New Jersey Administrative Code
Title 16 - TRANSPORTATION
Chapter 65 - TRANSPORTATION UTILITIES
Subchapter 4 - PETITIONS AND RIGHT OF FIRST REFUSAL
Section 16:65-4.6 - Right of first refusal

(a) Pursuant to the provisions of 48:12-125.1, any railroad company that makes application to the Surface Transportation Board for authority to abandon any part of its right-of-way on which passenger or freight services are operated, or to abandon, sell, or lease any of its right-of-way over which services have previously been authorized for abandonment and title to that right-of-way currently remains with the railroad shall, within 10 days of making the application, serve notice of its application upon the State and upon each county and municipality in which any part of the right-of-way proposed for abandonment, sale, or lease is located. As used in this section "right-of-way" means the roadbed of a line of railroad, not exceeding 100 feet in width, as measured horizontally at the elevation of the base of the rail, including the full embankment or excavated area, with slopes, slope ditches, retaining walls, or foundations necessary to provide a width not to exceed 100 feet at the base of the rail, but not including tracks, appurtenances, ballast, or any structures or buildings erected along the railroad line.

(b) Pursuant to the provisions of 48:12-125.2, each notice shall contain a brief description sufficient to identify the right-of-way intended to be abandoned and sold or otherwise disposed of together with a statement that the notice is given to afford the State and each county and municipality in which the right-of-way is located an opportunity to acquire the right-of-way or any portion of the right-of-way that may be required for public use.

(c) Pursuant to the provisions of 48:12-125.3, service of the notice shall be made by certified mail, return receipt requested, addressed to the Governor and the Department in the cases of service upon the State; to the director or clerk of the board of chosen freeholders, in the cases of service upon a county; and to the mayor or municipal clerk, in the cases of service upon a municipality.

(d) Pursuant to the provisions of 48:12-125.1, no sale or conveyance of any part of the right-of-way shall be made to any entity other than the State, or a county or municipality, for a period of 90 days from the date of approval by the Surface Transportation Board of the application for abandonment or from the date of service of the notice required by (a) above, whichever occurs later, unless prior to that each governmental entity entitled to notice shall have filed with the railroad company a written disclaimer of interest in acquiring all or any part of the right-of-way during the time period in which a railroad company is restricted from selling or conveying any part of a right-of-way pursuant to this section.

(e) Pursuant to the provisions of 48:12-125.1, during the period of 90 days in which a railroad company is prohibited from selling or conveying any part of a right of way pursuant to (d) above, the railroad company shall negotiate in good faith for the sale or conveyance of the right-of-way with the State, or with any municipality or county in which the right-of-way proposed for abandonment, sale, or lease is located and which expresses written interest in acquiring the right-of-way.

(f) In order for a governmental entity to exercise its right of first refusal and pursuant to the provisions of 48:12-125.1, any sale or conveyance of a right-of-way made after the expiration of the 90-day period, described in (d) above, to any entity, other than the State or a county or municipality in which any part of the right-of-way proposed for abandonment is located, shall be subject to the right of first refusal by the State, or a county or municipality, provided that the governmental entity has made an offer to purchase the right-of-way during the 90-day period that was refused by the railroad company. The governmental entity shall have no less than 90 days from either the date of receipt from the railroad company of an offer to purchase the right-of-way by an entity, other than the State, or a county or municipality, or any other contract setting forth the terms and conditions governing the sale to which this right of first refusal is applicable or the effective date of abandonment as authorized by the Surface Transportation Board, including the expiration of any stays, whichever occurs later. Upon exercising this right of first refusal, the governmental entity shall purchase the right-of-way for the same amount agreed upon between the railroad company and the entity to whom the company attempted to sell or convey the right-of-way pursuant to this section.