P03_Locy Appraisal Request Packet.pdf

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440 M 527 Subpart E (amended April 2024) 1

Title 440 – Conservation Programs Manual

PART 527 – Easement Common Provisions Subpart E – Appraisal

Amended April 2024

527.40 General

A. This subpart provides NRCS policy on determining easement value using appraisals. Easement valuation policy may also be found in other program policy.

The policy in this subpart and subpart F do not invalidate any other easement appraisal policy unless there is a conflict, in which case the policy in this subpart and subpart F shall prevail.

B. The authorized official must request all appraisal reports or services in writing from the appraiser using the applicable NRCS appraisal specifications and statement of work for the NRCS easement program (see section 527.260). The NRCS appraisal specifications and statement of work may not be changed without the written approval of the NRCS national appraiser. In the rare cases where changes are recommended, contact the NRCS national appraisers at NRCS.NationalAppraisers@usda.gov.

1. For entity-held easements, the eligible entity is responsible for obtaining the appraisal report and providing it to NRCS. The appraisal must identify the eligible entity as the client and NRCS as an intended user.

2. For the Emergency Watershed Protection Program (EWPP) – Floodplain Easement (FPE) with residences, the sponsor may obtain the appraisal report.

NRCS must be a client on all EWPP-FPE appraisals. Payment processes for the appraisal are determined by the sponsor agreement.

3. For all other NRCS easement program appraisals, NRCS obtains and pays for the appraisal reports through a contract, purchase card, or agreement. In all cases, NRCS must be identified as the client.

C. All appraisals must comply with NRCS appraisal specifications and statement of work. Appraisals for programs other than the Agricultural Conservation Easement Program (ACEP) Wetland Reserve Easement (WRE) and Regional Conservation Partnership Program (RCPP) ACEP-WRE must consider the terms of the conservation easement, including the conservation values being protected and the level of restrictiveness of the easement, as applicable. ACEP-WRE and RCPP- ACEP-WRE appraisals determine market value of the area before the conservation easement is placed on the property.

mailto:NRCS.NationalAppraisers@usda.gov

440 M 527 Subpart E (amended April 2024) 2

D. NRCS easement acquisition appraisals must be completed according to the Uniform Standards of Professional Appraisal Practice (USPAP), except as follows. For entity-held easements under the ACEP – Agricultural Land Easement (ALE), RCPP-ACEP-ALE, and RCPP, the eligible entity may:

1. With approval and documented in the program agreement, obtain appraisals completed according to the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA, commonly referred to as the “Yellow Book”).

2. Request to use another industry-approved method that follows program-specific policy and procedures to determine the market value of the easement.

This will be on a project-by-project basis with any other industry approved methods or alternative easement valuation method documented in the program agreement or other EPD approved agreement as appropriate.

E. All appraisals used for acquisition of NRCS program easements must undergo a technical appraisal review (technical review). All technical reviews are obtained or completed by NRCS.

F. NRCS will not accept an appraisal that lists the landowner as the client. The landowner cannot be a party to the hiring or directing of the appraisal assignment.

G. States and the Easement Acquisition Branch (EAB) must submit all appraisals, along with the technical review, to the national appraiser through the Program Activity Management Solution (PAMS) or successor process.

527.41 Easement Programs Division Duties and Responsibilities

A. The Easement Programs Division (EPD) policy branch chief is the valuation authority for NRCS easement programs and relies upon the expertise and professional recommendation of NRCS national appraisers and other EPD experts to provide leadership on easement valuation processes. Easement valuation includes appraisals, Area Wide Market Analyses (AWMA), technical reviews, and, for ACEP-WRE and RCPP-ACEP-WRE only, geographic area rate caps.

B. Appraisals and technical reviews for 2018 Farm Bill RCPP easements require national appraiser review and approval regardless of easement value. For other programs, the NRCS national appraiser reviews and approves both the appraisal and the technical review when the following value thresholds are met.

1. For ACEP-ALE and 2014 Farm Bill RCPP-ACEP-ALE: when the easement value exceeds $3 million.

2. For all other programs: when the appraised value exceeds $1.5 million.

C. Based on the program, NRCS national appraiser approvals must be done as follows.

1. For US-held easements: prior to NRCS making an offer.

2. For entity-held easements with noncertified entities and entity-held easements acquired through a buy-protect-sell transaction or an RCPP alternative

440 M 527 Subpart E (amended April 2024) 3 funding arrangement, regardless of entity certification status: before issuing the federal share of the payment to the eligible entity.

3. For ACEP-ALE and RCPP-ACEP-ALE easements with certified entities using certified entity provisions in the parcel contract, there is no review except as part of the quality assurance review conducted after easement acquisition in certain cases.

