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This entry was published on 2014-09-22
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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

(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.