Arizona Administrative Code
Title 12 - NATURAL RESOURCES
Chapter 5 - STATE LAND DEPARTMENT
Article 8 - RIGHT-OF-WAY
Section R12-5-801 - Linear Right-of-Way
Universal Citation: AZ Admin Code R 12-5-801
Current through Register Vol. 30, No. 38, September 20, 2024
A. Rights of surface and subsurface lessees or permittees
1. The Department may grant a right-of-way
without the consent of a surface or subsurface lessee.
2. When the applicant for a right-of-way and
any existing right holder do not agree on the appraised value of damages to the
right holder, the applicant for right-of-way may apply to the Department to
appraise the value of any improvements that may be injured or damaged. The cost
of any such appraisal shall be paid by the right-of-way applicant.
3. In cases where it is necessary to cut a
fence belonging to a surface lessee or permittee or otherwise enter through a
fence, the Department may require the installation of a standard cattle guard
or other facilities by the right-of-way grantee as a condition to the granting
of the right-of-way.
B. Termination of use; abandonment
1. When a right-of-way holder is no longer
used by the grantee for which the right-of-way was granted, the right-of-way
shall be terminated.
2. The
Department may determine that a right-of-way has been abandoned or used for the
purpose granted. In such case, the Department shall give the right-of-way
grantee 30 days to show why a right-of-way should not be cancelled. I within 30
days the right-of-way grantee fails to respond, the Department may issue an
order of cancellation.
C. Right-of-way provisions.
1. Term of right-of-way. The term of the
right-of-way shall be determined by the Department and shall be set forth on
the right-of-way contract.
2. Right-of-way subject to public
auction. A right-of-way for exclusive use, perpetual in nature, or for a term
exceeding 50 years (except a right-of-way for transportation purposes granted
to governmental agencies of the state or political subdivisions and municipal
corporations thereof) shall be sold at public auction as provided under the
laws for sale of State Trust Land.
3. Possession and right of use of
right-of-way area. The right is granted for the use of the area described in
the right-of-way contract subject to any existing prior rights and subject to
any rights the Department shall grant thereafter.
4.
Provisions of the right-of-way. Every contract shall provide for:
a. Payment to the Department of the rental
amount.
b. The right to install and
construct necessary equipment and facilities with the right to remove the same
within 90 days after expiration or termination of the right-of-way.
c. The obligation of the grantee to install
and maintain fencing, gates, cattleguards, and other protective measures deemed
necessary by the Department.
d. The
obligation of the grantee to restore the surface of the land within the
right-of-way to a reasonable condition as required by the Department.
e. The obligation of the grantee to
indemnify, hold and save grantor harmless against all loss, damage, liability,
expenses, costs and charges incident to or resulting in any way from the use,
condition or occupation of the land.
f. A use provision.
g. The right of the grantee to assign the
right-of-way.
h. The right of the
grantee to terminate the right-of-way at any time during its term by giving the
Department 30 days' notice of termination in writing, if the grantee is not
delinquent in payments and has complied with all conditions on the date of
termination.
5. A
sub-grant of the right-of-way contract is prohibited.
6. Right-of-way renewal. Upon application to
the Department, not less than 30 days, nor more than 1 year prior to the
expiration of the right-of-way contract, the grantee of a right-of-way
contract, shall have a preferred right to renew the right-of-way contract if
the grantee is not delinquent in the payment of rental or of monies due the
Department on the date of expiration of the contract. The renewal right-of-way
contract shall commence on the day following the expiration of the former
contract.
7. Bonds.
a. The Department may require the grantee to
furnish bond, in a reasonable amount, to be fixed by the Commissioner,
guaranteeing that the grantee will restore the surface of the land described in
the contract to a reasonable condition, upon the termination of the
right-of-way contract.
b. The
Department may require the grantee to file with the Department a surety bond in
such form, approved by, and for such amount determined by, the Department,
which shall be conditioned upon prompt payment to the lessee of the surface,
subsurface or otherwise of the State Trust Land covered by the right-of-way. A
surety bond required under this subsection shall cover any loss to a lessee
from damage or destruction to grasses, forage, crops, and improvements upon
such lands which is caused by the construction or use of the
right-of-way.
c. Assignment of any
or all of the right-of-way contract will not relieve the assignor of his
obligation as principal under the bond. Release of the assignor's obligation
under bond may be affected through the posting of a replacement bond by the
assignee and subsequent, approval by the Department and notification of the
release by the Department in writing to the principal and surety.
d. The Department, in its discretion, may
reduce or increase the principal amount of the bond.
e. Immediately after determination by the
Department that full discharge of the conditions of the obligations under any
bond has been affected, it will notify in writing the principal and surety held
by the bond so that it may be formally terminated.
f. Surety on the bond shall have the right to
cancel the bond and be relieved of further liability after the period of
notice, by giving 30 days' notice to the Department of its desire to
cancel.
g. Upon receipt of such
notification, the Department will notify the grantee by certified mail within
14 days of the impending action by surety.
h. Failure by the grantee to post a
replacement bond before the expiration of the 30 days mentioned above, shall
constitute a default by the grantee and cause for cancellation of the
right-of-way.
8. Reports
of completed facilities and construction. A right-of-way grantee shall report
any completed facilities and construction to the Department.
Disclaimer: These regulations may not be the most recent version. Arizona may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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