Note: Technical reviews and approvals must be done according to subpart F of this part.

D. In order to provide required oversight and maintain a strong control environment, EPD reviews compliance with appraisal requirements on a sampling of appraisals and technical reviews every year. The samples include the first appraisal completed by an appraiser, the first technical review completed by a review appraiser, and at least 10 percent of the appraisals done each year. EPD chooses which appraisals to review.

1. Compliance reviews are conducted after the technical review is completed and are not required before closing.

2. Issues found during the compliance review must be addressed. If the compliance review was conducted before closing, the issues must be addressed before the easement may be closed. If conducted after closing, the issues must be addressed as specified by the EPD Policy Branch.

E. The NRCS national appraisers are the points of contact for NRCS state office staff, EAB, NRCS contracting staff, contracted appraisers, and review appraisers. The national appraisers can be emailed at NRCS.NationalAppraisers@usda.gov.

F. The NRCS national appraisers answer technical questions, interpret appraisal specifications, and provide guidance or action on easement appraisal issues, including but not limited to:

1. Resolving conflicts in technical review specifications and conducting periodic teleconferences with review appraisers.

2. Conducting technical reviews when contract review appraisers are not available or in other circumstances as determined by EPD.

3. Providing guidance for ensuring that the United States is receiving equal or greater economic value for easement administration actions.

4. Providing guidance on the applicability of a particular property to an approved

AWMA.

G. Consult the NRCS national appraiser if there is uncertainty on whether an appraiser is qualified to perform work for NRCS.

mailto:NRCS.NationalAppraisers@usda.gov

440 M 527 Subpart E (amended April 2024) 4

527.42 Appraisal Type

A. There are two types of appraisal reports for NRCS easement programs: market value appraisal reports and conservation easement appraisal reports.

B. For ACEP-WRE and RCPP-ACEP-WRE only: market value appraisal reports provide the “as is” market value of the property on which the ACEP-WRE easement will be placed. The appraisal must comply with USPAP and NRCS ACEP-WRE appraisal specifications.

C. For all non-ACEP-WRE and non-RCPP-ACEP-WRE enrollments: conservation easement appraisal reports are “before and after” appraisals. The appraisal provides the market value of the easement property area before the easement is placed and the market value of the easement property area after the easement is placed. The difference in the two values shows the effect of the easement on the property or the value of the easement.

527.43 Appraiser Qualifications

A. The appraisal will be either a market value appraisal or a conservation easement appraisal, as defined in section 527.42, depending on the applicable easement program. Below are qualifications an appraiser must have to conduct each type of appraisal.

1. Market value appraisals: In accordance with Title XI of the Financial

Institutions Reform, Recovery and Enforcement Act of 1989, appraisers must be a state-certified general real property appraiser or have a temporary practice state-certified general real property appraiser permit in all states where the subject property is located and be in good standing with the issuing licensing authority. The appraiser must comply with USPAP and have demonstrated competency in conducting appraisals of properties of the requested type. Appraisers whose credentials were suspended because of disciplinary action by the licensing authority of any state within the past 5 years are disqualified.

2. Conservation easement appraisals: In addition to the above requirements, appraisers must have experience conducting appraisals with and without conservation easements. Appraisers must have completed either a conservation easements valuation course or eminent domain course. A conservation easements valuation course is preferred. For appraisals completed under UASFLA, the appraiser must have completed a UASFLA course and have experience completing UASFLA appraisals.

B. For US-held easement enrollments, a copy of the appraiser’s state license documentation of the education requirements must be included with the bid submission. The contracting officer reviews the licensing credentials and experience of the contractor and must approve the contractor before work begins.

The contracting officer must contact the NRCS national appraiser to resolve any qualification questions before issuing the contract award. For appraisals being

440 M 527 Subpart E (amended April 2024) 5 acquired with a purchase card or other appropriate mechanism consult the national appraisers to review vendor qualifications before obtaining the appraisal.

C. For entity-held easement enrollments, the eligible entity is responsible for obtaining the appraisal and providing a copy to NRCS. The eligible entities must ensure the appraiser meets the qualifications before ordering an appraisal.

Appraisals completed by appraisers not meeting NRCS qualifications and statement of work will not be accepted.

D. Documentation of the appraiser’s experience and education must be included in the appraisal report for any type of appraisal.

527.44 Appraisal Reports

A. NRCS easement programs use appraisal reports to understand the property and market characteristics. Because many NRCS users will not personally inspect the property nor be familiar with the local area and market, the appraisal report must include the necessary details to explain and support the property description, highest and best use analysis, market characteristics, adjustment process, and conclusions so that all reviewers and NRCS users understand the statements, opinions, and conclusions in the report.

