Template_Conservation Purpose Checklist

	A	D	E	I	J	K	L
1	Conservation Purpose Compliance Checklist
2	ITEM			A	I/C	N/A	Notes, Follow-up and Discussion

3	Application:
4	Landowner:
5	CE Holder:
6	Recording Date:
7	County:
8	Acres Encumbered:						Key
9	Reviewer:						A - Adequate
10	Start Date:						I/C - Issue or Concern
11	Completion Date:						N/A - Not Applicable
12
13	ITEM			A	I/C	N/A	Notes, Follow-up and Discussion
14	Applicant
15	1		Individual Colorado Resident
16			Applicant is the same individual who signed conservation easement. §39-22-522(1), C.R.S. §38-30.5-104 (1), C.R.S. §12-15-106(1)(f), C.R.S.
17	2		C Corporation
18	a		Applicant is named as authorized to encumber title to real property in the statement of authority (SOA). Note: The SOA must be executed before the conveyance of the conservation easement. The SOA may be recorded in the public record, but this is a best practice. §39-22-522(1), C.R.S. §38-30.5-104 (1), C.R.S. §12-15-106(1)(f), C.R.S.
19	b		Applicant signed the conservation easement. §39-22-522(1), C.R.S. § 38-30.5-104 (1), C.R.S. §12-15-106(1)(f), C.R.S.
20	3		Pass-through Entities (S-Corporation, Partnership, or LLC)
21	a		Applicant is named as authorized to encumber title to real property in the statement of authority (SOA). Note: The SOA must be executed before the conveyance of the conservation easement. The SOA may be recorded in the public record, but this is a best practice. §39-22-522(1), C.R.S. §38-30.5-104(1), C.R.S. §12-15-106(1)(f), C.R.S.
22	b		Applicant signed the conservation easement. §39-22-522(1), C.R.S. § 38-30.5-104 (1), C.R.S. Regulation 39-22-522 (1)
23	4		Estate
24	a		Applicant is named as personal representative in the letters of testamentary. §39-22-522(1), C.R.S. §38-30.5-104 (1), C.R.S. §12-15-106(1)(f), C.R.S.
25	b		Applicant signed the conservation easement. §39-22-522(1), C.R.S. §38-30.5-104 (1), C.R.S. §12-15-106(1)(f), C.R.S.
26	5		Trust
27	a		Applicant is the trustee(s) authorized to encumber title to real property in the statement of authority (SOA). Note: The SOA must be executed before the conveyance of the conservation easement. The SOA may be recorded in the public record, but this is a best practice. §39-22-522(1), C.R.S. §38-30.5-104 (1), C.R.S. §12-15-106(1)(f), C.R.S.
28	b		The applicant signed the conservation easement. §39-22-522(1), C.R.S. § 38-30.5-104 (1), C.R.S. §12-15-106(1)(f), C.R.S.
29	6		Nonprofit Corporation
30	a		Applicant is named as authorized to encumber title to real property in the statement of authority (SOA). Note: The SOA must be executed before the conveyance of the conservation easement. The SOA may be recorded in the public record, but this is a best practice. §39-22-522(1), C.R.S. and Reg. 39-22-522(1)(e) §38-30.5-104 (1), C.R.S. §12-15-106(1)(f), C.R.S.
31	b		Applicant signed the conservation easement. §39-22-522(1), C.R.S. § 38-30.5-104 (1), C.R.S. §12-15-106(1)(f), C.R.S.
32	Conservation Easement
33	1		Landowner
34	a		Conservation easement was created by the record owner of the surface of the land. §12-15-106(1)(f), C.R.S. §38-30.5-104 (1), C.R.S.
35	b		Conservation easement is signed by the landowner.
36	2		CE Holder
37	a		Conservation easement was created through a grant to or a reservation by a governmental entity or a 501(c)(3) organization. §38-30.5-104 (2), C.R.S.
