CONSERVATION EASEMENTS ON TIMBERLANDS: AN OREGON … · 2014-04-25 · Microsoft PowerPoint -...
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CONSERVATION EASEMENTS ON TIMBERLANDS: AN OREGON CASE STUDY TIMBERLANDS: AN OREGON CASE STUDY www.masonbruce.com
Transcript of CONSERVATION EASEMENTS ON TIMBERLANDS: AN OREGON … · 2014-04-25 · Microsoft PowerPoint -...
CONSERVATION EASEMENTS ON TIMBERLANDS: AN OREGON CASE STUDYTIMBERLANDS: AN OREGON CASE STUDY
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CONSERVATION EASEMENTBASIC DEFINITIONBASIC DEFINITION
A conservation easement is a legally A conservation easement is a legally binding agreement between a property owner and a nonprofit property owner and a nonprofit organization (typically a land trust) or a government agency that permanently government agency that permanently restricts certain uses on the land included in the easement with a focus included in the easement with a focus on resource conservation.
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CONSERVATION EASEMENT USES • Open space preservation:
– Forestry, ranching, and farming• Ecosystem Services
– Fish and wildlife habitatFish and wildlife habitat– Carbon retention/sequestration
• Recreation• Recreation• Scenic/historic values
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CONSERVATION EASEMENT BENEFITSBENEFITS
• Tax benefits • Payments for large scale mitigation or
restoration programsrestoration programs• Shield property from development
Threat of go ernment reg lation or • Threat of government regulation or land-use rule changes
• Fostering a landowner’s ecological legacy
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FOREST EASEMENT FUNDING FOREST EASEMENT FUNDING
• Endowments/donations Endowments/donations
G t t • Government grant programs– USFS Forest Legacy Program– USFS Forest Stewardship Program
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FORESTERS AND CONSERVATION EASEMENTSEASEMENTS
• Easement land management– Timber management to achieve desired
easement functions • Timber harvest Timber harvest • Recreation/hunting• Fish and wildlife habitat restoration/preservation
i b i l• Timber appraisals– Valuation of timberlands for easement
transactionstransactions
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OREGON CONSERVATION EASEMENT CASE STUDYEASEMENT CASE STUDY
• 12 600-acre family trust property 12,600 acre family trust property managed by MB&G for 60 years
• Various timber harvest schedules • Various timber harvest schedules primarily on longer rotationsS l t t t t i ld • Several property tracts contain old growth Douglas-fir dominated stands
• Broad family management opinions and view points
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CONSERVATION EASEMENT SITE CHARACTERISTICSCHARACTERISTICS
• 132-acre tract with oldgrowth Douglas-fir
• Site also includes wetlands, beaver pond, talus slopes, and stream headwaters headwaters
• Limited site access andt / t t hsteep/wet topography
• Has been designated a “no cut” area for yearswww.masonbruce.com
no cut area for years
CONSERVATION EASEMENT SITE CHARACTERISTICSCHARACTERISTICS
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CONSERVATION EASEMENT SITE CHARACTERISTICSCHARACTERISTICS
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ODFW WILLAMETTE WILDLIFE MITIGATION PROGRAMPROGRAM
• 2010 agreement between ODFW and Bonneville Power ODFW and Bonneville Power Administration
• Addresses wildlife habitat Addresses wildlife habitat conservation and restoration within the Willamette River basin
• $177 Million program ($2,000 -$8,000 per acre)
• 132-acre tract qualifies for the
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program
ODFW WILLAMETTE WILDLIFE MITIGATION PROGRAM TO DATEMITIGATION PROGRAM TO DATE
• 14 easements established since 201014 easements established since 2010• Easements on public and private land,
title holders include land trusts ODFW title holders include land trusts, ODFW, SWCDs, and tribes
• High quality habitat = higher program per High quality habitat higher program per acre payout
• Average easement size = 236 acres• Average easement size = 236 acres• Average per acre payout = $5,245
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BASIC EASEMENT REQUIREMENTS• Land in easement has to be dedicated to
agreed-upon conservation uses in perpetuity• Easement held by third party – land trust, etc. • No acreage limitations as long as habitat
id d l l b fit ti ildlifprovided clearly benefits native wildlife• Easement can be adjacent to other land uses• A monitoring and maintenance plan is required,
land owner can self perform
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CHALLENGES• Broad family and trustee management
bj ti d hil hiobjectives and philosophies• Suitable third party easement holder• Financial justification • Tax implicationsTax implications
– Property currently leveraging Oregon’s small tree farm tax deferral programsmall tree farm tax deferral program
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EASEMENT VS. HARVEST REVENUE ANALYSISANALYSIS
• High quality habitat = higher program per acre payout (up to $8,000/acre)
• Approximately $1,056,000 for easement payoutpayout
• Site challenges and average tree age limit potential harvest revenuepotential harvest revenue
• Rough harvest net revenue estimate– Total cost to log approx. $291,000 (road g pp $ (
improvements, trucking, low level of recoverable material – saw log/chip material)
– Gross revenue $117,000
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Gross revenue $117,000
NEXT STEPS• Obtain property owners’ approval to move
forward• Further assess property tax Implications• Determine potential third party title holder• Define desirable easement boundary• Perform detailed site evaluation• Initiate easement application process with
ODFW
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IN SUMMARY…IN SUMMARY…• Conservation easements are real estate
instruments that establish permanent conservation-related uses on land
• Easements are established for many uses and provide opportunities for foresters
• Easements can provide revenue from land; however, they have to be well-planned and managed to realize management and revenue goals
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QUESTIONS?QUESTIONS?
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