Transcript

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SETTLEMENT AND RELEASE AGREEMENT

THIS SETTLEMENT AND RELEASE AGREEMENT (“Settlement Agreement”) is

entered into by and among Mazda Toyota Manufacturing, U.S.A., Inc. (“MTMUS”), a Delaware

corporation, and the Center for Biological Diversity, a California non-profit organization

(“CBD”), and the Tennessee Riverkeeper, an Alabama non-profit organization (“TR”), (TR

together with CBD, the “Conservation Groups”) (MTMUS, CBD, and TR are each a “Party”

and, collectively, they are the “Parties”).

DEFINITIONS

This Definitions Section of this Settlement Agreement sets forth the meaning of some

words that are repeated throughout the Settlement Agreement where those definitions are

material to a full understanding of the terms and conditions of the Settlement Agreement, as

intended by the Parties. It is the Parties’ intent to incorporate the provided definitions as if fully

set forth within the body of the Settlement Agreement whenever such defined words appear in

capital letters. When used other than in capital letters, the words have their ordinary meaning.

A. “RELEASORS.” Whether used in the singular or plural, includes CBD and TR.

Further, to the fullest extent that the foregoing have the capacity to bind them so as to maximize

both the breadth of the definition of, and the protection and benefit to, RELEASEES, the term

RELEASORS also includes the CBD’s and the TR’s respective successors, assigns, subrogees,

present and future parents, subsidiaries, affiliates, divisions, shareholders, stockholders, owners,

officers, directors, employees, licensors, licensees, servants, insurers, representatives, agents,

designees, associates, staff, affiliates, tenants, executors, and administrators, and beneficiaries of

any and all rights, interests and properties of CBD and TR. RELEASOR(S) includes each of the

foregoing, or any one or more of them, depending on context.

B. “RELEASEES.” Whether used in the singular or plural, includes Mazda Toyota

Manufacturing, U.S.A., Inc., Toyota Motor Corporation, Toyota Motor North America, Inc.,

Toyota Motor Manufacturing, Alabama, Inc., and any other Toyota entities (Toyota Motor

Corporation, Toyota Motor North America, Inc., Toyota Motor Manufacturing, Alabama, Inc.

and any other Toyota entities collectively, “Toyota Entities”), Mazda Motor Corporation, Mazda

Motor of America, Inc., and any other Mazda entities (Mazda Motor Corporation, Mazda Motor

of America, Inc. any other Mazda entities collectively, “Mazda Entities”), the City of Huntsville,

a municipal corporation in the State of Alabama, along with its elected and appointed officials

acting in their official capacities, and all of its duly formed boards, agencies, and authorities, and

any and all of each (“City of Huntsville”), and any and all of each’s past, present and future

parents, subsidiaries, affiliates, divisions, shareholders, stockholders, owners, members, officers,

directors, employees, agents, licensors, licensees, servants, attorneys, insurers, experts, suppliers,

consultants, investigators, representatives, and any other entity, corporate, governmental, or

municipal, supporting or otherwise involved with the PROJECT or PROJECT SITE.

The definition of RELEASEES is intentionally defined broadly to encompass all

individuals and entities associated in any way with Mazda Toyota Manufacturing, U.S.A., Inc.,

Toyota Motor Corporation, Toyota Motor North America, Inc., Mazda Motor Corporation,

Mazda Motor of America, Inc., and City of Huntsville to cover the largest and broadest group of

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individuals and entities, corporate, governmental, or municipal, supporting or otherwise involved

in the PROJECT or PROJECT SITE to bring all litigation to an end and to foreclose any future

litigation arising directly or indirectly out of, or relating in any way to the CLAIMS or

DAMAGES. All Parties understand and agree that RELEASEES includes entities and

individuals described in the definition of RELEASEES even though some of those individuals

and entities are not signatories to this Settlement Agreement, and/or are not identified by name in

this Settlement Agreement, and/or were not recipients of the SIXTY-DAY NOTICE OF

INTENT TO SUE LETTERS. RELEASEES shall not be limited in any way and will include

any individual and entity associated with Mazda Toyota Manufacturing, U.S.A., Inc., Toyota

Motor Corporation, Toyota Motor North America, Inc., Mazda Motor Corporation and Mazda

Motor of America, Inc. that is, or could be, the subject of any past, present, or future claim or

lawsuit arising directly or indirectly out of, or relating in any way to, any CLAIMS or

DAMAGES. For the avoidance of doubt, any RELEASEES who are not signatories to this

Settlement Agreement are expressly intended to be direct third-party beneficiaries of this

Settlement Agreement.

C. “CLAIMS.” Whether used in the singular or plural, includes any demands,

requests for compensation of injuries or harms of any kind, requests for damages, compensation,

or relief of any kind, obligations, legal actions, lawsuits, complaints, enforcement of rights,

petitions, and all causes of action that arise directly or indirectly out of, or relate in any way to

the PROJECT or PROJECT SITE in any respect, including without limitation, any claims related

to plans, studies, assessments, design, scoping, approvals, site preparation, construction,

implementation, permitting, and operation, the spring pygmy sunfish and its habitat and other

species known to exist in the area and any claims that were asserted or could have been asserted

in the SIXTY-DAY NOTICE OF INTENT TO SUE LETTERS, that (a) have ever existed, (b)

now exist, or (c) may exist in the future. CLAIM(S) also includes any claims in law or equity,

including any claims or causes of action for non-compliance with any federal, state, local, or

other environmental legal requirement (including statutes, regulations, laws, ordinances,

guidance documents, and directives). CLAIM(S) also includes any legal proceeding, including

motions, brought to obtain any form of relief, including DAMAGES.

The definition of “CLAIMS” does not include: 1) Center for Biological Diversity v.

Zinke, et al., Civil Action No. 1:18-cv-01375, and any other critical habitat designation claims

for the spring pygmy sunfish that the Conservation Groups may file against U.S. Fish and

Wildlife Service (“USFWS”) or the U.S. Department of Interior, and Center for Biological

Diversity v. U.S. Fish and Wildlife Service, Civil Action No. 5:18-cv-01312, and any other

Freedom of Information Act (“FOIA”) or public record request actions that the Conservation

Groups may file against USFWS seeking to obtain information concerning species in the

Beaverdam Spring and Creek Complex and/or Limestone Creek; provided, however, that any

such actions or any information obtained by or produced to the Conservation Groups in such

actions cannot be used in any way to pursue or support any CLAIMS against the RELEASEES;

or 2) any Party’s rights to enforce this Settlement Agreement as provided in Section 15 herein.