B. For appraisals ordered by NRCS, a project sponsor, or the eligible entity, the following information must be provided to the appraiser except where otherwise noted.

1. Recorded landowner’s name, address, and telephone number.

2. Written permission to enter the property from the landowner or an authorized representative.

3. Aerial photograph of the subject property with labels or other annotation identifying the location of the proposed easement area, access to the easement area, easement boundary, an estimate of the acres in the proposed easement, and, when available, the location and acreage of any existing agreement, contract, or easement of any type that is associated with the property.

4. Legal description of subject or parent property and preliminary legal description of the proposed easement area or survey, if available.

5. Copy of the draft easement deed for the applicable program. Do not provide a draft easement deed for ACEP-WRE or RCPP-ACEP-WRE.

Note: For all other easement types, the individual easement deed and exhibits that will be recorded must be provided.

6. Specific details of any existing easements, reservations, or other restrictions currently encumbering the subject property, as provided by the landowner.

7. Documentation of production data provided by the landowner.

8. Documentation of water rights owned, including the name of the irrigation company and the number of shares or amount of ownership, and irrigation

440 M 527 Subpart E (amended April 2024) 6 wells on the property to be appraised as provided by the landowner. If water rights are included in the easement area, documentation identifying the volume of water rights to be retained for the subject property as required by the specific NRCS easement program.

9. Current information of title of ownership, such as copies of deeds.

10. If available, completed preliminary certificate of inspection and possession, landowner disclosure worksheet, hazardous materials landowner interview, hazardous materials field inspection checklist, and any information on hazardous substances that may be found on the property to be appraised.

11. When available, copy of preliminary title commitment or report covering the proposed easement area.

12. Copy of the draft baseline documentation report, as applicable for the easement program and as available.

13. Copy of the easement management plan, conservation plan, or restoration plan of the proposed easement area, if applicable and as available.

14. Copy of the recorded written access to the easement area, evidence that the property is accessible from a public road, or NRCS-approved alternative legal access route.

15. Copy of the applicable program appraisal specifications and statement of work.

C. The following material must be stored in the hardcopy easement case file in fireproof and waterproof safes or filing cabinets. Electronic copies must be stored in the appropriate easement business tool (e.g., National Easement Staging Tool or Conservation Desktop):

1. A copy of the approved appraisal.

2. Technical review report approving the appraisal.

3. Any national appraiser approval of an appraisal and technical review.

4. A copy of any update to an appraisal, if applicable.

527.45 Confidential Nature of Appraisals

A. Appraisers must abide by the confidentiality provisions of the ethics rule of

USPAP.

B. Appraisals obtained by NRCS are not releasable to anyone before acquisition of the easement.

C. Appraisers must identify any information in the appraisal report that is proprietary sensitive or that must be kept confidential.

D. After the appraisal is accepted by NRCS and acquired the easement, the public may request to see the appraisal report under the Freedom of Information Act, which may result in the release of all or part of the appraisal report to the public.

440 M 527 Subpart E (amended April 2024) 7

The landowners may request a copy of the appraisal under the Privacy Act after acquisition.

527.46 Appraisal Expiration, Changes, and Updates

A. Appraisals may be revised because of significant changes in acreage due to survey or configuration; expiration of the appraisal before obligation; identification of access or other title issues that may affect the easement value; or, for ACEP-ALE, RCPP-ACEP-ALE, or RCPP, changes to the conservation easement deed terms.

Revision may also be needed to update value estimates, provide additional support or explanation, or correct a previous report.

1. The appraiser who completed the original appraisal may be required to update the original appraisal if:

a. The useful life of the appraisal (normally 12 months) needs to be extended to allow more time for obligation; or

b. A survey indicates that the acreage, footprint of the easement, or access, title, or deed terms have changed and NRCS has determined that these changes are within scope.

2. The appraiser will provide an update to the appraisal as part of a new assignment. Per USPAP, a more current value or analysis of a property that was the subject of a previous assignment does not extend that assignment.

Rather, it creates a new appraisal assignment that must be completed as discussed in USPAP Advisory Opinion 3 (AO-3):

3. USPAP AO-3 allows three options for the appraiser to satisfy USPAP reporting requirements. The appraiser may provide a new report that: 1) does not incorporate the previous report, 2) incorporates by attachment specified information or analysis from the previous report, or 3) incorporates by reference specified information or analysis from the previous report. The appraiser decides which option to use.

4. New, revised, and updated appraisals must meet the applicable NRCS appraisal specifications and incorporate the identified changes. Generally, new appraisals or updates to a previous appraisal will need a technical review (see Subpart F for more information).

