§ 54 — Abandonment and sale of hydropower easements; agreements with hydropower developers

§ 54. Abandonment and sale of hydropower easements; agreements with\nhydropower developers. 1. Notwithstanding subdivision two of section\nthree or section fifty of the public lands law or section fifty,\nfifty-one or fifty-two of this article, upon request of a person\nlicensed under Part I of the Federal Power Act (16 USC § 791a-823a) to\ndevelop and operate a hydropower project at a site on the barge canal\nsystem, the corporation may adopt an order abandoning a hydropower\neasement in barge canal system lands and waters which are within the\nboundaries of such federally licensed project, upon finding the property\nrights under such easement to be no longer necessary or useful as a part\nof the barge canal system, as an aid to navigation thereon, or for barge\ncanal terminal purposes. Upon adoption of such order, and with the\napproval of the governor, the corporation may sell and convey such\neasement at private sale to such licensed developer. Such hydropower\neasements shall be sold for a price to be determined by the corporation\ntaking into consideration the value of obligations to be assumed by such\nlicensed developer, the value of the rights granted to such developer to\nuse canal system lands, waters and facilities for hydropower project\npurposes and any other appropriate factors.\n 2. Any hydropower easement abandoned, sold and conveyed pursuant to\nsubdivision one of this section shall be limited as follows:\n (a) The easement shall convey only those rights necessary and\nconvenient for the development and generation of hydropower pursuant to\nthe provisions of the applicable federal hydropower license and only\nwithin the boundaries of the hydropower project as licensed.\n (b) The easement shall be subservient to the fee retained by the\nstate.\n (c) The easement shall not give the owner the right to interfere with,\neither by act or omission, the management and control by the state,\nthrough the corporation, of the barge canal system.\n (d) The easement shall provide that it shall revert to the state under\nterms and conditions to be determined by the corporation in the event\nthat the site ceases to be used for purposes of hydropower development\nand generation.\n 3. The corporation may also enter into agreements with such a licensed\ndeveloper regarding the division of maintenance responsibility for\nstructures, facilities or other property which serve both hydropower\ngeneration and barge canal system purposes and regarding other matters\nconcerning joint operation at the site. Such agreements may provide for\nthe payment to the corporation of reasonable compensation for services\nrendered by the corporation which assist or otherwise further the\ndevelopment of hydropower on the barge canal system. In addition, the\ncorporation, subject to the approval of the director of the budget, may\nenter into a written agreement with a licensed developer or operator at\nany site concerning the sharing of costs for a major capital improvement\nor improvements at such site. Should the contract for such improvement\nor improvements be let and awarded by the corporation, the state\ncomptroller is authorized to receive and accept from the developer or\noperator, the sum or sums specified in such agreement and to disburse\nthe same along with state funds appropriated for the purpose of such\ncapital improvement or improvements.\n 4. Any revenue realized from the sale or lease of hydropower easements\nshall be deposited into the canal fund.\n