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HomeMy WebLinkAboutS Warranty Deed of Agricultural Conservation Easement Victor Carl Walters, Jr and Elizabeth T Waltersi~' ~~I+~~~ STATE OF NORTH CAROLINA COUNTY OF ORANGE WARRANTY DEED OF AGRICULTURAL CONSERVATION EASEMENT This Deed of Agricultural Conservation Easement ("Easement") is granted on this 22 day of Dece.Khc~ , 2003, by VICTOR CARL WALTERS, JR. and ELIZABETH T. WALTERS, husband and wife, having an address of 7119 High Rock Road, Efland, NC 27243 ("Grantors."), to ORANGE COUNTY, NORTH CAROLINA, having an address of Post Office Box 8181, Hillsborough, NC 27278 ("Grantee"): WHEREAS: Grantors are the sole owners in fee simple, of certain farm Property, more particularly described in Exhibit A, attached hereto and incorporated herein (the "Property"), which consists of approximately 223.13 acres of land, located in Cedar Grove and Cheeks townships, Orange County, North Carolina and identified as that portion of Tract that is not depicted as "OVERLAP_AREA" 1, and Tract Two-on,lhe_plat of pxoperry titled "Property of Victor Carl Walters, Jr. and wife Elizabeth T. Walfers.," prepared by Landmark Surveying, Inc., which. - -- - plat is recorded at Plat Book 92, Pages 104 and at Plat Book 92, Page 105, Orange County Registry (PIN 9836-19-7855, PIN 9836-08-6227, PIN 9837-03-2356). The Property includes buildings and other improvements, which are shown on Exhibit B, attached hereto and incorporated herein. The Property consists primarily of productive agricultural land. The majority of the soils on the Property have been classified as "prime" or "statewide important" soils by the Natural Resources Conservation Service, United States Department of Agriculture. It is the primary purpose of this Easement to protect the agricultural soils and agricultural viability and productivity of the Property. The Property also includes outstanding woodland and riparian habitats for a variety of wildlife species of importance to the Grantors, the people of Orange County and the people of North Carolina. Cotton Run flows through the Property on its way west to where it flows into Back Creek, a source of drinking water for residents of Alamance County. The entire property Page 1 of 20 is within the Back Creek Protected Watershed. Furthermore, the Property contains outstanding scenic qualities that can be enjoyed by the general public, namely as the views along High Rock Road (State Road 1340) northwest of Hillsborough. It is a secondary purpose of this Easement to protect these natural, wildlife habitat, and scenic resources. The agricultural, natural, wildlife habitat, and scenic resources of the Property are collectively referred to as the "conservation values" of the Property. The specific conservation values of the Property and its current use and state of improvement are described in a Baseline Report ("Report") prepared by the Grantee with the cooperation of the Grantors, and acknowledged by both parties to be accurate as of the date of this Easement. This. Report may be used by the Grantee to document any future changes in the. use or character of the Property in order to ensure the terms and conditions of this Easement are fulfilled. This Report, however, is not intended to preclude the use of other evidence to establish the present condition of the Property if there is a controversy over its use. The Grantors and Grantee have copies of this Report, and said report will remain on file at the office of the Orange County Environment and Resource Conservation Department. The Grantors and Grantee agree that the current agricultural use of, and improvements to, the Property are consistent with the conservation purposes of this Easement. The Grantors intend that the conservation values. of the Property be preserved and maintained, and further, Grantors intend-to-eonvey to the Grantee the right to preserve and protect the agricultural and other conservation values of the Property in perpetuity. The conservation purposes of this Easement are recognized by, and the grant of this Easement. will serve, the following clearly delineated governmental conservation policies: (1) Sections 1238 H and 1238 I of the Food Security Act of 1985, as amended, which _- - authorizes the Farm-and Ranch Land Protection Program,-:admimstered hrough the United States Department of Agriculture, Natural Resources Conservation Service, which provides funds for the acquisition of Conservation Easements or other interests in prime, unique, or other productive soils for the purpose of limiting conversion to nonagricultural uses of the land; (2) North Carolina General Statute 139-2 et seq., which provides that "it is hereby declared ...that the farm, forest and grazing lands of the State of North Carolina are among the basic assets of the State and the preservation of these lands is necessary to protect and promote the health, safety and general welfare of its people... it is hereby declared to be the policy of the legislature to provide for the conservation of the soil and resources of this State;" (3) North Carolina General Statute 106-583 et seq., which states that "It is declared to be the policy of the State of North Carolina to promote the efficient production and utilization of the products of the soil as essential to the health and welfare of our people and to promote a Page 2 of 20 sound and prosperous agriculture and rural life