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HomeMy WebLinkAbout926143 RECEIVED 1/17/2007 at 10:36 AM RECEIVING # 926143 BOOK: 646 PAGE: 480 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY DEED OF CONSERVATION EASEMENT FROM JACKKNIFE CREEK RANCH LLC TO WYOMING STOCK GROWERS AGRICULTURAL LAND TRUST (January, 2007) ,r" -¿ / \q UU0480 000481 09261L\3 Table of Contents SECTION 1. PURPOSE. .......... ............... ........... ............. ...... .......................................... 5 SECTION 2. RIGHTS OF GRANTEE ........................................................................... 5 SECTION 3. PROHIBITED ACTIVITIES ..................................................................... 6 SECTION 4. GRANTOR'S RESERVED RIGHTS........................................................ 9 SECTION 5. ASSIGNMENT BY GRANTEE; TRANSFERS BY GRANTOR.......... 12 SECTION 6. EXTINGUISHMENT; CONDEMNATION ........................................... 12 SECTION 7. GENERAL PROVISIONS ......................................................................13 ,~ 0926143 DEED OF CONSERVATION EASEMENT 000482 THIS DEED OF CONSERVATION EASEMENT is made by Jackknife Creek Ranch, LLC in Lincoln County, Wyoming ("Grantor"), in favor of the Wyoming Stock Growers Agricultural Land Trust ("Grantee"), a non-profit charitable corporation incorporated under the laws of the State of Wyoming and in good standing in the State of Wyoming, with its principal business office at 113 East 20th Street, Cheyenne, Wyoming 82001. RECITALS A. Grantor is the owner in fee simple of certain Agricultural real property known as the Jackknife Creek Ranch, in Lincoln County, Wyoming, totaling approximately 219 acres more or less, more particularly described in attached Exhibit A (the "Ranch Property"). B. The Ranch Property is currently ranch land used for Agricultural production and has significant open space and scenic values. Grantor and Grantee acknowledge that the historical ranching and Agricultural uses of the Ranch Property sustain and protect the Ranch Property's substantial Conservation Values, as defined herein. C. The Ranch Property possesses substantial natural, scenic, wildlife and agricultural values (collectively, "Conservation Values") of great importance to the Grantor, Grantee, the people of Lincoln County and the people of Wyoming and the United States, and their protection will yield a significant public benefit, including but not limited to the protection of natural resources and the maintenance and enhancement of air and water quality. D. Grantor is entitled to potentially build approximately ninety (90) principal residences on the Ranch Property according to Lincoln County and State of Wyoming regulations, but Grantor wishes to limit development of the Ranch Property in order to protect the Conservation Values, as hereinafter set forth. Grantor intends to maintain as open space approximately one hundred seventy nine (179) acres which shall be encumbered by this Easement (hereinafter the "Easement Property"). The approximately forty (40) acre parcel (hereinafter the "Development Property") not encumbered by this Easement, but adjacent to the Easement Property, is intended to be developed by Grantor as a low density shared amenity ranch consisting of approximately ten (10) single family homes and up to eleven (11) apartments/condominium units, which units may be operated as a commercial guest ranch, bed and breakfast or lodge facility.. A site plan illustrating the Ranch Property, the Development Property and the Easement Property is attached hereto as Exhibit B, for illustrative purposes only. E. The full development of the Ranch Property prohibited by this grant would seriously impair the Conservation Values of the Ranch Property. F. Grantor intends that the Conservation Values of the Ranch Property be preserved and maintained by limiting development on the Easement Property and by permitting only those uses on the Easement Property that do not significantly impair or interfere with tlIem, including, WSGAL T Conservation Easement Updated April, 2006 0926143 . 000483 without limitation, those land uses relating to farming, ranching, and recreation existing at the time of this grant and otherwise as hereinafter set forth. G. The Easement Property is situated within the Star Valley, Wyoming, a scenic valley surrounded by the Bridger-Teton National Forest on the east and south, the Targhee National Forest on the north and the Caribou National Forest on the west, which are visited annually by thousands of local residents and tourists. In addition, the Wyoming game and Fish Department owns and operates and elk winter feed ground near the property. Elk feed on the Easement Property during the winter months. H. The Easement Property is situated within Lincoln County, Wyoming, which includes prime farmland and agricultural resources, portions of the Bridger- Teton National Forest, significant wildlife habitats, and is an important portion of the Greater Yellowstone Ecosystem. I. The Easement Property is located within approximately seventy miles of Yellowstone National Park, a part ofthe National Park System, and is thus recognized as land of importance for open space values by Section 508 of Public Law 105-34, the Federal Taxpayer Relief Act of 1997. J. The Wyoming Department of Game and Fish and United States Natural Resources Conservation Service have recognized the Easement Property's important wildlife habitats. K The Easement Property supports a diversity of wildlife species, including federal and state listed threatened, endangered and sensitive species, and many other species which are dependent upon the Ranch Property's streams, wetlands, and open space. The Easement Property is within the Salt River Watershed, and the Salt River traverses the entire Ranch Property. The Easement Property is also traversed by Jackknife Creek, a spawning tributary for the Snake River Cutthroat Trout, and shares ecosystems with and contributes to the ecological viability of the Salt River Watershed. The Salt River is an excellent trout fishery (species include Snake River Cutthroat Trout and Brown Trout) and is a critical habitat for a variety of waterfowl (for example Trumpeter Swans, Sandhill Cranes, American Pelican, Mallard Ducks, the Canada Goose, and Green-Wing Teal), raptors (Bald Eagle, Red-Tailed Hawks, Swainson's Hawk and American Kestrels). Small fur-bearing mammals also reside on the Easement Property at various times throughout the year. 1. The Easement Property contributes to the ecological viability of the ecosystems of the nearby Caribou, Targhee, and Bridger-Teton National Forests and the Salt River, and the Property contributes significantly to the scenic beauty of the Star Valley, especially when viewed from various points in the Caribou and Bridger-Teton National Forests. The public may easily view the Property from