject to a Tribal Land Assignment

(a) Agricultural Land that is subject to a Tribal Land Assignment may be leased to any

person other than a tribal member or member-owned entity only by the Pueblo as

the legal owner of the Pueblo Trust or Restricted Land that is subject to the Tribal

Land Assignment in accordance with this Leasing Law. Any purported Lease of

such Agricultural Lands to any person other than a tribal member or memberowned entity by any person other than the Pueblo shall be null, void and

unenforceable.

(b) The Pueblo shall lease any Agricultural Land that is subject to a Tribal Land

Assignment only with the prior written consent and approval of the Tribal Land

Assignment holder recognized by the Pueblo. The rights, interests and obligations

of the Pueblo and Tribal Land Assignment holder in a Lease shall be clearly set

forth in the Lease and/or by separate written agreement between the Pueblo and

such holders. In no event shall the Pueblo have any obligation to lease Agricultural

Land subject to a Tribal Land Assignment regardless of whether the holder requests

or wishes that a Lease be granted for such Agricultural Lands, and the Tribal

Council may decline to grant such an Agricultural Lease for any or no reason at its

discretion.

Land that is subject to a Tribal Land Assignment shall be in accordance with and

subject to this Leasing Law and any and all Tribal Laws and policies adopted by

the Tribal Council.

505 – Alternate Form of Rental

Section 311 is supplemented, with respect to Agricultural Leases and Leases of

Agricultural Land designated as a Business Lease to provide that rent may be based on a share of

the agricultural products yielded by the leased Premises, or a percentage of the income to be

derived from the sale of such agricultural products.

506 – Term

(a) Except for a Lease for Agricultural Land that is designated as a Business Lease by

the Tribal Council (which may have a term up to the maximum allowed by Section

106), an Agricultural Lease may not exceed ten years, unless a substantial

investment is required, in which case the maximum term may be up to 25 years.

(b) Other than a Lease of Agricultural Land that is designated as a Business Lease by

the Tribal Council, an Agricultural Lease may not provide the Lessee with an option

to renew, and such an Agricultural Lease may not be renewed or extended by

holdover.

507 – Use of Agricultural Land

An Agricultural Lease shall require that farming and grazing operations thereunder be

conducted in accordance with reorganized principles of sustained yield management, integrated

resource management planning, sound conservation practices, and other community goals as

expressed in applicable Tribal Law, policies and agricultural resource management plans.

Appropriate stipulations or conservation plans shall be developed and incorporated in all

Agricultural Leases.

508 – Crop Insurance

In addition to insurance required by Section 316, an Agricultural Lease may, but is not

required, to provide that the Lessee maintain crop insurance and/or other forms of insurance

specific to agricultural operations.

CHAPTER 600

RESIDENTIAL LEASE

SPECIFIC PROVISIONS

601 – Residential Leases Covered

(a) Residential Leases covered by this Chapter include ground leases (undeveloped

land) and leases of developed land (together with the Permanent Improvements

thereon) on Pueblo Trust and Restricted Land. Residential Leases approved under

this Leasing Law may authorize the construction or use of:

(1) a single family residence;

(2) housing for Public Purposes, which may include office and warehouse space

necessary to administer programs for housing for Public Purposes; and

(3) community development tracts to be used by IPHA for sublease (without further

consent or approval) to program beneficiaries.

(b) Leases for purposes other than a single family residence, affordable or public

housing, or any other Pueblo/IPHA housing programs (for example, single family

and multi-family residential developments that are for revenue generation and/or

economic development purposes rather than affordable public housing, or other

governmental housing programs) may be designated as Business Leases by Tribal

Council.

602 – Term

(a) A Residential Lease may be month-to-month or shall be for a stated term.

(b) As provided by Section 107(d) of this Leasing Law, and the Act, the maximum

term of a Residential Lease shall be not more than 75 years, inclusive of any option

terms.

maximum term provided in Subsection 602(b) above. The terms upon which any

option may be exercised shall be clearly stated in a Residential Lease.

603 – Insurance

Except as otherwise required by Tribal Council, IPHA regulations or policies, and/or lender

requirements, and notwithstanding Section 316 of this Leasing Law, a Lessee, assignee, or

sublessee shall not be required to provide insurance for a Residential Lease.

604 – No appeal Bond Required

Notwithstanding Section 1004 of this Leasing Law, the Tribal Court shall not require an

appeal bond for an appeal of a decision on a Residential Lease.

