Easement process

Minerals Study – The report examines minerals, oil and gas and other extractables which may be present on the property or in the region, in regard to extraction which could impact conservation values. What is the likelihood that the property will be mined? A determination regarding who owns or has leases or agreements for extractables should be included. An evaluation of the potential for wind energy development, the removal of water rights and the probability of eminent domain should also be a part of the report.

Appraisal of Conservation Easement Value – This study determines the value of the property prior to the donation of the easement with the value after the easement is in place to find a dimunition value attributable to granting the easement. It must be performed a qualified conservation easement appraiser.

Title Insurance – Because the property owner is donating real properties values, there must be a title insurance policy naming the land trust as an insured which insures the value of the values transferred in the conservation easement deed.

Endowment – The land owner generally donates an endowment of $10,000 to $20,000 to be used to monitor, defend and protect the conservation easement and to used by the land trust to strengthen its organization to better education, service and protect.

Other Documents – Documents for tax deductions and credits, the encumbrance of water rights, subordination of mortgages, and other conditions may also be necessary

The conservation easement process although not overly difficult has a number of specific requirements and “good sense” steps that cannot be overlooked. Necessary steps include but may not be limited to:

Conservation Easement Deed – This document is an agreement between the landowner (donor) and the land trust (donee) to transfer certain real property rights such as rights to develop, perform certain commercial activities, mine or extract minerals, oil and gas and the rights to conduct other activities on the property. The conservation easement deed must be recorded with the County Clerk & Recorder in the county where the property is located. The land trust holds the conservation easements in perpetuity and defends against any party conducting any of the restricted activities. Well written conservation easement deeds address the conservation purpose, the intent of the donor and donee, and the specifics what actions and remedies are allowable.

Baseline Study – This report should be prepared by a qualified expert in wildlife, habitat, public benefit and other conservation easement values. It not only provides information about the current property conditions including any buildings or improvements, but is also a testimonial to the conservation values present on the property. A good baseline will also address conditions and factors on neighboring properties and in the region which impact or may in the future impact conservation values. In other words, it evaluates the property in a greater context.