[34 Pa.B. 2421]
[Continued from previous Web Page]
STATE BOARD REVIEW OF COUNTY PROGRAM § 138e.41. Application for review of county program.
A county board seeking State Board review, certification and approval of its county program shall submit one copy of its county program and its bylaws to the State Board at the following address: Director, Bureau of Farmland Preservation, Department of Agriculture, 2301 North Cameron Street, Harrisburg, Pennsylvania 17110-9408.
§ 138e.42. Review, certification and approval of a county program.
(a) The State Board will acknowledge receipt of the county program and may request additional information.
(b) Within 60 days of receipt of a complete county program, the State Board will approve or disapprove the county program.
(1) The State Board will approve the county program if it finds that the standards, criteria and requirements in the act and §§ 138e.11--138e.21 (relating to requirements for certification of county program) have been satisfied, and will immediately notify the county board in writing that the county program has been approved.
(2) The State Board will disapprove the county program if it is not in accordance with the act and §§ 138e.11--138e.21 and will immediately notify the county board in writing of the reasons for the disapproval. The county board may submit a revised county program to the State Board. The revised county program shall be treated as a new request for certification and approval.
(3) The county board may withdraw its county program from the State Board prior to action by the State Board. The county board may resubmit the county program for review. The State Board has 60 days from resubmittal to act on the county program.
(c) A decision of the State Board to disapprove a county program shall be an adjudication subject to 2 Pa.C.S. §§ 501--508 and 701--704 (relating to the Administrative Agency Law). An appeal from a decision of the State Board to disapprove a county program may be made by the county board to the Secretary and shall be filed in writing with the Secretary within 30 days of the State Board's action. An appeal from a decision of the State Board will be governed by 1 Pa. Code Part II (relating to general rules of administrative practice and procedure).
§ 138e.43. Revision of county program.
(a) Following initial approval by the State Board, a county program may be revised in accordance with this section.
(b) A county board seeking review of a proposed revision to its county program shall submit one copy of the proposed revision to the State Board at the following address: Director, Bureau of Farmland Preservation, Department of Agriculture, 2301 North Cameron Street, Harrisburg, Pennsylvania 17110-9408.
(c) A county board's request for review of a proposed revision to a county program shall set forth the following:
(1) The text of the existing provisions of the county program to be revised.
(2) The text of all proposed revisions to the county program.
(3) A brief narrative explaining the reasons for, and the benefits from, the proposed revisions.
(4) Other supporting documentation or information deemed relevant by the county board or requested by the State Board.
(d) A proposed revision to the county program shall comply with the act and this chapter and may not conflict with another provision of the county program.
(e) The State Board will follow the procedures in § 138e.42 (relating to review, certification and approval of a county program) in reviewing a proposed revision to a county program.
PROCEDURE FOR PURCHASING AN EASEMENT § 138e.61. Application.
(a) A separate application shall be required for each farmland tract offered for easement purchase. The application shall consist of a completed application form, locational maps and a soils report form. A copy of a soils report form is in Appendix B (relating to Form C Soils Report). If the county program contains minimum criteria for easement purchase that vary from those in § 138e.16 (relating to minimum criteria for applications), the application shall also include documentation to demonstrate the farmland tract meets these minimum criteria.
(b) The county board shall develop and make available to a county resident an application form which requires the following information:
(1) The printed name, address, telephone number and signature of all owners of the farmland tract.
(2) One of the following, as applicable:
(i) If the farmland tract is eligible to be considered for easement purchase under § 138e.16(a)(1)(i), the county, local government unit and agricultural security area in which the farmland tract is located.
(ii) If the farmland tract is bisected by a dividing line between two units of local government and is eligible to be considered for easement purchase under § 138e.16(a) (1)(ii), the county and local government units in which the farmland tract is located, the agricultural security area in which a portion of that farmland tract is located, a breakdown of the acreage proposed for easement purchase in each local government unit and a breakdown of the number of acres of viable agricultural land in the acreage proposed for easement purchase in each local government unit.
(iii) If the farmland tract is bisected by the dividing line between two or more counties and is eligible to be considered for easement purchase under § 138e.16(a) (1)(iii), the counties and local government units in which the farmland tract is located, the agricultural security area in which a portion of that farmland tract is located, and one of the following:
(A) If there is a mansion house on the farmland tract, an acknowledgement of this fact and a designation of the county in which the mansion house is located.
