SF 877

2nd Engrossment - 89th Legislature (2015 - 2016) Posted on 04/20/2016 12:00pm

A bill for an act
relating to utilities; establishing requirements relating to crossing railroad
rights-of-way by utilities; proposing coding for new law in Minnesota Statutes,
chapter 237.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [237.045] RAILROAD RIGHTS-OF-WAY; CROSSING OR
PARALLELING BY UTILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms
have the meanings given them.
new text end

new text begin (b) "Crossing" means the construction, operation, repair, or maintenance of a utility
facility over, under, or across a railroad right-of-way. The term includes longitudinal
occupancy of railroad right-of-way.
new text end

new text begin (c) "Facility" means any item of personal property placed over, across, or
underground for use in connection with the storage or conveyance of:
new text end

new text begin (1) water;
new text end

new text begin (2) sewage;
new text end

new text begin (3) electronic, telephone, or telegraphic communications;
new text end

new text begin (4) fiber optics;
new text end

new text begin (5) cablevision;
new text end

new text begin (6) electric energy;
new text end

new text begin (7) oil;
new text end

new text begin (8) gas;
new text end

new text begin (9) hazardous liquids; or
new text end

new text begin (10) other facilities including pipes, sewers, conduits, cables, valves, lines, wires,
manholes, or attachments.
new text end

new text begin (d) "Parallel" or "paralleling" means that the relevant utility facilities run adjacent
to and alongside the lines of a railroad for no more than one mile, or another distance
agreed to by the parties, before the utility facilities cross the railroad lines, terminate,
or exit the railroad right-of-way.
new text end

new text begin (e) "Railroad" means any association, corporation, or other entity engaged in
operating a common carrier by rail, or its agents or assigns, including any entity
responsible for the management of crossings or collection of crossing fees.
new text end

new text begin (f) "Utility" means cooperative electric association, electric utility, public
utility, transmission company, gas utility, municipal utility, municipal power agency,
joint action agency, pipeline company, rural water system, or telephone, telegraph,
telecommunications, cable, or fiber optic carrier or their contractors or agents.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin This section applies to:
new text end

new text begin (1) any crossing in existence before the effective date of this section if an agreement
concerning the crossing has expired or has been terminated. In such instance, if the
collective amount of $750 has been paid to the railroad during the existence of the
crossing, no additional fee is required; and
new text end

new text begin (2) any crossing commenced on or after the effective date of this section.
new text end

new text begin Subd. 3. new text end

new text begin Right-of-way crossing; application for permission. new text end

new text begin (a) Any utility
that intends to place a facility across or upon a railroad right-of-way shall request prior
permission from the railroad.
new text end

new text begin (b) The request shall be in the form of a completed crossing application, including a
drawing showing the location of the proposed crossing and the railroad's property, tracks,
and wires that the utility will cross. The utility shall submit the crossing application on a
form provided or approved by the railroad, if available.
new text end

new text begin (c) The crossing application shall be sent to the railroad by certified mail, with
return receipt requested.
new text end

new text begin (d) The application shall be accompanied by the crossing fee as set forth in
subdivision 5, and a certificate of insurance as required by subdivision 6.
new text end

new text begin Subd. 4. new text end

new text begin Right-of-way crossing; construction. new text end

new text begin Beginning 30 days after the
receipt by the railroad of a completed crossing application, crossing fee, and certificate of
insurance, the utility may commence the construction of the crossing unless the railroad
notifies the utility in writing that the proposed crossing or paralleling is a serious threat to
the safe operations of the railroad or to the current use of the railroad right-of-way.
new text end

new text begin Subd. 5. new text end

new text begin Standard crossing fee. new text end

new text begin (a) Unless otherwise agreed by the parties or
determined under section 237.04, a utility that crosses a railroad right-of-way, other than a
crossing within a public right-of-way, shall pay the railroad a onetime standard crossing
fee of $750 for each crossing. The standard crossing fee is in lieu of any license, permit,
application, processing fee, or any other fee or charge to reimburse the railroad for direct
expenses incurred by the railroad as a result of the crossing. No other fee or charge may
be assessed to the utility by the railroad.
new text end

new text begin (b) In addition to the standard crossing fee, the utility shall also reimburse the
railroad for any reasonable and necessary flagging expense associated with a crossing,
based on the railroad traffic at the crossing.
new text end

