INFORMATION #3 05-15-2006 - Laserfiche WebLink

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and construction of rail and track structure and signal improvements within the right of way corridor in compliance with all federal, state and local laws and regulations and BNSF standards; (c) the State will be responsible for securing, on BNSF's behalf, all environmental and governmental permits (including, but not limited to, proprietary permits such as wetland permits) that are necessary for projects (the "Permits") and BNSF will cooperate in efforts to obtain such permits; (d) BNSF, with notice to the State, will determine the specific improvement projects that are necessary to construct and implement Northstar Commuter Rail Service; (e) BNSF will provide the necessary capacity to operate the Northstar Corridor Rail Service within negotiated schedules and service parameters; (f) BNSF will provide the necessary rights within its existing right of way to construct and operate by State at its expense at agreed upon station locations and consistent with BNSF standards, all station related facilities; and (g) State will be responsible for design, construction, maintenance and repair of improvements used exclusively in the provision of Northstar Commuter Rail Service such as stations, parking facilities and passenger rolling stock layover and maintenance facilities, and for completion of existing agreements consistent with the current scope provided in (d) above. A schedule of improvements for which the State must obtain Permits will be included in the Definitive Agreements. 3. Prior to commencement of operation of Northstar Commuter Rail Service and conveyance of any such easement, interest or rights for use of the Northstar Corridor, the parties will also complete, as part of the Definitive Agreements, a mutually acceptable service agreement for provision of dispatching and/or train crew services and related services for the specified commuter trains. The Definitive Agreements will include mutually acceptable compensation terms including, but not limited to, contribution by State for maintenance, repair and replacement along the Northstar Corridor; and enforceable comprehensive provisions protecting BNSF from liability, including insurance and indemnification. The Definitive Agreements will also define the services to be provided by BNSF, including maintaining the railroad infrastructure and dispatching, and also the terms for operation and scheduling of commuter rail trains. 4. In order to qualify for federal funding, BNSF will cooperate with the State's efforts to meet the Federal Transit Administration ("FT A") requirements consistent with the terms of this MOV. 5. The parties contemplate that revenue operations of the Northstar Commuter Rail Service will commence in 2009. The Definitive Agreements will contain a time period after all Permits are obtained by the State during which BNSF may construct improvements as contemplated above and provide that the Northstar Commuter Rail Service would not commence until such time periods have run. 6. The State will pay BNSF $107,500,000.00 for the commuter rail easements, as to be further defined in the Definitive Agreements, subject to concurrence by the FT A. If the State of Minnesota enacts legislation exempting certain Northstar-related expenditures from Minnesota state sales tax, any net cost savings that accrue directly to BNSF from the exemption will be credited by BNSF to the State. 7. The parties' interests and obligations in continued service and payments during the terms granted to it under the agreements contemplated in this MOU will be established so as to survive bankruptcy and sale. 2