Ala. Admin. Code r. 220-4-.02
Current through Register Vol. 43, No. 1, October 31, 2024
Section 220-4-.02 - Pipeline Right-Of-Way Contracts - Submerged Lands(1) Any person, firm or corporation desiring a right-of-way for submerged pipeline construction purposes across state-owned water bottoms under the jurisdiction of the Department of Conservation and Natural Resources shall make application to the Commissioner of Conservation and Natural Resources by submitting a completely executed application on the form provided by the State Lands Division. Any right-of-way granted hereunder shall be on a non-exclusive basis. (a) The application shall include all of the following unless specifically waived by the Commissioner: 1. The name, address, and telephone number of the person, firm or corporation desiring the right-of-way.2. A description of the size and purpose of the proposed pipeline, including product to be transported or equipment to be contained therein.3. An adequate description of the land through which the pipeline is to be constructed.4. A statement of the term for which the subject right-of-way contract is desired.5. The length, in rods, of the proposed pipeline.6. The width, in feet, of the proposed right-of-way both during construction and after construction.7. The consideration proposed to be paid for the use of the state lands in accordance with the rate schedule hereinafter prescribed.8. A nonrefundable $250.00 filing fee per right-of-way contract, or renewal thereof, made payable to the Division of State Lands.9. A map showing the location of the proposed pipeline. When applicable, the state tract number of submerged land or the name of the river, stream, bay or other body of water must be shown.10. A cross-sectional drawing of the proposed work showing depth of the proposed pipeline relative to existing ground level, mean low water and mean high water, or ordinary low water line for a riverbed right-of-way.11. Such additional information as the Commissioner may deem necessary.(b) There is no limit to the number of parallel lines which may be included in a single right-of-way contract.(c) Upon receipt of all necessary application information the Commissioner may grant, deny, or grant with qualifications the requested right-of-way. The Commissioner may postpone a decision on the application until 30 days after receipt of the Corps of Engineers' public notice for the prescribed work.(d) The term for all right-of-way contracts executed pursuant to this regulation shall not exceed 10 years, with an option to renew for additional terms, none of which shall exceed 10 years. The option to renew shall be on the same terms and conditions as the original agreement except that the consideration shall be adjusted to the rate in effect at the time of the effective date of renewal.(2) The consideration payable for each 10-year term of any right-of-way contract granted or renewed pursuant to this regulation shall be as follows for each pipeline: Class 1 Up to 12" (o.d.) | $24.00 per rod |
Class 2 More than 12" and up to 24"(o.d.) | $36.00 per rod |
Class 3 More than 24" and up to 3 6"(o.d.) | $48.00 per rod |
Class 4 More than 36" (o.d.) | $60.00 per rod |
Notwithstanding the above-stated fee schedule, there shall be a minimum fee of five hundred dollars ($500.00) per year.
Effective January 1, 2001, and on January 1 each year thereafter, the rates for each Class shall be adjusted on the basis of the annual percentage increase or decrease of the Consumer Price Index for All Urban Consumers (CPI-U), South Urban. All Items, (1982-84=100), for the one year period for which the said Index is released in the immediately preceding November.
(3) Any right-of-way granted by the Commissioner will be subject to the rules contained herein and will bind the grantee to comply with the following provisions: To comply with all existing rules and with all existing and future rules or orders which the Commissioner determines to be necessary and proper in order to provide for the protection and conservation of the natural resources of public lands and waters;
To indemnify the grantor against any and all liability for damages to life, person, or property arising from the grantee's occupation and use of the area covered by the interest granted;
That the granting of the right-of-way shall be subject to the express condition that the rights granted will not unduly prevent or interfere in any way with the management, administration of, or the granting, either prior or subsequent thereto, of other rights by the Commissioner of any part of the area included in the right-of-way; and To pay when due the consideration herein prescribed.