D. “DAMAGE(S).” Whether used in the singular or plural, includes any relief sought

by any CLAIMS, including relief arising out of, or relating in any way to: (a) injunctive relief,

(b) declaratory relief, (c) specific performance, (d) general damages, (e) special damages, (f)

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property damage, (g) punitive or exemplary damages, (h) attorney’s fees, (i) sanctions or other

penalties, (j) litigation costs and expenses, and (k) any obligation or liability of any nature

whatsoever, fixed or contingent, joint or several. DAMAGE(S) also includes all of the above

enumerated forms of relief that existed in the past, that now exist, and that may exist in the future

in connection with any CLAIMS.

E. “PROJECT.” Means the site preparation, construction, equipping, and operation

of manufacturing facilities for the production of vehicles by MTMUS, Toyota Entities, and

Mazda Entities, which includes various supporting operations, services, and functions at the

PROJECT SITE to facilitate the production and distribution of vehicles and operation of the

facilities at the PROJECT SITE.

F. “PROJECT SITE.” Means Lot 1 of the Limestone Huntsville Combination Plat as

recorded in Plats Book J, Page 179 in the Probate Records of Limestone County, Alabama, and

proximately located lands.

G. “DESIGNATED LAND TRUST.” Means the Land Trust of North Alabama, the

Alabama Forever Wild Land Trust, any other qualified charitable organization mutually agreed

upon by the Parties, or any combination thereof.

H. “DESIGNATED ENDOWMENT FUND ENTITY.” Means the Land Trust of

North Alabama or any other qualified entity mutually agreed upon by the Parties.

I. “SIXTY-DAY NOTICE OF INTENT TO SUE LETTER(S).” Means the Sixty-

Day Notice of Intent to Sue Letter for Violations of the Endangered Species Act from Activities

Associated with Construction and Operation of Toyota-Mazda Automotive Plant in Huntsville,

Alabama, dated July 25, 2018, sent by the CBD to MTMUS and the City of Huntsville, and the

Sixty-Day Notice of Intent to Sue Letter for Violations of the Endangered Species Act from

Activities Associated with Construction and Operation of Toyota-Mazda Automotive Plant in

Huntsville, Alabama, dated August 14, 2018, sent by the CBD and TR to MTMUS and the City

of Huntsville.

RECITALS

A. WHEREAS, the spring pygmy sunfish is listed as a federally threatened species

that is currently known to exist in two locations in Alabama, including the Beaverdam Spring

and Creek Complex aquatic area in proximity to the PROJECT SITE; and

B. WHEREAS, the protection, preservation, and enhancement of the spring pygmy

sunfish habitat within the watershed of the Beaverdam Spring and Creek Complex would benefit

the species’ long-term conservation; and

C. WHEREAS, to enhance the protection, preservation, and recovery of the spring

pygmy sunfish, it would be beneficial to: protect and maintain a continuous network of spring

heads, spring pools, spring runs, and associated wetlands within the Beaverdam Creek

watershed; maintain adequate water quality, quantity, and flow to support the species’ life cycle;

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protect and restore native riparian vegetation; and study the species’ populations to evaluate the

possibility of future captive propagation and reintroduction measures; and,

D. WHEREAS, MTMUS, Toyota Entities, and Mazda Entities intend to commence,

develop, and operate the PROJECT and PROJECT SITE; and,

E. WHEREAS, the City of Huntsville has begun performing certain site preparation,

grading, design, earthwork, and other related activities for the PROJECT and PROJECT SITE;

and,

F. WHEREAS, on July 25, 2018, CBD delivered to MTMUS and the City of

Huntsville a “Sixty-Day Notice of Intent to Sue for Violations of the Endangered Species Act

from Activities Associated with Construction and Operation of Toyota-Mazda Automobile Plant

in Huntsville, Alabama,” stating an intent to sue MTMUS and the City of Huntsville for

violations of the Endangered Species Act (“ESA”) and its implementing regulations alleging,

among other claims, that the ongoing construction and operational activities associated with the

PROJECT or PROJECT SITE will result in an imminent take of the spring pygmy sunfish and

further alleging that the water quality, water quantity, and habitat of the spring pygmy sunfish

will be adversely affected; and,

G. WHEREAS, on August 14, 2018, CBD and TR delivered to MTMUS and the

City of Huntsville an identical Notice of Intent to Sue Letter; and,

H. WHEREAS, CBD and TR allege in their SIXTY-DAY NOTICE OF INTENT TO

SUE LETTERS that, through the activities related to the PROJECT or PROJECT SITE,

MTMUS and the City of Huntsville are in violation of the ESA and its implementing regulations;

and,

I. WHEREAS, MTMUS denies all allegations of liability made by the

RELEASORS, and MTMUS expressly denies any liability; and,

J. WHEREAS, MTMUS plans to implement measures designed to minimize the

PROJECT’s potential impacts on the spring pygmy sunfish, including vegetated stormwater

retention ponds designed for 100-year storm events, gates or equivalent control structures that

can be closed, forebays, vegetative swales, chemical spill prevention and containment measures,

and chemical leak identification measures; and,

K. WHEREAS, in the interest of efficiency and economy of resources, and based on

a shared interest and goal of protecting the spring pygmy sunfish and its habitat, the Parties

desire to compromise and fully and finally settle and compromise all actual and potential

differences and disputes between them without the admission of fault or liability that were

asserted or could have been asserted in connection with the PROJECT or PROJECT SITE; and,

L. WHEREAS, the Parties acknowledge that the implementation of this Settlement

Agreement will fully and finally resolve all CLAIMS for DAMAGES between RELEASORS

AND RELEASEES and acknowledge that the goal of this Settlement Agreement is intended to

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benefit the spring pygmy sunfish and to protect its habitat as MTMUS, the Toyota Entities, and

the Mazda entities move forward with the PROJECT.

AGREEMENT

1.0 Release, Discharge, and Covenant Not to Sue.

1.1 In consideration of the actions described in Section 2.0, RELEASORS completely

release and forever discharge RELEASEES from any and all past, present, or future CLAIMS or

DAMAGES.

1.2 This RELEASE is specifically intended by RELEASORS and RELEASEES to

include, benefit, and apply to all individuals and entities described in the definition of

RELEASEES, regardless of whether they are a recipient of a SIXTY-DAY NOTICE OF

INTENT TO SUE LETTER or identified by name in this Settlement Agreement or a signatory to

this Settlement Agreement. The Parties to this Settlement Agreement understand and agree that

all RELEASEES are the intended beneficiaries of this Settlement Agreement.

1.3 This Settlement Agreement shall be a fully binding and complete settlement

between RELEASORS and RELEASEES.

1.4 RELEASORS covenant and agree that RELEASORS have not brought, will not

bring, and do not intend to bring, any CLAIMS against RELEASEES.