(B) If there is a mansion house on the farmland tract, and the mansion house is bisected by the dividing line between two or more counties, an acknowledgement of this fact and a designation of the county the landowner has chosen as the situs of assessment for tax purposes.
(C) If there is no mansion house on the farmland tract, an acknowledgement of this fact and a breakdown of the acreage proposed for easement purchase in each county and a breakdown of the number of acres of viable agricultural land in the acreage proposed for easement purchase in each county.
(3) The total acreage of the farm as shown on the deed or instruments of record.
(4) The number of acres in the farmland tract proposed for easement purchase.
(5) The street address of the farm, and directions from the nearest State route.
(6) The most current deed reference-book, volume and page-or other reference to the place of record of the deed. In the case of multiple deeds, numbers for all the deeds shall be provided.
(7) County tax map numbers, including tax parcel number, or account number of each parcel.
(8) The date of the conservation plan, if any, which has been approved by the county conservation district or county board.
(9) The date of any nutrient management plan.
(10) The name, address and telephone number of the person to be contacted to view the farmland tract.
(c) The applicant or the county board shall provide both of the following locational maps with the application:
(1) A United States Geological Survey topographical map or a portion of the map showing the location of the farmland tract, with the farmland tract boundaries clearly and correctly delineated and showing the location of acreage being excepted from the easement.
(2) A tax map or official map used for tax assessment purposes showing the farmland tract with all tax parcel numbers clearly indicated.
(d) The applicant or the county board shall provide a soils report and a color-coded soils map for the farmland tract proposed for easement purchase. The soils report shall also contain a list of soil mapping unit names, symbols and land capability classes on the farmland tract. The soils map shall use as a base soil survey maps published by the USDA-NRCS. A county with a digital mapping database system for soils may provide the soils map in digital form in an appropriate scale acceptable to the Department. The soils map shall color code soil types as follows:
Land capability class I = Green
Land capability class II = Yellow
Land capability class III = Red
Land capability class IV = Blue
Land capability class V--VIII = Uncolored
Wetlands = Cross-hatch, or shown on a separate map
(e) If the county program requires crop yield data or gross annual receipts to determine whether a farmland tract meets the county program's minimum criteria for easement purchase, the applicant shall provide a production report for the farmland tract for the most recent crop year that comparable statistics are available from the Pennsylvania Agricultural Statistics Service (PASS).
§ 138e.65. Easement value and purchase price.
(a) Easement value. An easement shall be purchased in perpetuity. The maximum value of an easement for purposes of making an offer to purchase an easement under § 138e.66(b) (relating to offer of purchase by county board) shall be the difference between the market value and the farmland value contained in the county appraisal report.
(b) Maximum purchase price. The purchase price offered for the purchase of an easement under § 138e.66(b) may not exceed, but may be less than, the value of the easement.
§ 138e.66. Offer of purchase by county board.
(a) In determining whether to offer to purchase an easement following receipt of the county appraisal report, the county board shall consider the following:
(1) The farmland ranking score, as calculated in accordance with § 138e.15 (relating to farmland ranking system).
(2) The cost relative to total allocations and appropriations.
(3) The factors or considerations set forth in the county program as those factors or conditions under which an offer to purchase would be made in something other than descending order of farmland ranking score. An example of a factor or consideration under which a county program might provide for the making of an offer to purchase in something other than descending order of farmland ranking score would be the landowner being unable to obtain clear title to the farmland tract within a time specified in the county program.
(b) If the county board determines to offer to purchase an easement on the farmland tract, the county board, or a representative of the county board, shall meet with the applicant to review the county appraisal report. An offer to purchase an easement shall be submitted to the applicant in writing and be accompanied by the county appraisal report.
(c) Within 30 days of receipt of the written offer from the county board, an applicant may do one of the following:
(1) Accept the offer, in which case the county board and the applicant shall enter into an agreement of sale. The agreement of sale shall be conditioned upon the approval of the State Board and be subject to the ability of the applicant to provide good title to the premises, free of encumbrances such as liens, mortgages, options, rights of others in surface mineable coal, land use restrictions, adverse ownership interest and other encumbrances which would adversely impact the county and Commonwealth's interest in the farmland tract.
(2) Reject the offer and advise the county board that the application is withdrawn.
