[Code of Federal Regulations]
[Title 43, Volume 2]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 43CFR2803.1-5]

[Page 249]
 
                    TITLE 43--PUBLIC LANDS: INTERIOR
 
    CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR
 
PART 2800_RIGHTS-OF-WAY, PRINCIPLES AND PROCEDURES--Table of Contents
 
              Subpart 2803_Administration of Rights Granted
 
Sec. 2803.1-5  Liability.

    (a) Except as provided in paragraph (f) of this section, each holder 
shall be fully liable to the United States for any damage or injury 
incurred by the United States in connection with the use and occupancy 
of the right-of-way or permit area by the holder.
    (b) Except as provided in paragraph (f) of this section, holders 
shall be held to a standard of strict liability for any activity or 
facility within a right-of-way or permit area which the authorized 
officer determines, in his discretion, presents a foreseeable hazard or 
risk of damage or injury to the United States. The activities and 
facilities to which such standards shall apply shall be specified in the 
right-of-way grant or temporary use permit. Strict liability shall not 
be imposed for damage or injury resulting primarily from an act of war, 
an Act of God or the negligence of the United States. To the extent 
consistent with other laws, strict liability shall extend to costs 
incurred by the United States for control and abatement of conditions, 
such as fire or oil spills, which threaten lives, property or the 
environment, regardless of whether the threat occurs on areas that are 
under Federal jurisdiction. Stipulations in right-of-way grants and 
temporary use permits imposing strict liability shall specify a maximum 
limitation on damages which, in the judgment of the authorized officer, 
is commensurate with the foreseeable risks or hazards presented. The 
maximum limitation shall not exceed $1,000,000 for any one event, and 
any liability in excess of such amount shall be determined by the 
ordinary rules of negligence of the jurisdiction in which the damage or 
injury occurred.
    (c) In any case where strict liability is imposed and the damage or 
injury was caused by a third party, the rules of subrogation shall apply 
in accordance with the law of the jurisdiction in which the damage or 
injury occurred.
    (d) Except as provided in paragraph (f) of this section, holders 
shall be fully liable for injuries or damages to third parties resulting 
from activities or facilities on lands under Federal jurisdiction in 
which the damage or injury occurred.
    (e) Except as provided in paragraph (f) of this section, holders 
shall fully indemnify or hold harmless the United States for liability, 
damage or claims arising in connection with the holder's use and 
occupancy of rights-of-way or permit areas.
    (f) If a holder is a State or local government, or agency or 
instrumentality thereof, it shall be liable to the fullest extent its 
laws allow at the time it is granted a right-of-way grant or temporary 
use permit. To the extent such a holder does not have the power to 
assume liability, it shall be required to repair damages or make 
restitution to the fullest extent of its powers at the time of any 
damage or injury.
    (g) All owners of any interest in, and all affiliates or 
subsidiaries of any holder of a right-of-way grant or temporary use 
permit, except for corporate stockholders, shall be jointly and 
severally liable to the United States in the event that a claim cannot 
be satisfied by the holder.
    (h) Except as otherwise expressly provided in this section, the 
provision in this section for a remedy is not intended to limit or 
exclude any other remedy.
    (i) If the right-of-way grant or temporary use permit is issued to 
more than one holder, each shall be jointly and severally liable under 
this section.

[45 FR 44526, July 1, 1980. Redesignated at 52 FR 25820, July 8, 1987]