new text begin (c) No crossing fee is required if the crossing is located within a public right-of-way.
new text end

new text begin (d) The placement of a single conduit and its content shall be considered a single
facility. No additional fees are payable based on the individual fibers, wires, lines, or
other items contained within the conduit.
new text end

new text begin Subd. 6. new text end

new text begin Certificate of insurance; coverage. new text end

new text begin (a) The certificate of insurance or
coverage submitted by a municipality shall include commercial general liability insurance
or an equivalent form with a limit of not less than $1,000,000 for each occurrence and
an aggregate of not less than $2,000,000.
new text end

new text begin (b) The certificate of insurance submitted by any other utility, except a gas or
hazardous materials pipeline utility, shall include commercial general liability insurance
with a combined single limit of a minimum of $2,000,000 for each occurrence and an
aggregate limit of at least $4,000,000.
new text end

new text begin (c) The certificate of insurance submitted by a gas or hazardous materials pipeline
utility shall include commercial general liability insurance with a combined single limit of a
minimum of $5,000,000 for each occurrence and an aggregate limit of at least $10,000,000.
new text end

new text begin (d) The railroad may require protective liability insurance with a combined single
limit of $2,000,000 for each occurrence and $4,000,000 aggregate. The coverage may be
provided by a blanket railroad protective liability insurance policy if the coverage, including
the coverage limits, applies separately to each individual crossing. The coverage shall be
required only during the period of construction, repair, or replacement of the facility.
new text end

new text begin (e) The certificate of insurance shall be from an insurer of the utility's choosing.
new text end

new text begin Subd. 7. new text end

new text begin Objection to crossing; petition to Public Utilities Commission. new text end

new text begin (a) If
a railroad objects to the proposed crossing or paralleling due to the proposal being a
serious threat to the safe operations of the railroad or to the current use of the railroad
right-of-way, the railroad shall provide to the utility notice of the objection and the specific
basis for the objection. The railroad shall send the notice of objection to the utility by
certified mail, with return receipt requested.
new text end

new text begin (b) If the parties are unable to resolve the objection, either party may petition the
Public Utilities Commission for their assistance via mediation or arbitration of the disputed
crossing application. The petition must be filed within 60 days of receipt of the objection.
Before filing a petition, the parties shall make good faith efforts to resolve the objection.
new text end

new text begin (c) If a petition is filed, the Public Utilities Commission must issue an order within
120 days of filing of the petition. The order may be appealed under chapter 14 and section
216B.27. The Public Utilities Commission shall assess the costs associated with a petition
equitably among the parties.
new text end

new text begin Subd. 8. new text end

new text begin Additional requirements; objection and petition to Public Utilities
Commission. new text end

new text begin (a) If a railroad imposes additional requirements on a utility for crossing its
lines, other than the proposed crossing being a serious threat to the safe operations of the
railroad or to the current use of the railroad right-of-way, the utility may object to one or
more of the requirements. If it objects, the utility shall provide notice of the objection
and the specific basis for the objection to the railroad by certified mail, with return receipt
requested.
new text end

new text begin (b) If the parties are unable to resolve the objection, either party may petition the
Public Utilities Commission for resolution or modification of the additional requirements.
The petition must be filed within 60 days of receipt of the objection. Before filing a
petition, the parties shall make good faith efforts to resolve the objection.
new text end

new text begin (c) If a petition is filed, the Public Utilities Commission shall determine, after notice
and opportunity for hearing, whether special circumstances exist that necessitate additional
requirements for the placement of the crossing. The Public Utilities Commission must
issue an order within 120 days of filing of the petition. The order may be appealed under
chapter 14 and section 216B.27. The Public Utilities Commission shall assess the costs
associated with a petition equitably among the parties.
new text end

new text begin Subd. 9. new text end

new text begin Existing agreements. new text end

new text begin Nothing in this section prevents a railroad and a
utility from continuing under an existing agreement, or from otherwise negotiating the
terms and conditions applicable to a crossing or the resolution of any disputes relating
to the crossing. The use of this section or section 237.04 is optional. Nothing in this
section impairs the authority of a utility to secure crossing rights by easement through
exercise of the power of eminent domain.
new text end