38	b		Conservation easement holder is a qualified organization. IRC §170(h)(1) and (3) Treas. Reg. §1.170A-14(c) §12-15-106(3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S. Regulation 39-22-522(5) §38-30.5.104 (2), C.R.S.
39	c		Conservation easement holder was certified with the Division of Conservation at the time of conveyance. §12-15-104 (8), C.R.S.
40	d		Conservation easement must give rise to a property interest immediately vested in the conservation easement holder. Treas. Reg. §1.170A-14(g)(6)(ii) §12-15-106 (3)(a) and (d), C.R.S.
41	e		Conservation easement is signed by the conservation easement holder.
42	3		Conservation Purposes
43	a		Public Outdoor Recreation or Education
44			the preservation of land areas for outdoor recreation by, or the education of, the general public. Note: Recreation and education is for the substantial and regular use of the general public. Requires public access to the property. IRC § 170(h)(4)(A)(i) Treas. Reg. § 1.170A-14(d)(1)-(2) § 38-30.5-102, C.R.S. §12-15-106 (3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S.
45	b		Relatively Natural Habitat
46			the protection of a relatively natural habitat of fish, wildlife, or plants or similar ecosystems IRC § 170(h)(4)(A)(ii) Treas. Reg. § 1.170A-14(d)(3) § 38-30.5-102, C.R.S. §12-15-106 (3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S.
47	c		Open Space the preservation of open space (including farmland or forest land) where such preservation is:
48	i		for the scenic enjoyment of the general public and will yield a significant public benefit. Note: Factors to possibly consider include: compatibility of the land uses with other land in the vicinity; the degree of contrast and variety provided by the visual scene; openness of the land; relief from urban closeness; harmonious variety of shapes and textures; the degree to which the land use maintains the scale and character of the urban landscape to preserve open space, etc. There needs to be visual access of the general public rather than physical access. IRC § 170(h)(4)(A)(iii)(I) Treas. Reg. § 1.170A-14(d)(4)(i)-(ii) & (iv)-(vi) § 38-30.5-102, C.R.S. §12-15-106 (3)(a) and (d) §39-22-522(2)(b), C.R.S.
49	ii		pursuant to a clearly delineated Federal, State, or local governmental conservation policy, and will yield a significant public benefit. IRC § 170(h)(4)(A)(iii)(II) Treas. Reg. § 1.170A-14(d)(4)(i) &(iii) - (vi) § 38-30.5-102, C.R.S. §12-15-106 (3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S.
50	d		Historic Land Area or Structure
51			the preservation of an historically important land area or a certified historic structure. IRC § 170(h)(4)(A)(iv) Treas. Reg. § 1.170A-14(d)(5) § 38-30.5-102, C.R.S. §12-15-106 (3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S.
52	4		Exclusively for Conservation Purposes
53	a		Conservation easement is being done exclusively for conservation purposes. Note: Language in the conservation easement in substance saying the Conservation Easement was granted for conservation purposes. IRC §170(h)(1)(C) and (5) Treas. Reg. § 1.170A-14(e) §12-15-106 (3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S.
54	b		Language in the conservation easement that in substance says no inconsistent uses. Treas. Reg. § 1.170A-14(e)(2) §12-15-106 (3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S.
55	5		Enforceable in Perpetuity
56	a		Must be recorded in the real property records of the county or counties where the property is located. Note: In case of an immediate assignment of the conservation easement, a copy of the recorded Assignment should be provided. IRC §170(h)(2)(C) and (5)(A) Treas. Reg. § 1.170A-14(g)(1) §38-30.5-106, C.R.S. §12-15-106 (5)(b), C.R.S.
57	b		Must be "enforceable in perpetuity". Note: Language in the conservation easement saying that the conservation easement runs with the land in perpetuity and is binding on successors and assigns. The restriction(s) remain on the property forever. Treas. Reg. §§ 1.170A-14(b)(2) and (g)(1) § 38-30.5-103, C.R.S. §12-15-106 (3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S.
