HomeMy WebLinkAbout#4. SAMPLE - Irrigated Lease Agreement Template - SW 7-15-13W4 RH
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IRRIGATED LEASE AGREEMENT
THIS AGREEMENT is made in duplicate this _______ day of ______________, 20_______,
BETWEEN:
COUNTY OF NEWELL
Box 130 Brooks, AB T1R 1B2
(hereinafter called the “Lessor”)
OF THE FIRST PART
- and -
____________________________,
(hereinafter called the “Lessee”)
OF THE SECOND PART
WHEREAS the Lessor is the registered owner of certain lands in the Province of Alberta, legally
described as:
MERIDIAN 4 RANGE 13 TOWNSHIP 15
SECTION 7
QUARTER SOUTH WEST
CONTAINING 64. 7 HECTARES (160 ACRES) MORE OR LESS
EXCEPTING THEREOUT:
HECTARES ( ACRES) MORE OR LESS
A) PLAN 9412436 SUBDIVISION 4. 697 11. 6
EXCEPTING THEREOUT ALL MINES AND MINERALS
AND THE RIGHT TO WORK THE SAME
as are more particularly shown outlined in blue on the attached Appendix “A” which schedule
forms part of this Agreement.
(“the Lands”)
AND WHEREAS the Lessee desires to lease the Lands from the Lessor and to break, cultivate and irrigate
that portion of the Lands which is assessed, on the EID’s assessment roll, as irrigation acres;
NOW THEREFORE THIS AGREEMENT WITNESSETH that the Lessor does hereby lease to the Lessee
the Lands on the terms and conditions hereinafter set forth:
1. The Lessor shall lease the Lands to the Lessee for a period of five (5) years commencing on the
1st day of May 2025 and expiring on the 31st day of December 2029 (the “Term”).
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2. The Lessee acknowledges and agrees, in order to be eligible to hold this lease, the Lessee must
meet the following minimum requirements continuously and at all times throughout the Term and,
further, the Lessee hereby covenants and agrees that the Lessee meets each of the following
requirements, as of the commencement of the Term:
(a) the Lessee must be the registered owner of not less than 100 acres of land with irrigation
acres, assessed as such on the EID’s assessment roll, located within the boundaries of the
County of Newell.
3. (a) The Lessor and Lessee acknowledge and agree that at the commencement of the Term
the Lands contain 133 acres that are assessed, on the EID’s assessment roll, as irrigation
acres (the “Farmable Acres”) plus 0 acres that are not irrigable (the “Dry acres”).
(b) Appendix B is included for information. Appendix B outlines:
Current uses of the land and irrigation infrastructure to be leased, including:
Irrigation pump(s) location(s),
Cultivated – Pivot Irrigation,
Cultivated – Flood irrigation, and
Not Cultivated – Dry Land
*all are available for the Lessee to use
Appendix B also outlines Land Not For Use By Lessee, including those other areas (access
to surface leases, watercourse/drains) that are not highlighted. Any changes in those uses
must by the Lessee must follow the procedure as set out in clause 3(c).
(c) In the event that the Lessee wishes to increase the number of Farmable Acres, as set out
in clause 3(a), the Lessee shall first make application to the Lessor for permission to
increase the number of Farmable Acres and the annual rental rate will be renegotiated as
part of this process.
4. (a) The Lessor acknowledges that the Lessee has paid a deposit in the amount of
$5,000.00 and such deposit shall be applied against the amount due as annual rental for
the calendar year 2025. Any balance left owing as annual rental for the calendar year 2025,
including applicable taxes, shall be due and payable to the Lessor on or before the 1st day
of November 2025.
(b) The Lessee agrees to pay to the Lessor annual rental for the calendar years 2025 to and
including 2029 in the sum of $__________, plus GST.
(c) The Lessee shall pay to the Lessor, at the office of the Lessor or such other place as the
Lessor in writing may designate, on the appropriate due dates, without deduction or
abatement whatsoever, all amounts due hereunder and, in addition to rent and occupancy
costs, all other applicable taxes, including GST and property taxes.
(d) The Lessee shall coordinate utility services and pay all costs that are attributed to the use
of the lands.
