---
kind: "section"
citation: "25 C.F.R. § 169.116"
title: "25"
number: "169.116"
heading: "Must a right-of-way specify who receives monetary compensation payments?"
url: "https://uscodex.org/cfr/25/169.116"
---

# §169.116. Must a right-of-way specify who receives monetary compensation payments?

- (a) A right-of-way grant must specify whether the grantee will make payments directly to the Indian landowners (direct pay) or to us on their behalf.
- (b) The grantee may make payments directly to the tribe if the tribe so chooses. The grantee may make payments directly to the Indian landowners if:
  - (1) The Indian landowners' trust accounts are unencumbered accounts;
  - (2) There are 10 or fewer beneficial owners; and
  - (3) One hundred percent of the beneficial owners (including those on whose behalf we have consented) agree to receive payment directly from the grantee at the start of the right-of-way.
- (c) If the right-of-way document provides that the grantee will directly pay the Indian landowners, then:
  - (1) The right-of-way document must include provisions for proof of payment upon our request.
  - (2) When we consent on behalf of an Indian landowner, the grantee must make payment to us on behalf of that landowner.
  - (3) The grantee must send direct payments to the parties and addresses specified in the right-of-way, unless the grantee receives notice of a change of ownership or address.
  - (4) Unless the right-of-way document provides otherwise, payments may not be made payable directly to anyone other than the Indian landowners.
  - (5) Direct payments must continue through the duration of the right-of-way, except that:
    - (i) The grantee must make all Indian landowners' payments to us if 100 percent of the Indian landowners agree to suspend direct pay and provide us with documentation of their agreement; and
    - (ii) The grantee must make an individual Indian landowner's payment to us if that individual Indian landowner dies, is declared non compos mentis, owes a debt resulting in an encumbered account, or his or her whereabouts become unknown.

## Notes

### Authority

Authority: 5 U.S.C. 301; 25 U.S.C. 323-328; 25 U.S.C. 2201 et seq.

### Source

Source: 80 FR 72534, Nov. 19, 2015, unless otherwise noted.