(3) Advise the county board that the applicant is retaining, at the applicant's expense, an independent State-certified general real estate appraiser to determine the easement value. The appraiser shall be qualified, and the appraisal shall be completed in accordance with the procedure in § 138e.64 (relating to appraisal). The appraisal shall be submitted to the county board within 120 days of receipt of the county board's offer to purchase. The county board may extend the time within which this appraisal shall be submitted. This extension shall be in writing and shall extend the 120-day deadline by no more than 60 days. Upon completion, three copies of the applicant's appraisal shall be submitted to the county board. The applicant's decision to obtain an independent appraisal under this paragraph does not constitute a rejection of the county board's offer. The county board's offer shall remain open unless increased by the county board under subparagraph (iv) or rejected by the applicant under subparagraph (v).
(i) If the applicant retains an independent appraiser, the easement value shall be the difference between the agricultural value and the nonagricultural value, determined as follows:
(A) The agricultural value shall equal the sum of:
(I) The farmland value determined by the applicant's appraiser.
(II) One-half of the difference between the farmland value determined by the county board's appraiser and the farmland value determined by the applicant's appraiser, if the farmland value determined by the county board's appraiser exceeds the farmland value determined by the applicant's appraiser.
(B) The nonagricultural value shall equal the sum of:
(I) The market value determined by the county board's appraiser.
(II) One-half of the difference between the market value determined by the applicant's appraiser and the market value determined by the county board's appraiser, if the market value determined by the applicant's appraiser exceeds the market value determined by the county board's appraiser.
(ii) If the easement value determined under subparagraph (i) is less than the easement value determined by the county appraiser, the county board may offer a purchase price equal to the county's offer under subsection (b).
(iii) Regardless of the easement value, the purchase price may not exceed any overall purchase price limits established by the county in its county program.
(iv) Within 30 days of receipt of the applicant's appraisal, the county board shall do one of the following:
(A) Submit a written offer to purchase in an amount in excess of the amount offered under subsection (b) to the applicant.
(B) Notify the applicant, in writing, that the offer made under subsection (b) remains open and will not be modified.
(v) The applicant shall, within 15 days of receipt of the county board's written offer under subparagraph (iv)(A) or receipt of the county board's written notice under subparagraph (iv)(B), notify the county board in writing that the applicant does one of the following:
(A) Accepts or rejects the offer made under subparagraph (iv)(A).
(B) Accepts or rejects the offer made under subsection (b).
(vi) The failure of the applicant to act as set forth in subparagraph (v) shall constitute a rejection of the county board's offer.
(vii) If the offer of purchase is accepted, the county board and the applicant shall enter into an agreement of sale containing the same requirements and subject to the same conditions in subsection (c)(1).
(4) The failure by the applicant to act within 30 days of receipt of a written offer under subsection (b) shall constitute rejection of the offer.
(d) An agreement of sale shall be in a form provided by the State Board.
§ 138e.67. Requirements of the agricultural conservation easement deed.
(a) The owners of the subject farmland tract shall execute a deed conveying the easement. This deed shall include the provisions of § 138e.241 (relating to deed clauses).
(b) The deed shall be in recordable form and contain:
(1) A legal description setting forth the metes and bounds of the farmland tract subject to the easement.
(2) At least one course and distance referencing affixed marker or monument of a type commonly placed in the field by a surveyor. Fixed markers may include iron pins, pk nails, spikes, concrete monuments or stones.
(c) The legal description may not contain a closure error greater than 1 foot per 200 linear feet in the survey.
(d) The farmland tract on which an easement is to be purchased shall be surveyed unless the legal description contained in the deed recorded in the land records of the county in which the farmland tract is located satisfies the requirements of subsections (b) and (c). A survey required by this subsection shall meet the requirements of § 138e.73 (relating to survey requirements).
(e) For purchases made entirely with State funds, the Commonwealth shall be the sole grantee.
(f) For purchases made using a combination of State and county funds, the grantees shall be the Commonwealth and the county providing the funds under joint ownership as defined in the act.
(g) For purchases made using a combination of State, county and local municipality funds, the grantees shall be the Commonwealth, the county and the local municipality providing the funds under joint ownership as defined in the act.
(h) For purchases made entirely with county funds, the county shall be the sole grantee.
(i) For purchases made entirely with local municipal funds, the municipality shall be the sole grantee.
(j) For purchases made entirely with State funds, the Commonwealth shall be the sole grantee.
§ 138e.68. Title insurance.
(a) The county board shall provide the following to the State Board upon submission of its recommendation for the purchase of an easement:
(1) A title insurance commitment.
(2) Copies of all recorded or unrecorded documents listed on the title insurance commitment as exceptions to the title insurance policy.
