Disposition of state rail bank property.

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(1) The executive director shall maintain property within the state rail bank, including weed control, in a manner that minimizes maintenance costs and provides a benefit to the state. The executive director shall assume the responsibilities of the abandoning railroad company for the construction and maintenance of fencing of abandoned rail lines or railroad rights-of-way within the state rail bank; except that, where no agreement exists, then no requirement for fencing shall be imposed.

  1. The executive director may make property in the state rail bank available for interimrecreational purposes, but such interim recreational use shall not limit the ability to restore or reconstruct the property for railroad service or other transportation services.

  2. The executive director may provide a first right of refusal to purchase or lease anyrail line or railroad right-of-way held in the state rail bank to metropolitan or regional transportation authorities, cities, towns, counties, or transit agencies if those entities have first undertaken and approved a plan or program to use the property for transportation purposes.

  3. The executive director may sell or lease any rail line or railroad right-of-way held inthe state rail bank to a financially responsible railroad operator who will use the property to provide rail service. In any sale of a rail line or railroad right-of-way held in the state rail bank pursuant to this subsection (4) or section 43-1-803 (2), the executive director shall retain a possibility of reverter to the state in the event that the railroad operator abandons the rail line or railroad right-of-way or if the rail line or railroad right-of-way is used or conveyed for any purpose other than the operation of railroad services, and, additionally, for any purpose that is inconsistent or in conflict with the continued provision of rail service on the line. The department shall retain a right of first refusal to purchase the rail line, railroad right-of-way, or any right to use such rail line or right-of-way in the event the railroad operator sells all or any part of the rail line, railroad right-of-way, or any right to use such rail line or right-of-way. Any such property that reverts back to the state shall be held in the state rail bank.

  4. The executive director may convert property in the state rail bank to other transportation uses following appropriate studies and upon approval by the commission and the

TLRC.

  1. The executive director shall ensure that, in any sale, lease, or other conveyance of arail line or railroad right-of-way held in the state rail bank, any agreement of the railroad company that abandoned such rail line or right-of-way to construct or maintain fencing relative to such rail line or right-of-way shall be transferred to the person to whom the right-of-way is conveyed.

  2. (a) Any transfer of title of the railroad rights-of-way from a railroad company as provided in this part 13 or in section 43-1-803 shall not impair or diminish the right of any ditch owner to construct, operate, maintain, or enlarge any irrigation ditch as provided by law. Any damage to an irrigation ditch that is located in or adjacent to such railroad right-of-way and any increases in ditch maintenance caused by the use of the railroad right-of-way for a public purpose shall be the responsibility of the person to whom the title of the railroad right-of-way was transferred. Any such transfer of title shall not impair or diminish existing contracts between the railroad company and any ditch owner for the use, operation, and maintenance of any ditch. The executive director shall ensure that the necessary contract provisions and deed restrictions or annotations, pursuant to this subsection (7), are made to the documents required to transfer the title of such railroad right-of-way.

(b) An owner of an irrigation ditch located in or adjacent to the railroad right-of-way to which title is transferred as provided in this part 13 or in section 43-1-803 is immune from suit and from any and all liability arising out of or related to the use of the railroad right-of-way for a public purpose.

Source: L. 97: Entire part added, p. 1621, § 2, effective June 4. L. 99: (4) amended, p. 544, § 4, effective May 5. L. 2009: (3) amended, (SB 09-094), ch. 280, p. 1252, § 6, effective May 20.


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