B. Validity Period. Only appraisals with a current date of value (effective date) and, as applicable, an approved technical review, and as required an approved national appraiser review are valid for NRCS easement programs. The appraisal effective date must meet the specific program requirements as follows unless a shorter useful life is identified by the technical reviewer and approved by the national appraiser.

1. For ACEP-WRE, EWPP-FPE, Healthy Forests Reserve Program (HFRP), and

RCPP US-held easements, the effective date of the appraisal must be within 12 months of the landowners and NRCS executing the enrollment agreement.

Once the agreement is executed by all required parties, the appraisal will not

440 M 527 Subpart E (amended April 2024) 8 expire. If an approved appraisal has an effective date older than 12 months before the agreement is executed by all parties, the appraisal is expired and a new appraisal report with a more current effective date of value is required before an offer can be made and an obligation completed.

Note: For EWPP-FPE enrollments using the pre-disaster date as the effective date, the appraisal will not expire once the technical review is approved.

2. For entity-held easements, the effective date of the appraisal must be no earlier than 12 months before the parcel’s obligating document is executed or modified to identify a substitute parcel and must be before the closing date of the easement on the parcel.

a. Entities that are considering applying for ACEP-ALE or RCPP-ACEP-

ALE cost-share assistance are encouraged to provide the appraisers with the NRCS ACEP-ALE appraisal specifications and statement of work at the time the appraisal is acquired (see section 527.260).

b. For ACEP-ALE or RCPP-ACEP-ALE standard transactions with certified entities on parcel contracts utilizing the certified entity provisions, the appraisal will not be reviewed by NRCS before payment and closing, but a technical review or national appraiser review may be conducted after the easement is acquired as part of the quality assurance and compliance review processes.

C. Expiration. The appraisal expires when the effective date is older than the time periods specified in paragraph B above or is beyond the useful life period as stated in the technical review. If the appraisal expires, a new appraisal is required.

D. Acreage Changes and Footprint Changes. When the surveyed acreage changes the footprint or size of the original property or easement boundary, either an updated appraisal or administrative adjustment is required. The national appraisers must assist with the application of administrative adjustments as needed for situations not covered in the appraisal statement of work. Please submit requests for assistance with administrative adjustments through PAMS.

1. Acreage Changes

a. In cases where the appraisal was completed without the benefit of a legal survey and the footprint is unchanged, the acres and price may be administratively adjusted by the national appraiser.

b. An updated appraisal is required when the surveyed acreage deviates more than 10 percent from the acres in the original appraisal, unless the initial appraisal reports a specific acreage range or the national appraiser determines that an updated appraisal is not needed.

2. Footprint Changes

a. When the easement footprint reported in the appraisal has minor changes, the acres and price may be administratively reconciled by the national appraiser. Minor easement boundary changes that remain largely reflective of the original easement footprint (in terms of size, configuration, location, 440 M 527 Subpart E (amended April 2024) 9 and land type) are suitable for administrative adjustment as determined by the national appraiser.

b. An updated appraisal is required when the size of the easement footprint changes more than 10 percent or when the revised easement footprint is not similar to the original appraised footprint, unless otherwise approved by the national appraiser.

E. Substitution of Land. Substituted land requires a new appraisal. Land is considered substituted when the land proposed for the easement is different from the parcel identified in the appraisal.

F. Changes in Access or Title Conditions. Contact the original appraiser to review any access or title changes. Changes in title conditions do not include encumbrances that will be released or subordinated before closing. The original appraiser will complete an update to the previous appraisal consistent with guidance contained in USPAP AO-3.

G. Changes to Deed Terms (entity-held easements only). For appraisals conducted based on a draft easement deed, the eligible entity must provide NRCS with documentation of the effect of changes made to the final deed terms on the original appraised value before the planned easement closing date. To accomplish this, the eligible entity must obtain an update of the previous appraisal from the original appraiser. The appraisal update will be reported consistent with guidance in USPAP AO-3.

File No.: 25-1075

This page is only a part of a 2021 ALTA® Commitment for Title Insurance issued by FIDELITY NATIONAL TITLE INSURANCE COMPANY. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; and Schedule B, Part II—Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

27C170B 27C170B ALTA Commitment For Title Insurance 07/01/21 180 days C170B Copyright 2021 American Land Title Association. All rights reserved. The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

ALTA COMMITMENT FOR TITLE INSURANCE

Issued by

FIDELITY NATIONAL TITLE INSURANCE COMPANY

NOTICE

IMPORTANT—READ CAREFULLY: THIS COMMITMENT IS AN OFFER TO ISSUE ONE OR MORE TITLE INSURANCE POLICIES. ALL CLAIMS OR REMEDIES SOUGHT AGAINST THE COMPANY INVOLVING THE CONTENT OF THIS

COMMITMENT OR THE POLICY MUST BE BASED SOLELY IN CONTRACT.

