1999 Minnesota Statutes

     222.63 Abandoned right-of-way; state rail bank. 

    Subdivision 1.    Definitions.  The terms defined in 
 section 222.48 have the same meanings when used in this 
 section.  Other terms used in this section have the following 
 meanings:  

    (a) "Abandoned," when used with reference to a rail line or 
 right-of-way, means a line or right-of-way with respect to which 
 the interstate commerce commission or other responsible federal 
 regulatory agency has permitted discontinuance of rail service; 

    (b) "Right-of-way" means any real property, including any 
 interest in the real property that is or has been owned by a 
 railroad company as the site, or is adjacent to the site, of an 
 existing or former rail line; 

    (c) "State rail bank" means abandoned rail lines and 
 right-of-way acquired by the commissioner of transportation 
 pursuant to this section. 

    Subd. 2.    Purpose.  A state rail bank shall be 
 established for the acquisition and preservation of abandoned 
 rail lines and rights-of-way, and of rail lines and 
 rights-of-way proposed for abandonment in a railroad company's 
 system diagram map, for future public use including trail use, 
 or for disposition for commercial use in serving the public, by 
 providing transportation of persons or freight or transmission 
 of energy, fuel, or other commodities.  Abandoned rail lines and 
 rights-of-way may be acquired for trail use by another state 
 agency or department or by a political subdivision only if (1) 
 no future commercial transportation use is identified by the 
 commissioner, and (2) the commissioner and the owner of the 
 abandoned rail line have not entered into or are not conducting 
 good-faith negotiations for acquisition of the property.  

    Subd. 2a.    Acquisition.  The commissioner of 
 transportation may acquire by purchase all or part of any 
 abandoned rail line or right-of-way or rail line or right-of-way 
 proposed for abandonment in a railroad company's system diagram 
 map which is necessary for preservation in the state rail bank 
 to meet the future public and commercial transportation and 
 transmission needs of the state.  The commissioner may acquire 
 by eminent domain under chapter 117 an interest in abandoned 
 rail lines or rights-of-way except that the commissioner may not 
 acquire by eminent domain rail lines or rights-of-way that are 
 not abandoned or are owned by a political subdivision of the 
 state or by another state.  All property taken by exercise of 
 the power of eminent domain under this subdivision is declared 
 to be taken for a public governmental purpose and as a matter of 
 public necessity. 

    Subd. 2b.    Eligible property.  An abandoned rail line 
 or right-of-way is eligible for preservation in the state rail 
 bank if the commissioner determines that it provides or may be 
 used to provide one or more of the following: 

    (a) access to a present or proposed major energy generating 
 or using facility such as an electrical generating plant, major 
 heating plant or other major industrial user of energy; 

    (b) access to a major storage or terminal facility in the 
 marketing of agricultural commodities or forest products; 

    (c) important access to surrounding states; 

    (d) a present or potential corridor for a pipeline, 
 electrical transmission line, highway, transit route, rail 
 freight or passenger line or other similar transportation or 
 transmission use; or 

    (e) access to an extractive resource requiring rail or 
 other transportation or transmission service for its development.

    Subd. 2c.    Preservation.  The commissioner shall 
 provide for the maintenance, including control of weeds, of any 
 rail line or right-of-way that is acquired for the rail bank, 
 and for its management in a manner that minimizes maintenance 
 costs and provides a benefit to the state.  The commissioner may 
 also require that any existing rail line on acquired 
 right-of-way shall not be removed during any part or all of the 
 period for which the right-of-way is included in the state rail 
 bank. 

    Subd. 3.    Public and agency participation.  If the 
 commissioner desires to acquire, dispose of or utilize any 
 right-of-way which is permitted to be or has been acquired 
 pursuant to authorization under subdivision 2, the commissioner 
 shall publish a notice of the proposed action in the state 
 register and in at least one newspaper of general circulation in 
 each area where the right-of-way is located. If any person 
 objects in writing to the proposed action within 30 days of 
 publication of notice the commissioner shall proceed in the 
 manner provided for a contested case.  If no written objection 
 is received the commissioner may take the proposed action only 
 after holding a public meeting to seek public comment on the 
 action.  At least one hearing or meeting required under this 
 subdivision shall be held in the area where the right-of-way is 
 located.  

    Subd. 4.    Disposition permitted.  (a) The commissioner 
 may lease any rail line or right-of-way held in the state rail 
 bank or enter into an agreement with any person for the 
 operation of any rail line or right-of-way for any of the 
 purposes set forth in subdivision 2 in accordance with a fee 
 schedule to be developed by the commissioner. 