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5. The Lessee shall be responsible for the payment of all property taxes and irrigation rates levied
against the Lands during the Term provided the Lessor shall pay any such property taxes and
irrigation rates and then invoice the Lessee for such amounts on the Lessor’s invoice that is due
for payment on or before the tax deadline as set by Council each year. All such amounts not paid
when due shall bear interest at the same rate and in the same manner as calculated in clause 7
and shall be collectible in the same manner as if it were rent.
6. The Lessee shall pay all amounts due hereunder punctually as the same fall due.
7. If any payment of rent or other amount payable hereunder is not paid in full by the due date, the
Lessee agrees to pay interest on the overdue amount at the rate as per current Schedule of Fees
Bylaw.
8. The Lessor covenants with the Lessee for quiet enjoyment of the Lands by the Lessee.
9. The Lessee shall not transfer or assign this Agreement or the Lands or any part thereof or otherwise
by any act or deed procure the Lands or any part thereof to be transferred or assigned.
10. The Lessee shall not sublet the Lands to a third party.
11. The Lessee agrees to abide by the terms, conditions or provisions of the Lessor’s rules, regulations
and policies governing water and any bylaws regarding the same as may be current during the
Term.
12. The Lessee shall:
(a) manage the Lands in a proper and husbandlike manner, and will not impoverish or waste
the same;
(b) keep any fences in good repair;
(c) use his best endeavours and approved methods of husbandry to prevent the growth of and
to exterminate all noxious weeds;
(d) use only those pesticides and/or herbicides, the usage of which has been approved of by
appropriate provincial and federal legislation;
(e) ensure that any portion of the Lands that is not assessed as irrigation acres on the EID’s
assessment roll, is not broken or cultivated;
(f) comply with the provisions of the Environmental Protection and Enhancement Act of Alberta
and its successors and the regulations passed thereunder as may be in force at any time
during the Term;
(g) to irrigate the lands with effluent from the Rolling Hills sewage lagoons located on those
lands legally described as:
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the " Rolling Hills sewage lagoon "
whenever such effluent is available and also when required to do so by the Lessor. The
Lessee shall provide the Lessor with two (2) weeks notice prior to irrigating with effluent
from the sewage lagoon to allow for sampling and monitoring as required by the Alberta
Environment Regulations. In the event that the sampling and monitoring shows that the
effluent does not meet the required standards, the Lessee shall not irrigate with the effluent
from the sewage lagoon;
(h) the Lessee shall not irrigate the lands with effluent from the sewage lagoon:
(i) outside the growing season except if authorized for a fall irrigation;
(ii) During and for 30 days prior to harvesting of crops;
(iii) During and for 30 days prior to grazing of cattle;
(iv) During and for 7 days prior to pasturing by livestock other than dairy cattle;
and at such other times as prohibited by the Alberta Guidelines for Municipal Waste Water
Irrigation and in the event that the Lessor enters on the lands to irrigated the lands with
sewage effluent from the sewage lagoon, the lessee shall not carry out any of the prohibited
activities within the time periods set forth; and
(i) in the event that the Lessee does not irrigate the lands with effluent from the Rolling Hills
sewage lagoons, when required by the Lessor, the Lessee will permit the Lessor to enter
upon the lands to pump onto and irrigate the lands with such effluent at such times as the
Lessor may determine without any interference or hinderance from the Lessee;
(j) to maintain, at its sole cost and expense, insurance during the term against any liability of
the Lessee to third parties arising from or in relation to the Lessee’s use or occupancy of
the lands, in the amount of not less than $2,000,000.00 per incident/claim. Such insurance
shall name the Lessor as an additional insured. Upon request, a certificate evidencing such
insurance shall promptly be provided to the Lessor.
13. The Lessor and Lessee agree that the Lands are leased for agricultural purposes only.
14. The Lessee shall not construct any improvements on the Lands without the written consent of the
Lessor first had and obtained which consent may be unreasonably and arbitrarily withheld. All such
improvements shall be removed at the expiration or termination of this Agreement. If the Lessee
fails to remove such improvements within thirty (30) days of the expiration or termination of this
Agreement, upon written notice to the Lessee, the Lessor may appropriate to its use so much or all
of the Lessee’s improvements not removed, and the Lessee shall forfeit to the Lessor all rights, title
and interest in and to the said improvements; provided however, the Lessor may at its option
remove said improvements and any cost incurred by the Lessor in removing, storing or disposing
of the same shall be debt due to the Lessor by the Lessee and payable to the Lessor on demand.