605 – Assignment

Notwithstanding Section 318 of this Leasing Law, a Lessee of a Residential Lease, may

assign the Residential Lease without further approval or consent if:

(a) (1) the assignee is a tribal member, or (2) the assignee is a Leasehold Mortgagee or

its designee acquiring the Residential Lease either through foreclosure or by

conveyance, and such Mortgagee or designee conveys the Residential Lease to a

tribal member, tribal entity or tribally owned corporation;

(b) the assignee agrees in writing to assume all of the obligations and conditions of the

Residential Lease; and

606 – Coordination With Other Tribal Law and Practice

(a) In accordance with the Mortgage Code and Residential Lease Policies previously

adopted by the Tribal Council, and subject to any amendments to such Code and

Policies, Residential Leases may be granted only to and held by Tribal Members,

IPHA, any future tribally designated developer of affordable housing, or a tribally

controlled agency or entity.

(b) In accordance with existing Pueblo practice, Pueblo Trust and Restricted Land may

be designated for use and administration of IPHA for housing purposes without any

formal Lease of such Lands to IPHA; provided that any Lease to an individual

Tribal Member of a portion of such Lands shall be subject to this Leasing Law.

CHAPTER 700

WIND AND SOLAR LEASES

(WEELs & WSR Leases)

SPECIFIC PROVISIONS

701 – WEELs and WSR Leases Covered

(a) This Chapter contains provisions specifically applicable to WEELs and WSR

Leases. In the event of conflicts between this Chapter and other portions of this

Leasing Law concerning WEELs and WSR Leases, this Chapter will control as to

any conflicting provision, but WEELs and WSR Leases will remain subject to the

remainder of this Leasing Law.

(b) If the generation of electricity is solely to support a use of Pueblo Trust or Restricted

Land covered by an approved Business Lease, Agricultural Lease, Residential

Lease or Public Purpose Lease, then the installation, operation, and maintenance of

instrumentation, facilities, and associated infrastructure for such purpose shall be

governed by Chapters 300–600, as appropriate, and this Chapter 700 shall not apply

to such Leases.

702 – Leasehold Use s for which a WEEL or WSR Lease is Required

(a) Anyone other than the Pueblo or its instrumentalities and enterprises seeking to

possess Pueblo Trust or Restricted Land to conduct activities associated with the

evaluation of wind resources must obtain a WEEL, except that a WEEL is not

required if a limited use of Pueblo Trust or Restricted Land is authorized by a

Permit.

(b) Except as provided at Subsection 701(b), anyone other than the Pueblo or its

instrumentalities and enterprises seeking to possess Pueblo Trust or Restricted Land

to conduct activities associated with the development of wind and/or solar resources

must obtain a WSR Lease.

703 – Purpose of a WEEL

A WEEL is a short-term Lease for the purpose of evaluating wind resources. The Lessee

may use information collected under the WEEL to assess the potential for wind energy technology

to use in developing the energy resource potential of the leased Premises.

704 – Term of a WEEL

(a) A WEEL must provide for a definite term, state if there is any option to renew and,

if so, provide for a definite period for the renewal term. WEELs are for limited

purposes of wind resource evaluation and therefore may have:

(1) an initial term no longer than 3 years; and

(2) a renewal term not to exceed 3 years.

(b) The exercise of the option to renew must be in writing and the WEEL must specify:

(1) the time and manner by which the option must be exercised, or if it is

automatically effective;

(2) whether further consent or approval is required; and

(3) the additional consideration, if any, due upon exercise of the option to renew or

start of the renewal term.

Unless the renewal is automatic, the Leasing Officer shall provide copies of the

renewal documentation to the LTRO and record them in the LRO.

705 – Permanent Improvements

(a) A WEEL anticipates the installation of facilities and associated infrastructure of a

size and magnitude necessary for evaluation of wind resource capacity and potential

effects of wind resource development that are considered Permanent

Improvements.

(b) The proposed Lessee of a WEEL will, before completion of the negotiation of the

WEEL and submission for Tribal Council review and approval, provide to the

Leasing Officer:

(1) an equipment installation plan;

(2) a restoration and reclamation plan; and

(3) documents that demonstrate the technical capability of the proposed Lessee or

its agent to construct, operate, maintain, and terminate the proposed Leasehold

Use’s evaluation phase and the proposed Lessee’s ability to successfully design,

construct, or obtain the funding for a project similar to the proposed Leasehold

Use’s development phase if pursued and approved.