1.5 Nothing in Section 1.0 or any part of this agreement shall be interpreted as

releasing any Party’s right to enforce this Settlement Agreement as provided in Section 15.

2.0 Actions.

2.1 In consideration of the Release, Discharge, and Covenant Not to Sue set forth

above, MTMUS agrees to the following:

2.2 Conservation Corridor. MTMUS will cause to be secured through activities

including but not limited to funding, conveying, or facilitating the transfer of, certain property

locations as described on the attached Exhibit A (“Conservation Corridor”), consisting of not

less than 1,100 acres of the Beaverdam Spring and Creek Complex and surrounding area. The

Conservation Corridor shall be assembled and held by a DESIGNATED LAND TRUST in

perpetuity for purposes of protecting and securing the area as habitat for the spring pygmy

sunfish.

a. MTMUS shall work with a DESIGNATED LAND TRUST to execute a

declaration of restrictive covenants memorializing the management and

oversight conditions for, and use restrictions to be imposed on the

Conservation Corridor properties (“Use Restrictions”) to be held by the

DESIGNATED LAND TRUST as set forth in Section 2.2(a)(i)-(iii).

Notwithstanding the foregoing, if the DESIGNATED LAND TRUST

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objects to any of Section 2.2(a)(i)-(iii), the Parties will work cooperatively

with the DESIGNATED LAND TRUST to memorialize alternative

conditions consistent with the DESIGNATED LAND TRUST’s policies

and procedures.

i. Conservation in Perpetuity. As allowed by Alabama law, the

DESIGNATED LAND TRUST shall maintain the conveyed

property to support the biological integrity, diversity, and

environmental health of the habitat.

ii. Access. The DESIGNATED LAND TRUST shall allow periodic

access for independent research and monitoring of the spring

pygmy sunfish and its habitat in the Beaverdam Spring and Creek

Complex and undertaking of those activities listed in Section 2.3(a)

and Section 2.4(d).

iii. Use Restrictions. The use restrictions for the Conservation

Corridor shall prohibit use of the Conservation Corridor for

agricultural purposes, ranching, silviculture, mining, and other

extractive uses; shall prohibit development and other ground-

disturbing activities (except for certain limited Habitat

Enhancement Projects (Section 2.3(a)), Designated Endowment

Fund Activities (Section 2.4(d), and educational and recreational

purposes that do not degrade habitat in the Beaverdam Spring and

Creek Complex or conflict with the survival and recovery of the

spring pygmy sunfish); and shall prohibit extraction, withdrawal,

diversion, and impoundment of ground and surface water. The use

restrictions for the Conservation Corridor shall also prohibit the

use of pesticides and rodenticides, and shall prohibit the use of

herbicides and removal of timber except for reasonable habitat

maintenance purposes, including for control of invasive species.

The use restrictions for the Conservation Corridor shall also

prohibit the use of heavy equipment or machinery within the

springs, creeks, and wetlands within the Conservation Corridor and

within a 150-foot vegetated buffer zone along and around them,

except for equipment or machinery used for Habitat Enhancement

Projects (Section 2.3(a)) and Designated Endowment Fund

Activities (Section 2.4(d)) and also approved, if required, by

USFWS. The use restrictions for the Conservation Corridor shall

generally allow for activities that support the biological integrity,

diversity, and environmental health of the habitat. Notwithstanding

anything to the contrary in the Agreement, the use restrictions shall

be subject to the conditions, covenants, and restrictions (including

access and maintenance rights to facilitate the purpose and intent

thereof) set forth in certain utility easements and/or other

encumbrances that were executed and recorded in the Probate

Records of Limestone County, Alabama, prior to the date of this

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Agreement, and which shall govern over any conflicting use

restrictions set forth in Section 2.2(a).

iv. Timing. Within sixty (60) days of the Effective Date, MTMUS will

provide the Conservation Groups with a Proposed Schedule for

conveying those certain properties identified in Exhibit A to the

DESIGNATED LAND TRUST. The Proposed Schedule will also

list those additional action items, consistent with the

DESIGNATED LAND TRUST’S policies and procedures, that

must be completed (with corresponding timelines) in order for the

DESIGNATED LAND TRUST to accept new parcels into its

program. MTMUS shall ensure the properties identified in

Exhibit A are conveyed to the DESIGNATED LAND TRUST as

expeditiously as possible consistent with the DESIGNATED

LAND TRUST approval process, but in any event, within eighteen

(18) months of the Effective Date of this Settlement Agreement.

2.3 Habitat Enhancement Projects and Comprehensive Monitoring Program. The

Parties have agreed to an exclusive list of habitat restoration and monitoring activities, as set

forth in Section 2.3(a)(i)-(iii) (“Habitat Enhancement Projects”) and Section 2.3(b)

(“Comprehensive Monitoring Program”), to be funded with the Habitat Enhancement Project and

Comprehensive Monitoring Program Funds in accordance with the terms of Section 2.3(c).

a. List of Habitat Enhancement Projects. Habitat Enhancement Projects shall

be limited to the items listed in Section 2.3(a)(i)-(iii).

i. Culvert Replacement and Repair Project, including any specific

associated recommendations developed in coordination with

USFWS on these activities, in and around Moss Spring Pond as

further developed and described in Section 2.3(d);

ii. Instream and/or riparian improvements or buffers in and around

Beaverdam Creek; and

iii. Measures to address sediment around Moore Branch, including but

not limited to de-channelization, rerouting, flow management

improvements, and/or restoration of riparian buffers or natural

features.

b. Comprehensive Monitoring Program. MTMUS agrees to retain a

monitoring plan consultant to undertake the Comprehensive Monitoring

Program as described in Exhibit B, attached hereto and incorporated

herein.

i. Purpose, Goals, and Objectives. As set forth in Exhibit B, the

purpose of the Comprehensive Monitoring Plan is to detect and

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record changes in the status of the spring pygmy sunfish and its

habitat over time.

ii. Scope of Monitoring. The scope of the Comprehensive Monitoring

Program to monitor the spring pygmy sunfish and its habitat in the

Beaverdam Spring and Creek Complex is as set forth in Exhibit B,

attached hereto and incorporated herein.

iii. Annual Reporting. The monitoring plan consultant shall issue

Annual Reports from the Comprehensive Monitoring Program,

which MTMUS shall provide to the Scientific Committee

described in Section 2.4(a) within thirty (30) days of issuance, as

more fully described in Exhibit B. The annual report will

quantitatively provide the sampling results for both the species and

the aquatic sampling parameters collected, and describe any

Deviation (as defined in Section 2.4.3 of the Comprehensive

Monitoring Plan, Exhibit B).