15. Notwithstanding anything contained in this Lease to the contrary, the Lessor may cancel this Lease
and this Lease shall cease and determine as herein provided, that is to say:
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(a) for failure by the Lessee to pay in full all rent and other amounts owed hereunder by the 31st
day of January next following the due date for payment of such amounts;
(b) for default by the Lessee in the performance of any obligation, condition, covenant or
agreement herein;
(c) if the Lessee should become insolvent or bankrupt or be subject to the provisions of the
Bankruptcy Act or go into liquidation, either voluntary or under an order of a court of
competent jurisdiction, or make a general assignment for the benefit of creditors;
(d) if the Lessee’s goods or chattels shall be liable to any form of distress;
(e) if the Lessee attempts to transfer or assign this Agreement contrary to clause 9;
(f) if the Lessee attempts to sublet all or any portion of the Lands contrary to clause 10; or
(g) if the Lessee at any time fails to fully meet the eligibility requirements set out in clause 2.
In the event of any of the foregoing, the Lessor may, in its sole discretion, cancel this Lease upon
giving to the Lessee thirty (30) days’ notice of its intention so to do and in such case the Lessor
may re-enter the Lands or any part thereof in the name of the whole and peaceably hold and enjoy
thenceforth as if these presents had not been made, provided nevertheless that the Lessee shall
continue to be liable to pay, and the Lessor shall have the same remedies for the recovery of any
rent or other amount then due or accruing due as if the Lease had not been cancelled but remained
in full force and effect and no acceptance of annual rental subsequent to any breach or default,
other than for annual rental, or acceptance of previous breaches or defaults similar to that for which
re-entry is made shall be taken to operate as a waiver of this condition, nor in any way to defeat or
affect the rights of the Lessor hereunder.
16. The Lessee does irrevocably constitute and appoint the Lessor as his agent and attorney for and
on behalf of the Lessee to conduct negotiations with any operator (as the word “operator” is defined
in the Surface Rights Act of Alberta) and to enter into any agreement, settlement or compromises
therewith in respect of such operator’s right of entry, user and taking of the surface of the Lands or
any part thereof pursuant to the provisions of the Surface Rights Act, and to appear at any hearing,
application or proceeding before the Surface Rights Board or otherwise under the said Act on behalf
of the Lessee and to do, perform and execute for the Lessee and on the Lessee’s behalf all acts,
things and deeds necessary or incidental to any request or application by any person for right-of-
entry with respect to the Lands which the Lessee as occupant or otherwise might have done; and
the Lessee does further wholly assign, transfer and set over to the Lessor any right, title and interest
which the Lessee has, may have or may hereafter have whether as occupant or otherwise to any
monies payable for compensation and entry fee in respect of any right-of-entry, user or taking of
the Lands by an operator whether as a result of an agreement, settlement or compromise or as
compensation awarded by the Surface Rights Board for any or in respect of any such entry, user
or taking and the Lessor shall be subrogated to the Lessee in respect to the right of the Lessee as
occupant under the said Act; provided however, that nothing herein contained shall apply to any
right which the Lessee may have with respect to any loss, injury or damage to any livestock, crop,
improvement or personal property that belongs to the Lessee and that is on the Lands.
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Notwithstanding the foregoing, the Lessor agrees that prior to entering into any agreement with an
operator with respect to any of the Farmable Acres, the Lessor shall consult with the Lessee with
respect to location of any facilities on the Farmable Acres.