Pueblo must approve the revised plan and provide a copy to the BIA:

(1) location of Permanent Improvements;

(2) type of Permanent Improvements; or

(3) delay of 90 days or more in any segment of the evaluation phase.

706 – Ownership and Disposition of Permanent Improvements

(a) A WEEL must specify who will own any Permanent Improvement the Lessee

installs during the Lease term. In addition, the WEEL must provide whether any

Permanent Improvements that the Lessee installs:

(1) will remain on the Premises upon expiration, termination, or cancellation of the

WEEL (whether or not the WEEL is followed by a WSR Lease), in a condition

satisfactory to the Pueblo;

(2) may be conveyed to the Pueblo during the WEEL term and under what

conditions the Permanent Improvements may be conveyed;

(4) will be disposed of by other specified means.

(3) will be removed within a time period specified in a WEEL, at the Lessee’s

expense, with the leased Premises to be restored as closely as possible to their

condition before installation of the Permanent Improvements; or

(b) A WEEL that requires the Lessee to remove the Permanent Improvements must

also provide the Pueblo with an option to take possession and title to the Permanent

Improvements, if they are not removed within the specified time period, and

without limitation to the Pueblo’s ability to recover against any bond.

707 – Due Diligence Regarding Installation of Permanent Improvements

(a) A WEEL must include due diligence provisions that require the Lessee to:

(1) install testing and monitoring facilities within 12 months after the effective date

of the WEEL (or another period designated in the WEEL), and consistent with

the plan of development; and

(2) if installation does not occur, or is not expected within the time period allowed

by Subsection (1) or the WEEL, provide the Leasing Officer with an

explanation of good cause for any delay, the estimated completion date for

installation of the facilities, and evidence of progress concerning installation.

(b) Failure of the Lessee to comply with the due diligence requirements of the WEEL

is a violation of the WEEL and may lead to:

(1) cancellation of the WEEL under Sections 903 and 905; and

(2) application of the transfer of ownership requirement for energy resource

information collected under the WEEL to the Pueblo pursuant to Section 708.

708 – Ownership of Energy Resource Information

(a) The WEEL must specify the ownership of any energy resource information the

Lessee obtains during the WEEL term.

(b) Unless otherwise specified in the WEEL, the energy resource information that the

Lessee obtains during the term of the WEEL becomes the property of the Pueblo at

the expiration, termination, or cancellation of the WEEL or upon failure by the

Lessee to diligently install testing and monitoring equipment on the leased Premises

in accordance with Section 707.

709 – Incorporation of WEEL Analyses Into WSR Analyses

Any analyses a Lessee uses to bring a WEEL Leasehold Use into compliance with

applicable laws, ordinances, rules, and regulations, including those under Section 105 and any

other legal requirements, may be incorporated by reference, as appropriate into a proposed WSR

Lease.

710 – WSR Lease Option

711 – No Valuation or Bond Required

A WEEL may provide for an option period following expiration of the WEEL term during

which the Lessee and Pueblo may enter into a WSR Lease. Unless the WSR Lease or the principal

terms thereof are agreed and approved by the Tribal Council at the time of WEEL approval, the

WSR Lease requires the separate approval of the Tribal Council.

Unless the terms of a WEEL approved by Tribal Council provide otherwise, the Lessee is

not required to provide a rental valuation of the Premises or a performance bond for a WEEL.

712 – Purpose of WSR Lease

A WSR Lease authorizes a Lessee to possess the leased Premises to conduct activity related

to the installation, operation and maintenance of wind and/or solar energy generation projects,

including facilities and infrastructure associated with the generation, transmission and storage of

electricity and other associated activities. A Lease for biomass or waste-to-energy purposes shall

be treated as a Business Lease under this Leasing Law.

713 – WEEL Not Required Prior to WSR

Obtaining a WEEL is not required as a precondition to a WSR Lease, and with Tribal

Council approval the Pueblo and a Lessee may directly enter into a WSR Lease without having

had a WEEL.

714 – Responsibilities of Lessee of WSR Lease

Unless a WSR Lease expressly provides otherwise, the Lessee shall be responsible for

evaluating the leased Premises for suitability; purchasing, installing, operating, and maintaining

WSR equipment; negotiating power purchase agreements; and arranging for electricity

transmission.

