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airport, taking into account such factors as the volume of traffic and economy of collection. No part of the Federal
<br />share of an airport development, airport planning or noise compatibility project for which a grant is made under Title
<br />49, United States Code, the Airport and Airway Improvement Act of 1982, the Federal Airport Act or the Airport and
<br />Airway Development Act of 1970 shall be included in the rate basis in establishing fees, rates, and charges for users
<br />of that airport.
<br />25. Airport Revenues.
<br />a. All revenues generated by the airport and any local taxes on aviation fuel established after December 30,
<br />1987, will be expended by it for the capital or operating costs of the airport; the local airport system; or other local
<br />facilities which are owned or operated by the owner or operator of the airport and which are directly and substantially
<br />related to the actual air transportation of passengers or property; or for noise mitigation purposes on or off the airport.
<br />The following exceptions apply to this paragraph:
<br />I) If covenants or assurances in debt obligations issued before September 3, 1982, by the owner or operator of
<br />the airport, or provisions enacted before September 3, 1982, in governing statutes controlling the owner or operator's
<br />financing, provide for the use of the revenues from any of the airport owner or operator's facilities, including the
<br />airport, to support not only the airport but also the airport owner or operator's general debt obligations or other
<br />facilities, then this limitation on the use of all revenues generated by the airport (and, in the case of a public airport,
<br />local taxes on aviation fuel) shall not apply.
<br />2) If the Secretary approves the sale of a privately owned airport to a public sponsor and provides funding for
<br />any portion of the public sponsor's acquisition of land, this limitation on the use of all revenues generated by the sale
<br />shall not apply to certain proceeds from the sale. This is conditioned on repayment to the Secretary by the private
<br />owner of an amount equal to the remaining unamortized portion (amortized over a 20 -year period) of any airport
<br />improvement grant made to the private owner for any purpose other than land acquisition on or after October I, 1996,
<br />plus an amount equal to the federal share of the current fair market
<br />value of any land acquired with an airport improvement grant made to that airport on or after October 1, 1996.
<br />3) Certain revenue derived from or generated by mineral extraction, production, lease, or other means at a
<br />general aviation airport (as defined at Section 47102 of title 49 United States Code), if the FAA determines the
<br />airport sponsor meets the requirements set forth in Sec. 813 of Public Law 112 -95.
<br />b. As part of the annual audit required under the Single Audit Act of 1984, the sponsor will direct that
<br />the audit will review, and the resulting audit report will provide an opinion concerning, the use of airport revenue and
<br />taxes in paragraph (a), and indicating whether funds paid or transferred to the owner or operator are paid or
<br />transferred in a manner consistent with Title 49, United States Code and any other applicable provision of law,
<br />including any regulation promulgated by the Secretary or Administrator.
<br />C. Any civil penalties or other sanctions will be imposed for violation of this assurance in accordance with the
<br />provisions of Section 47107 of Title 49, United States Code.
<br />26. Reports and Inspections. It will:
<br />a. submit to the Secretary such annual or special financial and operations reports as the Secretary may
<br />reasonably request and make such reports available to the public; make available to the public at reasonable times and
<br />places a report of the airport budget in a format prescribed by the Secretary;
<br />b. for airport development projects, make the airport and all airport records
<br />and documents affecting the airport, including deeds, leases, operation and use agreements, regulations and other
<br />instruments, available for inspection by any duly authorized agent of the Secretary upon reasonable request;
<br />C. for noise compatibility program projects, make records and documents relating to the project and continued
<br />compliance with the terms, conditions, and assurances of this grant agreement including deeds, leases, agreements,
<br />regulations, and other instruments, available for inspection by any duly authorized agent of the Secretary upon
<br />reasonable request; and
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