Easement Extinguishment Or Loss

(1) A conservation easement under the program may be extinguished only pursuant to lawful condemnation or by judicial order applicable under state or federal law. (2) Payment to department of proportionate value. (a) If at any time a holder receives payment relative to the extinguishment or loss of an easement interest funded under the program, the holder shall within 90 days of receiving the payment pay to the department its proportionate value of the funds received. (b) The department’s proportionate value remains constant over time, equal to the amount of funds the department supplied for purchase of the easement relative to the parcel’s appraised value at that time. The department’s proportionate value of funds received is that percentage multiplied by the amount of funds the holder received for extinguishment or loss of the easement interest. E.g. if at the time of enrollment the department funded the purchase of an easement at $400,000 on a parcel valued at $1,000,000, and the easement is later extinguished and the holder receives $2,000,000 for the extinguishment, the holder shall pay to the department $800,000: $400,000/$1,000,000 = 0.4 x $2,000,000 = $800,000. (3) Nothing in this rule shall apply relative to condemnation payments by the State of Tennessee. All other condemnation payments, e.g. by cities, counties, other municipalities, federal authorities, and utility districts, etc., shall be subject to this rule.