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2005058'75 maintenance, construction, or other contractor to obtain insurance coverage. Each party, may, if it shall elect to do so, insure its interest in personal property or structures on the Demised Land including but not limited to the Facility. 3. The United States, under the provisions of Federal law, self - insures all such exposures described therein and is financially capable of retaining these losses should they occur. If there is a liability loss under the provisions of any agreement signed by an agency of the Federal Government, a claim may be filed with the United States and, if approved, will be paid from Federal Funds. The United States retains all rights and immunities under Federal law. Subsection 8.03 Destruction of Premises. If the Facility is partially or totally destroyed or damaged, the Department, within six (6) months of the damage, shall decide whether or not to proceed with restoration. If the Department elects not to restore the property, this Agreement shall then be canceled without future obligation. If the Facility is not rebuilt, the Department shall remove all debris and improvements. The Department, in its discretion, may leave in place such items that the Authority requests be left in place and ownership shall be transferred according to law. Subsection 8.04 Environmental Impairment. 1. The Department agrees to comply with all federal, state and local environmental statutes, rules and regulations affecting its operations throughout the term of the lease (specifically including but not limited to noise - related requirements in accordance with 14 CFR Part 150 ). In the interest of public health and sanitation and welfare, and so that the Demised Land and all of the land in the same locality may be benefited by a decrease in the hazards to ground water and other pollution and by the protection of water supplies, recreation, wildlife and other public uses thereof, the Department agrees not to engage in any use of the Demised Land for any purpose that would result in the intentional pollution of the environment or any waterway or ground water that flows through, adjacent to or under the Demised Land by refuse, sewage, industrial or hazardous wastes, pollutants, chemicals or any other materials. The Department shall capture and properly dispose of all waste oil, fuel and other contaminants and shall NOT dispose of or permit the intentional discharge of any such fluids into the storm water drainage inlets. The Department shall prepare a drainage plan for the Demised Land (subject to Authority approval) and shall comply with the drainage plan. Any discharge in violation of this Agreement, federal, state, or local law, shall be IMMEDIATELY reported to the airport Executive Director. 2. Each Party shall be individually responsible for any fines, penalties, fees or costs accessed against their respective agency under this Subsection, and nothing in this agreement shall be considered an indemnity by one party of the other party for the any fines, penalties, fees, or cost accessed under this Subsection. The Department shall, if funds are appropriated and as permitted by law, complete all necessary cleanup and remediation, and pay all costs, fees, fines or other