[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: 43CFR2883.1-4]

[Page 285-286]
 
                    TITLE 43--PUBLIC LANDS: INTERIOR
 
    CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR
 
PART 2880_RIGHTS-OF-WAY UNDER THE MINERAL LEASING ACT--Table of Contents
 
              Subpart 2883_Administration of Rights Granted
 
Sec. 2883.1-4  Liability.

    (a) Except as provided in paragraph (f) of this section holders 
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.
    (b) Except as provided in paragraph (f) of this section, holders 
shall be held to a standard of strict liability for any activity 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 
standard 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 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 
accordance with the law of the 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 use and occupancy of 
right-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 damage or make 
restitution to the fullest extent of its powers at the time of any 
damage or injury.

[[Page 286]]

    (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 a holder.
    (h) Except as otherwise expressly provided in this section, the 
provisions 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, they shall be jointly and severally liable under 
this section.