as indispensable to the maintenance of maximum prosperity;" (4) The Uniform North Carolina Conservation and Historic Preservation Agreements Act, North Carolina General Statute 121-34 et seq., which provides for the enforceability of restrictions, easements, covenants or conditions "appropriate for retaining in land or water areas predominantly in their natural, scenic, or open condition or in agricultural, horticultural, farming or forest use;" and which provides for tax assessment of lands subject to such agreements "on the basis of the true value of the land and improvement less any reduction in value caused by the agreement;" (5) The North Carolina Conservation Tax Credit Program, North Carolina General Statute 105-130.34 and 105-151.12 et seq., which provides for state income tax credits for donations of land that are useful for fish and wildlife conservation and other similar land conservation purposes; (6) The establishment of the North Carolina Farmland Preservation Trust Fund established in 1986 (N.C.G.S. 106-744(c)) to preserve important farmland iri North Carolina; (7) The special use assessment of farm and forestland as set forth in North Carolina General Statute 105-277.2 et seq. ; and (8) The zoning of the Property by Orange County as Agricultural Residential. Grantors and Grantee have the common purpose of protecting the above-described .conservation values and current condition of the Property and preventing conversion of the Property to nonagricultural uses and Grantor agrees to create and implement a conservation plan (hereinafter the "Conservation Plan") that is developed utilizing the standards and - -specification of the NRCS field office technical guide and 7 CFR part 12, and is approved by - -_. .the local Soil and Water Conservation District; - The Grantee is a body politic existing under Chapter 153A of the North Carolina General Statutes, and is qualified to hold Easements under the applicable laws of the State of North Carolina; NOW, THEREFORE, for the reasons given and other good and valuable consideration and in consideration of their mutual covenants, terms, conditions and restrictions contained herein, the parties agree as follows. 1. Grant of Agricultural Easement Grantors hereby voluntarily grant and convey to the Grantee, and the Grantee hereby voluntarily accepts, a perpetual Agricultural Conservation Easement in the Property, which easement is, an immediately vested interest in real property the nature and character described herein. Grantors promise that they will not perform,. nor knowingly allow others to perform, Page 3 of 20 any act on or affecting the Property that is inconsistent with the covenants herein. Grantors authorize the Grantee to enforce these covenants in the manner described below. Grantors hereby voluntarily grant and convey to the Grantee all development rights for the Property, except as otherwise reserved and provided by the terms of this Easement, that are now or hereafter inherent in the Property. The parties agree that such development rights are terminated and extinguished, and may not be used on or transmitted to any portion of the Property, as it now or hereafter may be bounded or described, or transmitted, transferred or otherwise conveyed to any other property. 2. Statement of Purpose It is the primary purpose of this Agricultural Conservation Easement to enable the Property to remain in agricultural use by preserving and protecting its agricultural soils and agricultural viability and productivity. No activity that would impair the actual or potential agricultural use of the Property shall be permitted. To the extent that the preservation and protection of the natural, historic, recreational, habitat or scenic values referenced in this Easement are consistent with the primary purpose stated above, it is within the purpose of this Easement to also protect those values, and no activity that would significantly impair those values shall be permitted. 3. Rights and Responsibilities Retained by Grantors Notwithstanding any provisions of this Easement to the contrary, the Grantors reserve to and for themselves and their successors all customary rights and privileges of ownership, including the rights to sell, lease, and devise the Property, together with any rights not specifically prohibited by or limited by this Easement, and consistent with the Statement of Purpose herein. Unless otherwise specified below, nothing in this Easement. shall require the ~° Grantors to take any action to restore the condition of the Property after any Act of God:or - - -: - - _----x3ther-event over which they had no control. Grantors understand that naxg in-this-Heed-- =-.=- .- relieves them of any obligation or restriction on the use of the Property imposed by law. 4. Right to Farm Grantors retain the right to farm, or to permit others to farm the Property, consistent with the conservation values of the Property and in accordance with applicable local, state and federal laws and regulations. Subject to the terms of this Agricultural Conservation Easement, farming, grazing, horticultural and animal husbandry operations are permitted only. if conducted consistent with Best Management Practices promulgated by the State of North Carolina and in conformity with a Conservation Plan as required in Paragraph 9 hereafter. Page 4 of 20 S. Right to Privacy Grantors retain the right to privacy and the right to exclude any member of the public from trespassing on the Property. This Easement is not intended to create any rights of the public in, on or to the Property. 