[Code of Federal Regulations]
[Title 36, Volume 1]
[Revised as of July 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 36CFR18.12]

[Page 250-252]
 
              TITLE 36--PARKS, FORESTS, AND PUBLIC PROPERTY
 
      CHAPTER I--NATIONAL PARK SERVICE, DEPARTMENT OF THE INTERIOR
 
PART 18_LEASING OF PROPERTIES IN PARK AREAS--Table of Contents
 
Sec.  18.12  What specific provisions must a lease contain?

    All leases entered into under this part must contain:

[[Page 251]]

    (a) A termination for cause or default provision;
    (b) Appropriate provisions requiring the lessee to maintain the 
leased property in good condition throughout the term of the lease;
    (c) Appropriate provisions stating that subletting of a portion of 
the leased property and assignment of a lease, if permissible under the 
terms of the lease, must be subject to the Director's written approval. 
Such subleases and assignments shall be approved only of the Director 
determines, among other relevant matters, that the proposed sub-lessee 
or assignee is financially and managerially capable of carrying out the 
terms of the lease. Assignment of a lease for the purpose of 
effectuating an encumbrance to the lease or the leased property is 
subject to approval pursuant to the requirements of paragraph (l) of 
this section;
    (d) Appropriate provisions requiring the lessee to secure and 
maintain from responsible companies liability insurance sufficient to 
cover losses connected with or occasioned by the use and activities 
authorized by the lease. Types and amounts of insurance coverage will be 
specified in writing and periodically reviewed by the Director;
    (e) Appropriate provisions, unless the Director determines otherwise 
in the circumstances of a particular lease, requiring the lessee to 
obtain from responsible companies casualty insurance (including flood 
insurance if applicable) in an amount sufficient to protect the 
interests of the lessee and the government. In the event of casualty, 
the lessee shall be required to repair or replace damaged or destroyed 
property unless otherwise determined by the Director;
    (f) Appropriate provisions requiring the lessee to save, hold 
harmless, and indemnify the United States of America and its agents and 
employees for all losses, damages, or judgments and expenses resulting 
from personal injury, death or property damage of any nature arising out 
of the lessee's activities under the lease, and/or the activities of the 
lessee's employees, subcontractors, sub-lessees, or agents. No lease 
entered into this part may contain provisions intended to provide 
indemnification or other assurances to the lessee regarding the conduct 
or activities of the Director concerning the lease or the administration 
of the applicable park area. Leases may contain appropriate provisions 
that commit the Director to accept responsibility for tortious actions 
of government officials to the extent authorized by the Federal Torts 
Claim Act or as otherwise expressly authorized by law;
    (g) Appropriate provisions requiring the lessee to pay for use of 
all utilities used by the lessee and to pay all taxes and assessments 
imposed by federal, state, or local agencies applicable to the leased 
property or to lessee activities;
    (h) Appropriate provisions stating that the lessee has no rights of 
renewal of the lease or to the award of a new lease upon lease 
termination or expiration and that the lease is subject to cancellation 
by the Director in the exercise of the sovereign authority of the United 
States to the extent provided by applicable law;
    (i) Appropriate provisions stating that the lessee may not construct 
new buildings or structures on leased property, provided that, a lease 
may contain appropriate provisions that authorize the lessee to 
construct, subject to the prior written approval of the Director, minor 
additions, buildings and/or structures determined by the Director to be 
necessary for support of the authorized activities of the lessee and 
otherwise to be consistent with the protection and purposes of the park 
area. Approval by the Director of new construction may only be granted 
if the Director makes the determinations required by Sec.  18.4;
    (j) Appropriate provisions requiring that:
    (1) Any improvements to or demolition of leased property to be made 
by the lessee may be undertaken only with written approval from the 
Director;
    (2) That any improvements to or demolition of historic property may 
only be approved if the Director determines that the improvements or 
demolition complies with the Secretary of the Interior's Standards for 
the Treatment of Historic Properties (36 CFR part 68); and

[[Page 252]]

    (3) Any improvements made by a lessee shall be the property of the 
United States;
    (k) Appropriate provisions that describe and limit the type of 
activities that may be conducted by the lessee on the leased property. 
The types of activities described in a lease may be modified from time 
to time with the approval of the Director through an amendment to the 
lease. The Director may approve modified activities only if the 
determinations required by Sec.  18.4 remain valid under the proposed 
modified activities and the proposed activities are otherwise determined 
appropriate by the Director;
    (l) Appropriate provisions, unless the Director determines not to 
permit pledges or encumbrances in the circumstances of a particular 
lease, authorizing the lessee to pledge or encumber the lease as 
security, provided that any pledge or encumbrance of the lease and the 
proposed holder of the pledge or encumbrance must be approved in writing 
in advance by the Director and that a pledge or encumbrance may only 
grant the holder the right, in the event of a foreclosure, to assume the 
responsibilities of the lessee under the lease or to select a new lessee 
subject to the approval of the Director. Pledges or encumbrances may not 
grant the holder the right to alter or amend in any manner the terms of 
the lease;
    (m) Appropriate provisions stating that fulfillment of any 
obligations of the government under the lease is subject to the 
availability of appropriated funds. No lease issued under authority of 
this part shall entitle the lessee to claim benefits under the Uniform 
Relocation Assistance Act of 1970 (Public Law 91-646) and all leases 
entered into under the authority of this part shall require the lessee 
to waive any such benefits; and
    (n) Appropriate provisions granting the Director and the Comptroller 
General access to the records of the lessee as necessary for lease 
administration purposes and/or as provided by applicable law.