(1) Conditional Agreements may be issued for certain encroachments not previously described and which are required to be removed from the right-of-way under this policy, provided removal or agreement to remove such encroachments cannot be achieved amicably. The encroaching facilities to which this provision applies and the conditions under which a conditional agreement may be issued are as follows:

(a) Buildings - A conditional agreement may be granted for a building structure for an initial period not to exceed ten years provided the building does not interfere with the public use of the right-of-way. Extensions may be granted for additional periods not to exceed ten years each, provided the building does not interfere with the public use of the right-of-way.

(b) Fuel Pumps - A conditional agreement of time may be granted for fuel pumps (gasoline, diesel fuel, etc.) and connections, including pump islands and lighting devices, for an initial period not to exceed five years where such facilities do not interfere with the public use of the right-of-way. Extensions may be granted for additional periods not to exceed five years each, provided the facilities do not interfere with the public's use of the right-of-way.

(c) The person or firm granted a conditional agreement shall sign a recordable instrument agreeing to remove the device upon appropriate notice. This instrument shall require that the person or firm granted the agreement shall furnish a performance bond to assure the removal of the encroaching device from the right-of-way. The amount of such bond shall be $5,000 or the estimated cost of removing the encroaching device from the right-of-way, whichever is greater. A $3,500 cash bond may be substituted for the $5,000 surety bond where the estimated cost of removing the encroaching device does not exceed $3,500. In addition, the instrument shall provide that the person or firm shall furnish a contractual insurance policy with minimum limits of $250,000/$500,000 public liability, and $25,000 property damage. Such policy must save the traveling public, the Montana Department of Highways, its employees and agents, harmless from any loss or damage.