SECTION 730:40-1-5. Eligible projects

(a)   Acquisition of rail lines and properties. The Department may acquire by purchase, donation or exercise of the right of Eminent Domain such rail lines and collateral properties:

(1)   Upon which rail service has been abandoned or is in imminent danger of abandonment or which are necessary to assure continued, justifiable and economically feasible rail operations or to insure or enhance the economic feasibility of such operations on state-owned rail properties; or

(2)   Upon which no rail service is to be provided immediately but which constitute a link in an otherwise operable system of rail lines, the eventual operation of which is vital to the economic prosperity of the state.

(b)   Reconstruction or rehabilitation. The Department may:

(1)   Using state, federal or private funds or any combination of such funds, provide for the necessary reconstruction or rehabilitation of rail lines and properties owned by the Department. All track reconstruction or rehabilitation projects shall be designed to the appropriate standards necessary to safe and efficient movement of locomotives and equipment in accordance with the nature and extent of rail services provided or to be provided on the line; or

(2)   Using federal or private funds, or a combination of such funds, provide for the necessary reconstruction or rehabilitation of rail lines owned by private corporations, other public agencies, or by railroads operating as common carriers, where the investment of public funds can be demonstrated to be in the public interest. Prior to requesting Commission approval of any project as set forth in this paragraph, the Department shall conduct a suitable investigation into the financial condition and operating history of the owner of the line (and the operator of the line if other than the owner) in order to assure that service on the reconstructed or rehabilitated line can be reasonably expected to continue over the useful life of the improvements.

(c)   Maintenance. Maintenance of Department owned rail lines, facilities and properties shall be the responsibility of the rail service operators; provided, however, the Department may maintain in usable condition, by contract or with its own personnel and equipment, those lines, facilities and properties owned by the Department and upon which rail service is not presently provided.

(d)   Construction of new rail facilities. New state-owned rail facilities may be constructed by the Department when the results of a complete economic study, including a through analysis of costs versus benefits, indicates such construction will have a substantial public benefit and an agreement for long term operation by a private carrier has been entered into in advance of construction. Rights-of-way for such construction may be acquired by purchase, donation, or exercise of the right of Eminent Domain.

(e)   Dismantlement. Any state-owned rail line or facility may be dismantled by the Department, by contract or with its own personnel and equipment, when such line or facility is no longer needed for or in conjunction with the provision of rail freight service. Rail, bridges, cross ties, ballast and other track materials may be retained by the Department for use on other state owned rail lines, may be disposed of as surplus property as provided by law, or may be retained by the contractor as full or partial compensation under the dismantlement contract.

[Source: Amended at 16 Ok Reg 2033, eff 6-11-99]