iv. Duration of Monitoring. The term of the Comprehensive

Monitoring Plan as described in Exhibit B shall be for a period of

five (5) years (“CMP Term”). After the expiration of the CMP

Term, MTMUS will conduct monitoring activities with respect to

the spring pygmy sunfish in the Beaverdam Spring and Creek

Complex until the earlier occurrence of either of the following

events: (1) the termination of the PROJECT, or (2) the spring

pygmy sunfish is no longer subject to the protections of the

Endangered Species Act; provided, however, the scope of such

monitoring activities may be different from the scope of the

Comprehensive Monitoring Plan (Exhibit B) depending on the

data collected from the monitoring activities and the advice and

recommendations of the monitoring plan consultant.

c. Funding. MTMUS agrees to fund the Habitat Enhancement Projects set

forth in Section 2.3(a) and the Comprehensive Monitoring Program set

forth in Section 2.3(b) in a total amount up to, but not to exceed, Two

Million Dollars ($2,000,000.00) (“Habitat Enhancement Projects and

Comprehensive Monitoring Program Funds”). MTMUS shall fund the

Habitat Enhancement Projects and Comprehensive Monitoring Program

with the Habitat Enhancement Projects and Comprehensive Monitoring

Program Funds, only as follows:

i. The Habitat Enhancement Project and Comprehensive Monitoring

Program Funds shall first be used to undertake and fund the

Habitat Enhancement Project listed in Section 2.3(a)(i) and the

Comprehensive Monitoring Program described in Section 2.3(b).

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ii. Any funds that remain from the Habitat Enhancement Project and

Comprehensive Monitoring Program Funds after allocating the

costs associated with the Habitat Enhancement Project listed in

Section 2.3(a)(i) and the Comprehensive Monitoring Program

described in Section 2.3(b) shall be used to undertake any of the

remaining Habitat Enhancement Projects listed in Sections

2.3(a)(ii)-(iii), provided that MTMUS obtains a corresponding

scope of work with fixed cost pricing that further describes the

Habitat Enhancement Project to be undertaken and the associated

cost.

iii. Any funds that remain from the Habitat Enhancement Project and

Comprehensive Monitoring Program Funds after allocating the

costs associated with the Habitat Enhancement Project listed in

Section 2.3(a)(i), the Comprehensive Monitoring Program

described in Section 2.3(b), and the Habitat Enhancement Projects

listed in Sections 2.3(a)(ii)-(iii), may be used to undertake

Adaptive Management and Corrective Measures as set forth in

Section 2.5, if necessary.

iv. When the Two Million Dollar ($2,000,000.00) Habitat

Enhancement Project and Comprehensive Monitoring Program

Funds have been spent, no further Habitat Enhancement Projects

shall be required to be funded by MTMUS or any Toyota Entities

or Mazda Entities. Notwithstanding the foregoing, and after the

expiration of the 5-year Comprehensive Monitoring Program,

MTMUS will conduct monitoring activities subject to and in

accordance with the terms and conditions set forth in Section

2.3(b)(iv).

d. Timing. Within one hundred and fifty (150) days of the Effective Date,

MTMUS will provide the Conservation Groups with the work plan,

schedule, and scope of work and cost estimate for completing the Habitat

Enhancement Projects, including any USFWS and/or other agency

involvement, assistance, funding, and/or regulatory or permitting

requirements (including any Endangered Species Act Section 7

consultation). The Schedule will also list those additional action items,

consistent with these regulatory requirements, policies, and procedures,

that must be completed (with corresponding timelines) in order to proceed

and complete the Habitat Enhancement Projects. The Schedule will also

allow for additional funding, involvement, and assistance to be secured

from USFWS, to the extent available, consistent with USFWS policies and

procedures. The Parties understand and agree that any specific plans may

be subject to and required to be modified as the USFWS process

progresses, and the Parties agree to share information and cooperatively

work to advance the Habitat Enhancement Projects in the most expeditious

manner given regulatory requirements and the transfer of the property.

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2.4 Endowment Fund. Within one hundred and twenty (120) days of the Effective

Date, MTMUS (and any other Toyota Entities and Mazda Entities that may contribute) will

establish and make a combined contribution of a total of Four Million Dollars ($4,000,000.00) to

an Endowment Fund to be used for the purpose of protecting the spring pygmy sunfish and

restoring its habitat through certain mitigation, enhancement, research, and restorative activities

(“Endowment Fund”), which activities are expressly listed in Section 2.4(d) (“Designated

Endowment Fund Activities”). The Endowment Fund shall be a designated restricted account

held and managed by a DESIGNATED ENDOWMENT FUND ENTITY to be held and

maintained separately from other DESIGNATED ENDOWMENT FUND ENTITY endowment

accounts. A designated Fund Administrator shall be the responsible for administering the

Endowment Fund account.

a. Scientific Committee. The Scientific Committee shall be comprised of

three (3) members designated by the Conservation Groups, three (3)

members designated by MTMUS, and one (1) neutral committee seat to be

held by an Alabama Forever Wild Land Trust Board Member who is also

a university professor specializing in biology, ecology, zoology,

conservation, or similar relevant field who is mutually agreed upon by the

Parties, for a total of seven (7) committee seats. The committee members

shall be volunteer(s), non-compensated, and have relevant scientific,

technical, and/or regulatory expertise as determined in the discretion of

MTMUS or the Conservation Groups, as applicable. Reasonable

expenses for travel, lodging, and meals connected with periodic meetings

incurred by members of the Scientific Committee shall be paid by the

Endowment Fund. The Scientific Committee shall advise on identifying

mitigation, enhancement, and restorative activities for the spring pygmy

sunfish and its habitat, and shall make recommendations to the

DESIGNATED ENDOWMENT FUND ENTITY for Designated

Endowment Fund Activities to be selected for funding through the

Endowment Fund, consistent with the procedural steps set forth within the

Endowment Governance Guidelines created pursuant to Section 2.4(c).

b. Administration. The Endowment Fund shall be invested with the goal of

funding the activities set forth in Section 2.4(d). Only the annual net

income earned by the Endowment Fund will be available to fund the

activities set forth in Section 2.4(d), and the principal of the Endowment

Fund shall not be withdrawn to fund the activities set forth in Section

2.4(d) except as follows: the principal of the Endowment Fund may be

used to fund the activities set forth in Section 2.4(d) only if the following

two conditions are met: (1) it is the unanimous recommendation of the

Scientific Committee that (2) funding from the principal of the

Endowment Fund is necessary for an urgent situation in which the

immediate use of such funds is necessary to (A) take actions to protect the

spring pygmy sunfish and its habitat, as identified by the Comprehensive

Monitoring Plan or otherwise, or (B) achieve delisting of the spring

pygmy sunfish.