6. Right to Use the Property for Customary Rural Enterprises Grantors retain the right to use the portion of the Property within the 10-acre "Farmstead Area" as identified on Exhibit B, and more particularly described in the Baseline Report, for otherwise lawful and customary rural enterprises, such as, but not. limited to, farm machinery repair, sawmills, firewood distribution, bed and breakfast, or educational programs so long as such activities are consistent with Orange County zoning regulations and permits required by and issued by Orange County under its laws and ordinances. Conducting customary rural enterprises on any other part of the Property is not permitted without the advance written permission of the Grantee in each instance. The Grantee shall not give such permission unless the Grantee determines that the proposed use will not diminish or impair the conservation values of the Property. 7. Procedure to Construct Buildings and Other Improvements The Grantors' rights to construct or reconstruct buildings and other improvements are described in subparagraphs (a) through (f) below. Any construction or reconstruction not permitted below, or not previously approved by Grantee, is prohibited. Before undertaking any construction or reconstruction that requires advance permission, the Grantors shall notify the Grantee and obtain written permission. All construction or reconstruction is subject to Orange County zoning regulations and must be consistent with permits required by and issued by Orange County under its laws and ordinances for such construction activities. (a) Fences -- Existing fences may be repaired and replaced, and new fences may be built on the Property for purposes of reasonable and customary management of livestock and wildlife or to fence off the perimeter of the Property without any further permission of the Grantee. (b) Structures & Improvements -Existing structures, including existing agricultural structures, and existing improvements may be repaired, reasonably enlarged and replaced at their current locations within the 10-acre "Farmstead Area" , as shown on Exhibit B, without further permission from the Grantee. New buildings, barns, sheds and other structures and improvements to be used primarily for agricultural. purposes, including the processing or sale of farm products predominantly grown or raised. on the Property may be built on the Property without any further permission of the Grantee provided they are located in the 10-acre "Farmstead Area" as indicated on Exhibit B and more particularly described in the Baseline Report. Structures, improvements and other impervious surfaces located on the Property, including those existing on the date of this Agricultural Conservation Easement, shall not exceed 2 percent of the total area of the Property, provided, however, structures, Page 5 of 20 improvements and other impervious surfaces located in the "Farmstead Area," including those existing on the date of this Agricultural Conservation Easement, shall not exceed 12 percent of the total area of the "Farmstead Area." Any new buildings, structures or improvements proposed for locations outside the 10-acre "Farmstead Area" may be built only with the advance written permission of the Grantee. The Grantee shall give such permission within a reasonable time if it determines that the proposed building, structure or improvement would not significantly diminish or impair the conservation values of the Property or otherwise be inconsistent with the purposes of this Easement. (c) Farm Support Housing -- No more than one (1) new single - or multi-family - dwelling to house farm tenants, employees or others engaged in agricultural production on the Property may be built on the Property without any further permission of the Grantee, provided the dwelling is less than 1,000 square feet in floor area and is located within that area identified and marked as the 10-acre "Farmstead Area" identified on Exhibit B. At the time that construction of such structure is to commence, Grantee shall be notified so that its records can be updated. (d) Single-Family Residential Dwellings -- No more than one (1) new single-family residential dwelling, not exceeding 3,000 square feet in floor area, together with reasonable appurtenances such as garage and sheds, may be built within atwo-acre building envelope located within the area identified as "Potential Ag/Residential" on Exhibit B. The land on which this new residential dwelling is located may be subdivided from the Property, subject to all applicable Orange -County zoning, subdivision and building code regulations. Nothing about -- Orange County's participation in or the signing of this Deed of Easement constitutes approval of the subdivision of the "Potential Ag/Residential" area or the permitting of this residential dwelling. All appurtenant structures shall be contained within the building envelope. At the time construction of such dwelling is to commence, Grantee shall be notified so that its records can be updated. -: - (e) Recreational Irytprovements - -Grantors expressly reserve the right to engage in _ undeveloped, low impact recreational activities such as hunting, fishing, hiking, bird watching, etc. and to control access of all