| (a) A lease under this subchapter must be in writing,
be executed by the director, and contain the terms specified in this
section.
(b) The department may not execute a lease that would
impair or relinquish the state's right to use the property when needed
to construct or improve the highway facility for which it was acquired.
(c) If the proposed saltwater pipeline facility operator
does not obtain all required governmental approvals or permits throughout
the term of lease, the department will terminate the lease.
(d) The lease must contain:
(1) information necessary for the department to contact
the lessee;
(2) the amount of rent, any required deposits, the
term of the lease and the method of payment of rental amounts;
(3) a detailed description of the premises, including
engineering plans of the proposed as-built saltwater pipeline facility;
(4) a description of the authorized use of the premises;
(5) a statement that any significant revision in the
design of the saltwater pipeline facility is subject to prior written
approval by the district administrator;
(6) a statement that the department has the right to
approve all construction and plans for construction on the premises;
(7) permission for the employees and authorized representatives
of the department to enter the premises for the inspection, maintenance,
or reconstruction of highway facilities or for determining compliance
with the terms of the lease;
(8) a requirement that lessee maintain, at its sole
expense, the saltwater pipeline facility located within the premises
in good condition, both as to safety and appearance, and a representation
that the required maintenance of the saltwater pipeline facility will
not interfere with the highway facilities or the highway use;
(9) a statement that if the district administrator
determines that the lessee has failed in its maintenance obligation,
the department has the right to enter the premises to perform, at
the expense and liability of the lessee, the work required for compliance;
(10) a statement that on breach of the lease by lessee,
lessee:
(A) forfeits any deposits under the lease;
(B) shall pay the department for all expenses incurred
by the department due to lessee's failure to comply with the terms
of the lease, including all of its litigation costs;
(11) a requirement that the lessee provide a security
bond not to exceed six months rental under the lease, as provided
under Transportation Code, §202.053;
(12) a requirement that lessee provide a removal bond
in an amount equal to the anticipated future cost of removing any
saltwater pipeline facilities and appurtenances, as well as the restoration
and mitigation of the right of way to a suitable and safe, pre-lease
condition, based on a removal, restoration, and mitigation plan approved
by the department;
(13) a requirement that the lessee provide, and maintain
at all times during the term of the lease, at lessee's sole expense,
adequate public liability insurance for the premises, the conduct
of lessee's business, and lessee's indemnification obligations to
the department set forth in the lease, naming the department as an
additional insured and including other endorsements as determined
to be necessary by the department, in an amount and form acceptable
to the department for the payment of any damage occurring to the right
of way, the highway facilities and appurtenances and for the payment
to the public for personal injury, loss of life, or property damage
that may occur;
(14) a statement that the lease may be terminated as
provided by §21.967 of this subchapter (relating to Termination
of Lease);
(15) a statement that neither the lease nor the premises
shall be transferred, assigned, or conveyed to another party without
prior written approval of the district administrator;
(16) a statement that the lessee shall keep the lease
and any improvements on the premises free of all liens and may not
use the lease or such an improvement as security for any loan, except
that the department may allow the lessee to mortgage or otherwise
pledge or grant a security interest in the leasehold interest to secure
financing for the acquisition of the leasehold or for the construction
and operation of the saltwater pipeline facility permitted under the
lease, subject to the terms of the lease;
(17) a statement that the lessee is responsible for
compliance with all federal, state, and local environmental laws and
regulations, including obtaining any required permits or approvals
by third parties or governmental entities;
(18) a statement that the lessee assumes all risks
of loss resulting from the lease and indemnifies the department for
any claims and losses related to the lease;
(19) a description of applicable nondiscrimination
requirements;
(20) a requirement that the lessee promptly restore
the highway facilities and any associated facilities in the right
of way to their former condition of usefulness after the installation
or maintenance of the saltwater pipeline facility is complete; and
(21) any other provisions that the department considers
desirable.
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