County Road 111 and County Road 114, both of which border the Ranch Property. M. There is a public fishing and waterfowl hunting access easement administered by the Wyoming Game and Fish Commission extending 100 feet on each side of the Salt River as it meanders across the Easement Property, which is used by hundreds of fisherman and hunters each year. 2 WSGAL T Conservation Easement Updated April, 2006 0926143 000484 N. The development prohibited by this Instrument would seriously impart the scenic character of the local rural landscape, the natural purity of the water in the Salt River and would interfere with the general public's enjoyment of fishing, hunting, and hiking along the Salt River and scenic vistas over the Easement Property. O. The protection of the Easement Property from significant development pressure to which land in the Star Valley is subjected is consistent with the goals and policies set forth in the Lincoln County Comprehensive Land Use Plan and the Star Valley Conservation District Watershed Plan, whose Mission Statement is "to promote voluntary conservation and strategic management of the water through providing technical, educational, and financial resources for the betterment of the people, the environment, and the economics of the Salt River Watershed". P. The protection of the Easement Property under the terms of this Easement is consistent with the purposes and provisions of the Farmland Protection Policy Act, 7 U.S.C. §§ 4201, et seq., which is intended to minimize the extent to which Federal programs and policies contribute to the conversion of farmland to nonagricultural uses. Q. The Easement Property has been historically used for grazing of domestic cattle and hay and grain production, and continues to support valuable agricultural production. R. The use of the Easement Property for Agricultural production, the open space and scenic values, the ecological values, and fish and wildlife habitat are of great importance to Grantor, Grantee, the People of Lincoln County, and the people ofthe State of Wyoming, and are worthy of preservation. S. Grantor and Grantee intend that the Easement Property be maintained in a condition to allow for Agriculture, wildlife habitat, recreation and other uses of the Easement Property and for the protection of the Agricultural, open space and scenic values of the Easement Property in perpetuity. T. Grantor intends that the Conservation Values of the Easement Property are preserved and maintained by the continuation of land use patterns, including, without limitation, those related to ranching and recreation existing at the time of this grant and as described hereinafter, that do not significantly impair or interfere with those values. U. Grantor, as the owner in fee of the Easement Property, owns the affirmative rights to identify, to conserve and protect in perpetuity the Conservation Values of the Easement Property. V. Grantor intends to convey to Grantee the right to preserve and protect the Conservation Values ofthe Easement Property in perpetuity. W. The specific conservation values of the Easement Property include the use of the Easement Property for agricultural production, open space and scenic values, and the natural habitat of fish, wildlife and plants ("Conservation Values") and are documented in a report to be 3 WSGAL T Conservation Easement Updated April, 2006 0926143 000485 kept on file at the offices of Grantee, which documentation ("Baseline Documentation") the parties agree provides an accurate representation of the Easement Property as of the effective date of this grant, and which is intended to serve as an objective baseline for monitoring compliance with the terms of this grant. X. Grantee represents that Grantee is a charitable organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, and the regulations there under (the "Code"), whose purposes include the conservation of Agricultural lands, wildlife habitats, scenic areas and open space to benefit the community for charitable purposes. Y. Grantee represents that Grantee is a "qualified organization," as that term is defined in Section 170(h) of the Code. Grantee has received letters from the Internal Revenue Service, on file at the offices of Grantee, to the effect that Grantee is a "publicly-supported" organization under Sections 509(a)(1) and 170 (b)(1)(A)(vi) of the Code and is not a private foundation within the meaning of Section 509(a) of the Code. Z. Grantor and Grantee recognize the scenic, natural, Agricultural, and open space character of the Easement Property, and have the common purpose of the conservation and protection in perpetuity of the Easement Property through the use of restrictions on the Easement Property and with the transfer from Grantor to Grantee of affirmative rights for the protection of the Easement Property, intending the grant of such restrictions and rights to qualify as a "qualified conservation contribution" as that term is defined under Section 170(h)(2)(C) of the Code. EASEMENT GRANT NOW, THEREFORE, in consideration of the mutual covenants, terms, conditions, and restrictions contained herein, and pursuant to the provisions of the Wyoming Uniform Conservation Easement Act, Sections 34-1-201 through 34-1-207 of the Statutes of Wyoming (the "Act"), and pursuant to Section 170(h) of the Code and the laws of the State of Wyoming, Grantor hereby grants and conveys to Grantee and its successors and permitted assigns the charitable contribution of a conservation easement (the "Easement") in perpetuity over the Easement Property, the legal description of which is set forth in Exhibit C attached hereto, to the extent specifically herein set forth. Grantor herein declares that the Easement Property shall be held, mortgaged, encumbered, transferred, sold, conveyed, used, and occupied subject to the covenants, conditions, restrictions, and easements herein, which shall be deemed to run with the land in perpetuity. Grantor binds itself to monitor the use of the Easement Property, and to enforce the restrictions on the use of the Easement Property imposed by this Easement during Grantor's ownership of any portion of the Easement Property, and any successor in interest to the Easement Property shall be so obligated in accordance herewith. The parties intend, by thus controlling and limiting the rights to the future use of the Easement Property, to permanently protect the Conservation Values of the Easement Property for the benefit of the public, and to permanently conserve the Easement Property. This Deed of Conservation Easement shall run with the land and shall burden both the Easement Property and the Development Property, except that the burden on the Development Property shall be solely for the purposes of Section 4 WSGAL T Conservation Easement Updated April, 2006 il 'I~ . 