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right-of-way agreements for TAPS contain express language and
provisions relating to oil company DRR obligations that
specifically require the oil companies, upon termination of their
use of the TAPS rights-of-way, to remove the facilities,
improvements, and equipment. The Federal right-of-way agreements
for TAPS state:
Stipulations for the Agreement and Grant of
Right-of-Way for the Trans-Alaska Pipeline
1.10. Completion of Use
1.10.1. * * * [the oil companies] shall promptly
remove all improvements and equipment, except as
otherwise approved in writing by the Authorized
Officer, and shall restore the land to a condition
that is satisfactory to the Authorized Officer or
at the option of * * * [the oil companies] pay the
cost of such removal and restoration. * * *
[Emphasis added.]
The State of Alaska right-of-way agreements for TAPS contain
virtually the same language explicitly requiring the oil
companies, upon shutting TAPS down, to perform or to pay for the
DRR work associated with dismantling and removing the pipeline
and restoring the land.
DRR Liabilities Recognized for TAPS Rate Making Purposes
As stated, the Federal right-of-way agreements and the
permits relating to TAPS expressly require DRR work to be
completed by the oil companies upon termination of pipeline
operations.
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