(b) At settlement, the county board shall provide a title insurance policy issued by a title insurance company authorized to conduct business in this Commonwealth by the Insurance Department. A marked up title commitment may serve as a policy until the final policy is issued. The amount of title insurance coverage shall equal or exceed the higher of the following amounts:
(1) The difference between the appraised market value and the appraised farmland value, as described in § 138e.65(a) (relating to easement value and purchase price).
(2) The difference between the agricultural value and the nonagricultural value, as described in § 138e.66(c)(3) (relating to offer of purchase by county board), if the values are used to calculate the easement value.
§ 138e.71. Notification of owners of land adjoining proposed easement purchase.
(a) General. A county board shall provide the owners of land adjoining a farmland tract with respect to which an easement purchase is proposed with notice of the proposed purchase and notice of an opportunity to be heard at the State Board meeting at which the easement purchase recommendation is to be considered. At a minimum, this notice shall identify the property being considered for easement purchase, reference the time and place of the State Board meeting at which the easement purchase recommendation is to be considered and reference the criteria in section 14.1(e)(1) of the act (3 P. S. § 914.1(e)(1)) upon which the State Board could disapprove a recommended easement purchase. Service of this notice may be accomplished by personal service or mail as described in subsections (b) and (c).
(b) Personal service. The notice described in subsection (a) may be accomplished by personal service upon the landowners entitled to notice. If service is accomplished by personal service, the county board shall submit verification of service to the State Board in advance of the State Board meeting at which the easement purchase recommendation is to be considered.
(c) Certified mail. The notice described in subsection (a) may be accomplished by certified mail, return receipt requested, addressed to the landowner entitled to the notice. If service is accomplished by certified mail, the county board shall submit verification of service, including a copy of the return receipt, to the State Board in advance of the State Board meeting at which the easement purchase recommendation is to be considered.
(d) Correction of notice. If the date or time of the meeting at which an easement purchase recommendation is to be considered changes after the adjoining landowners receive the notice described in this section, the county board shall provide these landowners a corrective notice, providing notice of the changes, in the manner described in subsection (b) or (c).
§ 138e.73. Survey requirements.
(a) General requirement. If a survey of land being considered for agricultural conservation easement purchase is required under § 138e.67(d) (relating to requirements of the agricultural conservation easement deed) or is otherwise required to determine metes and bounds of any right-of-way or other interests in the land, the survey shall indicate that it has a closure error of not greater than 1 foot per 10,000 linear feet in the survey, and shall otherwise comply with the boundary survey measurement standards published by the Pennsylvania Society of Land Surveyors in its ''Manual of Practice for Professional Land Surveyors in the Commonwealth of Pennsylvania,'' adopted July 10, 1998, or its most current successor document.
(b) Other requirements. A survey described in subsection (a) shall also contain the following:
(1) A recordable legal description setting forth the metes, bounds, monumentation, exceptions, easements and rights-of-way with respect to the farmland tract or other subject of the survey.
(2) A copy of the final boundary survey in digital electronic format that complies with the conservation easement Geographic Information System (GIS) technical standards maintained in the guidebook prepared by the Department in accordance with section 14.1(a)(3)(xv) of the act (3 P. S. § 914.1(a)(3)(xv)). The digital format shall show the bearings and distances between each monument and contain the northing and easting of each monument.
(3) Coordinates of at least two ground control points located sequentially along the boundary survey, with latitude and longitude expressed in decimal degrees with an accuracy of 6 recorded decimal places. These coordinates shall be based on the ''North American Datum of 1983,'' or its most current successor document, and shall be obtained through field observation or verification of datum.
(4) A paper copy of the plotted final survey map from the digital file showing the course bearings and distances and other annotations and symbols as maintained in the guidebook prepared by the Department in accordance with section 14.1(a)(3)(xv) of the act.
(c) Monumentation. If a survey of land being considered for agricultural conservation easement purchase is required under § 138e.67(d) or is otherwise required to determine metes and bounds of any right-of-way or other interests in the land, the surveyor shall establish monumentation for at least the two ground control points required under subsection (b)(3). This monumentation shall consist of permanent, concrete markers of substantial length and width containing ferrous or other materials detectable by an electromagnetic locator. The identity of the surveyor who places a monument shall be affixed or marked upon the monument so that it can be ascertained by inspection of the monument in the field.
STATE BOARD REVIEW OF A PURCHASE RECOMMENDATION § 138e.91. Recommendation for purchase.