THIS COMMITMENT IS NOT AN ABSTRACT OF TITLE, REPORT OF THE CONDITION OF TITLE, LEGAL OPINION, OPINION OF TITLE, OR OTHER REPRESENTATION OF THE STATUS OF TITLE. THE PROCEDURES USED BY THE COMPANY TO DETERMINE INSURABILITY OF THE TITLE, INCLUDING ANY SEARCH AND EXAMINATION, ARE PROPRIETARY TO THE COMPANY, WERE PERFORMED SOLELY FOR THE BENEFIT OF THE COMPANY, AND CREATE NO EXTRACONTRACTUAL

LIABILITY TO ANY PERSON, INCLUDING A PROPOSED INSURED.

THE COMPANY’S OBLIGATION UNDER THIS COMMITMENT IS TO ISSUE A POLICY TO A PROPOSED INSURED IDENTIFIED IN SCHEDULE A IN ACCORDANCE WITH THE TERMS AND PROVISIONS OF THIS COMMITMENT. THE COMPANY HAS NO LIABILITY OR OBLIGATION INVOLVING THE CONTENT OF THIS COMMITMENT TO ANY OTHER PERSON.

COMMITMENT TO ISSUE POLICY

Subject to the Notice; Schedule B, Part I—Requirements; Schedule B, Part II—Exceptions; and the Commitment Conditions, FIDELITY NATIONAL TITLE INSURANCE COMPANY, a Florida corporation, (the “Company”), commits to issue the Policy according to the terms and provisions of this Commitment. This Commitment is effective as of the Commitment Date shown in Schedule A for each Policy described in Schedule A, only when the Company has entered in Schedule A both the specified dollar amount as the Proposed Amount of Insurance and the name of the Proposed Insured.

If all of the Schedule B, Part I—Requirements have not been met within 180 days after the Commitment Date, this Commitment terminates and the Company’s liability and obligation end.

FIDELITY NATIONAL TITLE INSURANCE COMPANY

By:

President

Countersigned:

By:

Authorized Officer or Agent James A. Saad Star Title Agency, LLC 500 S Front St Ste 250 Columbus, OH 43215-7632 Tel:614-396-3294 Fax:614-396-3297

Attest:

Secretary emiller James A. Saad

This page is only a part of a 2021 ALTA® Commitment for Title Insurance issued by FIDELITY NATIONAL TITLE INSURANCE COMPANY. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; and Schedule B, Part II—Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

27C170B 27C170B ALTA Commitment For Title Insurance 07/01/21 180 days C170B Copyright 2021 American Land Title Association. All rights reserved. The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

COMMITMENT CONDITIONS

1. DEFINITIONS

a. “Discriminatory Covenant”: Any covenant, condition, restriction, or limitation that is unenforceable under applicable law because it illegally discriminates against a class of individuals based on personal characteristics such as race, color religion, sex, sexual orientation, gender identity, familial status, disability, national origin, or other legally protected class.

b. “Knowledge” or “Known”: Actual knowledge or actual notice, but not constructive notice imparted by the Public Records.

c. “Land”: The land described in Item 5 of Schedule A and improvements located on that land that by State law constitute real property. The term “Land” does not include any property beyond that described in Schedule A, nor any right, title, interest, estate, or easement in any abutting street, road, avenue, alley, lane, right-of-way, body of water, or waterway, but does not modify or limit the extent that a right of access to and from the Land is to be insured by the Policy.

d. “Mortgage”: A mortgage, deed of trust, trust deed, security deed, or other real property security instrument, including one evidenced by electronic means authorized by law.

e. “Policy”: Each contract of title insurance, in a form adopted by the American Land Title Association, issued or to be issued by the Company pursuant to this Commitment.

f. “Proposed Amount of Insurance”: Each dollar amount specified in Schedule A as the Proposed Amount of Insurance of each Policy to be issued pursuant to this Commitment.

g. “Proposed Insured”: Each person identified in Schedule A as the Proposed Insured of each Policy to be issued pursuant to this Commitment.

h. “Public Records”: The recording or filing system established under State statutes in effect at the Commitment Date under which a document must be recorded or filed to impart constructive notice of matters relating to the Title to a purchaser for value without Knowledge. The term “Public Records” does not include any other recording or filing system, including any pertaining to environmental remediation or protection, planning, permitting, zoning, licensing, building, health, public safety, or national security matters.

i. “State”: The state or commonwealth of the United States within whose exterior boundaries the Land is located. The term “State” also includes the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and Guam.

j. “Title”: The estate or interest in the Land identified in Item 3 of Schedule A.

2. If all of the Schedule B, Part I—Requirements have not been met within the time period specified in the

Commitment to Issue Policy, this Commitment terminates and the Company’s liability and obligation end.