(a) For greater certainty and without restricting the generality of the foregoing:
(i) The Lessor shall be entitled to all compensation due and payable on account of any oil
and gas surface lease in effect at the commencement of the Term, including
compensation from additional wells or new facilities that may be constructed during the
Term on any existing surface lease;
(ii) The Lessor shall be entitled to all compensation, including initial entry payments due
and payable in respect of oil and gas surface leases, any regulatory orders or Court
orders concerning the recovery of oil and gas, and any pipeline right-of-ways, which
come into effect during the Term;
(iii) In the event of a new taking, this Lease shall automatically be amended by removing
any portion of the Lands that is subject to the new taking and, if any Farmable Acres
are so removed, the annual rental shall be recalculated based upon the revised number
of Farmable Acres, effective from the date such Farmable Acres are so removed, and;
(iv) If the Lessee suffers any loss, injury or damage, the Lessee shall be entitled to
compensation as set out above.
17. Holding over by the Lessee after the termination or expiration of this Agreement shall not constitute
a renewal or extension thereof or give the Lessee any rights hereunder or in or to the Lands.
18. The Lessee shall at all times indemnify and save harmless the Lessor from and against all loss,
expense, or damages arising from any negligence of the Lessee, his servants or agents, and from
and against all claims, demands, losses, costs, fines, expenses, actions, causes of action, suits or
other proceedings by whomsoever made, brought or prosecuted by reason of accidents, damages,
death or injuries to persons (including the Lessor’s servants or agents) or to property or otherwise,
due to the existence of these presents, or any privileges granted, omissions or action taken, or
things done or maintained by virtue thereof or the exercise in any manner of rights arising
hereunder, and the Lessee hereby waives against the Lessor all claims and demands of
whatsoever nature or kind, whether arising directly or indirectly out of the existence of these
presents or any privileges granted, omissions or action taken or things done by virtue hereof.
19. The Lessor, its agents, employees and contractors may, at any time, enter upon the Lands, with
vehicles and equipment, for the purposes of inspecting, operating, constructing, repairing,
maintaining, relocating or abandoning any Public Works of the Lessor.
20. The Lessor, its agents, employees and contractors may, at any time, enter upon the Lands with
vehicles and equipment for the purpose of inspecting the Lands, including activities, improvements
and vegetation thereon, for compliance with this Agreement.
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21. In the event the Lessor allows the Lessee to enter upon the Lands prior to the 1st day of May, 2025
for purposes of breaking the Farmable Acres, all of the terms and conditions of this Agreement,
except for payment of rent, shall come into force and take effect on the date that the Lessee enters
upon the Lands.
22. Any notice or consent, including any invoice, statement or request or other communication (a
“Notice”) herein required or permitted to be given by either party to the other shall be in writing and
shall be delivered by hand or sent by regular mail (except during a postal disruption or threatened
postal disruption) to the applicable address set forth below:
(a) in the case of the Lessor to:
County of Newell
183037 Rge. Rd. 145
Box 130
Brooks, AB
T1R 1B2
(b) in the case of the Lessee to:
_______________________
_______________________
_________________, AB
_________________
any Notice delivered by hand shall be deemed to have been validly and effectively given on the
day of such delivery if delivered before 2:00:00 p.m. on a Business Day or on the next Business
Day if delivered on a non-Business Day or after 2:00:00 p.m. on the previous Business Day. Any
Notice sent by regular mail (except during a postal disruption or a threatened postal disruption)
shall be deemed to have been validly and effectively given on the third (3rd) Business Day following
the date of mailing.
Either party may, from time to time, by Notice to the other party, change its address for service
hereunder.
23. Time is of the essence of this Agreement.
24. The terms “Lessor” and “Lessee” as herein used shall include the feminine and plural or body
corporate where required by the context and shall also include the heirs, executors, administrators,
successors and permitted assigns of the respective parties.
25. The Lessee does hereby accept this lease of the Lands to be held by him as tenant, and subject to
the conditions, restrictions and covenants implied and herein above set forth.
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IN WITNESS WHEREOF the Lessor has caused its corporate seal to be affixed, attested to by the
signature of its proper officer in that behalf and the Lessee has hereunto affixed his hand and seal the day
and year first above written.
COUNTY OF NEWELL
Per: ______________________________
SIGNED, SEALED AND DELIVERED } LESSEE:
in the presence of: }
}
________________________________________ } ____________________________________
Witness }
}
}
________________________________________ } ____________________________________
Witness }