A county board shall make its recommendation for purchase of an easement by submitting the following documents to the Director, Bureau of Farmland Preservation, Department of Agriculture, 2301 North Cameron Street, Harrisburg, Pennsylvania 17110-9408:
(1) Twenty-five copies of the summary report prepared in accordance with § 138e.70 (relating to summary report), including the following items:
(i) A cover letter from the county (optional).
(ii) A narrative summary.
(iii) A current United States Geological Survey (USGS) topographical map that clearly and legibly shows the subject property location and boundaries, location of neighboring easements and exclusions withheld from the subject property.
(iv) The Soil Report Form ''C'' (a form provided by the Department), both pages. See Appendix B (relating to Form C Soils Report).
(v) The list of soil mapping unit names, symbols and land capability classes on the subject property.
(vi) A legible, uncolored soil map of the subject property.
(vii) A tax map showing the subject property location and boundaries, exclusions withheld from the subject property, utility rights-of-way and access road rights-of-way.
(viii) A summary table showing the individual farmland ranking scores by category for applications selected for county appraisal, including an indication of the easement purchase status of higher-ranking applicants.
(ix) A copy of Exhibit B from the agreement of sale, modified to include interest, total acres and per acre easement cost.
(x) The 25 copies submitted shall be individually collated and three-hole punched, but not stapled.
(2) The appraisal reports.
(3) The signed agreement of sale, including the proposed legal description, a statement of cost, the proposed deed of agricultural conservation easement, a contractor integrity clause and a nondiscrimination clause.
(4) The title insurance report or commitment.
(5) A letter certifying that the adjoining landowners were provided with notice and opportunity to be heard in a manner consistent with administrative agency law with respect to the proposed easement purchase, including one copy of the notification letter required under § 138e.71 (relating to notification of owners of land adjoining proposed easement purchase) and a list of the adjoining landowners.
(6) A completed and signed IRS Form W-9, Request for Taxpayer Identification Number and Certification for individual grantors.
(7) A letter from the grantors stating the percent of ownership of each grantor for the purpose of issuing IRS Form 1099.
(8) A copy of the approved soil conservation plan that is required to be in place with respect to the land under § 138e.241(2) (relating to deed clauses).
(9) A copy of the nutrient management plan that has been developed, certified, reviewed and approved in accordance with the Nutrient Management Act (3 P. S. §§ 1701--1718), if the nutrient management plan is required under the Nutrient Management Act for any portion of the property that is the subject of the recommendation for purchase.
§ 138e.93. Postsettlement recording and reporting procedures.
(a) Retaining copies of essential documents. The county board shall make and retain photocopies of the following documents after settlement is held with respect to an agricultural conservation easement purchase, and prior to the recording of the deed of agricultural conservation easement in the appropriate recorder of deeds' office:
(1) The complete and fully-executed deed of agricultural conservation easement, including the complete legal description of the land subject to the agricultural conservation easement.
(2) A marked-up title insurance commitment document, reflecting that all listed title insurance exceptions have been addressed and resolved prior to the purchase of the agricultural conservation easement.
(3) Mortgage satisfaction pieces, subordination agreements and other documents to be recorded in connection with the agricultural conservation easement purchase.
(4) The complete and fully-executed conservation plan agreement form as described in § 138e.222 (a) (relating to conservation plan).
(b) Recording of the deed of agricultural conservation easement and other documents. The county board shall record the deed of agricultural conservation easement and any other documents (such as subordination documents, satisfaction pieces and releases, and the conservation plan agreement form) at the appropriate recorder of deeds' office after settlement is held with respect to the easement purchase.
(c) Recording of agricultural security area; reporting to the State Board. If the settlement triggers the automatic inclusion into an agricultural security area of some portion of the land subject to the agricultural conservation easement under section 14.1(b)(2)(i)(B) or (C) of the act (3 P. S. § 914.1(b)(2)(i)(B) or (C)), the governing body that created the agricultural security area into which the land is automatically included shall record the addition of this land into the agricultural security area in accordance with the filing, recording and notification procedures in section 8(d) and (g) of the act (3 P. S. § 914.8(d) and (g)). The governing body shall then transmit to the county board written confirmation that this recording, filing and notification has been accomplished. The county board shall mail or deliver a copy of that written confirmation to the State Board within 10 days of receipt.
(d) Reporting the agricultural conservation easement purchase to the State Board.
(1) General. The county board shall mail or deliver the following documents to the Department within 10 days following the date upon which settlement is held with respect to an agricultural conservation easement purchase:
(i) A complete notification of settlement, on a form available from the Department upon request, containing the following:
(A) The name of the landowners.