3. The Company’s liability and obligation is limited by and this Commitment is not valid without:

a. the Notice;

b. the Commitment to Issue Policy;

c. the Commitment Conditions;

d. Schedule A;

e. Schedule B, Part I—Requirements; and

f. Schedule B, Part II—Exceptions; and

g. a counter-signature by the Company or its issuing agent that may be in electronic form.

4. COMPANY’S RIGHT TO AMEND

The Company may amend this Commitment at any time. If the Company amends this Commitment to add a defect, lien, encumbrance, adverse claim, or other matter recorded in the Public Records prior to the Commitment Date, any liability of the Company is limited by Commitment Condition 5. The Company is not liable for any other amendment to this Commitment.

5. LIMITATIONS OF LIABILITY

a. The Company’s liability under Commitment Condition 4 is limited to the Proposed Insured’s actual expense incurred in the interval between the Company’s delivery to the Proposed Insured of the Commitment and the delivery of the amended Commitment, resulting from the Proposed Insured’s good faith reliance to:

i. comply with the Schedule B, Part I—Requirements;

ii. eliminate, with the Company’s written consent, any Schedule B, Part II—

Exceptions; or

iii. acquire the Title or create the Mortgage covered by this Commitment.

b. The Company is not liable under Commitment Condition 5 a. if the Proposed Insured requested the amendment or had Knowledge of the matter and did not notify the Company about it in writing.

This page is only a part of a 2021 ALTA® Commitment for Title Insurance issued by FIDELITY NATIONAL TITLE INSURANCE COMPANY. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; and Schedule B, Part II—Exceptions; and a counter-signature by the Company or its issuing agent that may be in electronic form.

27C170B 27C170B ALTA Commitment For Title Insurance 07/01/21 180 days C170B Copyright 2021 American Land Title Association. All rights reserved. The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

c. The Company is only liable under Commitment Condition 4 if the Proposed Insured would not have incurred the expense had the Commitment included the added matter when the Commitment was first delivered to the Proposed Insured.

d. The Company’s liability does not exceed the lesser of the Proposed Insured’s actual expense incurred in good faith and described in Commitment Condition 5.a. or the Proposed Amount of Insurance.

e. The Company is not liable for the content of the Transaction Identification Data, if any.

f. The Company is not obligated to issue the Policy referred to in this Commitment unless all of the

Schedule B, Part I—Requirements have been met to the satisfaction of the Company.

g. The Company’s liability is further limited by the terms and provisions of the Policy to be issued to the

Proposed Insured

6. LIABILITY OF THE COMPANY MUST BE BASED ON THIS COMMITMENT; CHOICE OF LAW AND CHOICE

OF FORUM

a. Only a Proposed Insured identified in Schedule A, and no other person, may make a claim under this

Commitment.

b. Any claim must be based in contract under the State law of the State where the Land is located and is restricted to the terms and provisions of this Commitment. Any litigation or other proceeding brought by the Proposed Insured against the Company must be filed only in a State or federal court having jurisdiction.

c. This Commitment, as last revised, is the exclusive and entire agreement between the parties with respect to the subject matter of this Commitment and supersedes all prior commitment negotiations, representations, and proposals of any kind, whether written or oral, express or implied, relating to the subject matter of this Commitment.

d. The deletion or modification of any Schedule B, Part II—Exception does not constitute an agreement or obligation to provide coverage beyond the terms and provisions of this Commitment or the Policy.

e. Any amendment or endorsement to this Commitment must be in writing and authenticated by a person authorized by the Company.

f. When the Policy is issued, all liability and obligation under this Commitment will end and the Company’s only liability will be under the Policy.

7. IF THIS COMMITMENT IS ISSUED BY AN ISSUING AGENT

The issuing agent is the Company’s agent only for the limited purpose of issuing title insurance commitments and policies. The issuing agent is not the Company’s agent closing, settlement, escrow, or any other purpose.

8. PRO-FORMA POLICY

The Company may provide, at the request of a Proposed Insured, a pro-forma policy illustrating the coverage that the Company may provide. A pro-forma policy neither reflects the status of Title at the time that the pro-forma policy is delivered to a Proposed Insured, nor is it a commitment to insure.

9. CLAIMS PROCEDURES

This Commitment incorporates by reference all Conditions for making a claim in the Policy to be issued to the Proposed Insured. Commitment Condition 9 does not modify the limitations of liability in Commitment Conditions 5 and 6.