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c. Endowment Governance Guidelines. Within ninety (90) days of the

Effective Date, the Parties shall develop the Endowment Governance

Guidelines to: (i) define the stated goals and purposes of the Endowment

Fund; (ii) identify the designated members of the Scientific Committee in

accordance with the terms of Section 2.4(a) (and the procedures for

membership change or replacement, as needed); (iii) list the Designated

Endowment Fund Activities set forth in Section 2.4(d); (iv) describe the

procedural steps by which the Scientific Committee shall recommend

Designated Endowment Fund Activities to the DESIGNATED

ENDOWMENT FUND ENTITY for approval and implementation; (v)

adopt an annual spending policy for the Endowment Fund; (vi) establish

an annual reporting requirement for the DESIGNATED ENDOWMENT

FUND ENTITY; and (vii) describe the procedural steps required to

remove and replace the Designated Land Trust or, in the event the

Designated Land Trust ceases to exist, to appoint a successor qualified

charitable organization to maintain the Endowment Fund. In instances

where actions are to be taken or recommendations by the Scientific

Committee to the DESIGNATED ENDOWMENT FUND ENTITY, such

actions or recommendations will be made by a super-majority rule (e.g.,

five out of seven votes). To the extent there is any challenge to a

recommendation by the Scientific Committee or decision by the

DESIGNATED ENDOWMENT FUND ENTITY, the Parties agree to

mutually defend that decision or recommendation.

d. Designated Endowment Fund Activities. The exclusive list of Designated

Endowment Activities that are eligible to be funded by the Endowment

Fund are as follows:

i. Captive fish propagation efforts and activities for the spring pygmy

sunfish;

ii. Enhancement and improvements to riparian habitat of the spring

pygmy sunfish;

iii. Land and water conservation measures for the purpose of

protecting spring pygmy sunfish habitat;

iv. Reintroduction of spring pygmy sunfish to those areas identified as

habitat for the species;

v. Additional monitoring and spring pygmy sunfish research

activities; and

vi. Expenses specifically referenced in Section 2.4.

Any such Designated Endowment Fund Activities to be recommended by

the Scientific Committee and approved by the DESIGNATED

ENDOWMENT FUND ENTITY for funding from the Endowment Fund

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must be consistent with and follow the procedures prescribed by the

Endowment Governance Guidelines.

e. The establishment of the Endowment Fund shall be subject to the

DESIGNATED ENDOWMENT FUND ENTITY’s bylaws, policies, and

procedures, and other applicable governing documents.

f. Endowment Fund Fees and Expenses. All reasonable fees and expenses

incurred by the DESIGNATED ENDOWMENT FUND ENTITY or Fund

Administrator associated with administering the Endowment Fund shall be

paid by and satisfied from the Endowment Fund in accordance with the

Endowment Fund’s Fee Schedule.

g. No Further Contributions. After MTMUS and any other Toyota Entities

and Mazda Entities have made the combined contribution of the total of

Four Million Dollars ($4,000,000.00) to the Endowment Fund, no further

contributions to the Endowment Fund shall be made by MTMUS or any

Toyota Entities or Mazda Entities.

2.5 Adaptive Management and Corrective Measures. In the event that the monitoring

plan consultant identifies: (i) a Deviation as set forth in Section 2.4.3 (“Analysis”) of the

Comprehensive Monitoring Plan (Exhibit B) that, in the monitoring plan consultant’s

professional judgment, causes a significant adverse impact to the relevant habitat conditions for

the spring pygmy sunfish (“Significant Adverse Impact”), or (ii) prior to the completion of the

baseline condition dataset as set forth in Section 2.4.3 (“Analysis”) of the Comprehensive

Monitoring Plan (Exhibit B), a condition that in the monitoring plan consultant’s professional

judgment causes a Significant Adverse Impact to the relevant habitat conditions for the spring

pygmy sunfish ((i) and (ii) collectively, “Diversion”), MTMUS shall notify the Scientific

Committee within fourteen (14) days of such identification. When determining whether a

Significant Adverse Impact to the relevant habitat conditions for the spring pygmy sunfish has

occurred, the monitoring plan consultant shall consider relevant baseline conditions and other

relevant scientific data (including, but not limited to, as applicable, the relevant essential

attributes and water quality ranges generally identified by USFWS). In the event the monitoring

plan consultant identifies a Diversion, the monitoring plan consultant shall investigate the cause

or source of the Diversion and report the consultant’s findings and observations to the Scientific

Committee within thirty (30) days of investigating the cause or source of the Diversion. If the

monitoring plan consultant determines that such Diversion has been caused by the PROJECT,

MTMUS commits to implement necessary Corrective Measures, which may include, but not be

limited to: (i) adapting its management processes as necessary to address the causes of such

Diversion at the PROJECT SITE; and/or (ii) habitat restoration measures in the Conservation

Corridor or mitigation through enhancement or preservation of comparable spring pygmy sunfish

habitat to the extent the Diversion resulted in irreversible physical impacts to the habitat that are

not otherwise addressed by or through government permits, authorizations, or enforcement ((i)

and (ii) collectively, “Corrective Measures”). Such Corrective Measures shall be commensurate

with the design and impact to the PROJECT, the scope of the Diversion, and any government

permits, authorizations, or enforcement associated with the PROJECT. In developing such

Corrective Measures, MTMUS will review with and seek input from the Scientific Committee on

13

any Corrective Measures to be implemented; provided, however, MTMUS shall determine, in its

reasonable discretion, any final Corrective Measures to be implemented and shall report to the

Scientific Committee those Corrective Measures implemented by MTMUS. Within thirty (30)

days of implementing any Corrective Measures, MTMUS shall provide a report to the Scientific

Committee summarizing the final details of such Corrective Measures implemented to address

the Diversion. In instances where the PROJECT is determined to have caused the Diversion, and

without limiting MTMUS’s commitment to adaptive management and Corrective Measures, to

the extent funds remain to be allocated pursuant to Section 2.3, such funds may be used for the

costs associated with the Corrective Measures described above.

3.0 In the event the Parties are unable to cause the taking of certain actions by third parties as

contemplated by this Settlement Agreement, then the Parties agree to work together in good faith

to find an alternative.

4.0 No Admission. The Parties acknowledge and agree that the Parties do not now admit,

and have not at any time heretofore admitted, any liability whatsoever on the part of any person,

organization, company, association, or entity for any claims whatsoever. This Settlement

Agreement is not and shall not be construed as an admission of liability by any Party, and may

not be used by any Party, person, or entity as evidence of any liability, fact, responsibility, fault,

waiver of any right or defense, or an estoppel against any Party.

