[Code of Federal Regulations]
[Title 43, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 43CFR29.3]

[Page 469]
 
                    TITLE 43--PUBLIC LANDS: INTERIOR
 
PART 29--TRANS-ALASKA PIPELINE LIABILITY FUND--Table of Contents
 
Sec. 29.3  Fund administration.

    (a) The Fund shall be administered by a Board of Trustees designated 
by the Permittees and the Secretary as provided in paragraph (b) of this 
section.
    (b)(1) The Board of Trustees shall be comprised of one member 
designated by each Permittee and three members designated by the 
Secretary. At least one member designated by the Secretary shall be 
chosen from persons nominated by the Governor of the State of Alaska. 
Each member shall serve for a period of three years and may succeed 
himself or herself. Each member shall have the right to vote. If 
additional persons become holders of rights-of-way, each such additional 
Permittee shall have the right to designate a trustee, and if any holder 
of right-of-way sells the interest in such right-of-way, such holder's 
designated trustee shall resign from the Board. The Board shall elect by 
a majority vote a Chairman and a Secretary annually.
    (2) Where any activity of the Fund creates a conflict of interest, 
or the appearance of a conflict of interest, on the part of any member 
of the Board of Trustees, the member involved shall excuse himself or 
herself from any consideration of such activity by the Board of 
Trustees.
    (c) The Board of Trustees by a majority vote shall select an 
Administrator to direct the day-to-day operations of the Fund.
    (d) The Board of Trustees shall hold meetings every six months, or 
more frequently when necessary to consider pressing matters, including 
pending claims under Sec. 29.9.
    (e)(1) Each Board Member and officer of the Fund now or hereafter 
serving as such, shall be indemnified by the Fund against any and all 
claims and liabilities to which he or she has or shall become subject by 
reason of serving or having served as such Board Member or officer, or 
by reason of any action alleged to have been taken, omitted, or 
neglected by him or her as such Board Member or officer; and the Fund 
shall reimburse each such person for all legal expenses reasonably 
incurred by him or her in connection with any such claim or liability: 
Provided, however, That no such person shall be indemnified against, or 
be reimbursed for any expenses incurred in connection with, any claim or 
liability arising out of his or her own willful misconduct or gross 
negligence.
    (2) The amount paid to any officer or Board Member by way of 
indemnification shall not exceed his or her actual liabilities and 
actual, reasonable, and necessary expenses incurred in connection with 
the matter involved. Expenses incurred in defending a civil or criminal 
action, suit, or proceeding may be paid by the Fund in advance of the 
final disposition of such action, suit, or proceeding as authorized by 
the Board in the specific case upon receipt of an undertaking by or on 
behalf of the Board Member or officer to repay such amount if it shall 
ultimately be determined that he or she is not entitled to be 
indemnified by the Fund as authorized herein.
    (3) The indemnification provided by this section shall continue as 
to a person who has ceased to be a Board Member or officer and shall 
inure to the benefit of the heirs, executors, and administrators of such 
a person. The right of indemnification hereinabove provided for shall 
not be exclusive of any rights to which any Board Member or officer of 
the Fund may otherwise be entitled by law.

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