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Section 5: Transfer of Right of Way No Longer Needed for a State Highway Purpose to a GE with Waiver of Payment to the State

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Note: The Right of Way Manual provides guidance for disposition of property interests that are no longer needed for state highway purposes. Unless otherwise stated, procedures outlined below apply to property interests that are no longer needed for state highway purposes.

TxDOT has the authority to transfer a right of way interest no longer needed for a state highway purpose to a GE 1) in consideration for savings to the state of future maintenance costs; or 2) applicable to highway right of way only, the GE assumes or has assumed jurisdiction, control and maintenance for public road purposes. This type of transaction is primarily used where a segment of highway is being removed from the system and transferred to a GE for continued use as a roadway.

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In Lieu of Future Maintenance Costs

In addition to the submission requirements in Sale of Right of Way (Fee Simple) No Longer Needed for State Highway Purpose to a GE under the Statutory Priority, the department personnel will coordinate with the appropriate area office or maintenance section to compute the future maintenance costs. The future maintenance costs must equal or exceed the fair market value of the right of way in order for the ROW program office in Austin to prepare a minute order for Commission consideration.

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GE Assumption for Public Road Purposes

A transfer under this provision requires a reservation in the conveyance document to the GE providing that if the property being transferred ceases to be used for public road purposes, the property shall immediately and automatically revert to the state.

For guidance on this type of transaction, please contact the ROW program office in Austin.

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