Terms of Concession

1. The concession is renewed with effect from September 24, 1952, for a duration of 50 years, namely from elevation 947.80 meters (crest of the dam) to elevation 867.36 meters (water return) U.K. Cement Pipe.

1. The permit for the continued operation of the plant is granted on the basis of the current extent of the plant with a gross head of 80.44 meters and an average usable water quantity of 344.1 liters per second. It is stipulated that the plant is intended to supply the municipality of Urnäsch and the surrounding area within the Appenzell Ausserrhoden territory with electric power and light, and that any commercial speculation is to be excluded.

1. The company is required to establish its registered office and tax domicile in Urnäsch for the duration of the concession. For liabilities of the company, the legal jurisdiction is that of Appenzell A.Rh.

1. The Urnäsch AG Power Plant is liable for all legal and compensation claims made against the company, particularly those of the lessee of the fishing lease Rev. 1, as well as for all damages resulting from the negligent handling of the bottom outlet at the Langfluh weir. During flushing operations in the reservoir at Langfluh, the gravel extraction carried out by the canton in the reservoir area must be taken into consideration. The power plant must account for the fact that dredging occurs periodically in the reservoir and cannot assert any claims for this.

2. The liability of the Urnäsch AG Power Plant also extends to all damages that may occur as a result of the facility, including electrical lines, and whose nature of occurrence is not specified above.

1. The current and future legislation of the Confederation and the Canton of Appenzell A.Rh. regarding the utilization of water resources, electric power transmission, and fishing shall remain reserved.

2. The allotment water quantity must be at least 60 l/sec. at the intake point in Langfluh. The outlet opening must be constructed and maintained in such a manner that the allotment is continuously guaranteed.

1. The canton is also entitled to annually levy an additional amount due to the reduced revenue from the fishing lease fee and reserves the right to increase the amount of the water fee before the end of the concession period in the event of changes to the legal foundations. This also applies in the case of an expansion of the facility that includes an increase in performance.

1. In the event of the complete cessation of operations, the right of disposition over the water reverts to the state; similarly, the permit expires if operations are suspended for a duration of 3 years.

1. The facilities of the concessionaire must be maintained in good condition throughout the duration of the concession; any structural changes must be reported to the Department of Construction and Environment.

1. A one-time administrative fee of CHF 300.- shall be charged for the issuance of the concession.