Texas Administrative Code › Title 43 - TRANSPORTATION › Part 1 - TEXAS DEPARTMENT OF TRANSPORTATION › Chapter 21 - RIGHT OF WAY › Subchapter R - LEASING OF RIGHT OF WAY TO SALTWATER PIPELINE OPERATORS › Section 21.965 - Lease Agreement

Current through Reg. 49, No. 28; July 12, 2024
(a) A lease under
				  this subchapter must be in writing, be executed by the director, and contain
				  the terms specified in this section.
(b) The department may not execute a lease
				  that would impair or relinquish the state's right to use the property when
				  needed to construct or improve the highway facility for which it was
				  acquired.
(c) If the proposed
				  saltwater pipeline facility operator does not obtain all required governmental
				  approvals or permits throughout the term of lease, the department will
				  terminate the lease.
(d) The lease
				  must contain:
(1) information necessary for
				  the department to contact the lessee;
(2) the amount of rent, any required
				  deposits, the term of the lease and the method of payment of rental amounts;
(3) a detailed description of the
				  premises, including engineering plans of the proposed as-built saltwater
				  pipeline facility;
(4) a
				  description of the authorized use of the premises;
(5) a statement that any significant revision
				  in the design of the saltwater pipeline facility is subject to prior written
				  approval by the district administrator;
(6) a statement that the department has the
				  right to approve all construction and plans for construction on the premises;
(7) permission for the employees
				  and authorized representatives of the department to enter the premises for the
				  inspection, maintenance, or reconstruction of highway facilities or for
				  determining compliance with the terms of the lease;
(8) a requirement that lessee maintain, at
				  its sole expense, the saltwater pipeline facility located within the premises
				  in good condition, both as to safety and appearance, and a representation that
				  the required maintenance of the saltwater pipeline facility will not interfere
				  with the highway facilities or the highway use;
(9) a statement that if the district
				  administrator determines that the lessee has failed in its maintenance
				  obligation, the department has the right to enter the premises to perform, at
				  the expense and liability of the lessee, the work required for compliance;
(10) a statement that on breach of
				  the lease by lessee, lessee:
(A) forfeits any
				  deposits under the lease;
(B) shall
				  pay the department for all expenses incurred by the department due to lessee's
				  failure to comply with the terms of the lease, including all of its litigation
				  costs;
(11) a
				  requirement that the lessee provide a security bond not to exceed six months
				  rental under the lease, as provided under Transportation Code, §
											202.053;
(12) a requirement that lessee provide a
				  removal bond in an amount equal to the anticipated future cost of removing any
				  saltwater pipeline facilities and appurtenances, as well as the restoration and
				  mitigation of the right of way to a suitable and safe, pre-lease condition,
				  based on a removal, restoration, and mitigation plan approved by the
				  department;
(13) a requirement that
				  the lessee provide, and maintain at all times during the term of the lease, at
				  lessee's sole expense, adequate public liability insurance for the premises,
				  the conduct of lessee's business, and lessee's indemnification obligations to
				  the department set forth in the lease, naming the department as an additional
				  insured and including other endorsements as determined to be necessary by the
				  department, in an amount and form acceptable to the department for the payment
				  of any damage occurring to the right of way, the highway facilities and
				  appurtenances and for the payment to the public for personal injury, loss of
				  life, or property damage that may occur;
(14) a statement that the lease may be
				  terminated as provided by §
											21.967 of
				  this subchapter (relating to Termination of Lease);
(15) a statement that neither the lease nor
				  the premises shall be transferred, assigned, or conveyed to another party
				  without prior written approval of the district administrator;
(16) a statement that the lessee shall keep
				  the lease and any improvements on the premises free of all liens and may not
				  use the lease or such an improvement as security for any loan, except that the
				  department may allow the lessee to mortgage or otherwise pledge or grant a
				  security interest in the leasehold interest to secure financing for the
				  acquisition of the leasehold or for the construction and operation of the
				  saltwater pipeline facility permitted under the lease, subject to the terms of
				  the lease;
(17) a statement that
				  the lessee is responsible for compliance with all federal, state, and local
				  environmental laws and regulations, including obtaining any required permits or
				  approvals by third parties or governmental entities;
(18) a statement that the lessee assumes all
				  risks of loss resulting from the lease and indemnifies the department for any
				  claims and losses related to the lease;
(19) a description of applicable
				  nondiscrimination requirements;
(20) a requirement that the lessee promptly
				  restore the highway facilities and any associated facilities in the right of
				  way to their former condition of usefulness after the installation or
				  maintenance of the saltwater pipeline facility is complete; and
(21) any other provisions that the department
				  considers desirable.