92h1_~3 000486' o '"3:r(a) below. No provision of this Deed of Conservation Easement, other than Section 3.1(a), shall burden the Development Property in any way. SECTION 1. PURPOSE 1.1 Purpose. The "Conservation Purposes" of this Easement are, generally, to preserve the public interest in the Easement Property's Conservation Values, and other significant conservation interests, and more specifically to (i) protect and preserve the Easement Property's open space and scenic values, (ii) conserve the fish and wildlife habitat, (iii) prevent any use of the Easement Property that will significantly impair or interfere with the Easement Property's Conservation Values and (iv) restrict the use of the Easement Property to those uses that are consistent with such Conservation Values and interests, recognizing that the Easement Property's historical agricultural uses, and Grantor's uses and intended uses as described hereinafter have contributed and will continue to contribute to the preservation and conservation of such Conservation Values. SECTION 2. RIGHTS OF GRANTEE 2.1 Preservation and Protection. Grantee has the right to preserve and protect in perpetuity the Conservation Values of the Easement Property in the manner set forth in this Easement. 2.2 Access. Grantee has the right to enter upon the Easement Property (exclusive of the interior of any structures on the Easement Property) after at least 72 hours prior written notice to Grantor or Grantor's designee, and in a manner not to interfere with Grantor's activities, to monitor the Grantor's compliance with and otherwise enforce the terms of this Easement. Grantee shall also have the right of immediate entry to the Easement Property if, in Grantee's reasonable judgment, such entry is necessary to prevent imminent damage to or the imminent destruction of the Conservation Values of this Easement, which right will be reasonably exercised. 2.3 Enforcement. Iniunction and Restoration. Grantee has the right to obtain injunctive or other relief against any activity or use on the Easement Property that is inconsistent with the Easement and to enforce the restoration of such areas or features that may be damaged by such activities, after providing Grantor with reasonable advance written notice and reasonable opportunity to cure. In the event a controversy arises with respect to the nature of the protected values, the parties may utilize the Baseline Documentation and any other relevant document, survey, or other information to assist in resolving the controversy. 2.4 Events Bevond Grantor's Control. Nothing contained in this Easement shall be construed to entitle Grantee to bring any action against Grantor for any injury to or change in the Easement Property resulting from causes beyond Grantor's control, including acts of trespassers or the unauthorized wrongful acts of third persons, fire, flood, storm, earth movement, and major tree disease, or from any prudent action taken by Grantor under 5 WSGAL T Conservation Easement Updated April, 2006 09261.:1&:3 000487 emergency conditions to prevent, abate, or mitigate significant injury to the Easement Property or any improvements thereon resulting from such causes. SECTION 3. PROHIBITED ACTIVITIES 3.1 Prohibited Uses. Any activity or use of the Easement Property inconsistent with the purposes of this Easement and which is likely to cause material damage to the Conservation Values is expressly prohibited. Except as specifically allowed in Section 4 of this Easement, the following uses of the Easement Property are inconsistent with the purposes of this Easement and are prohibited: (a) Subdivision. There will be no division or subdivision of the Easement Property into separate tracts; PROVIDED, however, that Grantor shall be entitled to convey a maximum of twenty one (21) undivided interests in common in and to said Easement Property, and/or assign Grantor's reserved rights as hereinafter set forth in Section 4.1 with respect to the Easement Property, to purchasers of subdivided interests in the Development Property, so long as, prior to any such conveyance or assignment, Grantor shall encumber the Development Property by recorded covenants, conditions and restrictions which (i) provide that any such undivided interest and any such assigned reserved rights in the Easement Property cannot be severed from the ownership interest in the Development Property, and (ii) require the establishment of a homeowner's association or other similar entity (hereinafter the "Association") for the ownership interests in the Development Property, and which require that the Association shall: (1) act as the enforcer of this Easement for Grantee's benefit upon notification in writing by Grantee of a violation of this Easement, which notice shall specify in reasonable detail the nature and extent of the purported violation; (2) reserve the ability of the Association to revoke the right of use of the Easement Property for any owner of an interest in the Development Property who violates the terms of this Easement; (3) provide that if the Association does not enforce this Easement as set forth herein, then Grantee, after providing thirty (30) days prior written notice and opportunity to cure to Association, and failure of the Association thereafter to cure within such period, is entitled to enforce the same and may require the Association to reimburse Grantee for its reasonable expenses incurred in accordance with Section 7.7 of this Easement; (4) provide for the authority of the Association to impose assessments and liens to provide for any required reimbursement to Grantee; and (5) provide that the above-referenced provisions shall run to the benefit of the real property interest represented by this Deed of Conservation Easement and that said provisions cannot be amended without Grantee's written consent. Grantor shall, prior to recording any such covenants, conditions and restrictions, provide a copy thereof to Grantee for its review. In the event that the Development Property is owned by a single person or entity, the provisions of Section 3.1(a) (ii) above requiring the establishment of an Association shall not apply. (b) Construction. There will be no construction of buildings, structures, or facilities, including mobile homes or temporary structures, on the Easement Property, except for fences and gates, headgates and water control facilities, bridges, roads, duck blinds, fisherman's 6 WSGAL T Conservation Easement Updated April, 2006 0926143 000488 or hunter's field sheds or shelters or gazebos, ponds, boat take-out or put-in ramps, boat storage sheds, and corrals. Any enclosed structure having an impervious foundation, that has more than eight hundred (800) square feet of enclosed building area, or is more than one story in height, or has an exterior predominantly consisting of non-natural materials such as steel, plastic, or asphalt shingles, shall require Grantee's prior written consent. Additionally, the