715 – Information and Documentation Required from Prospective Lessee of a WSR Lease

(a) Prior to submission of a WSR Lease to the Tribal Council for approval, the

proposed Lease shall submit to the Leasing Officer documents that demonstrate the

technical capability of the proposed Lessee or its agent to construct, operate,

maintain, and terminate the contemplated Leasehold Use, and the proposed

Lessee’s ability to successfully design, construct, and obtain funding for the

contemplated Leasehold Use.

(b) The proposed Lessee shall also provide to the Leasing Officer for incorporation in

the WSR Lease, by reference or otherwise:

(1) a resource development plan that describes the type and location of any

Permanent Improvements the proposed Lessee plans to install on the Premises

and a schedule showing the tentative commencement and completion dates for

these Permanent Improvements; and

(2) a restoration and reclamation plan for the Premises upon expiration, termination

or cancellation of the WSR Lease.

716 – Permanent Improvements Installed Under a WSR Lease

A WSR Lease shall provide for the installation of facilities and associated infrastructure of

a size and magnitude necessary for the generation and delivery of electricity as contemplated by

the Leasehold Use and in accordance with the resource development plan incorporated in the WSR

Lease pursuant to Subsection 715 (b)(1). All such facilities and infrastructure shall be considered

Permanent Improvements.

717 – Ownership of Permanent Improvements Installed under a WSR Lease

(a) A WSR must specify who will own any Permanent Improvement that the Lessee

installs during the WSR Lease term, and may specify under what conditions, if any,

such Permanent Improvements may be conveyed to the Pueblo during such WSR

Lease term. In addition, the WSR Lease must provide whether each such specific

Permanent Improvement will:

(1) remain on the Premises upon expiration, termination, or cancellation of the

WSR Lease in a condition satisfactory to the Pueblo and become the property

of the Pueblo;

(2) be removed within a time period specified in a WSR Lease, at the Lessee’s

expense, with the leased Premises to be restored as closely as possible to their

condition before installation of the Permanent Improvements; or

(3) be disposed of by other specified means.

(b) A WSR Lease that requires the Lessee to remove the Permanent Improvements

must also provide the Pueblo with an option to take possession and title to the

Permanent Improvements if not timely removed, and to charge the cost of removal

and restoration to any performance bond held by the Pueblo or recover such cost

from Lessee.

718 – Due Diligence of WSR Lease Lessee Concerning Permanent Improvements

(a) A WSR Lease shall include due diligence requirements that require the Lessee to:

(1) commence installation of energy facilities within 2 years after the effective date

of the WSR Lease (or consistent with a timeframe stated in the applicable

resource development plan incorporated in the WSR Lease);

(2) if installation does not occur, or is not expected to be completed within the

timeframe specified in the WSR Lease, provide the Leasing Officer with an

explanation of good cause as to the nature of any delay, the anticipated date of

installation of the facilities, and evidence of progress toward completion of

installation, which information and evidence the Leasing Officer shall share

with the Governor and Tribal Council;

(3) maintain all on-site electrical generation equipment, facilities and related

infrastructure in accordance with the design standards in the resource

development plan and best industry practice; and

(4) repair, place into service, or remove from the Premises, within a time period

specified in the WSR Lease, any idle, improperly functioning, or abandoned

equipment or facilities that have been for a continuous period specified in the

WSR Lease (unless due to planned suspension of operations, for example, for

grid operations or during bird migration season).

(b) Failure of the Lessee to comply with the due diligence requirements of the WSR

Lease is a violation thereof and may lead to the cancellation of the WSR Lease

under Section 903 and 905.

719 – Compensation Reviews and Adjustments

The compensation to the Pueblo under a WSR Lease may be reviewed and adjusted at such

times and on such terms as may be specified in the WSR Lease. If a Tribal Council approved

WSR Lease so provides, no periodic review of the adequacy of compensation or adjustment is

required.

720 – Performance Bond

(a) Unless waived by Tribal Council Authorization or the terms of a Tribal Council

approved WSR Lease, the Lessee of a WSR Lease must provide a performance

bond. The performance bond must be in an amount sufficient to secure Lessee’s

obligations under the WSR Lease, including:

(1) the amount of the expected maximum annual payment of rent and other

compensation to the Pueblo;

(2) the cost of installing any required Permanent Improvements; and

(3) the cost of removing any Permanent Improvements, which the WSR Lease

requires to be removed, and to restore and reclaim the leased Premises, as and

if required by the WSR Lease.