persons for the purpose of hunting and fishing; provided that these activities do not impact the protection and conservation of any animal habitat or other conservation values of the property. However, under no circumstances shall golf courses or ranges, airstrips or helicopter pads be constructed, placed or permitted to remain on the Property. (~ Utility Services and Septic Systems --.Installation, maintenance, repair, replacement, removal and relocation of electric, gas, and water facilities, sewer lines and/or other public or private utilities, including telephone or other communication services over or under the Property for the purpose of providing electrical, gas,. water, sewer, or other utilities to serve improvements permitted herein, and the right to grant .easements over and under the Property for such purposes, is permitted. Maintenance, repair or improvement of a septic system(s) or other underground sanitary system that exists on the Property at the time of this Page 6 of 20 Easement, or the construction of a septic or other underground sanitary system, for the benefit of any of the improvements permitted herein, is permitted. 8. Subdivision The Property currently consists of three separate tracts. The legal subdivision of the Property, recording of a subdivision plan, partition, or any other division of the Property into additional tracts or parcels, is prohibited except as provided for in Paragraph 7(d) which pertains to a single family residential dwelling.. This prohibition applies regardless of how many separately described parcels are contained in the legal description attached as Exhibit A. In any event, all terms, restrictions, and conditions of this Easement shall apply to that portion of any subdivided parcel permitted by the terms of this Deed of Easement that is located outside the residential structure building envelope permitted in Paragraph 7(d). It is understood that notice of this Easement will be recorded on any approved subdivided, partitioned or otherwise divided parcels. 9. Conservation Practices As required by Section 1238 I of the Food Security Act of 1985, as amended, the Grantors, their heirs, successors, or assigns, shall conduct all agricultural operations on the Property in a manner consistent with a Conservation Plan prepared in consultation with NRCS and approved by the Soil and Water Conservation District.. This Conservation Plan shall be developed using the standards and specifications of the NRCS Field- Office Technical Guide and 7 CFR Part 12 that are in effect on the date of execution of this Easement. The Grantors may, however, develop and implement a Conservation Plan that proposes a higher level of conservation and is consistent with the NRCS Field Office Technical Guide standards and specifications. NRCS shall have the right to enter upon the Property, with advance notice to the Grantors, in order to monitor compliance with the Conservation Plan. - =ln=the event of noncompliance-with the Coirset'vation~ Plan;=hfiRCS ~harll work-with the - - - Grantors to explore methods of compliance and give the Grantors a reasonable amount of time, not to exceed twelve months, to take corrective action. If the Grantors do not comply with the. Conservation Plan, NRCS will inform the Grantee of the Grantors' non-compliance. The Grantee shall take all reasonable steps (including efforts at securing voluntary compliance and, if necessary, appropriate legal action) to secure compliance with the Conservation Plan following written notification from NRCS that (a) there is a substantial, ongoing event or circumstance of non-compliance with the Conservation Plan, (b) NRCS has worked with the Grantors to correct such noncompliance, and (c) Grantors have exhausted their appeal rights under applicable NRCS regulations. The land application, storage and placement on the Property of domestic septic effluent and municipal sewage sludge or liquid generated from such sources for agricultural purposes may be undertaken only if in accordance with all applicable federal, state and local laws and regulations. Page 7 of 20 10. Forest Management Trees may be removed, cut and otherwise managed to control insects and disease, to prevent personal injury and property damage, to remove non-native species, for pasture restoration, for firewood and other non-commercial uses, including construction of permitted improvements and fences on the Property. Any other cutting, removal or harvesting of trees may be undertaken within the areas identified and marked at "Forest Area" on Exhibit B only if a) the purpose is for clearing land for cultivation or use by livestock, and b) it occurs outside of a 100-foot buffer from both sides of Cotton Run, which runs through the property and is identified on Exhibit B, and c) it is in accordance with either the Conservation Plan referenced in Paragraph 9 herein or a forest management plan that is consistent with the above-referenced Conservation Plan and prepared by a professional forester approved by Grantee, such approval to not be unreasonably withheld. Trees may be planted, harvested and removed within the area identified and marked as "Farmstead Area" on Exhibit B without the advance written permission of the Grantee. 