5.0 Joint Messaging and Press-Release Information. Both Parties recognize that the

Settlement Agreement and underlying terms and activities provide a unique and positive

opportunity for the Parties to present information about the conservation, preservation, and

enhancement of the spring pygmy sunfish and its habitat through the collaborative efforts of the

Parties. As such, the Parties agree that all public statements and comments made by each Party in

connection with the SIXTY-DAY NOTICE OF INTENT TO SUE LETTERS, the Settlement

Agreement and its underlying terms and obligations, or respecting the Parties shall be consistent

with the joint messaging developed by designated representatives of each organization, which is

attached hereto as Exhibit C.

The Parties’ goal is to move forward with a collaborative approach to environmental protection

and preservation, and to that end, will look for shared opportunities to highlight the work of the

Parties in conservation of the spring pygmy sunfish and the Parties’ shared commitments to

environmental and species protection. Within sixty (60) days of the Effective Date, the Parties

will designate representatives to work together on shared approaches to communications and

messaging regarding the conservation efforts underway, and the Parties agree to work

collaboratively to highlight and advance the Parties’ shared efforts.

The Parties acknowledge that prior to the Effective Date, the Conservation Groups actively

opposed the PROJECT and, in so doing, the Conservation Groups have made public statements

of their opposition that continue to exist on their internet websites and social media accounts.

Notwithstanding anything else in this Settlement Agreement, such statements and content on

social media pages and websites made prior to the Effective Date shall not be deemed to violate

this Settlement Agreement, provided the Conservation Groups do not re-issue or recirculate such

14

statements, even if after the Effective Date they continue to exist and to be publicly accessible on

the Conservation Groups’ websites and social media.

6.0 Confidentiality. The Parties acknowledge and agree that any documents, information,

communications, or terms provided in furtherance of settlement shall not be disclosed in any

respect to any third party and shall remain confidential, and that such confidentiality was a

material inducement for the Parties to enter into this Settlement Agreement; provided, however,

that the RELEASEES may discuss Conservation Corridor, Habitat Enhancement Project and

Comprehensive Monitoring Plan, and Endowment Fund matters with the City of Huntsville,

State of Alabama, USFWS, U.S. Army Corps of Engineers and/or other regulators, certain land

trusts and potential stakeholders in furtherance of carrying forward their duties and obligations

set forth within the Settlement Agreement (collectively, “Confidential Information”). The Parties

agree that this Settlement Agreement, and all exhibits thereto, are not Confidential Information.

Each Party agrees that all Confidential Information received from or exchanged with the other

Party, from counsel of the other Party or by or between counsel, or from other consultants, shall

be held in strict confidence by the receiving Party, and that such Confidential Information is

being provided subject to Rule 408 of the Federal Rules of Evidence and shall not be admissible

in any court of law and is solely being provided to carry out the purposes of this Settlement

Agreement. The Parties acknowledge that MTMUS, Toyota Entities, or Mazda Entities may be

obligated to disclose the identity of the Endowment Fund by operation of law or to the extent

necessary for authorization of payment, tax, auditing, and other financial and accounting

purposes and that such disclosures shall not be in violation of this Paragraph.

The Parties acknowledge that a breach by any Party (and/or any representative, agent or

administrator) of any term or provision of this Settlement Agreement would constitute a material

breach that would cause irreparable injury and loss to the non-breaching Party, the exact amount

of which will be impossible to ascertain. In such event, in addition to all other remedies available

to the non-breaching Party at law and/or in equity, the non-breaching Party shall also be entitled

to injunctive (temporary and permanent) or other equitable relief, without posting bond or other

security, to enforce the provisions of this Settlement Agreement. Such remedies will not be the

exclusive remedies for any breach of this Settlement Agreement, but will be in addition to all

other remedies available at law or equity to such party, including damages.

7.0 Inadmissibility. Neither this Settlement Agreement nor any of the negotiations leading to

this Settlement Agreement shall be admissible in any court of law, administrative proceeding,

arbitration, mediation, or other legal proceeding for any purpose other than to enforce its terms.

8.0 General Release. RELEASORS acknowledge and agree that the conditions set forth in

Section 1.0 of the Settlement Agreement are general releases and further expressly waive and

assume the risk of any and all CLAIMS for DAMAGES that exist as of this date but that

RELEASORS do not know or suspect to exist, whether through ignorance, oversight, error,

negligence, or otherwise, and which, if known, would materially affect their decision to enter

into this Settlement Agreement.

15

9.0 Survival. The representations, warranties, and covenants contained herein are and will be

deemed and construed to be continuing representations, warranties, and covenants, and will

survive the dates of execution of this Settlement Agreement.

10.0 Advice of Counsel; Representation of Comprehension of Settlement Agreement;

Attorney’s Fees and Costs. No Party, or representative, or counsel for any Party, has acted as

counsel for any other Party with respect to such Party entering into this Settlement Agreement.

The Parties hereto further warrant and represent, each to the other, that the Parties, through their

respective counsel, have negotiated this Settlement Agreement and that each Party has

voluntarily executed it after consulting with counsel of its own choosing. In entering into this

Settlement Agreement, RELEASORS represent that they have relied on the advice of

RELEASORS’ attorneys, who are the attorneys of their own choosing, concerning the legal

consequences of this Settlement Agreement; that the terms of this Settlement Agreement have

been completely read and explained to RELEASORS by RELEASORS’ attorneys; and that the

terms of this Settlement Agreement are fully understood and voluntarily accepted by

RELEASORS. Except as set forth in Section 15.0, each Party shall bear all attorney’s fees and

costs arising from the actions of its own counsel or consultants in connection with the SIXTY-

DAY NOTICE OF INTENT TO SUE LETTERS, this Settlement Agreement, and all matters or

documents referred to herein.

11.0 Effective Date. This Settlement Agreement will become effective on December 18, 2018

(“Effective Date”).

12.0 Force Majeure. Neither Party hereto shall be liable for its failure to perform or delays in

performance due to contingencies beyond its reasonable control, including strikes, work

stoppages, labor supply problems, riots, wars, or acts of God or nature, but not including

predictable weather events and circumstances attributable to a breach of this Settlement

Agreement, provided however that a Party claiming excuse from performance or delay in

performance by reason of any such occurrence shall give the other Party prompt notice in writing

of the occurrence, shall use its commercially reasonable efforts to remove or mitigate the effects

of any such occurrence, and shall promptly continue performance under this Settlement

Agreement whenever such causes are removed.