(B) The county in which the land is located.
(C) The date of settlement.
(D) A statement identifying any additional incidental costs.
(E) An indication (by check-off or other designation) of the other documents the county board is submitting to the Department along with the Notification of Settlement Form.
(F) The signature of the administrator or chief executive of the county board.
(ii) Copies of all of the documents described in subsection (b).
(iii) A copy of the settlement sheet, if the execution of such a document is part of the settlement transaction.
(iv) A marked-up title insurance commitment document or a title insurance policy, reflecting that all listed title insurance exceptions have been addressed and resolved prior to the purchase of the agricultural conservation easement.
(v) A complete verification, executed by the settlement agent at settlement, on a form available from the Department upon request, containing the following:
(A) A statement reading substantively as follows:
As Settlement Agent for _____ County, I hereby verify that I have submitted (or will take responsibility for submitting) the appropriate IRS 1099-S form(s) for the agricultural conservation easement identified below in accordance with the Internal Revenue Code, section 6045. I further verify that I have reported (or will report) the gross proceeds in the case of a joint purchase by the Commonwealth and the county. If this verification is not submitted to the Commonwealth within 30 days of closing, I further verify that the 1099-S form(s) will be sent to the IRS and the transferor by the deadline established by the IRS.(B) The name and Federal taxpayer I.D. number of each person who sold an interest in the agricultural conservation easement.
(vi) An invoice from the county for any additional incidental costs related to the agricultural conservation easement purchase, on a form available from the Department upon request, containing the following:
(A) The name, address and Federal taxpayer I.D. number of the county.
(B) The date of the application.
(C) The name, address and telephone number of the person designated by the county to act as a contact person if the Department requires further information.
(D) The name of the farm owner, address of the farm and the number of acres under agricultural conservation easement.
(E) A breakdown of the purposes for which reimbursement of additional incidental expenses is requested, and the amount of each expense.
(vii) A revised statement of costs, as described in § 138e.69 (relating to statement of costs), if the incidental costs are higher or lower than originally reported.
(2) Exception for agricultural conservation easements purchased by a local government unit solely. Paragraph (1) notwithstanding, if an agricultural conservation easement is purchased by a local government unit solely, the county board shall mail or deliver the following documents to the Department within 30 days after recording the deed of agricultural conservation easement:
(i) A copy of the complete and fully-executed deed of agricultural conservation easement, including the complete legal description of the land subject to the agricultural conservation easement.
(ii) A current United States Geological Survey (USGS) topographical map that clearly and legibly shows the subject property location and boundaries, location of neighboring easements and exclusions withheld from the subject property.
(iii) An invoice as described in paragraph (1)(vi).
(e) Copies of filed documents. The county board shall mail or deliver copies of the recorded documents described in subsection (b) to the Department within 30 days following the date upon which these documents are recorded at the appropriate recorder of deeds' office. The date and place of recording shall appear on each document.
(f) Title insurance policy. The title insurance policy should be mailed or delivered to the State Board within a reasonable time after settlement--preferably within 60 days of settlement.
ALLOCATION OF FUNDS § 138e.103. Expenditure of matching funds.
(a) State matching funds may be expended in a county only upon the recommendation of the county board.
(b) A county board that recommends the expenditure of State matching funds for the purchase of a specific easement shall state the amount of county matching funds that will be used for the purchase of the easement.
(c) County matching funds shall be expended within the periods specified in § 138e.102(e) (relating to allocation of funds to counties).
(d) An easement purchased using solely county funds will be considered an expenditure of county matching funds under section 14.1(h)(3), (4) and (5)(i) of the act (3 P. S. § 914.1(h)(3), (4) and (5)(i)) if:
(1) The easement document recorded in the land records of the county in which the farmland tract is located contains the provisions in § 138e.241 (relating to deed clauses) and any more restrictive provisions required under the county program.
(2) Upon settlement of the purchase of an easement, the county board submits the following to the State Board:
(i) A copy of the complete and fully-executed deed of agricultural conservation easement, including the complete legal description of the land subject to the agricultural conservation easement.
(ii) A copy of the production report with respect to the farmland tract, if the report is required under § 138e.61(e) (relating to application).
(iii) A statement describing the nature and scope of compliance with the conservation plan for the farmland tract.
(iv) The date of approval of the conservation plan, a copy of the conservation plan and a copy of the executed conservation plan agreement as described in § 138e.222 (relating to conservation plan).