(b) The WSR lease must specify the conditions upon which any adjustment in the

amount of the bond may be made to reflect changing conditions.

to show the bond is enforceable and the Surety is bound to perform under it.

(d) The performance bond shall require the Surety to provide notice to the Lessee and

the Pueblo at least 60 days before any cancellation of the bond in order for the

Lessee to provide an acceptable substitute performance bond. Lessee’s failure to

timely provide a satisfactory performance bond is a violation of the WSR Lease.

CHAPTER 800

RECORDING AND MANAGEMENT

801 – Recording

The Leasing Officer shall promptly, following receipt of a Lease, Amendment,

Assignment, Sublease or Leasehold Mortgage duly approved and executed pursuant to this Leasing

Law, deliver such document to the BIA LTRO for filing and file such document with the Pueblo’s

LRO.

802 – Delivery of Documentation of Direct Lease Payment to the BIA

With respect to any rental or other payments made directly to the Pueblo under the terms

of a Lease, the Leasing Officer shall deliver to the BIA documentation of such Lease payments

sufficient to enable the Secretary to discharge the trust responsibility of the United States in

accordance with the Act.

803 – Lease Management

The Leasing Officer shall manage and oversee all Leases granted under this Leasing Law.

The Leasing Officer shall institute a Lease management plan that employs recognized real estate

management practices, and addresses accounting, collections, monitoring, enforcement, relief and

remedies with respect to all active Leases. The Leasing Officer shall provide to the Governor and

Tribal Council a report on his or her Lease management activities not less often than every six

months.

804 – Accounting

(a) The Leasing Officer shall establish and maintain an accounting system for Leases

that generates invoices in advance of due dates, accounts for and confirms the

proper computation of payments, and monitors any rental adjustments to be made

under the terms and conditions of Leases and ensures that adjustments are made as

due.

(b) The Pueblo’s Lease accounting system shall include the following information: the

name of the Lessee, Lease identification number, Premises leased, due dates for

rent and other payments, payments made, late charges, collection and cancellation

activity, balance outstanding and due, and cumulative payments made.

805 – Monitoring and Investigation of Compliance

(a) The Leasing Officer may enter the leased Premises at any reasonable time, upon

reasonable notice, and consistent with any notice requirements under applicable

Tribal Law and applicable Lease documents, to protect the interests of the Pueblo

and to determine if the Lessee is in compliance with the requirements of the Lease.

(b) If the Leasing Officer becomes aware that a specific Lease violation has occurred,

the Leasing Officer will promptly initiate an appropriate investigation. The Leasing

Officer, upon notice to and authorization from the Governor and Tribal Council,

may also provide notice to the BIA pursuant to 25 U.S.C. § 415 (h)(7)(B)

CHAPTER 900

ENFORCEMENT

901 – Negotiated Remedies

(a) A Lease may provide either or both parties with negotiated remedies in the event

of a Lease violation, including, but not limited to, the power to terminate the Lease.

(b) The parties must notify any Surety or Mortgagee of any violation that may result in

termination or cancellation of a Lease.

remedy available to the Leasing Officer, as specified in the Lease. The Pueblo may

request BIA’s assistance in enforcing negotiated remedies.

(d) A Lease may provide that Lease violations will be addressed by a process

established by the Pueblo, and that Lease disputes will be resolved by the Tribal

Court, any other court of competent jurisdiction if approved by the Tribal Council,

by the Tribal Council, or through an alternative dispute resolution method. The

Pueblo shall be bound to any dispute resolution process to which it agrees in the

Lease or by separate agreement, but BIA may not be bound by decisions made in

such forums.

902 – Response to Lease Violations

(a) In the absence of actions or proceedings described in Section 901, or if the Pueblo

has not agreed to any such actions or proceedings, the Leasing Officer will follow

the procedures in paragraphs (b) and (c) of this section.

(b) If the Leasing Officer determines there has been a violation of the terms and

conditions of a Lease, other than a violation of payment provisions covered by

paragraph (c) of this section, he or she will promptly send the Lessee and any Surety

and Mortgagee a notice of violation by certified mail, return receipt requested.

(1) The Leasing Officer will send a copy of the notice of violation to the Governor

and Tribal Council.