11. Mining There shall be no filling, excavation, dredging, mining or drilling, removal of topsoil, sand, gravel, rock, peat, minerals or other materials; and no change in the topography of the land in any manner except as necessary for the purpose of combating erosion or flooding and as reasonably necessary for any permitted maintenance, construction or reconstruction on the Property. Disturbed areas for the purpose of removing soil, gravel, rock, peat, minerals or other materials will be limited to 1 acre in total surface area and will be restored as soon as practicable after the disturbance. Under no circumstances is the drilling for or exploration for hydrocarbons permitted in, on or to the Property. 12. Paving and Road Constructiorc_ - ~-:: : _-_ _,~ Construction and maintenance of unpaved farm roads that may be reasonably necessary and incidental to carrying out the improvements and uses permitted on the Property by this Easement are permitted. Other .than the existing entrance driveways within the Farmstead Area, as indicated on Exhibit B, no portion of the Property shall be paved or otherwise covered with concrete, asphalt, or any other impervious paving material, without the advance written permission of the Grantee. The Grantee. shall not give such permission unless the Grantee determines that the proposed paving, or covering of the soil, or the location of any such road, will not substantially diminish or impair the conservation values of the Property. Any such road construction is subject to impervious surface requirements in Paragraph 7. 13. Dumping and Trash Dumping or storage of soil, trash, refuse, debris, ashes, garbage, waste, abandoned vehicles or parts, appliances, machinery, or hazardous substances, or toxic or hazardous waste, or any placement of underground or above ground storage tanks or other materials is Page 8 of 20 prohibited. Provided, however, that the storage of agricultural products, byproducts (including the composting of biodegradable material for on-farm use) and agricultural equipment used on the Property is allowable, so long as such storage is done in accordance with all applicable government laws and regulations and in such a manner so as to not impair the conservation values of the Property. 14. Water Rights Grantors shall retain and reserve the right to use any appurtenant water rights sufficient to maintain the agricultural productivity of the Property. Grantors shall not transfer, encumber, lease, sell or otherwise separate such water rights from title to the Property itself. IS. Natural Resource Restoration and Enhancement Activities Notwithstanding any terms contained within this Easement, Grantors may engage or contract others to engage in any activity designed to repair, restore, or otherwise enhance the natural resources found or once present on the Property, that are consistent with the conservation values of this conservation easement and subject to the written approval of Grantee and the NRCS. 16. Ongoing Responsibilities of Grantors and Grantee - Other than as specified herein, this Easement is not intended to impose any legal or -- - other responsibility on the Grantee or the United States, or in any way to affect any existing obligation of the Grantors as owners of the Property. Among other things, this shall apply to: .- (a) Taxes -- The Grantors shall continue to be solely responsible for payment of all taxes and assessments levied against the Property. If the Grantee is ever required to pay any -taxes or~ssessments on its interest in the-Property, -the Grantcsr~vill reimburse the Grantee=for - ~..: . __ _ --- - the same: _ __ (b) Upkeep and Maintenance -- The Grantors shall continue to be solely responsible for the upkeep and maintenance of the Property, to the extent it may be required by law. The Grantees shall have no obligation for the upkeep or maintenance of the Property. (c) Liability and Indemnification -- Grantors agree to indemnify and hold Grantee harmless from any and all costs, claims or liability, including but not limited to reasonable attorneys' fees arising from any personal injury, accidents, negligence or damage relating to the Property, or any claim thereof, unless due to the negligence of Grantee or its agents, in which case liability shall be apportioned accordingly. In addition, Grantors agree to maintain liability insurance covering the Property with the limits as follows: $300,000, $300,000 personal injury; and $300,000 property damage; and warrant that Grantee is and will remain a named insured on Grantors' Property insurance policies covering the Property. Grantors shall provide Grantee with a certificate of insurance coverage on the effective date of this Easement and within 10 days of each insurance renewal date. Page 9 of 20 17. Extinguishment of Development Rights Except as otherwise reserved to the Grantors in this Easement, the parties agree that all development rights appurtenant to the Property are hereby released, terminated and. extinguished, and may not be used on or transferred to any portion of the Property as it now or hereafter may be bounded or described, or used or transferred to any other property adjacent or otherwise, nor used for the purpose of calculating permissible lot yield of the Property or any other property. 