(v) A completed Soil Report Form ''C'' (a form provided by the Department), both pages. See Appendix B (relating to Form C Soils Report).
(vi) A current United States Geological Survey (USGS) topographical map that clearly and legibly shows the subject property location and boundaries, location of neighboring easements and exclusions withheld from the subject property.
(vii) A statement of costs, as described in § 138e.69 (relating to statement of costs).
(viii) An invoice as described in § 138e.93(d)(1)(vi) (relating to postsettlement recording and reporting procedures).
(e) An easement purchased using solely county funds shall be considered an expenditure of county matching funds unless the State Board notifies the county board in writing within 60 days of receipt of the documentation required by subsection (d)(2) that the purchase will not be considered an expenditure of county matching funds and the reasons for the determination.
(f) If the State Board notifies the county board that the purchase will not be considered an expenditure of county matching funds, the county board shall have 60 days to resubmit documentation. Upon resubmittal of documentation, the State Board shall determine whether the purchase meets the requirements of subsection (d). The county board shall be notified of the State Board's determination within 60 days of the resubmittal.
§ 138e.104. Installment sales.
(a) Options. Payment for an agricultural conservation easement may be made in a lump sum, in installments or in another lawful manner of payment.
(b) Installment sales with a payment period of 5 years or less. Installment sales in which the final payment for the easement purchase is to be made no longer than 5 years from the date the contract of sale is fully executed are subject to the following requirements:
(1) Purchases may be made in the name of the Commonwealth, an eligible county or jointly by the Commonwealth and an eligible county.
(2) The Department will provide the agreement of sale for purchases made in the name of the Commonwealth solely or jointly by the Commonwealth and an eligible county.
(3) The installment payment terms, including the dates of payments, payment amounts and interest rate on the outstanding balance shall be negotiated between the landowner and the county board.
(4) The interest rate to be paid on the outstanding balance, shall be established by the county board, and shall be stated in the agreement of sale.
(c) Installment sales with a payment period of more than 5 years. Installment sales, other than those installment sales described in subsection (d), in which the final payment for the easement purchase is to be made more than 5 years from the date the contract of sale is fully executed are subject to the following provisions:
(1) Purchases may be made in the name of the Commonwealth, an eligible county or jointly by the Commonwealth and an eligible county.
(2) Notwithstanding the requirement of § 138e.66(d) (relating to offer of purchase by county board), the county board may, subject to approval by the Department, provide the agreement of sale for purchases made under this subsection.
(3) The agreement of sale and the deed of easement shall meet the same requirements and be subject to the same conditions as set forth in § 138e.66(c) and § 138e.67 (relating to requirements of the agricultural conservation easement deed).
(4) The installment payment terms, including the dates of payments, payment amounts and interest rate on the outstanding balance shall be negotiated between the landowner and the county board.
(5) The interest rate paid on the outstanding balance will be established by the county board and shall be stated in the agreement of sale.
(6) The State's share of the easement purchase price, exclusive of interest, shall be transferred to the county board for deposit into an irrevocable escrow account or deposit in another manner provided by law.
(7) Transfer of the Commonwealth's share of the easement purchase price, exclusive of interest, according to the terms of this paragraph shall relieve the Commonwealth of any obligation to pay or assure the payment of the easement purchase price and interest.
(d) Installment sales deferring the payment of principal for up to 30 years. Installment sales in which payment of principal is deferred to the end of a specific period of up to 30 years from the date the contract of sale is fully executed are subject to the following provisions:
(1) Purchases may be made in the name of the Commonwealth, an eligible county or jointly by the Commonwealth and an eligible county.
(2) Notwithstanding the requirement of § 138e.66(d), the county board may, subject to approval by the Department, provide the agreement of sale for purchases made under this subsection.
(3) The agreement of sale and the deed of easement shall meet the same requirements and be subject to the same conditions as set forth in §§ 138e.66(c) and 138e.67.
(4) The installment payment terms shall be negotiated between the landowner and the county board. These terms shall include the amount of cash (if any) to be received at closing, the interest rate, the period over which interest is to be paid and the point at which principal is to be paid.
(5) The landowner is responsible for the transaction costs associated with the type of purchase described in this subsection unless the county program provides otherwise.
PROCEDURE FOR INSPECTING AND ENFORCING AN EASEMENT § 138e.201. Responsibility.