(2) The notice of violation will advise the Lessee that, within 10 business days of

the receipt of a notice of violation, the Lessee must:

(i) Cure the violation and notify the Leasing Officer, the Governor, and the

Tribal Council in writing that the violation has been cured; or

(ii) Dispute the Leasing Officer’s determination that a violation has occurred;

(iii) Request additional time to cure the violation.

(3) The notice of violation may order the Lessee to cease operations under the

Lease.

is a violation of the Lease, and the Leasing Officer will issue a notice of violation

in accordance with this paragraph.

(1) The Leasing Officer will send the Lessees and any Surety and Mortgagee a

notice of violation by certified mail, return receipt requested:

(i) Promptly following the date on which the payment was due, if the Lease

requires that payments be made to the Pueblo; or

(ii) Promptly following the date on which the Pueblo receives actual notice of

non-payment from the Secretary, if the Lease provides for payment to the

Secretary.

(2) The Leasing Officer will send a copy of the notice of violation to the Governor

and Tribal Council.

(3) The notice of violation will require the Lessee to provide adequate proof of

payment.

(d) The Lessee and its Sureties will continue to be responsible for the obligations in the

Lease until the Lease expires, or is terminated or cancelled.

903 – Failure to Cure

(a) If the Lessee does not cure a violation of a Lease within the required time period,

or provide adequate proof of payment as required in the notice of violation, the

Leasing Officer will consult with the Governor and Tribal Council, and determine

whether:

(1) The Pueblo should cancel the Lease;

(2) The Pueblo wishes to invoke any remedies available to it under the Lease;

(3) The Pueblo should invoke other remedies available under the Lease or

applicable law, including collection on any available performance bond or, for

failure to pay compensation, referral of the debt to BIA with a request for further

referral to the U.S. Department of the Treasury for collection; or

(4) The Lessee should be granted additional time in which to cure the violation.

(b) Following consultation with the Governor and Tribal Council, the Leasing Officer

may take action to recover unpaid compensation and any associated late payment

charges.

(1) The Pueblo does not have to cancel the Lease or give any further notice to the

Lessee before taking action to recover unpaid compensation.

(2) The Pueblo may still take action to recover any unpaid compensation if it

cancels the Lease.

and any Surety and Mortgagee a cancellation letter by certified mail, return receipt

requested, within 5 business days of the decision. The Leasing Officer will send a

copy of the cancellation letter to the Governor and Tribal Council. The cancellation

letter will:

(1) Explain the grounds for cancellation;

(2) If applicable, notify the Lessee of the amount of any unpaid compensation or

late payment charges due under the Lease;

(3) Notify the Lessee of the Lessee’s right to appeal under Chapter 1000 of this

chapter, including the possibility that the Tribal Court may require the Lessee

to post an appeal bond;

(4) Order the Lessee to vacate the property within 31 days of the date of receipt of

the cancellation letter, if an appeal is not filed by that time; and

(5) Order the Lessee to take any other action the Leasing Officer deems necessary

to protect the Pueblo.

(d) The Pueblo may invoke any other remedies available to it under the Lease,

including collecting on any available performance bond, and the Pueblo may pursue

any available remedies under Tribal Law.

904 – Late Payment Charges and Special Fees

(a) Late payment charges will apply as specified in the Lease. The failure to pay these

amounts will be treated as a Lease violation.

(b) The Leasing Officer may assess the following special fees to cover administrative

costs incurred by the Pueblo or the United States in the collection of the debt, if

compensation is not paid in the time and manner required, in addition to the late

payment charges that must be paid to the Pueblo under the Lease:

For:

Any dishonored check

Processing of each notice or demand letter

Treasury processing charge following

referral for collection of delinquent debt that

is accepted by the BIA and Treasury

The Lessee will pay:

(1) $50.00

(2) $15.00

(3) 18 percent of balance due

905 – Cancellation

(a) A cancellation involving a Lease pursuant to this Leasing Law will not be effective

until 31 days after the Lessee receives a cancellation letter from the Leasing Officer,

or 41 days from the date he or she mailed the letter, whichever is earlier.

(b) If an appeal is filed, the cancellation decision will not be effective until such time

as a ruling is made on appeal, unless the cancellation is made immediately effective

under Chapter 1000 of this Leasing Law. During the time a cancellation decision

is ineffective, the Lessee must continue to pay compensation and comply with the

other terms of the Lease.