18. Enforcement With reasonable advance notice to the Grantors or with the Grantors' prior verbal consent, the Grantee shall have the right to enter the Property for the purpose of inspecting for compliance with the terms of this Easement. The Grantee shall have the right to prevent violations and remedy violations of the terms of this Easement through judicial action, which _ shall include, without limitation, the right to bring proceedings in law or in equity against any party or parties attempting to violate the terms of this Easement. Except when an ongoing, or imminent violation could irreversibly diminish or impair the conservation values of the Property, the Grantee shall give the Grantors written notice of the violation and thirty (30) days to cure the violation, before commencing any legal proceedings. If a court with jurisdiction determines that a violation may exist or has occurred, the Grantee may obtain an injunction to stop the violation, temporarily or permanently. The parties agree that a court may. issue an injunction or order requiring the. Grantors to restore the Property to its condition prior to the violation, as restoration of the property may be the only appropriate remedy. In any case where a court fords that a violation has occurred, the Grantors shall reimburse the Grantee for all its expenses incurred in stopping and correcting the violation, including but not limited to reasonable attorneys' fees. The failure of the Grantee to discover a violation or to take immediate legal action shall not bar it from doing sa-at a later time. In any case where a : , ,- - court finds no such violation has occurred, each party shall bear its own costs. -- _ In the event that Grantee fails to enforce any of the terms of this Easement, as determined in the sole discretion of the Secretary of the United States Department of Agriculture, the said Secretary of Agriculture and his or her successors and assigns shall have the right to enforce the terms of the Easement through any and all authorities available under Federal or State law. In the event that Grantee attempts to terminate, transfer, or otherwise divest itself of any rights, title, or interests of this Easement without the prior consent of the Secretary of the United States Department of Agriculture and payment of consideration to the United States, then, at the option of such Secretary, all right, title, and interest in this Easement shall become vested in the UNITED STATES OF AMERICA. 19. Transfer of Easement Subject to the contingent rights of the United States of America as specified in paragraph 18 and other pertinent paragraphs herein, and with timely written notice to and Page 10 of 20 approval of the United States Department of Agriculture, the Grantee shall have the right to transfer the Easement created by this Deed to any public agency or to any private nonprofit organization approved by Grantee, such approval to not be unreasonably withheld, that, at the time of transfer, is a qualified organization under Section 170(h) of the U.S. Internal Revenue Code, as amended and under NCGS 121-34 et seq., provided the agency or organization expressly agrees to assume the responsibility imposed on the Grantee by this Deed. If the Grantee ever ceases to exist or no longer qualifies under Section 170(h) of the U.S. Internal Revenue Code, or applicable state law, a court with jurisdiction shall transfer this Easement to another qualified organization having similar purposes that agrees to assume the responsibility imposed by this Easement. 20. Transfer of Property The Grantors agree to incorporate by reference the terms of this Easement in any deed or other legal instrument by which they transfer or divest themselves of any interests, including leasehold interests, in all or a portion of the Property. The Grantors shall notify the Grantee in writing at least thirty (30) days before conveying the Property, or any part thereof or interest _ therein. Failure of Grantors to do so shall not impair the validity of this Easement or limit its enforceability in any way. 21. Amendment of Easement This Easement may be amended- only with the written consent of the Grantee and the Grantors. Any such amendment shall be consistent with the Statement of Purposes of this Easement and with the Grantee's Easement amendment policies, and shall comply with Section 170(h) of the Internal Revenue Code or any regulations promulgated in accordance with that section. Any such amendment shall be duly recorded. Grantee shall give notice of any amendment to and secure prior approval from the United States Department of Agriculture, Natural Resources Conservati®n Service. - - - =- 22. Procedure in the Event of Termination of Easement If it determines that conditions on or surrounding the Property change so much that it becomes impossible to fulfill the conservation purposes of this Easement, a court with jurisdiction may, at the joint request of both the Grantors and the Grantee and with prior consent of the United States Department of Agriculture as provided herein, terminate or modify the Easement created by this Deed in accordance with applicable state law. If the Easement is terminated and the Property is sold then as required by Section 1.1 70A-14(g)(6) of the IRS regulations, the Grantee shall be entitled to sixty percent (60%) of the gross sale proceeds equal tothe ratio of the appraised value of this Easement to the unrestricted fair market value of the Property, as these values are determined on the date of this Easement, subject to any applicable law which expressly provides for a different disposition of the proceeds. The Grantee and the United States of America shall divide the resulting proceeds in accordance with the percentage of the purchase price of the Conservation Easement that each party contributed. The percentages are 52 % for the Grantee and 48 % for the United States of Page 11 of 20 America. The Grantee shall use its proceeds consistently. with the general conservation purposes of this Easement. All termination related expenses incurred by the Grantors and the Grantee shall be paid out of any recovered proceeds prior to distribution of the net proceeds as described herein. 