(a) The county board shall have the primary responsibility for inspecting restricted land and enforcing the following:
(1) Agricultural conservation easements that were acquired under authority of the act and are located within the county.
(2) Agricultural conservation easements which were acquired under authority of section 14.1(b)(2)(i) of the act (3 P. S. § 914.1(b)(2)(i)), including any portion extending into an adjoining county.
(b) The State Board or its designee will have the right to inspect restricted land and enforce an easement on its own behalf or in conjunction with the county board.
§ 138e.202. Inspections.
(a) The county board shall inspect all restricted land within the county at least annually to determine compliance with the applicable deed of easement. The first inspection shall be completed within 1 year of the date of easement sale, and shall be included in the annual report described in § 138e.203 (relating to annual report) no later than the first annual report following that 1-year period.
(b) Written notice of an inspection to be conducted under subsection (a) shall be mailed by certified mail to the owner at least 10 days prior to the inspection.
(c) An inspection conducted under subsection (a) shall be performed between the hours of 8 a.m. and 5 p.m. on a weekday that is not a legal holiday recognized by the Commonwealth, or a date and time agreeable to the county and the landowner.
(d) Within 10 days of conducting an inspection under subsection (a), the county board shall prepare a written inspection report setting forth the following information:
(1) The identification of the land inspected.
(2) The name of the owner of the farmland at the time the easement was originally acquired and the name of the current owner of the land inspected.
(3) A description of modifications in the number, type, location or use of any structures on the land since the date of the filing of the deed of easement.
(4) A description of deviations from the conservation plan observed on the restricted land.
(5) A statement of whether the provisions of the deed of easement are being observed.
(6) A statement indicating whether a structure permitted under section 14.1(c)(6)(iv) of the act (3 P. S. § 914.1(c)(6)(iv)) has been constructed on the restricted land and, if such a structure has been constructed, the month and year construction was completed and a description of the structure and its location on the land.
(e) A copy of the inspection report shall be mailed by certified mail to the owner.
(f) The county board and the State Board may inspect the restricted land, jointly or severally, without prior notice if they have reasonable cause to believe that any provision of the easement has been or is being violated.
§ 138e.203. Annual report.
The county board shall file the following with the State Board by March 1 of each year:
(1) A copy of inspection reports for inspections conducted during the prior year.
(2) An annual report which summarizes the number of inspections, violations detected, violations resolved and the circumstances surrounding unresolved violations.
§ 138e.204. Enforcement.
(a) The county board shall enforce the terms of each easement purchased within the county under the act, whether it be a local government unit, county, State or joint purchase.
(b) The State Board may enforce the terms of State or jointly purchased easements.
(c) The right of the State Board to enforce the terms of an easement may be exercised either jointly with the county board or by the State Board acting on its own behalf.
RESPONSIBILITY OF OWNER § 138e.222. Conservation plan.
(a) The county board shall require the owner of land being considered for agricultural conservation easement purchase to do the following:
(1) Before the county board recommends approval of the easement purchase to the State Board, obtain a conservation plan approved by the county conservation district or the county board for the land that would be subject to the agricultural conservation easement.
(2) As part of the settlement documents described in § 138e.93 (relating to postsettlement recording and reporting procedures), execute a conservation plan agreement form containing the following:
(i) The name, address and telephone number of the landowners.
(ii) The location of the land.
(iii) The acreage of the land.
(iv) An acknowledgement that the deed of agricultural conservation easement requires that all agricultural production on the subject land be conducted in accordance with the conservation plan.
(v) An acknowledgement that a conservation plan exists with respect to the land, together with the following:
(A) The source of the conservation plan (typically, the county conservation district).
(B) An identifying number given the conservation plan.
(C) The date of the conservation plan.
(vi) An acknowledgement that the landowners agree to comply with the conservation practices and implementation schedule in the conservation plan, and an acknowledgement that failure to so comply would be a violation of the terms of the deed of agricultural conservation easement.
(vii) The signature of the landowners.
(b) In addition to the requirements established by the county conservation district or the county board, the conservation plan shall meet the definitional requirement of a conservation plan in § 138e.3 (relating to definitions) and also require that:
(1) The use of the land for agricultural production, such as growing sod, nursery stock, ornamental trees and shrubs does not remove excessive soil from the restricted land.
(2) The excavation of soil, sand, gravel, stone or other materials for use in agricultural production on the restricted land is conducted in a location and manner that preserves the economic viability of the restricted land for agricultural production.
(3) The mining of minerals is conducted only through the use of methods authorized in the act.
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