LEASE OF PROPERTY, NAVAL SHIPYARD, VALLEJO, CALIFORNIA.

SEC. 2841. LEASE OF PROPERTY, NAVAL SHIPYARD, VALLEJO, CALIFORNIA. (a) Lease Authorized.— The Secretary of the Navy may lease, without consideration, to the City of Vallejo, California (in this section referred to as the “City”), the real property (including improvements thereon) described in subsection (b), which is located on Mare Island in Vallejo, California, and is currently under the control of Mare Island Naval Shipyard Command. (b) Covered Property.— The parcel of real property to be leased under subsection (a) shall consist of all existing active dredge ponds and nontidal areas on Mare Island under the jurisdiction of the Navy, except that the parcel shall not include the nontidal areas identified in figure 3 of the Memorandum of Understanding between the United States Fish and Wildlife Service and Mare Island Naval Shipyard, dated July 28, 1988. (c) Lease Terms.— The lease authorized under subsection (a)— (1) may be for a period of not more than 15 years; and (2) shall provide that the City— (A) retain environmental responsibility for all actions of the City on the property subject to the lease; and (B) hold harmless, indemnify, and defend the United States from and against any suit, claim, demand or action, liability, judgment, cost or other fee arising out of any claim for injury or damage that results from, or is in any manner predicated upon activities of the City on the leased property during the term of the lease. (d) Additional Terms and Conditions.— The Secretary may require such additional terms and conditions in connection with the lease under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.