(1) To prevent undue hardship, overhanging and underground encroachments which do not conform to the standards set forth in ARM 18.7.105 may be allowed to remain in place at the discretion of the Administrator -Maintenance Division under the conditions set forth below:

(a) The facility must have been in place and must have encroached on public right-of-way as of June 23, 1969.

(b) It is determined that the encroaching facility and normal use thereof does not constitute a traffic hazard and does not conflict or interfere with highway construction or maintenance operations, or with the public's use of the right-of-way.

(c) The owner of the encroaching facility must sign an application for extension of time and agreement to remove the encroachment. This application must contain the following minimum provisions:

(i) The present encroaching device may remain as it is for a specified period of time not to exceed ten years from the date of issuance of the agreement.

(ii) If the encroaching facility is subsequently determined to be a hazardous installation, or becomes conflicting or interfering with the operation and public use of the highway, it shall be removed on thirty (30) days written notice.

(iii) If the encroaching facility is replaced, renewed or removed for any reason, the agreement is automatically revoked and the facility must thereafter be in conformance with the standards set forth in ARM 18.7.105. Normal painting and servicing of the facility shall be allowed, however.

(iv) The encroaching facility shall be removed from the right-of-way on or before the expiration date of the agreement, or upon written notice as provided above.

(v) The encroachment owner shall pay court costs and reasonable attorney's fees in the event the State is required to take legal action to enforce the terms of the agreement.

(2) Agreements shall not be issued for the following facilities:

(a) Off-premise advertising signs.

(b) Revolving, moving, animated, or flashing illuminated signs, or other signs which tend to unduly distract or annoy.

(c) Free-standing or portable signs or devices.

(d) Facilities which are not permitted or are specifically prohibited under applicable ordinances or regulations of the city or other appropriate local unit of government.