58	c		Must prohibit surface extraction of minerals with the exception of certain methods of mining that may have a limited, localized impact on the property but are not irremediably destructive of significant conservation interests. Note: Oil and gas is considered subsurface mining. IRC §170(h)(5)(B) Treas. Reg. § 1.170A-14(g)(4) §12-15-106 (3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S.
59	d		Only when the donor reserves rights which may impair the conservation purposes, language in the conservation easement should say in substance that the Holder has a right to enter the property, with reasonable notice, to determine compliance with the provisions of the easement. Treas. Reg. § 1.170A-14(g)(5)(ii) §12-15-106 (3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S.
60	e		Only when the donor reserves rights which may impair the conservation purposes, language in the conservation easement should say in substance that the Holder has a right to enforce the terms of the conservation easement through appropriate legal proceedings, including but not limited to, the right to require the restoration of the property to its condition at the time of donation. Treas. Reg. § 1.170A-14(g)(5)(ii) §12-15-106 (3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S.
61	6		Transfers by Grantee
62			Language in the conservation easement saying in substance that any transfer of the conservation easement from one holder to another must be to a qualified organization at the time of the transfer that is committed to continue the conservation purposes. Treas. Reg. § 1.170A-14(c)(2) §12-15-106 (3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S.
63	7		Extinguishment
64	a		Extinguishment only if unexpected change in condition makes conservation purposes impractical or impossible. Treas. Reg. §1.170A-14(g)(6)(i) §12-15-106 (3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S.
65	b		Extinguishment only by judicial proceeding. Treas. Reg. §1.170A-14(g)(6)(i) §12-15-106 (3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S.
66	c		Extinguishment proceeds must be used in a manner consistent with the conservation purposes. Treas. Reg. §1.170A-14(c)(2) and (g)(6)(i) §12-15-106 (3)(d), C.R.S.
67	d		Extinguishment proceeds must be "at least equal to the proportionate value that the [easement], bears to the value of the property as a whole" and the proportionate value must remain constant. Treas. Reg. §1.170A-14(g)(6)(ii) §12-15-106 (3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S.
68	8		Property Specific Provisions
69	a		Are building envelope(s) permitted by the conservation easement? How many? Size? Fixed or floating?
70	b		Does the conservation easement deed permit subdivision/division?
71	c		Are water rights associated with the property? If so, are they needed to protect the conservation purposes? Are the water rights encumbered by the conservation easement? Note: Check CE Exhibits.
72	d		Is subsurface mining allowed? If so, are there adequate restrictions to protect the conservation purposes? Note: Examples may include surface use agreement, concealing facilities, etc. IRC § 170(h)(5) Treas. Reg. § 1.170A-14(g)(4)
73	e		Other
74	Baseline Documentation Report
75	1		Baseline Requirement
76			The Landowner must provide sufficient documentation to establish that the donation meets the conservation purposes. Treas. Reg.§ 1.170A-14(g)(5)(i) §12-15-106 (2)(b) and (5)(c), C.R.S.
77	2		Basic Information
78	a		Identifies the Grantor (Landowner) and matches Conservation Easement.
79	b		Identifies the Grantee (Certified Conservation Easement Holder) and matches Conservation Easement.
80	3		Acknowledgment
81	a		Acknowledgment Statement in substance saying "this natural resources inventory is an accurate representation of the protected property at the time of the donation." Treas. Reg.§ 1.170A-14(g)(5)(i)(D) §12-15-106 (3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S.
82	b		Signed Acknowledgment Statement by Landowner and representative of the certified Conservation Easement Holder prior to the date of easement conveyance. Note: Might be an Exhibit to Conservation Easement or a separate document. Treas. Reg.§ 1.170A-14(g)(5)(i)(D) §12-15-106 (3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S.