maximum number of such enclosed structures shall not exceed ten (10) and the maximum amount of enclosed building space in all such enclosed structures shall not exceed three thousand (3,000) square feet in total for all such structures. (c) Commercial or Industrial Facilities. There will be no commercial or industrial facilities on the Easement Property, other than facilities allowed in connection with Agricultural activities and those limited commercial activities permitted with regard to hunting and/or fishing activities, as set forth further in paragraph 4.1 (I) below. (d) Mineral Extraction. There will be no commercial extraction of minerals by surface mining techniques, except that Grantor may extract soil, sand, and gravel on the Easement Property, only if such material remains on the Easement Property or is exported to Grantor's adjacent property (including the property formerly known as the Ashment parcel), provided that any such removal i) does not violate the prohibition on surface mining in Section 170 (h)(5)(B) of the Internal Revenue Code and regulations promulgated under; ii) is for non- commercial purposes in conjunction with activities permitted herein; iii) is consistent with the conservation purposes of this Easement, iv) does not substantially diminish or impair the Conservation Values; and v) has a limited and localized impact on the Easement Property. The area or areas of extraction shall not exceed over one acre in total at any time and shall be reclaimed in a manner consistent with the Conservation Values (e) Consent to Mining. Neither the Grantor nor the Grantee shall consent to any mining or surface mining on the Property under Wyoming Statute §35-11-401(b)(xi) of the Wyoming Environmental Quality Act or other applicable laws. (f) Waste Dumps. There will be no dumping or disposal of waste which is toxic to humans or wildlife or which threatens the Agricultural and scenic values of the Easement Property (except as may be specifically provided for hereinafter). (g) Hazardous Materials. Any petroleum products, explosives, hazardous substances, toxic substances, and any other substance which may pose a present or potential hazard to human health or the environment shall not be released or dumped on the Easement Property at any time, and shall not be stored or used except as lawfully stored and used in necessary quantities for Agricultural (including weed and pest control) and ordinary recreational, hunting and fishing purposes. (h) Waste Storage. The installation of underground storage tanks and the use of the Easement Property as a storage facility for hazardous waste or junk generated off the Easement Property are prohibited, except that septic systems and leach fields may be installed on the Easement Property subject to Grantee's prior written approval, not to be unreasonably withheld. 7 WSGAL T Conservation Easement Updated April, 2006 0926143 000489 (i) Paving. No portion of the Easement Property shall be paved or otherwise covered with concrete, asphalt or any other similar paving material, without Grantee's prior written consent. Non-paved roads, paths and trails including gravel roads shall be allowed without prior approval from Grantee so long as they are for agricultural uses or for access to the boat storage sheds, or provide access to and from, and across, any bridge over the Salt River, or provide pathways to hunting blinds, waterfeatures and ponds, or fishing access points. All other roads and pathways shall require Grantee's prior written approval. Grantee specifically agrees that Grantor may construct and maintain a non-paved road from Creamery Road west of the Salt River to access the Development Property, the specific location of which shall be subject to Grantee's approval. Roads shall have a maximum width of twenty feet and shall be intended to accommodate motor vehicles. Pathways shall have a maximum width of ten feet and shall accommodate only pedestrian, equestrian, bicycle and A TV traffic, except as otherwise utilized for emergency, maintenance and agricultural uses. G) Alteration of Topography. There will be no material alteration of the topography of the Easement Property, except as necessary for (i) the creation of water impoundments, waterfowl and stillwater trout ponds, and stream meanders, branches and channels and associated vegetation for the preservation of Conservation Values, (ii) stream restoration and maintenance, including associated vegetation, as allowed by Section 3.1(n), below, or (iii) for the construction of permitted structures and private roads, trails, and waste treatment and storage facilities. (k) (f) Billboards. There will be no construction, maintenance, or erection of billboards on the Easement Property. Billboards include any roadside or riverside sign other than those used for posting the name of the Ranch Property, advertising businesses which occur on the Ranch Property, controlling public access, providing public notification of this Easement or any authorized public easement, or' for advertising the Easement Property or Ranch Property or any portion thereof for sale. (1) Towers and Facilities. There will be no construction or placement of any transmission or receiving tower, energy facility or other temporary or permanent structure or facility other than permitted structures on the Easement Property. However, Agricultural water facilities such as stock water wells and associated stock tanks, which are wind, solar or electrically powered and which are constructed solely for Agricultural purposes, or which otherwise support the Conservation Values of this Easement, are permitted anywhere on the Easement Property. (m) Water Rights. There shall be no transfer, sale, lease or other separation of water rights from the Easement Property, or change of historic use of water, to the detriment of the Conservation Values of the Easement Property. To the extent the Easement Property has existing water rights, the landowner may transfer same but must retain water rights sufficient to allow continued Agricultural production in its reasonable judgment. (n) Water Courses. There shall be no alteration of natural water courses, except for (i) established Agricultural irrigation purposes, (ii) flood control, (iii) reservoir and/or pond construction for livestock, wildlife and scenic purposes, and (iv) improvements or 8 WSGAL T Conservation Easement Updated April, 2006 0926143 000490 alterations to the creek or river, including creation of anabranch channels, for the purpose of restoring, improving or maintaining fishery and/or waterfowl habitat. (0) Feedlots. The Easement Property shall not be used for the establishment or maintenance of any commercial feedlot, defined for purposes of the Easement as a permanently constructed confined area or facility within which the land is not grazed or cropped annually, for purposes of engaging in the business