23. Procedure in the Event of Condemnation or Eminent Domain Grantors and Grantee recognize that the partial sale of this Easement gives rise to a property right, immediately vested in the Grantee, with a fair market value equal to the proportionate value that the Easement bears to the value of the Property prior to the restrictions imposed by the Easement. Accordingly, if any condemnation or eminent domain action shall be taken, on all or part of the Property, by any authorized public authority, said authority shall be liable to the Grantee for the value of the property right vested in the Grantee at the time of the signing of this Easement. Due to the federal interest in this Deed, the United States must consent to any such condemnation action. If condemnation or a taking by eminent domain of a part of the Property or the entire Property by a public authority, renders it impossible to fulfill any of the conservation purposes of this Easement on all or part of the Property, the Easement may be terminated or modified through condemnation proceedings. If the Easement is terminated or modified and any or all of the Property is sold or taken for public use, then, as required by Section 1.170A-14(g)(6) of the IRS regulations, the Grantee shall be entitled to the proportionate value of the Easement, which has been predetermined at sixty percent (60 %) of the Property's unrestricted value, subject to any applicable law which expressly requires for a different disposition of the proceeds. The Grantee shall use its proceeds consistently with the general conservation purposes of this Easement. If this Easement is extinguished or terminated, the United States and the Grantee shall - -~ - -receive-its proportional share of the Easement=value at the time of terrrunation. Those _,- - - proportional shares of the Easement are as follows: 52 % to Grantee and 48 % to the United States. If, however, after the condemnation or eminent domain proceedings, a court of jurisdiction does not include in the just compensation awarded as a result of the taking, the amount of the Easement value, then the Grantor shall not be responsible to share any proceeds awarded. All termination-related or condemnation-related expenses incurred by the Grantors and the Grantee shall be paid out of any recovered proceeds prior to distribution of the net proceeds as described herein. Page 12 of 20 24. Interpretation This Easement shall be interpreted under the laws of the State of North Carolina, resolving any ambiguities and questions of the validity of specific provisions so as to give maximum effect to its conservation purposes. 25. Perpetual Duration; Severability The Easement created by this Deed shall be a servitude running with the land in perpetuity. Every provision of this Deed that applies to the Grantors or the Grantee shall also apply to their respective agents, heirs, Executors, administrators, assigns, and all other successors as their interests may appear. Invalidity of any of the covenants, terms or conditions of this Easement, or any part thereof by court order or judgment shall in no way, affect the validity of any of the other provisions hereof which shall remain in full force and effect. 26. Notices Any notices required by this Deed shall be in writing and shall be personally delivered or sent by first class mail to the Grantors and the Grantee respectively at the following addresses, unless a party has been notified in writing by the other of a change of address: To the Grantors: To the Grantee: To the MRCS: Carl and Elizabeth Walters Orange County ERCD State Conservationist 7119 High Rock Road PO Box 8181 4405 Bland Rd., Suite 205 Efland, NC 27243 Hillsborough, NC 27278 Raleigh, NC 27609 27. Grantor's Title Warranty = - - - -_ The Grantors warrant that they hold fee simple title to the Property, free from all encumbrances and hereby promise to defend the same against all claims that may be made against it, except for the following: (a) All enforceable easements and rights of way currently depicted in the Orange County Registry; and (b) Public Road rights of way affecting the Property; and (c) Current Orange County property taxes and any deferred taxes as provided by law. Page 13 of 20 IN WITNESS WHEREOF, the Grantors and Grantee, intending to legally bind themselves, have set their hands on the date first written above. Accepted: ATTEST: By: Donna S. Baker, Clerk to the Board of Commissioners GRANTORS: Victor Carl Walters, Jr. Eliz eth T. Walters GRANTEE: ORANGE. COUNTY, NORTH CAROLINA By~~~~ Barry Jac Orange C~ ACCEPTANCE OF PROPERTY INTEREST BY THE NATURAL RESOURCES -- CONSERVATION SERVICE - The Natural Resource Conservation Service, an agency of the United States Government., hereby accepts and approves the foregoing Conservation Easement deed, and the rights conveyed therein, on behalf of the United States of America. Authorized Signatory for tihe NRCS Page 15 of 20 28. Subsequent Liens on Property No provisions of this Conservation should be construed as impairing the ability of Grantors to use the Property as collateral for subsequent borrowing. Any such liens shall be and remain subordinate to this Easement. 