13.0 Notices. All Notices given pursuant to this Settlement Agreement must be in writing and

delivered by personal service, by express delivery courier who maintains written verification of

actual delivery, or by United States express mail (with delivery confirmation), or by certified

mail (return receipt requested) and addressed as follows:

If to the Conservation Groups:

D. Noah Greenwald

Endangered Species Program Director

Center for Biological Diversity

P.O. Box 11374

Portland, OR 97211-0374

[email protected]

16

David Whiteside

Executive Director

Tennessee Riverkeeper

P.O. Box 2594

Decatur, AL 35602

[email protected]

With a copy to:

Elise Bennett

Staff Attorney

Center for Biological Diversity

P.O. Box 2155

St. Petersburg, FL 33731-2155

727-755-6950

[email protected]

If to MTMUS:

Prior to 1/1/19:

Mark Brazeal

Attn: Vice President – Administration and Secretary, Mazda

Toyota Manufacturing, U.S.A., Inc.

Toyota Motor Manufacturing, Alabama, Inc.

1 Cottonvalley Drive

Huntsville, AL 35810

[email protected]

After 1/1/19:

Mark Brazeal

Attn: Vice President – Administration and Secretary, Mazda

Toyota Manufacturing, U.S.A., Inc.

5000 Bradford Drive

Suite 401

Huntsville, AL 35805

With a copy to:

D. Bart Turner, Esq.

Kazmarek Mowrey Cloud Laseter LLP

3008 7th Avenue South

Birmingham, AL 35233

205-767-8870

[email protected]

17

The person and address to which notices are to be given may be changed at any time by one

Party upon written notice to the other Party. All notices given pursuant to this Settlement

Agreement shall be deemed given upon receipt. For the purpose of this Settlement Agreement,

the term “receipt” shall mean the earlier of any of the following: (i) the date of delivery of the

notice to the address specified in Section 13.0 as shown on the return receipt or delivery

confirmation; (ii) the date of actual receipt of the notice by the person or entity specified

pursuant to Section 13.0; (iii) in the case of refusal to accept delivery or inability to deliver the

notice, the earlier of: (A) the date of the attempted delivery or refusal to accept delivery; (B) the

date of the postmark on the return receipt; or (C) the date of receipt of notice of refusal or notice

of nondelivery by the sending Party.

14.0 Severability. If any part of this Settlement Agreement is held to be invalid or

unenforceable in any proceeding, such invalidity or unenforceability shall not affect the other

parts of this Settlement Agreement, if the rights and obligations of the Parties contained herein

are not materially prejudiced and if the intentions of the Parties can be affected. To that end, this

Settlement Agreement is declared severable. In the event any part of this Settlement Agreement

is held to be invalid or unenforceable and a Party claims that it has been deprived of a benefit

without which it would not have agreed to this Settlement Agreement, that Party may use the

Disputes and Remedies procedures set forth in Section 15.0 of this Settlement Agreement.

15.0 Disputes and Remedies. If a dispute arises with respect to the exercise of any right or

performance or nonperformance of any obligation under this Settlement Agreement the Party

alleging breach shall send the other Party written notice that a dispute exists describing the

substance of the dispute in reasonable detail (a “Dispute Notice”). Within fifteen (15) days after

the service by any Party of a Dispute Notice, the Parties will meet and confer, either in person or

by telephone, in an effort to informally resolve any such disputes. If the Parties cannot

informally resolve such disputes within fifteen (15) days after the initial meeting or such other

date as may be agreed upon by the Parties, then the Parties will agree to participate in non-

binding mediation and shall agree to engage a mediator mutually agreeable to both Parties. To

the extent the Parties are not able to resolve the dispute through mediation, the Parties shall agree

to resolve the dispute through binding arbitration in accordance with the Commercial Arbitration

Rules of the American Arbitration Association. The costs of the arbitration, including fees and

expenses of the arbitrators and of the American Arbitration Association, and the legal fees and

expenses incurred by the Parties in prosecuting or defending any claim that is subject of

arbitration, shall be allocated to such Parties as, and in such proportions as, the arbitrators shall

determine to be just and equitable, which determination shall be set forth in the award. Judgment

upon the award of the arbitrators may be entered by any court of competent jurisdiction.

16.0 Governing Law. The laws of the State of Alabama shall govern the enforcement,

construction, and interpretation of the provisions of this Settlement Agreement, without regard to

conflict of laws provisions.

17.0 Counterparts. This Settlement Agreement may be executed in two or more counterparts,

each of which shall be deemed an original, but all of which together constitute one and the same

instrument.

18

18.0 Cooperation. The parties agree to cooperate fully to execute any and all supplementary

documents and to take all additional action that may be necessary or appropriate to give full

force and effect to the terms and intent of this Settlement Agreement.

19.0 Electronic Signatures. Electronic signatures, including signature pages transmitted via

facsimile and/or email, are binding upon all Parties and deemed as originals.

20.0 Nature of Settlement Agreement. Nothing herein may be deemed to create a partnership

or joint venture and/or principal and agent relationship between or among the Parties.

21.0 No Construction Against Drafters. The parties agree that this Settlement Agreement is a

product of draftsmanship by all sides, and the rule of interpreting an agreement against a drafting

party does not apply. The Settlement Agreement should be interpreted consistent with the policy

of finality of settlements and ending any and all litigation, including pursuit of CLAIMS. No

provision of this Settlement Agreement shall be construed against or interpreted to the

disadvantage of any Party by any court or other governmental or judicial authority by reason of

such Party’s having or being deemed to have drafted, prepared, or imposed such provision.

22.0 Entire Agreement. This Settlement Agreement contains the entire agreement between

RELEASORS and RELEASEES with respect to the matters set forth in it. The Parties further

agree that this Settlement Agreement supersedes any and all prior agreements or understandings

between the Parties, whether oral or written, pertaining to the subject matter hereof, and that the

terms hereof are contractual and not a mere recital. This Settlement Agreement cannot be

modified except in a writing signed by all original Parties to the Settlement Agreement.

23.0 Absence of Other Claims. RELEASORS represent and warrant that they have no

knowledge of other individuals or entities that have, or have had, any interest in the CLAIMS;

that RELEASORS have the sole right and exclusive authority to execute this Settlement

Agreement and obtain the actions specified in it in exchange for the Release described in Section

1.0; and that RELEASORS have not sold, assigned, transferred, conveyed, or otherwise disposed

of any of the CLAIMS.

24.0 Warranty of Capacity to Execute Settlement Agreement. Each Party represents and

warrants that each individual signing the Settlement Agreement on behalf of that Party has the

authority to sign on behalf of the entity for which they have acted as signatory.

RELEASOR - CENTER FOR BIOLOGICAL DIVERSITY

DATED:/l/l'\ ,2018 David Noah' Greenwald Endangered Species Program Director, Center for Biological Diversity

STATE OF ......o'"r_~."....r:O_,.._____) ( ) ss.