10. CLASS ACTION

ALL CLAIMS AND DISPUTES ARISING OUT OF OR RELATING TO THIS COMMITMENT, INCLUDING ANY SERVICE OR OTHER MATTER IN CONNECTION WITH ISSUING THIS COMMITMENT, ANY BREACH OF A COMMITMENT PROVISION, OR ANY OTHER CLAIM OR DISPUTE ARISING OUT OF OR RELATING TO THE TRANSACTION GIVING RISE TO THIS COMMITMENT, MUST BE BROUGHT IN AN INDIVIDUAL CAPACITY. NO PARTY MAY SERVE AS PLAINTIFF, CLASS MEMBER, OR PARTICIPANT IN ANY CLASS OR REPRESENTATIVE PROCEEDING. ANY POLICY

ISSUED PURSUANT TO THIS COMMITMENT WILL CONTAIN A CLASS ACTION CONDITION.

11. ARBITRATION

The Policy contains an arbitration clause. All arbitrable matters when the Proposed Amount of Insurance is $2,000,000 or less may be arbitrated at the election of either the Company or the Proposed Insured as the exclusive remedy of the parties. A Proposed Insured may review a copy of the arbitration rules at <http://www.alta.org/arbitration>.

http://www.alta.org/arbitration

American Land Title Association Commitment for Title Insurance

Transaction Identification Data, for which the Company assumes no liability as set forth in Commitment Condition 5.e.:

Issuing Agent:

500 S. Front St., Suite 250, Columbus, OH 43215 ALTA® Registry ID: 1061619

Issuing Agent File Number: 25-1075

Property Address:

3224 Ninety Road, Ashtabula, OH 44004

Revision Date: May 15, 2025 at 01:45pm.

Fidelity National Title Insurance Company

COMMITMENT FOR TITLE INSURANCE

SCHEDULE A

1. Commitment Date: May 07, 2025 at 07:00

2. Policy (or Policies) to be issued: Proposed Policy Amount:

(a) ALTA® U.S. Policy Form (9-28-91) Revised (12-3-12) $1.00

Proposed Insured: United States of America

Estate or Interest to be insured: Conservation Easement

3. The estate or interest in the land at the Commitment Date is Fee Simple

4. Title is, at the Commitment Date, vested in:

Herbert G. Locy III and Cindy S. Locy Source of Title: Deed Book 76, page 1987, less and except that portion of the property conveyed in Deed Book 76, page 1989, re-recorded in Deed Book 76, page 5138, Ashtabula County records.

5. The Land is described as follows:

SEE ATTACHED EXHIBIT "A"

Insurance Fraud Warning: Any person who, with intent to defraud or knowing that he is facilitating a fraud against an insurer, submits an application or files a claim containing a false or deceptive statement is guilty of insurance fraud.

This page is only part of a 2021 ALTA Commitment for Title Insurance. This Commitment is not valid without Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I - Requirements; and Schedule B, Part II - Exceptions.

Copyright 2021 American Land Title Association. All rights reserved.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

Fidelity National Title Insurance Company

SCHEDULE A

(Continued)

EXHIBIT "A"

Revision Date: May 15, 2025 at 01:45pm. Any prior Issuance of this title commitment is hereby replaced in its entirety by this Issuance of this title commitment.

This page is only part of a 2021 ALTA Commitment for Title Insurance. This Commitment is not valid without Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I - Requirements; and Schedule B, Part II - Exceptions.

Copyright 2021 American Land Title Association. All rights reserved.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

Situated in the Township of Plymouth, County of Ashtabula, and State of Ohio:

LESS AND EXCEPT:

Situated in the Township of Plymouth, County of Ashtabula, and State of Ohio:

emiller Stamp

Stamp

SCHEDULE A

(Continued)

EXHIBIT "A"

Revision Date: May 15, 2025 at 01:45pm. Any prior Issuance of this title commitment is hereby replaced in its entirety by this Issuance of this title

This page is only part of a 2021 ALTA Commitment for Title Insurance. This Commitment is not valid without Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I - Requirements; and Schedule B, Part II - Exceptions.

Copyright 2021 American Land Title Association. All rights reserved.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

Stamp

SCHEDULE B, Part I - Requirements

File No. 25-1075

All of the following Requirements must be met:

1. The Proposed Insured must notify the Company in writing of the name of any party not referred to in this Commitment who will obtain an interest in the Land or who will make a loan on the Land. The Company may then make additional Requirements or Exceptions.

2. Pay the agreed amount for the estate or interest to be insured.

3. Pay the premiums, fees, and charges for the Policy to the Company.

4. Documents satisfactory to the Company that convey the Title or create the Mortgage to be insured, or both, must be properly authorized, executed, delivered, and recorded in the Public Records.

Grant of Easement from Herbert G. Locy III and Cindy S. Locy, and their respective spouses if any, to 5.

the United States of America by and through the Natural Resources Conservation Service (NRCS) or the Commodity Credit Corporation, United States Department of Agriculture.