of the reception and feeding of livestock for hire, but not including existing or similar corrals used for holding and feeding Grantors' livestock. (P) Public Access to Property. Nothing in this Easement shall be construed to create a right of public access to the Easement Property. Nothing in this Easement shall be construed to preclude Grantor's right to have access and to grant access to its guests and invitees, and/or to grant access to the owners of undivided interests or assigned reserved rights in the Easement Property and their guests and invitees, to use and enjoy the Easement Property, provided that such access is allowed in a reasonable manner that does not result in actions inconsistent with the Conservation Values of this Easement. (q) Unanticipated Uses. There will be no unanticipated use or activity on or at the Easement Property which would impair significant Conservation Values unless such use or activity is necessary for the protection of the Conservation Values that are the subject of this Easement, in which case such use or activity shall be subject to the prior approval of the Grantee. SECTION 4. GRANTOR'S RESERVED RIGHTS 4.1 General Reserved Rie:hts. Grantor reserves to itself, and to its successors and assigns and, subject to the requirements set forth above in Section 3.1(a), to any and all owners from time to time of the Development Property, all rights accruing from Grantor's ownership of the Easement Property, including the right to engage in, permit, or invite others to engage in all uses of the Easement Property that are not expressly prohibited herein and which are consistent with the purposes of this Easement, and which do not impair or threaten the Conservation Values ofthe Easement Property, specifically including, but not limited to: (a) Agriculture. The right to conduct all activities related to Agriculture that are not prohibited by this Easement, including the right to graze, pasture, feed, water and care for livestock of every nature, the right to grow and store hay, grain, alfalfa, and other regional Agricultural crops, and the right to continue the traditional Agricultural and ranching use of the Easement Property. For the purposes of this Easement, the term "Agriculture" and "Agricultural" refer to food and fiber producing activities based on the grazing of livestock, the confined feeding of livestock raised on the Easement Property, or the planting and cultivation of crops. Permitted Agricultural activities include the use of currently accepted and, in the future, newly developed means of livestock and crop production that fit within the meaning of the terms used herein. 9 WSGAL T Conservation Easement Updated April, 2006 09Z6143 000491 (b) Roads and Utilities. The right to construct non-paved roads, trails and utilities, with associated culverts and cattleguards, if reasonably necessary for Agricultural or recreational purposes or for access to permitted buildings, and to grant utility easements for utilities in connection with uses of the Easement Property permitted by this Easement. If Grantor determines it is impractical to locate any new or replacement utility underground, then such utility shall be located so as to minimize the impact on scenic views of the Easement Property from a public vantage point. ( c) Cutting or Clearing Vegetation. The right to selectively cut or clear vegetation and mow hayfields or pastures for Agricultural purposes, fire protection, the preservation of vistas, wildlife habitat, or otherwise to preserve or enhance the condition of the Easement Property. (d) Irrigation Facilities. The right to construct, maintain, develop or alter irrigation facilities, including ditches, pipelines, and reservoir systems on the Easement Property if such actions are necessary or beneficial for grazing livestock, wildlife or fisheries on the Easement Property pursuant to the terms of this Easement and provided such actions are in compliance with all applicable laws and regulations. (e ) Water Rights. The right to use all of Grantor's rights, title, and interest in and to all tributary and non-tributary water, water rights, and related interests, in, on, under, or appurtenant to the Easement Property for present and future Agricultural production on the Easement Property, and to acquire additional water rights for Agricultural use and other permitted activities on the Easement Property. (f) Wells and Irrigation Systems. The right to drill for water on the Easement Property and to construct, maintain and utilize water wells, pumps and irrigation systems, including associated pipes, wiring and other portions of said systems. (g) Fences. The right to build, maintain and repair fences for Agricultural or ranching purposes and for conservation purposes at any location on the Easement Property. The Grantor shall construct such fences in a manner as to not materially adversely impact the Conservation Values of the Easement Property or to prevent the migration of wildlife across the Easement Property (h) Trees. The right to selectively plant or harvest trees for range enhancement or insect control. (i) Burning. The right to conduct controlled burning of rangeland and to accumulate and burn general non-toxic household and Agricultural trash generated on the Ranch Property, so long as this activity is confined to a minimum number of controlled burn areas and conducted in a manner that does not impair the Conservation Values of the Easement Property. G) Pesticides and Herbicides. The right to use chemical fertilizers, herbicides, pesticides, fungicides, and natural controls in connection with any ranching or Agricultural activity on the Easement Property, and for the control of noxious weeds, and pests, provided that (i) such use must be in compliance with all applicable federal, state, and local 10 WSGAL T Conservation Easement Updated April, 2006 0926143 000492 statutes and regulations, and (ii) such use shall not have a demonstrable detrimental effect on the Conservation Values of the Easement Property. (k) Agricultural Leasing. The right to lease all or any portion of the Easement Property for any use or activity that is permitted by this Easement. (1) Recreation. The right, for Grantor's benefit and the benefit of its guests and/or invitees, and the right of successive owners of any interest in the Easement Property or assignees of reserved rights under Section 3.1(a) above and their guests and/or invitees, to engage in hiking, horseback riding, hunting, fishing, camping, picnicking, bird watching, snow mobiling, cross country skiing, and any other recreational activities, which do not have a significant adverse effect on the Conservation Values of the Easement Property. Nothing herein shall be construed to permit commercial recreational activities on the Easement Property, except that de minimis commercial recreational activities may be allowed to occur, consistent