906 – Recovery of Possession

If a Lessee remains in possession after the expiration, termination, or cancellation of a

Lease, the Pueblo may treat the unauthorized possession as a trespass under applicable law. Unless

the Pueblo and Lessee are engaged in good faith negotiations with the holdover Lessee to obtain a

new Lease, the Pueblo may take action to recover possession, and pursue any additional remedies

available under applicable law, such as a forcible entry and detainer action.

907 – Harmful or Illegal Activities

In addition to the rights and remedies provided in a Lease or this Chapter 900, the Pueblo

may seek immediate mandatory and injunctive relief to prevent the occurrence or continuation of

any harmful or illegal activities on the Premises.

908 – Abandonment

If a Lessee abandons the leased Premises, the Pueblo will treat the abandonment as a

violation of the Lease. The Lease may specify a period of non-use after which the Lease Premises

will be considered abandoned.

909 – Consistency with Mortgage Code

The Pueblo’s enforcement actions pursuant to this Chapter 900 shall be taken in a manner

consistent with any Mortgage Code of the Pueblo in force from time to time and any agreement

that the Pueblo may enter into with any Mortgagee or class of Mortgagees.

CHAPTER 1000

APPEALS

1001 – Appeals

(a) Prior to appealing any determination of the Leasing Officer regarding the

interpretation enforcement or cancellation of a Lease, the Lessee or other interested

party shall provide written notice of such person’s intent to appeal to the Governor

and Tribal Council within ten (10) days of the Leasing Officer’s determination that

is in dispute. The notice of intent to appeal shall state the basis/reason for appeal

and the remedy being sought. The Governor and Tribal Council shall have an

opportunity to informally resolve such dispute to the mutual satisfaction of such

person and the Pueblo for a period of fifteen (15) days following the Governor’s

and Tribal Council’s receipt of such notice.

(b) If the dispute is not informally resolved within the fifteen day period provided by

Subsection (a), the Lessee or other interested party may appeal a determination of

the Leasing Officer, regarding the interpretation, enforcement or cancellation of a

Lease, within thirty (30) days of notification the original determination by the

Leasing Officer. Appeals may be filed with the Tribal Court. Such appeals shall

be initiated by a written petition setting forth the basis for the appeal, a short

statement indicating the nature and circumstances of the appeal, and a short

statement indicating the remedy being sought.

Court subject to and in accordance with the Pueblo’s Rules of Appellate Procedure.

(d) The decision of the Isleta Appellate Court, or the decision of the Tribal Court if an

appeal is not validly and timely filed with the Isleta Appellate Court, shall be

conclusive and binding on all parties.

1002 – Scope of Review

The Tribal Court’s scope of review, and any appeal of the Tribal Court’s decision to the

Isleta Appellate Court, shall be limited to whether the determination of the Leasing Officer was

arbitrary, capricious, or an abuse of discretion; not supported by substantial evidence in the record;

or otherwise, not in accordance with applicable law.

1003 – No Appeal of Leasing Determinations

1004 – Appeal Bond

This Leasing Law is not intended to, and does not, create an individual right to appeal tribal

decisions resulting in the Pueblo declining to enter into a Lease with individuals or entities seeking

the possession and use of Pueblo Trust or Restricted Lands, which decisions are within the sole

discretion of the Pueblo.

(a) Except as provided in paragraph (b) of this section or Section 604 of this Leasing

Law, an appeal bond may be required by the Tribal Court, at its discretion, to appeal

from Lease cancellation decisions; provided that the amount of any such bond shall

reasonably estimate any damage to the Pueblo from deferring any action pending

appeal.

(b) The Lessee may not appeal the appeal bond decision to the Isleta Appellate Court.

The Lessee may, however, request that the Tribal Court reconsider the appeal bond

decision, based on extraordinary circumstances. Any reconsideration decision by

the Tribal Court on the requirement for and amount of the appeal bond is final and

conclusive.

CHAPTER 1100

ENVIRONMENTAL REVIEW

1101 – Purpose of Environmental Review

The purpose of this Chapter is to ensure that prior to approval of any Lease pursuant to this

Leasing Law, a process is followed that:

(a) identifies and evaluates any Significant Effects on the Environment of a proposed

Leasehold Use;

(b) ensures that the Public is informed of, and has a reasonable opportunity to comment

on, any the environmental impact of the proposed Leasehold Use identified by the

Pueblo; and

such impacts before the Pueblo approves the Lease.