Legal description for the Easement being acquired by the Proposed Insured.6.

Approval, if required, of legal description by the County Engineer and other applicable authorities for 7.

a transfer.

Affidavit(s) of title satisfactory to the Company.8.

Subordination Agreements and Limited Lien Waivers from prior recorded lienholders, if any, for the 9.

benefit of to the United States of America by and through the Natural Resources Conservation Service (NRCS) or the Commodity Credit Corporation, United States Department of Agriculture.

Payment of taxes and assessments shown below as due and payable, if any:10.

Taxes for the first half of 2024 in the amount of $2,705.04 are paid. Special Assessment for the first half of 2024 in the amount of $4.75 is paid. Taxes for the second half of 2024 in the amount of $2,705.04 are unpaid, due and payable, and are a lien. Assessed Valuations: $39,060 Land; $78,260 Builiding;

$117,320 Total. Auditor's Parcel Number 420130003900.

Revision Date: May 15, 2025 at 01:45pm. Any prior Issuance of this title commitment is hereby replaced in its entirety by this Issuance of this title commitment.

This page is only part of a 2021 ALTA Commitment for Title Insurance. This Commitment is not valid without Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I - Requirements; and Schedule B, Part II - Exceptions.

Copyright 2021 American Land Title Association. All rights reserved.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

SCHEDULE B, Part II - Exceptions

File No. 25-1075

Some historical land records contain Discriminatory Covenants that are illegal and unenforceable by law.

This Commitment and the Policy treat any Discriminatory Covenant in a document referenced in Schedule B as if each Discriminatory Covenant is redacted, repudiated, removed, and not republished or recirculated. Only the remaining provisions of the document will be excepted from coverage.

The Policy will not insure against loss or damage resulting from the terms and conditions of any lease or easement identified in Schedule A, and will include the following Exceptions unless cleared to the satisfaction of the Company:

Any defect, lien, encumbrance, adverse claim, or other matter that appears for the first time in the Public 1.

Records or is created, attaches, or is disclosed between the Commitment Date and the date on which all of the Schedule B, Part I - Requirements are met.

Any facts, rights, interests or claims which are not shown by the public records which could be ascertained 2.

by an inspection of said land or by making inquiry of persons in possession thereof.

The effect on the Title of an encumbrance, violation, variation, adverse circumstance, boundary line 3.

overlap, or encroachment (including an encroachment of an improvement across the boundary lines of the Land), but only if the encumbrance, violation, variation, adverse circumstance, boundary line overlap, or encroachment would have been disclosed by an accurate and complete land title survey of the Land.

Any lien or right to a lien, for services, labor or materials heretofore or hereafter furnished, imposed by law 4.

and not shown by the public records.

Rights of parties in possession of all or any part of the premises.5.

Roads, ways, streams, or easements, if any, not shown by the public records, riparian rights and the title to 6.

any filled-in lands.

Taxes or assessments approved, levied or enacted by the State, County, Municipality, Township or similar 7.

taxing authority, but not yet certified to the tax duplicate of the County in which the land is situated, including any retroactive increases in taxes or assessments resulting from any retroactive increase in the valuation of the land by the State, County, Municipality, Township or other similar taxing authority.

All assessments and taxes for the year 2025 and all subsequent years.8.

As to the Loan Policy only: Oil and gas leases, pipeline agreements or any other instruments related to the 9.

production or sale of oil and gas which may arise subsequent to the date of the Policy by virtue of O.R.C.

§1509.31(D).

Revision Date: May 15, 2025 at 01:45pm. Any prior Issuance of this title commitment is hereby replaced in its entirety by this Issuance of this title commitment.

This page is only part of a 2021 ALTA Commitment for Title Insurance. This Commitment is not valid without Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I - Requirements; and Schedule B, Part II - Exceptions.

Copyright 2021 American Land Title Association. All rights reserved.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

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SCHEDULE B, Part II - (continued)

Coal, oil, natural gas, or other mineral interests and all rights incident thereto now or previously conveyed, 10.

transferred, leased, excepted or reserved.

Notwithstanding the reference to acreage or square footage in the description set forth in Schedule "A" 11.

hereof, this policy does not insure nor guarantee the acreage or quantity of land set forth therein.

Right of public use to that portion of the subject premises lying within the right of way of legal 12.

highways.

Revision Date: May 15, 2025 at 01:45pm. Any prior Issuance of this title commitment is hereby replaced in its entirety by this Issuance of this title

This page is only part of a 2021 ALTA Commitment for Title Insurance. This Commitment is not valid without Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I - Requirements; and Schedule B, Part II - Exceptions.

Copyright 2021 American Land Title Association. All rights reserved.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.

Cross-out