with Section 2031 (c) of the Code. The term de minimis shall have the meaning set forth in Section 2031(c)(8)(B) of the Code. Grantor reserves the right, for itself and for the benefit of the Development Property, to create non-paved trails on the Easement Property. Grantor reserves the right to allow guests and invitees to utilize the Easement Property for horseback riding, hiking, fishing and hunting, or for photography, cinematography or other artistic purposes, or as a retreat, and to charge a reasonable fee to said persons in association therewith. Grantee acknowledges that Grantor may operate a commercial guest ranch, bed and breakfast or lodge facility on the adjacent Development Property, and in connection therewith the guests and/or invitees of Grantor while occupying such facilities shall be allowed access to the Easement Property for the recreational uses allowed herein. (m) Use of Vehicles. Grantor reserves the right, for itself and for the benefit of the Development Property, to use motorized vehicles, including snowmobiles and all- terrain vehicles, over existing and permitted drives, roads, paths and trails and in connection with authorized uses permitted by this Easement. Off-road use of vehicles shall be limited to uses necessary (i) for fire suppression; (ii) for emergencies or for severe weather access when ordinary on-road access is not available, or for snowmobiles during snow conditions; (iii) for ordinary ranch management and property maintenance purposes; and (iv) for permitted Agricultural uses on the Easement Property. (n) Habitat Enhancement. Grantor reserves the right, for itself and for the benefit of the Development Property, to undertake enhancement of existing plant and animal habitat, including the construction of ponds. Such enhancement shall require the advance written approval of the Grantee, which approval shall not be unreasonably withheld. (0) General. Grantor reserves the right, for itself and for the benefit of the Development Property, to conduct any and all activities that have a low level of impact and intrusion, that are environmentally sound and that are not inconsistent with the purpose of this Easement, and that do not impair the Conservation Values of the Easement Property, except to the extent expressly prohibited herein. 11 WSGAL T Conservation Easement Updated April, 2006 09Z6143 000493 4.2 Residences and Associated Improvements on Adjacent Development Property. Nothing contained herein shall prohibit or restrict the Grantor's right to build and maintain facilities and family residences within the adjacent Development Property SECTION 5. ASSIGNMENT BY GRANTEE; TRANSFERS BY GRANTOR 5.1 Limitations on Assil!nment bv Grantee. The benefits of this Easement shall not be assignable by Grantee, except (i) with Grantor's prior written approval, (ii) if as a condition of any assignment, Grantee requires that the purpose of this Easement continues to be carried out, and (iii) if the assignee, at the time of assignment, qualifies under Section 170(h) of the Code (or substantially similar successor statute) and the laws of the State of Wyoming as an eligible donee to receive this Easement directly. Grantee agrees to notify Grantor in writing at least sixty (60) days prior to any intended assignment of this Easement. Any attempted assignment by Grantee of the benefits of this Easement contrary to the terms hereof shall be invalid but shall not operate to extinguish this Easement. Grantee acknowledges that a portion of the Easement Property is subject to a previously granted public access easement. 5.2 Transfers bv Grantor. Grantor agrees to incorporate by reference the terms of this Easement in any deed or other legal instrument by which Grantor transfers any interest in all or a portion of the Easement Property, including a leasehold interest. Grantor further agrees to give written notice to Grantee of the transfer of any such interest at the time of such transfer. The failure of Grantor to perform any act required by this paragraph shall not impair the validity of this Easement or limit its enforceability in any way. Nothing in this Easement shall be construed as impairing Grantor's ability to use the Easement Property as collateral for any loan, provided that any mortgage or lien arising after the date of execution of this Easement shall be subordinate to the terms of this Easement. SECTION 6. EXTINGUISHMENT; CONDEMNATION 6.1 Limitations on Extinl!uishment. If circumstances arise in the future that render the purpose of this Easement impossible to accomplish, this Easement can only be terminated or extinguished, whether with respect to all or part of the Easement Property, by judicial proceedings in a court of competent jurisdiction. Unless otherwise required by applicable law at the time, in the event of any sale of all or a portion of the Easement Property (or any other property received in connection with an exchange or involuntary conversion of the Easement Property) after such termination or extinguishments, and after the satisfaction of prior claims and net of any costs or expenses associated with such sale, Grantor and Grantee shall divide the proceeds from such sale (minus any amount attributable to the value of improvements or enhancements to the Easement Property made by Grantor after the effective date of this Easement, which amount is reserved to Grantor) in accordance with their respective percentage interests in the fair market value of the Easement Property, as such percentage interests are determined under the provisions of paragraph 6.2, adjusted, if necessary, to reflect a partial 12 WSGAL T Conservation Easement Updated April, 2006 OSZ6143 000494 termination or extinguishments of this Easement. All such proceeds received by Grantee shall be used by Grantee in a manner consistent with Grantee's conservation purposes. 6.2 Percentae:e Interests. For purposes of this paragraph, the parties hereto stipulate that as of the effective date of this grant the Easement and the restricted fee interest in the Easement Property each represent a percentage interest in the fair market value of the Easement Property. The percentage interests shall be determined by the ratio of the value of the Easement on the effective date of this grant to the value of the Easement Property, without deduction for the value of the Easement, on the effective date of this grant. The values on the effective date of this grant shall be those values used to calculate the deduction for federal income tax purposes allowable by reason of this grant, pursuant to Section 170(h) of the Code. The parties shall include the ratio of those values with the Baseline Documentation of the Easement Property (on file at Grantee's offices) and shall amend such values, if necessary, to reflect any final determination thereof by the Internal Revenue Service or court of competent jurisdiction. For purposes of this paragraph, the ratio of the value of the Easement to the value of the Easement Property unencumbered by the Easement shall remain constant, and the percentage interests of Grantor and Grantee in the fair market value of the Easement Property thereby determinable shall remain constant. 