    (b) The commissioner may convey any rail line or 
 right-of-way, for consideration or for no consideration and upon 
 other terms as the commissioner may determine to be in the 
 public interest, to any other state agency or to a governmental 
 subdivision of the state having power by law to utilize it for 
 any of the purposes set forth in subdivision 2. 

    (c) The commissioner may convey a portion of previously 
 acquired rail bank right-of-way to a state agency or 
 governmental subdivision when the commissioner determines that: 

    (1) the portion to be conveyed is in excess of that needed 
 for the purposes stated in subdivision 2; 

    (2) the conveyance is upon terms and conditions agreed upon 
 by both the commissioner and the state agency or governmental 
 subdivision; 

    (3) after the sale, the rail bank corridor will continue to 
 meet the future public and commercial transportation and 
 transmission needs of the state; and 

    (4) the conveyance will not reduce the width of the rail 
 bank corridor to less than 50 feet. 

    Proceeds from a sale shall be deposited in the rail bank 
 maintenance account described in subdivision 8. 

    Subd. 5. Repealed, 1992 c 581 s 21 

    Subd. 6.    Intervention in abandonment proceeding.  
 The commissioner may intervene in a proceeding of the interstate 
 commerce commission on the issue of suitability for a public use 
 of a rail line proposed to be abandoned if the commissioner 
 finds that the right-of-way of the line would be eligible for 
 inclusion in the state rail bank.  To the extent practicable 
 before intervening as provided in this section the commissioner 
 shall hold at least one public meeting in the area in which the 
 line is located to solicit opinions of interested persons 
 concerning the commissioner's proposed action.  

    Subd. 7.    Rules for eligibility and procedures.  The 
 commissioner of transportation shall adopt rules necessary to 
 establish criteria for properties eligible for inclusion in the 
 rail bank and to establish public procedures for acquisition and 
 disposition of rail bank properties.  

    Subd. 8.    Rail bank accounts.  A special account shall 
 be maintained in the state treasury, designated as the rail bank 
 maintenance account, to record the receipts and expenditures of 
 the commissioner of transportation for the maintenance of rail 
 bank property.  Funds received by the commissioner of 
 transportation from interest earnings, administrative payments, 
 rentals, fees, or charges for the use of rail bank property, or 
 received from rail line rehabilitation contracts shall be 
 credited to the maintenance account and used for the maintenance 
 of that property and held as a reserve for maintenance expenses 
 in an amount determined by the commissioner, and amounts 
 received in the maintenance account in excess of the reserve 
 requirements shall be transferred to the rail service 
 improvement account.  

    All proceeds of the sale of abandoned rail lines shall be 
 deposited in the rail service improvement account.  All money to 
 be deposited in this rail service improvement account as 
 provided in this subdivision is appropriated to the commissioner 
 of transportation for the purposes of this section.  

    The appropriations shall not lapse but shall be available 
 until the purposes for which the funds are appropriated are 
 accomplished.  

    HIST: 1980 c 558 s 3; 1981 c 338 s 4-7; 1982 c 424 s 60; 1986 
 c 444; 1988 c 686 art 1 s 71,72; 1989 c 299 s 9; 1991 c 199 art 
 2 s 16; 1992 c 581 s 17-19; 1994 c 635 art 1 s 28; 1999 c 230 s 
 27 

*   NOTE:  Subdivision 4 was also amended by Laws 1999, chapter 
*154, section 3, to read as follows: 

*   "Subd. 4.    Disposition permitted.  (a) The 
*commissioner may lease any rail line or right-of-way held in the 
*state rail bank or enter into an agreement with any person for 
*the operation of any rail line or right-of-way for any of the 
*purposes set forth in subdivision 2 in accordance with a fee 
*schedule to be developed by the commissioner. 

*   (b) The commissioner may convey any rail line or 
*right-of-way, for consideration or for no consideration and upon 
*other terms as the commissioner may determine to be in the 
*public interest, to any other state agency or to a political 
*subdivision of the state having power by law to utilize it for 
*any of the purposes set forth in subdivision 2.  

*   (c) The commissioner may convey a portion of previously 
*acquired rail bank right-of-way to a state agency or political 
*subdivision when the commissioner determines that: 

*   (1) the portion to be conveyed is in excess of that needed 
*for the purposes stated in subdivision 2; 

*   (2) the conveyance is upon terms and conditions agreed upon 
*by both the commissioner and the state agency or political 
*subdivision; 

*   (3) after the sale, the rail bank corridor will continue to 
*be sufficient to meet the purposes of subdivision 2; and 

*   (4) the conveyance will not result in any right-of-way in 
*the state rail bank being reduced to a width of less than 50 
*feet at any point. 

*   Proceeds from a sale must be deposited in the rail bank 
*maintenance account described in subdivision 8."