83	4		Sufficient Documentation
84	a		Documents the conservation purpose(s) from the conservation easement, and the physical features or characteristics of the property that support the conservation purpose(s). Documentation may include narrative, maps, photos, etc. §12-15-106(5)(c), C.R.S. Treas. Reg.§ 1.170A-14(g)(5)
85	b		Documents the condition of the property at the time of the conveyance of the conservation easement. Documentation may include narrative, photos, maps, etc. Maps may depict: property boundaries, location, property condition, topography, acreage, building envelopes, existing man-made improvements or incursions, other contiguous or nearby protected areas, exclusions and special use areas, photo point locations, biological information (such as soils, vegetation, wildlife ranges, etc.). On-site photos taken at appropriate locations on the property may be included along with a recent aerial photo. Treas. Reg.§ 1.170A-14(g)(5) §12-15-106 (5)(c), C.R.S.
86	Title Work : Title Commitment, Vesting Deed(s), Subordination Agreement and Exceptions
87	1		General Information
88	a		Request the most recent copy of the title commitment/policy. Note: Title commitments typically expire after 6 months. §12-15-106(5)(d), C.R.S.
89	b		Ownership matches the conservation easement. §39-22-522(1), C.R.S. §38-30.5-104 (1), C.R.S §12-15-106(1)(f), C.R.S.
90	c		Legal description includes conserved property and matches or encompasses the conservation easement. Note: The title work may cover all phases of an amended and restated conservation easement; this is a best practice.
91	2		Review Vesting Deed(s)
92	a		Confirm that the ownership is the same on both the commitment/policy and conservation easement. §39-22-522(1), C.R.S. §38-30.5-104 (1), C.R.S. §12-15-106(1)(f) and (5)(d), C.R.S.
93	b		Confirm the legal description is substantially similar to the legal description on the commitment/policy. Note: The legal description may cover the contiguous parcel; however, the legal description of the encumbered property must be included [section(s), township(s), range(s), county(ies), state].
94	3		Review Requirements and Exceptions.
95	a		Any mortgage, deed of trust or similar lien must be subordinated to the conservation easement. Confirm that there is a release or a recorded subordination agreement for each lien. Note: Depending on the circumstances, a right of first refusal, long-term lease, or other real property interest may affect the permanent protection of the property. Also, subordinations might be recorded as a separate document or as an Exhibit in the conservation easement. There also could be a consent or waiver instead of a subordination. This requirement can also be satisfied if the donor can demonstrate that the conservation purpose is protected in perpetuity without a subordination. IRC § 170(5)(A) Treas. Reg. § 1.170A-14(g)(2) §12-15-106(5)(d), C.R.S. §12-15-106 (3)(a) and (d), C.R.S. §39-22-522(2)(b), C.R.S.
96	b	i	Confirm recorded Subordination Agreement matches the recording information in the title commitment (bank name(s), reception number(s) and recording date(s)). Treas. Reg. § 1.170A-14(g)(2)
97		ii	Confirm that the agreement subordinates the lien holder's rights in the property to the right of the conservation easement holder to enforce the conservation purposes in perpetuity. IRC § 170(5)(A) Treas. Reg. § 1.170A-14(g)(2)
98		iii	Effective date of the subordination should be before the date of the easement. Note: The agreement must be executed prior to the easement, but may or may not be recorded. Treas. Reg. § 1.170A-14(g)(2)
99		iv	Confirm that the lien holder signed the subordination agreement. Treas. Reg. § 1.170A-14(g)(2)
100	c		Determine whether the mineral rights have been leased or severed from the surface ownership. Check for mineral conveyances, reservations, leases and/or mining claims on title commitment. Note: This does not include the right of a proprietor of any penetrating vein or lode to extract their ore. Note: If Landowner owns less than all of the minerals, a mineral assessment report may be needed. IRC § 170(h)(5) Treas. Reg. § 1.170A-14(g)(4) §12-15-106 (3)(a) and (d), and (5)(d), C.R.S. §39-22-522(2)(b), C.R.S.