6.3 Condemnation. If all or a part of the Easement Property is taken, in whole or in part, by exercise of the power of eminent domain, Grantor and Grantee shall be respectively entitled to compensation in conformity with the provisions of paragraph 6.2 unless otherwise provided for by applicable law at the time of such exercise of the power of eminent domain. SECTION 7. GENERAL PROVISIONS 7.1 Controlline: Law. The interpretation and performance of this Easement shall be governed by the laws of the State of Wyoming. 7.2 Severability. If any provision of this Easement or the application thereof to any person or circumstance is found to be invalid, the remainder of the provisions of this Easement shall not be affected thereby. 7.3 Entire Ae:reement. This instrument sets forth the entire agreement of the parties with respect to the Easement and supersedes all prior discussions, negotiations, understandings, or agreements relating to the Easement, all of which are merged herein. 7.4 Grantor and Grantee. The term "Grantor," as used in this Easement, and any pronouns used in place thereof shall mean and include the Grantor named herein, and its successors and assigns. The term "Grantee," as used in this Easement, and any pronouns used in place thereof shall mean the Grantee named herein and its successors and assigns. 7.5 Successors. The covenants, terms, conditions, and restrictions of this Easement shall be binding upon and inure to the benefit of the parties hereto and their respective personal representatives, heirs, successors, and assigns and shall continue as a servitude running in 13 WSGAL T Conservation Easement Updated April, 2006 OSZ6143 perpetuity with the Easement Property, provided that (i) no owner shall be responsibl?~g~9S for violations occurring on such owner's land during the time of such owner's ownership; (ii) in the event of a breach of the terms hereof by the owner or owners of any portion of the Easement Property, no owner or owners of any other portion of the Easement Property shall be held separately liable for such breach, except that one or more members, or all members, of the Association may be held jointly liable, by virtue of their membership in the Association, for the breach of the terms hereof by anyone owner. 7.6 Notices. Any notice, demand, request, consent, approval, or communication that either party desires or is required to give to the other shall be in writing and either served personally or sent by first class mail, postage prepaid, addressed as follows: To Grantor: Jackknife Creek Ranch, LLC c/o Chris Allen 45 Rowan Tree Lane Hillsborough, California 94010 To Grantee: Wyoming Stock Growers Agricultural Land Trust 113 East 20th Street Cheyenne, Wyoming 82001 or to such other address as any of the above parties from time to time shall designate by written notice to the others. 7.7 Attornev Fees and Costs of Suit. If Grantee incurs attorney's fees or other reasonable costs of suit in enforcing the terms of this Easement, and if it is determined by a court of competent jurisdiction that Grantor is in violation of this Easement, those expenses of Grantee shall be paid by Grantor or those of its successors or assigns against whom a judgment is entered, in addition to the cost of restoration. In the event a judgment is entered against Grantee in an effort to seek injunctive relief or restoration, and the Grantor is held not to be in violation of this Easement, then the Grantee shall pay the Grantor's reasonable costs of suit, including its attorney's fees. 7.8 Access. No right of access to any portion of the Easement Property is conveyed by this Easement, except as expressly provided herein. 7.9 Costs. Liabilities. and Taxes. Grantor retains all responsibilities and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the Easement Property, including the maintenance of general liability insurance coverage, and including any taxes assessed on Grantor's interest in the Easement Property. 7.10 Hazardous Material. Grantor shall hold harmless, indemnify, and defend Grantee and Grantee's members, directors, officers, employees, agents, and contractors from and against all liabilities, penalties, losses and expenses, including reasonable attorneys' fees, arising from or in any way connected with the presence or release of any hazardous material or substance of any kind on the Easement Property, except to the extent not within the control of 14 WSGAL T Conservation Easement Updated April, 2006 0926143 000496 Grantor. Grantor warrants that there are no notices by any governmental authority of any violation or alleged violation of, non-compliance or alleged non-compliance with or any liability under any environmental law relating to the operations or conditions of the Easement Property. 7.11 Comoliance Certificates. Upon request by Grantor, Grantee shall within thirty (30) days thereafter execute and deliver to Grantor any document that may be requested by Grantor, including an estoppel certificate or compliance certificate, to certify to the best of Grantee's knowledge Grantor's compliance with any obligation of Grantor contained in this Easement or otherwise to evidence the status of this Easement. 7.12 Venue and Jurisdiction. The parties agree that venue and jurisdiction for any dispute between them, or for any dispute with any third party relating to the enforcement or violation of any of the terms of this Easement, shall be in the District Court in Lincoln County, Wyoming. 7.13 Construction. The parties desire that this Easement be construed so as to further the conservation and protection of the Conservation Values. Further, this Easement shall be construed according to the laws of the State of Wyoming and the United States of America. The parties intend that the conveyance provided for in this Easement qualify under Section 170(h) of the Code as a "qualified conservation contribution" of a "perpetual conservation restriction," within the meaning accorded those phrases by Section 1.170A-14 of the Regulations, for federal income and estate and gift tax purposes. The provisions of this Easement shall be construed accordingly. 