SECTION 21.308. Termination of Agreement

(a) An agreement under this subchapter may be terminated if, in the department's sole opinion:

(1) the leased assets are not being used in accordance with the lease or have been abandoned; or

(2) the selected proposer has not complied with the terms of the agreement.

(b) The department will give written notice to the selected proposer of noncompliance with the agreement and specify a reasonable period during which the selected proposer may correct the noncompliance. If the selected proposer fails to correct the issues within the specified period, the department may terminate the agreement.

(c) The agreement may contain a provision for early termination of the agreement by either party with or without cause. The right of either party to terminate the agreement without cause before the stated termination date may be conditioned on the payment to the non-terminating party of an amount negotiated by the parties and specified in the agreement.

(d) Upon termination of the agreement for any reason, the department may require the selected proposer to:

(1) dismantle and remove the freight transportation facility and to restore the right of way at no cost to the department; or

(2) hand back the facility to the department in a condition complying with minimum specified criteria and standards.

(e) The selected proposer shall bear the cost of any remedial or rehabilitation work identified as being necessary to improve the facility to comply with the minimum specified criteria or standards under subsection (d)(2) of this section.

Source Note: The provisions of this §21.308 adopted to be effective January 6, 2011, 35 TexReg 11959