[Code of Federal Regulations]

[Title 43, Volume 2]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 43CFR2886.13]



[Page 294-295]

 

                    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 2886_Operations on MLA Grants and TUPs

 

Sec.  2886.13  If I hold a grant or TUP, for what am I liable?



    (a) If you hold a grant or TUP, you are liable to the United States 

and to third parties for any damage or injury they incur in connection 

with your use and occupancy of the right-of-way or TUP area.

    (b) You are strictly liable for any activity or facility associated 

with your right-of-way or TUP area which BLM



[[Page 295]]



determines presents a foreseeable hazard or risk of damage or injury to 

the United States. BLM will specify in the grant or TUP any activity or 

facility posing such hazard or risk, and the financial limitations on 

damages commensurate with such hazard or risk.

    (1) BLM will not impose strict liability for damage or injury 

resulting primarily from an act of war or the negligence of the United 

States, except as otherwise provided by law.

    (2) As used in this section, strict liability extends to costs 

incurred by the Federal government to control or abate conditions, such 

as fire or oil spills, which threaten life, property, or the 

environment, even if the threat occurs to areas that are not under 

Federal jurisdiction. This liability is separate and apart from 

liability under other provisions of law.

    (3) You are strictly liable to the United States for damage or 

injury up to $2 million for any one incident. BLM will update this 

amount annually to adjust for changes in the Consumer Price Index for 

All Urban Consumers, U.S. City Average (CPI-U) as of July of each year 

(difference in CPI-U from July of one year to July of the following 

year), rounded to the nearest $1,000. This financial limitation does not 

apply to the release or discharge of hazardous substances on or near the 

grant or TUP area, or where liability is otherwise not subject to this 

financial limitation under applicable law.

    (4) BLM will determine your liability for any amount in excess of 

the $2 million strict liability limitation (as adjusted) through the 

ordinary rules of negligence.

    (5) The rules of subrogation apply in cases where a third party 

caused the damage or injury.

    (c) If you cannot satisfy claims for injury or damage, all owners of 

any interests in, and all affiliates or subsidiaries of any holder of, a 

grant or TUP, except for corporate stockholders, are jointly and 

severally liable to the United States.

    (d) If BLM issues a grant or TUP to more than one holder, each is 

jointly and severally liable.

    (e) By accepting the grant or TUP, you agree to fully indemnify or 

hold the United States harmless for liability, damage, or claims arising 

in connection with your use and occupancy of the right-of-way or TUP 

area.

    (f) We address liability of state, tribal, and local governments in 

Sec.  2886.14 of this subpart.

    (g) The provisions of this section do not limit or exclude other 

remedies.