7.14 Extinf!uishment of Develooment Rif!hts. Grantor hereby grants to Grantee all of the development rights pertaining to the Easement Property, except for those development rights expressly reserved by Grantor herein, which reserved rights Grantor and Grantee acknowledge as including the right of Grantor to develop up to ten (10) principal residences, together with ancillary guest housing and common facilities as well as up to eleven (11) apartments and/or condominium units, on the adjacent Development Property. Development rights shall be deemed to include, but not be limited to, all development rights and development potential that are now or hereafter allocated to, implied, reserved or inherent in the Easement Property, including (i) all subdivision and development density rights and potential and (ii) the right to use any of the acreage of the Easement Property in any acreage calculation having the effect of creating, or contributing to, additional development on or off the Easement Property. The parties agree that all such development rights are hereby terminated and extinguished in perpetuity, except as set forth hereinabove. 7.15 Amendment. If circumstances arise under which an amendment to or modification of this Easement would be appropriate, Grantor and Grantee are free to jointly amend this Easement; provided that no amendment shall be allowed that will affect the qualification of this Easement or the status of Grantee under any applicable laws, including Section 170(h) of the Internal Revenue Code, and any amendment shall be consistent with the purpose of this Easement and shall not affect its perpetual duration. Any such amendment shall be recorded in the official records of Lincoln County, Wyoming. 15 WSGAL T Conservation Easement Updated April, 2006 0926143 000497 7.16 Effective Date. Grantor and Grantee intend that the restrictions arising hereunder' take effect on the day and year this deed is recorded with the County Clerk of Lincoln County, Wyoming, after all required signatures have been affixed hereto. TO HA VE AND TO HOLD, this Conservation Easement, unto Grantee and its successors and assigns forever. This Deed of Conservation Easement may be executed in several counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, but all of which together shall constitute one instrument. IN WITNESS WHEREOF, Grantor and Grantee have set their hands under seal on the day and year set forth below. GRANTOR: JACKKNIFE CREEK RANCH LLC, a Delaware Limited Liability Compan}J t\«J ~ Date: \ 2 ... z..,\ ,.- OJ:, ~~~o/¿,~ F ;:)//,." Date: /,)-J-/-O 6 JUKAl'S ATTACHED HERETO ~D\ ~~~ ~ ~ ~ ¡~, 16 WSGAL T Conservation Easement Updated April, 2006 0926143 000498 CALIFORNIA ALL·PURPOSE ACKNOWLEDGMENT ~~~A~A_A_A_______'_"" State of California County of ~ .M~'D On~ I ~ \ ,d-ot:>~ before me, Date Name and litle of Officer (e.g.. "Jane Doe, Notary P blic·) personally appeared ch h\s~ph-e rR It.Ji'en J ~t"" -H, flp(t:th1S 'Name(s of Slgner(s) -.-.-.-.-..--.....-...-.-.-, VOHKO H. FICK 1G' . Commission # 1424371 :( _,,; . Notary Public - California ~ r San-.eowor ~ MvComrn. ÐII*eI.h.n 14. ...........:....---....---......----- o personally known to me ~ or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) iItIare subscribed to the within instrument and acknowledged to me that hMftelthey executed the same in ~rltheir authorized capacity(ies), and that by ~/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature of Notary Public Place Notary Seal Above ~~~J OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Signer's Name: o Individual o Corporate Officer - Title(s): o Partner - 0 Limited 0 General o Attorney in Fact o Trustee o Guardian or Conservator o Other: RIGHT THUMBPRINT OF SIGNER Top of thumb here Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: o Individual o Corporate Officer - Title(s): o Partner - 0 Limited 0 General o Attorney in Fact o Trustee o Guardian or Conserv o Other: / Signer Is Repre~enting: Signer Is Representing: ~~=.tV~~~ © 2006 National Notary Association' 9350 De Soto Ave.. P.O. Box 2402 . Chatsworth, CA 91313-2402 Item No. 5907 Reorder: Call Toll-Free 1-600-676-6627 03Z6143 000499 The foregoing Deed of Conservation Easement is hereby duly accepted by the Wyoming Stock Growers Agricultural Land Trust. GRANTEE: Date ~"-ò' I¡;:, ~()o 7 WYOMING STOCK GROWERS AGRICULTURAL LAND TRUST By: ~:it tJ / - D ò Its: {:::y-,- ¿ C..4i\J c.. ,'I'Cc.. ~ r /-110- 07 By: Its: ~~~ Date STATE OF WYOMING ) ) ss. COUNTY OF ) The foregoin docume}l1jw~ acknow edged before me this 1.6¿Aday of "Ji:II'lUI1R(, ~ Jry IJ..EJýI'J 17. ¡flULE as &£t!.'¿fT/VE 7J/~. and by fT}¡:¡RK L::/..SELE' as oJJR£J 'E1lJ/JER of the Wyoming Stock Growers Agricultural Land Trust, a non-profit corporation under the laws of the State of Wyoming, on behalf of the corporation. WITNESS my hand and offi,cial seal. My commission expires: /Ø~crå - . Notary Public ~ , ,,\,~.,\\il'" ';,', .' . ,.", 'J \ ". .'1 ",~'v ............ '~J.. I .,J;:" ,4.'. .... , ". .' . .. .:: .....,....* -" , , . - ~ ~ (;;:- 11: i'" t,¿ ',._: , ª :J: 0 ~( -" : ,. ~ . - . .'- .{. .. . .... I··~·\·o '.. .... ;·.,\~-...._A ' ;....; ;-;.') ..¿t.. 10"'4'-7, .U ~ rr,,~·.. .."~ { , ~ \....'1 '. ",.-, ' ;",.1 ... ··..iII.··...' ~II ''',' ~ . 'I¡. '-.' '... ' . "1111: H~'" 17 WSGAL T Conservation Easement Updated April, 2006 09Z61'-tù ---soo 0926143 EXHIBITS TO DEED OF CONSERVATION EASEMENT FROM JACKKNIFE CREEK RANCH TO WYOMING STOCK GROWERS AGRICULTURAL LAND TRUST EXHIBIT A LEGAL DESCRIPTION OF THE RANCH PROPERTY EXHIBIT B SITE PLAN EXHIBIT C LEGAL DESCRIPTION OF THE EASEMENT PROPERTY ------- OSZ6143 000502 EXHIBIT A 0326143 000503 RANCH PROPERTY LEGAL DESCRIPTION S ~ NE~, N ~ SE~, Lots 1,2,3,4 and 5 of Section 4, T35N R119W of the 6th P.M. Lincoln County, State of Wyoming. LESS AND EXCEPT the land described in Warranty Deed recorded June 3, 2005 in Book 587 on page 266 of the records of the Lincoln County Clerk. 000504 0926143 EXHIBIT B 0326143 000505 EXHIBIT C rolessional land Surveyors eul N, Scherbel Iyo. Registralion No. 164 tah Registralion No. 1670 laho Registration No, 3990 evada Registration No. 6805 colt A. Scherbel Iyo. Registration No. 3889 laho Registralion No. 8026 tah Registration No. 372111 IARlOWE A. SCHERBEl Iyo. Registration No. 5368 urveyor Scherbel, lTD. lion. Wyomln9 Ig Piney, Wyoming ackson, Wyoming ava Hot Springs, Idaho 1ontpelier, Idaho -09Z6143 DESCRIPTION FOR JACKKNIFE CREEK RANCH, LLC CONSERVATION EASEMENT TRACT 000506 To-wit: - - All of the SYíNE~, NY2SE~, and GLO Lots 2, 3, and 4 of Section 4, T35N R119W, Lincoln County, Wyoming, EXCEPTING; That tract of record in the Office of the Clerk of Lincoln County in Book 587 of Photostatic Records on page 266; AND The west 719.96 feet of the NW~SE~ of Section 4, T35N R119W, Lincoln County, Wyoming; ENCOMPASSING an area of 180.69 acres, more or less; the BASE BEARING for this survey is the west line of the SYí of Section 33, T36N R119W, being NOoo-27'-06"W; SUBJECT to easements for the Creamery County Road No. 12-111 and the Freedom North County Road No. 12 -114; all in accordance with the attached exhibit titled, "EXHffiIT TO ACCOMP ANY DESCRIPTION FOR JACKKNIFE CREEK RANCH, LLC CONSERVATION EASEMENT TRACT WITH T E SYíNE~ NY2SE~ GLO LOTS 2, 3, 4 SECTION 4 T35 W LINCOL , WYOMING", dated 4 August 2006. 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