2023 New York Laws › CAL - Canal › Article 6 - Abandonment of Canal Lands › 54 - Abandonment and Sale of Hydropower Easements; Agreements With Hydropower Developers.

§  54.  Abandonment  and sale of hydropower easements; agreements with
hydropower developers. 1. Notwithstanding  subdivision  two  of  section
three  or  section  fifty  of  the  public  lands  law or section fifty,
fifty-one or fifty-two  of  this  article,  upon  request  of  a  person
licensed  under  Part I of the Federal Power Act (16 USC § 791a-823a) to
develop and operate a hydropower project at a site on  the  barge  canal
system,  the  corporation  may  adopt  an  order abandoning a hydropower
easement in barge canal system lands and waters  which  are  within  the
boundaries of such federally licensed project, upon finding the property
rights under such easement to be no longer necessary or useful as a part
of the barge canal system, as an aid to navigation thereon, or for barge
canal  terminal  purposes.  Upon  adoption  of  such order, and with the
approval of the governor, the  corporation  may  sell  and  convey  such
easement  at  private  sale  to such licensed developer. Such hydropower
easements shall be sold for a price to be determined by the  corporation
taking into consideration the value of obligations to be assumed by such
licensed developer, the value of the rights granted to such developer to
use  canal  system  lands,  waters and facilities for hydropower project
purposes and any other appropriate factors.
2. Any hydropower easement abandoned, sold and  conveyed  pursuant  to
subdivision one of this section shall be limited as follows:
(a)  The  easement  shall  convey  only  those  rights  necessary  and
convenient for the development and generation of hydropower pursuant  to
the  provisions  of  the  applicable federal hydropower license and only
within the boundaries of the hydropower project as licensed.
(b) The easement shall be subservient  to  the  fee  retained  by  the
state.
(c) The easement shall not give the owner the right to interfere with,
either  by  act  or  omission,  the management and control by the state,
through the corporation, of the barge canal system.
(d) The easement shall provide that it shall revert to the state under
terms and conditions to be determined by the corporation  in  the  event
that  the  site ceases to be used for purposes of hydropower development
and generation.
3. The corporation may also enter into agreements with such a licensed
developer regarding  the  division  of  maintenance  responsibility  for
structures,  facilities  or  other  property which serve both hydropower
generation and barge canal system purposes and regarding  other  matters
concerning  joint operation at the site. Such agreements may provide for
the payment to the corporation of reasonable compensation  for  services
rendered  by  the  corporation  which  assist  or  otherwise further the
development of hydropower on the barge canal system.  In  addition,  the
corporation,  subject to the approval of the director of the budget, may
enter into a written agreement with a licensed developer or operator  at
any site concerning the sharing of costs for a major capital improvement
or  improvements  at such site. Should the contract for such improvement
or improvements be  let  and  awarded  by  the  corporation,  the  state
comptroller  is  authorized  to receive and accept from the developer or
operator, the sum or sums specified in such agreement  and  to  disburse
the  same  along  with  state funds appropriated for the purpose of such
capital improvement or improvements.
4. Any revenue realized from the sale or lease of hydropower easements
shall be deposited into the canal fund.