1102 – Environmental Review Required; Exceptions and Associated Lease Reviews

(a) The Responsible Official must ensure that an Environmental Review statement is

prepared for all proposed Leases s, except those:

(1) That will not result in any significant change in use of the leased Pueblo Trust

or Restricted Lands;

(2) That are covered by an earlier Environmental Review statement prepared not

more than twenty-four months earlier for a substantially identical Leasehold

Use on the same parcel as determined and documented by the Responsible

Official;

(3) That are covered by an environmental review conducted by IPHA (the Isleta

Pueblo Housing Authority) or another Responsible Entity as defined under 24

C.F.R. Part 58 with respect to Residential Leases; or

(4) Exempted under Section 1105.

(b) A single Environmental Review may be conducted for all Leases contemplated to

be granted on an identified parcel or tract of Pueblo Trust or Restricted Land (e.g.

development of a shopping center with separate direct Leases with each tenant, a

housing development, or the leasing of certain Agricultural Lands subject to several

different Tribal Land assignments under separate Leases). In the event that the

environmental conditions materially change after the original Environmental

Review is completed and before all contemplated Leases are granted, the

Environmental Review shall be reopened and updated to address such material

change in accordance with the procedures described in Chapter 1100.

1103– Public Notice and Comment

(a) The Responsible Official shall prepare an Environmental Review statement for any

Leasehold Use not exempted by Section 1103 in which such Responsible Official:

(1) identifies any Significant Effects on the Environment of the proposed

Leasehold Use on the environment,

(2) considers whether there are any commercially reasonable actions that may

be taken to mitigate such significant effects on the environment as part of

the proposed Leasehold Use, and

(3) determines whether any such actions should be recommended to the Tribal

Council as a condition of approval of a Lease.

(b) A notice of availability of the completed Environmental Review statement shall be

(a) published in a newspaper of general circulation to the identified Public, or (2)

disseminated in such other manner or by such other means as may reasonably be

expected to provide notice of such availability to the Public.

consideration for approval pursuant to this Leasing Law, (B) a copy of the

Environmental Review statement is available to any member of the Public

requesting it without charge, and (C) the Public is being provided with a reasonable

opportunity to comment on any Significant Effects on the Environment a proposed

Leasehold Use may have prior to approval or disapproval of such Lease under this

Leasing Law.

(d) The notice shall invite comments on the Environmental Review statement during a

period not less than thirty (30) days following such publication or dissemination.

The Responsible Official shall consider all comments received from the Public,

shall provide a response to all relevant and substantive Public comments within

thirty (30) days of closure of the comment period and prior to approving the Lease.

1104 – Federal Environmental Review

(a) A Responsible Official may rely upon an environmental review in accordance with

NEPA by a federal agency, or, with respect to a Residential Lease, a tribal entity in

accordance with 24 C.F.R. Part 58, involved in a Leasehold Use in lieu of

conducting an independent tribal Environmental Review process under this Leasing

Law for such Leasehold Use.

1105 – Conclusion and Recommendations

Upon review of the environmental effects of a Leasehold Use by the Responsible Official,

publication of the Environmental Review statement, acceptance of Public comments and delivery

of the Pueblo’s response to such comments, the Environmental Review statement process shall

conclude and the Responsible Official shall make such recommendation that the Responsible

Official determines appropriate concerning the approval, disapproval or conditioning of a Lease,

to the Tribal Council for its consideration. The determination of the Tribal Council with respect

to any such recommendation, as reflected in its approval or disapproval of a proposed Lease shall

be final and non-appealable.

CHAPTER 1200

AMENDMENTS; SEVERABILITY

1201 – Amendments

The Tribal Council may amend this Leasing Law without the Secretary’s approval, so long

as the amendment is for clarification, administrative convenience, or similar technical purposes,

and is consistent with federal and tribal law. Any substantive amendment to the terms of this

Leasing Law must be submitted to and approved by or on behalf of the Secretary.

1202 – Severability

If a court of competent jurisdiction determines a provision in this Leasing Law is invalid,

void or unenforceable, the remainder shall remain in full force and effect without regard to the

stricken portion.

O:\Isleta\Isleta Econ Dev & Infrastructure\HEARTH Act\42618 FINAL Isleta HEARTH Act Leasing Law.docx

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.