(a) An applicant, by accepting a right-of-way, further agrees and consents to comply with and be bound by the following additional terms and conditions, excepting those which the Commissioner may waive in a particular case: 1. To bury the pipeline below the bottom of the gulf, bay, inlet, river or stream crossing at a depth of not less than 2 4 inches;2. To water-pressure test all lines before use to 1-1/2 times the anticipated working pressure;3. To construct a steel line from new or reconditioned pipe in first class condition;4. To electrically test or x-ray any steel field weld to insure reasonable safety from leaks;5. To dope and treat in such manner any steel line, before it is submerged, to offer reasonable resistance to the corrosive effect of salt water, but it shall not be necessary to dope and treat the portion of a steel line which is not submerged.6. To bury a pipeline in such a manner so as to evenly backfill the sand, gravel, soil, or other material excavated during construction onto the disturbed area to conform as much as is reasonably possible with the bottom profile of the adjacent natural submerged land;7. To undertake erosion preventative measures at the shoreline by either terracing or excavating cuts, fills, or other disturbed areas so that they naturally vegetate, seeding cuts and fills as soon as possible to prevent erosion, or placing gravel, stone, or rock in cuts or on fills where site factors make it unusually difficult to establish a protective vegetative cover;8. To select a right-of-way, when feasible, which avoids shell reefs, submerged grass beds, and marshes; and9. To avoid or minimize clearing of natural vegetation from river or stream banks so that a screen of natural vegetation is left in the right-of-way or when feasible to cross a river or stream via existing bridges subject to safety restrictions or through an area already cleared.(b) The grantee shall not construct or maintain any oil pipelines, gas pipelines, sulphur pipelines, or other pipelines unless the same is specifically provided for in the granting clause of the right-of-way contract; however, the grantee shall have the right to replace said pipeline with a larger or smaller pipe, or pipe of the same size, installed alongside the line to be replaced provided the line being replaced is promptly removed upon completion of the replacement line; but grantee may not build another pipeline alongside its first pipeline or at any other location without a right-of-way contract authorizing same.(4) An application for renewal of an existing right-of-way shall be made using the State Lands Division contract form, and shall adhere to the rules in effect at the time renewal is requested. (a) The grantee shall apply to the Commissioner in accordance with paragraph (1) of this regulation (relating to Application), except that the location and cross-sectional drawings need not be submitted unless specifically requested by the Commissioner. The application should also include the right-of-way contract number and the date of expiration of said contract.(b) Assignment may be made of any interest or rights granted in whole or in part subject to the written approval of the Commissioner. Any such assignment must be filed in triplicate accompanied by a written request for approval in which the assignee agrees to comply with all rules and regulations contained herein and in the contractual agreement. The application should also include the existing contract number and the date of expiration of said contract. An assignment fee of $250.00 payable to the Division of State Lands must accompany the application for approval of an assignment. No assignment shall be effective to transfer any rights until approved by the Commissioner, the grantee, and the assignee.(c) Failure to comply with these rules subject the contract to termination by the Commissioner. Upon termination of any contract which is not reinstated by the Commissioner, the grantee shall, within 120 days from said termination, remove all of its personal property and all structures and manmade improvements authorized in the right-of-way contract, provided all monies due have been paid. The Commissioner at his option, may permit the grantee to leave in place all or a portion of grantee's personal property and any structures and manmade improvements authorized in the right-of-way contract. The grantee shall take whatever measures as necessary to restore the area involved as nearly as practicable to the same condition that existed prior to placement of any structure thereon, except as otherwise approved in writing by the Commissioner.(5)(a) The provisions of this regulation, except the payment of consideration provided for in paragraph (2), are applicable to the activities of a submerged lands mineral interest holder on a leased tract on which a producing well is located as well as to the activities of a submerged lands mineral interest holder on a tract leased by the Commissioner in which the lease authorizes the lessee to lay pipelines.(b) Upon application by a public governmental agency or authority, the Commissioner may waive the payment of consideration (but not the application fee).(6) Notwithstanding any provision herein, in the event the Commissioner determines, in his sole discretion, that the location of a pipeline is so proximate to an inland area that an appraisal would better represent the fair market value of the said pipeline location that would the otherwise applicable fee schedule, the Commissioner shall base the consideration upon the greater of (a) the otherwise applicable fee schedule or (b) fifty percent (50%) of the appraised fair market value of the immediately adjacent upland (the minimum width of the right-of-way shall be 50 feet) as determined by a licensed Alabama (M.A.I, certified) real estate appraiser selected by the State Lands Director.Ala. Admin. Code r. 220-4-.02
Filed September 30, 1982. Amended: August 11, 1989. Amended: Filed February 23, 2000; effective March 29, 2000. Amended: Filed March 16, 2006; effective April 20, 2006.Amended by Alabama Administrative Monthly Volume XXXVI, Issue No. 12, September 28, 2018, eff. 10/20/2018.Author: Christopher M. Blankenship
Statutory Authority:Code of Ala. 1975, § 9-2-12.
PENALTY: As provided by law.