N.Y. Canal Law § 54: 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

state.

(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.