Right of Way - Installation of Water, Gas or Sanitary Sewer Lines Bond - Statewide in Louisiana
Table of Contents
Brief Summary
Before a water, gas or sewer line goes under or alongside a Louisiana state highway, DOTD has to issue an utility permit, and it can require a performance bond to back the work. This bond answers that requirement so the permit can issue and the crew can mobilize. You pay a premium instead of tying up cash for the life of the permit.
The Louisiana Department of Transportation and Development may require a performance bond for utility work carried out in state highway right-of-way under LAC 70:II.501(D), and it keeps bonds on file with permit applications. This bond is posted by the permittee installing water, gas or sanitary sewer lines under a DOTD Utility Permit. The rule does not fix a dollar amount, so get the required figure from the DOTD district permit specialist before the bond is written.
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How to Apply for a Right of Way - Installation of Water, Gas or Sanitary Sewer Lines Bond:
- Confirm the permittee is the utility owner or lessee, since DOTD will not issue the permit to a contractor.
- Ask the DOTD district permit specialist for the bond amount and any required bond form.
- Legal name of the permittee exactly as it appears on the DOTD Utility Permit application.
- Project location, highway and a description of the water, gas or sewer installation.
- Owner or officer name, home address and Social Security number for the credit review.
- Complete the bond application, review the quote, pay the premium and receive the executed bond.
- File the bond with the DOTD Utility Permit application before any work begins.
Detailed Information About the Louisiana Right of Way - Installation of Water, Gas or Sanitary Sewer Lines Bond:
The permittee is the owner, not the contractor
This is the detail that trips people up. LAC 70:II.509 states that the applicant must be the property owner or lessee and that permits shall not be issued to contractors or other third parties. The utility owner, whether a water system, gas utility or sewer district, applies for the DOTD Utility Permit and posts the bond. A contractor doing the installation works under the owner's permit.
Where the requirement comes from
LAC 70:II.501 covers all public and private utilities in DOTD-controlled highway right-of-way, including water, gas and sewage lines. Subsection D says DOTD has the right to charge a fee or require a performance bond for utility and driveway work carried out in the highway right-of-way, that bonds are kept on file for permit applications, and that DOTD may assess penalties, including forfeiture of a deposit, for noncompliance. The rule lists its authority as including R.S. 48:381 through 383 and 48:385 through 387.
What the bond guarantees
The bond backs the permittee's promise to do the work to DOTD's standards and the terms of the permit. Under LAC 70:II.507, a permit must be obtained before work begins and can be suspended or canceled for noncompliance. Under LAC 70:II.509, the district utility specialist inspects the site when the work is complete, and any deficiencies must be corrected promptly or the permit may be suspended or canceled. If the permittee does not make it right, DOTD can look to the bond.
Sewer lines carry one more rule
DOTD guidance citing R.S. 48:385 states that no sewage or effluent from septic tanks may be discharged on state highway right-of-way without approval from the Department of Health and Hospitals and a DOTD permit.
Amount and filing
The amount is whatever DOTD requires on your permit. Contact the right-of-way permit specialist for the district where the work is located, or DOTD headquarters permits at (225) 379-1927, confirm the amount and form, and file the bond with the Utility Permit application.
Eligibility and Requirements for a Louisiana Right of Way - Installation of Water, Gas or Sanitary Sewer Lines Bond:
- Louisiana Department of Transportation and Development named as obligee.
- Penal sum as required by DOTD for the permit. LAC 70:II.501 does not set a fixed figure.
- Work built to DOTD utility standards and permit conditions.
- Bond kept in force until DOTD's post-completion inspection is passed and deficiencies are corrected.
- Premium set by the surety after reviewing the permittee's credit, finances and the scope of the work.
Louisiana Right of Way - Installation of Water, Gas or Sanitary Sewer Lines Bond FAQs:
No. LAC 70:II.509 says DOTD permits go to the property owner or lessee and are not issued to contractors or other third parties. The utility owner is the permittee and the principal on the bond.
DOTD sets the amount for the permit. The rule gives DOTD the right to require a performance bond but does not print a dollar figure, so get the number from the district permit specialist.
The district utility specialist inspects the site after the work is complete. Once the work is accepted and any deficiencies are fixed, ask DOTD to release the bond.
DOTD lists the Utility Permit for water, sewer, electrical, gas, telecommunications, pipelines and bridge attachments. This bond is for the water, gas and sanitary sewer installations.
The surety looks at the bond amount, the permittee's credit and financial statements, and the size and complexity of the installation.