29. Subsequent Easements/Restrictions on the Property The grant of any easements or use restrictions that might diminish or impair the agricultural viability or productivity of the Property or otherwise diminish or impair the conservation values of the Property is prohibited. Any such easements or restrictions shall be subordinated to this Easement. 30. Grantor's Environmental Warranty The Grantors warrant that they have no actual knowledge of a release or threatened release of hazardous substances or wastes on the Property, as such substances and wastes are _ defined by applicable federal and state law, and hereby promise to defend and indemnify Grantee and United States against all litigation, claims, demands, penalties and damages, including reasonable attorneys' fees, arising from or connected with any release of hazardous waste caused by the intentional or negligent act of the Grantor or violation of federal, state or local environmental laws caused by the negligent or intentional act of the Grantor. Without --- limiting. the generality of the foregoing, nothing in this Easement shall be construed as giving rise to any right or ability in Grantee or the United States, nor shall Grantee or the United States have any right or ability, to exercise physical or managerial control over the day-to-day operations of the Property, or otherwise to become an operator with respect to the Property within the meaning of The Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended. TO HAKE AND TO HOL-D this Deed of Conservation Easement unto Grantee, its _ _ __ - _-- successors and assigns, forever. [The remainder of this page is intentionally left blank. Signature page follows.] Page 14 of 20 Acknowledgments NORTH CAROLINA COUNTY OF ORANGE I, ~nn.~ ~• ,~, a Notary Public of Orange County, North Carolina do hereby certify that ~~ ~p~ ]/, Llet-%~S,.f . and wife ,~~~~X~ %. ~Q /~°~ _ personally appeared before me and acknowledged the due execu on of the foregoing instrument. _ ., .,: My _commission expires: ~d5 NORTH CAROLINA COUNTY OF ORANGE 4 Notary blic ~~~~eu~n~~~~~ .• • .• '• JS FLAKE ,'' •.,. •, ,. ~ _ t ~ ~V = z - PV®v ;~~: ~. -., : ~ . .. J ,,• I, I VC~.r"1c~J G . Glt;ale~~', a Notary Public of Orange County, North Carolina do hereby certify that Donna S. Baker personally appeared before me this day and acknowledged that she is Clerk to the Board of Commissioners for Orange County, North Carolina and that by authority -Iy given- =aiid-- as the act of Orange County, North Carolina the faregoing instruments - signed in-its name by Barry Jacobs, Chair of the Orange County Board of Commissioners9_cnd attested by her as Clerk to said Board of Commissioners. Witness my hand and official stamp or seal this the 2~ndday of ~ ~ r, 200 ~~~.~ G , ~ ~ ~ vE ,, .~ • ' '~~''~ -~ PR Y z=~~,~~ My commission expires: ~uy~~t ~I~ ~~~ PUn" 0,4•., o ''a.;gNGE Ga ~ ~~ otary Public ~' ~~~~ Page 16 of 20 STATE OF NORTH CAROLINA COUNTY OF ORANGE The Foregoing (or annexed) Certificate(s) of Notary(ies) Public (is)(are) Certified to be correct. This instrument was filed for Registration on the Day and Hour in the Book and Page shown in the First page hereof. Joyce H. Pearson, Register of Deeds This instrument prepared by and return to: Geoffrey E. Gledhill Coleman, Gledhill, Hargrave and_ Peek P.O. Drawer 1529 Hillsborough, NC 27278 Page 17 of 20 Exhibit A PROPERTY DESCRIPTION Lying and being in Orange County, North Carolina, and being particularly described as consisting of approximately 223.13 acres of land, located in Cedar Grove and Cheeks townships, Orange County, North Carolina and identified as that portion of Tract 1 that is not depicted as "OVERLAP AREA," and Tract Two on the plat of property titled "Property of Victor Carl Walters, Jr. and wife Elizabeth T. Walters," prepared by Landmark Surveying, Inc., which plat is recorded at Plat Book 92, Page 104 and at Plat Book 92, Page 105, Orange County Registry (PIN 9836-19-7855, PIN 9836-08-6227, PIN 9837-03-2356). Page 18 of 20 \ ~ r+ • ~ ~ ~` ~ - _ _ ~ • ~ ~~ ~ HOPP DAVID - ~~ WIGHT ALBERT W ~ ~~~~ ~ Gravel Road ~ WALTERS ~ n " ' ; D END ~ ~ VICTOR C SR ~~ ~ ~/~ ~ HEYDT 0 / I CHAD LEE • Z • Gravel c ~ ~ Road I z /~ i /~ ~ Gate ~ ~ ~ ` i L WALTERS VICTOR C SR Waste Storage Pond EFLANDAMY ~~~ ~~ POINDEXTER • Solid Waste Collection Ctr. FAI 61DTH WILLIAM ~ WALTERS ti VICTOR C JR .^ ~ ~'~_ \ U H • • ~ • OB /~ • ~ Drai S1neb • ' - __ : - ~ -ARM r < , • ~ • SCOTT NORMA P MAYO LINDA • BRADSHAW • PARKER REG; IE DONELL RIORDAN JANETTE J ^ ~ • ~ L~ s - ~ ,. t ~ • Carl a~ Elizabeth Wagers Proposed Conservation Easement Property Boundary ~ Ponds Carl & Elizabeth Walters `~,%streams PIN 37 ACtes* 9836-19-7855 78 . . /~/ Streets * //Unimproved Roadways PIN 9836-08-6227 98.87 Acres 0 Parcel Boundary " Exdudes boundary overlaps Feet ~~ ® Pasture ltural Fields Exhibit B (Page 1 of 2) ~ Fo eSU ~a~ t ~ -~~ Y Jars 7/1.03 iiiiiili• Buildings 0 Carl 8 EI¢aHeth Wafters Property ~`~.,;=' Gravel Road Streams ----~' Parcel Boundary --- Agricultural Fields Cleared Land Forest Proposed Conservation Easement Carl & Elizal~th Walters PIN 9837-03-2356 45.89 Acres Exhibit B (Page 2 of 2) 50 050100 Feet ` o M James 11lNIW