COUNTY OF 8\Nt '\-... ~ )

On ~br \"\ , 2018, before me, tl,lv (h....,... AJews , a Notary Public in and for said State, personally appeared David Noah G~nwald who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his individual and authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.

I certify under penalty of perjury under the laws of the State of {J)f<.l~ that the foregoing paragraph is true and correct. \OJ

WITNESS my hand and official seal.

Notary Signature_4-1-.>..<..+= ________ (Seal)

My Commission Expires:

19

Page 2 of 3

EXHIBIT B

EXHIBIT B

EXHIBIT B

EXHIBIT B

EXHIBIT B

Source: Project boun dary provided by TEMA, 2018-08-07. Recharge area approxim ated by BDA, 2018-09-04

BN • 10/29/2018 • P:\ATG\2018040\Perm it_U se\REPORTGRAPHICS_201810\ARCGIS\Aerial_A.m xd

V ICINITY MAP FOR THE HUNTSV ILLE PROJECT,LIMESTONE COUNTY, ALABAMA

FIGURE 1 BDA330 W. Canton Ave., Winter Park, FL 32789 • 407-677-1882

Environmental Consultants& ASSOCIATES, INC.BREEDLOVE, DENNIS

0 2,500 5,000Feet

1 in ch = 5,000 feet

LegendProject Boun dary

EXHIBIT B

Source: Project boun dary provided by T EMA, 2018-08-07. Recharge area approxim ated by BDA, 2018-09-04

BN • 10/29/2018 • P:\AT G\2018040\Perm it_Use\REPORT GRAPHICS_201810\ARCGIS\Con servation Corridor_A.m xd

PROPOSED CONSERVATION CORRIDOR FOR THE HU NTSVILLE PROJECT,LIMESTONE COU NTY, ALABAMA

FIGU RE 2 BDA330 W. Canton Av e., Winter Park, FL 32789 • 407-677-1882

Environmental Consultants& ASSOCIATES, INC.BREEDLOVE, DENNIS

0 1,500 3,000Feet

1 in ch = 3,000 feet

LegendProject Boun daryProposed Con servation Corridor

EXHIBIT B

EXHIBIT B

EXHIBIT B

EXHIBIT B

Sou rce: Projec t bou ndary provid ed by TEMA, 2018-08-07. R ec h arg e area approxim ated by BDA, 2018-09-04

BN • 10/29/2018 • P:\ATG\2018040\Perm it_Use\R EPOR TGR APHICS_201810\AR CGIS\Environm entalMonitoring _A.m xd

HU NTSVILLE PROJECT - COMPREHENSIVE ENVIRONMENTAL MONITORING PLAN,LIMESTONE COU NTY, ALABAMA

FIGU RE 4 BDA330 W. Can ton Ave., Win ter Park, FL 32789 • 407-677-1882

Environmental Consultants& ASSOCIATES, INC.BREEDLOVE, DENNIS

0 2,500 5,000Feet

1 inc h = 5,000 feet

Legen dProjec t Bou nd aryProposed ConservationCorrid orBu ffer

Com prehen sive Mon itorin g Plan Elem en ts

- Land u se trac king area- R ec h arg e area g rou nd water m onitoring (P1 - P7)- Beaverdam Creek water qu ality, baseline su rvey (BD1 - BD4)- Lim estone Creek water qu ality, baseline su rvey (LC1 - LC4)

Off SiteOn Site

- Spring Pyg m y Su nfish (SPS1 - SPS8)

DRAFT

EXHIBIT B

vcl
Text Box
3

EXHIBIT B

EXHIBIT B

EXHIBIT B

EXHIBIT B

EXHIBIT B

EXHIBIT B

EXHIBIT B

EXHIBIT B

EXHIBIT B

EXHIBIT B

EXHIBIT B

EXHIBIT C

MTMUS/Center for Biological Diversity/Tennessee Riverkeeper: Joint Message

Platform

During the past few months Mazda Toyota Manufacturing, U.S.A. (“MTMUS”), Center for

Biological Diversity (“Center”), and Tennessee Riverkeeper (“TR”) have worked together

to develop plans with a singular goal of protecting the habitat of the spring pygmy sunfish.

As a result of this effort, the Parties have agreed upon specific steps that show their strong

commitment to protect the spring pygmy sunfish and its habitat.

MTMUS,and the Center and TR have reached an agreement that protects the habitat

of the spring pygmy sunfish, which lives in the Beaverdam Spring and Creek

Complex proximate to the site of the planned Toyota-Mazda automobile plant.

o The agreement protects more than 1,100 acres of the Beaverdam Spring and

Creek Complex where the sunfish lives, provides $4 million in funding to conserve

the species and its habitat, and offers other habitat enhancement and monitoring

protections.

o The land will be protected in its natural state by designated Land Trusts.

The agreement recognizes MTMUS, the Center, and TR’s shared goal of developing

a plan for protection of the sunfish, in consideration of the economic development

impact the intended project would bring to North Alabama.

o The MTMUS vehicle plant will be constructed on the “Huntsville Megasite” in

Limestone County at the intersection of Powell Road and Old Highway 20. Once

operational, the plant will have the capacity to build 300,000 vehicles per year.

o The site of the future automobile plant is directly adjacent to the Beaverdam Spring

and Creek complex, which until recently was believed to be the only remaining

spring complex occupied by the spring pygmy sunfish.

o After a recent discovery in Blackwell Swamp in Wheeler National Wildlife Refuge,

the sunfish is now known from only two locations in the world, both in northern

Alabama.

With this agreement, MTMUS has committed to protect the sunfish and the unique

spring where it survives.

o Through the agreement, MTMUS, together with Toyota and Mazda, commits a

total of $4 million in a restricted endowment fund that will provide permanent

funding for future conservation projects to benefit the spring pygmy sunfish,

including habitat restoration, captive propagation, genetic studies and

reintroduction efforts.

o In addition to the endowment, MTMUS has also allocated $2 million for habitat

restoration and monitoring projects in the Beaverdam Spring and Creek

watershed, including a project to restore the connection between Moss Spring and

the other spring heads in the Beaverdam Spring and Creek Complex.

o Importantly, the agreement does not constitute an admission of liability for any

claims by either party.

Throughout the planning and design of this project, MTMUS has worked closely

with multiple stakeholders and environmental experts, including the Center for

Biological Diversity and the Tennessee Riverkeeper, to develop a long-term

conservation strategy for the pygmy sunfish, and to ensure the necessary

protections are in place.

o MTMUS makes environmental preservation a priority and is committed to

developing the property sustainably.

o Toyota and Mazda remain focused and committed to their longstanding

environmental efforts. The protection of the sunfish and the unique spring where it

survives further reaffirms this commitment.

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