What’s a conservation easement, and how does it work?

The 252-acre forest in East Penn Township, Carbon County, that landowner Michael Kaczenski calls Mud Run Nature Preserve is a slice of heaven on Earth.

More than 7,000 feet of streams traverse the property, flowing on to the Lehigh River. A dense canopy of native trees—white pine, red maple, and American beech—shade the waterways, keeping the water cold and clear. The shrub layer includes serviceberry, lowbush and highbush blueberry, rhododendron, and steeplebush. The forest echoes with the songs of Blackburnian Warblers, Ovenbirds, and Scarlet Tanagers, and its floor is thick with ferns.

Only recently, this property was slated to become a housing development with 200 dwellings.

Instead, thanks to a conservation easement with Natural Lands, this pristine forest will remain unspoiled forever.

Willing landowners.

“I always say that conservation begins with a willing landowner,” said Todd Sampsell, vice president of conservation with Natural Lands, the oldest and largest land conservation nonprofit in eastern Pennsylvania. “Putting a property under the protection of a conservation easement is usually a lengthy, expensive process. It takes patient, motivated landowners for us to be successful in protecting their land.” Fortunately, Natural Lands has an impressive track record of obtaining grants to cover the legal expenses.

A conservation easement is a great tool for individuals and families who want to maintain ownership of their property but also want to ensure that the natural aspects of their land—rolling meadows, quiet forests, chilly streams, and birdsong—will remain even after they’ve sold the land or passed it on to the next generation. The landowners work with a qualified conservation organization such as Natural Lands to determine a plan that permanently limits a property’s use. The agreement, once finalized, is binding and perpetual; all future owners of the property must abide by it as well.

In 1966, Natural Lands completed the first ever conservation easement in Pennsylvania. Since that time, the organization has protected more than 28,000 acres of land through more than 500 conservation easements and other restrictions.

Assessing value.

A conservation easement is, in essence, a legal agreement, but it is an agreement that has a monetary value. The easement’s value—the difference between what the land would be worth with full development rights and what it is worth without those rights—is determined by hiring a qualified appraiser. A landowner may decide to sell the easement to Natural Lands or a similar qualified conservation organization at either full assessed value or at a reduced cost, which may make the landowner eligible for a charitable deduction on their taxes.

One way to think of a conservation easement is by analogy with a vacation time share, in which one can buy the right to a certain amount of time at a shared property. In the case of a conservation easement, a conservation organization doesn’t buy time at a place; instead it buys the right to monitor and obtain compliance over certain uses of that place, forever.

Finding funding.

Natural Lands uses funds from various government agencies and private foundations to purchase conservation easements. Every year, the organization’s team of conservation project managers must identify, apply for, and be awarded grant monies to cover the costs of each project. Typically, a public funder will commit to pay for 50 percent of the total project expense, requiring Natural Lands to seek other funding, whether public or from private foundations, to try and match the initial commitment. A landowner can also choose to match the grant funding with a partial donation of the value of the easement—the landowner can then seek a charitable deduction.

“Over the years, Natural Lands has gotten really quite skilled at choosing compelling land protection projects and writing persuasive grant applications,” said Todd Sampsell. “Every project lives or dies by whether or not we can find enough grant money to cover some or all the costs. And, when we’re talking about land in sought-after areas, this means sourcing hundreds of thousands of dollars.” The funds are used to cover not only the value of the conservation easement, but also other costs including the appraisal, the title report and insurance, legal fees to have an attorney prepare the easement document, a survey of the property, a Phase I Environmental Hazard Assessment, Natural Lands’ staff costs and expenses, and an endowment to support future costs of monitoring and enforcing the easement in perpetuity. These costs generally run between $30,000 and $50,000, depending on the size of the property and the complexity of the project.

A forever document.

As each conservation easement is a legal contract, there’s quite a bit of paperwork involved in crafting one.

After the Natural Lands Board of Trustees formally accepts the easement, the project manager creates a baseline document that describes the property’s features. The document also contains a conservation plan, decided on in consultation with the landowner, that determines any subdivision allowances and delineates areas subject to different levels of protection. The Highest Protection Area (HPA) protects the most ecologically significant portions of the property, such as wetlands, mature forest, and headwater streams. The Standard Protection Area (SPA) permits uses like farming and timbering. The Minimal Protection Area (MPA) is generally drawn around buildings or other structures. Once all the documentation is prepared, approved by all parties, and signed at settlement, the conservation easement is recorded at the county Recorder of Deeds, where it is public record.

Forever. One year at a time.

Natural Lands staff members spend about 700 hours every year monitoring the conservation easements the organization holds. Easement monitors visit the property, walk the entirety of the land, and note any changing conditions. If the landowner wishes, they can accompany the monitor on the site visit.

Fortunately, easement violations are not commonplace. Said Erin McCormick, senior director of land conservation, “Occasionally we note the removal of trees in a Highest Protection Area, or a dump site where the homeowner—or sometimes a neighbor—is putting yard debris. There have been a couple notable occasions where the owner installed a driveway that encroached into protected areas or built a shed where it wasn’t permitted.”

When a monitor notes a violation, the landowner is notified in writing and given details on how to correct the issue. Trees have to be replanted, sheds moved, and driveways rerouted.

Worth the effort.

Back at the Preserve at Mud Run, Michael Kaczenski couldn’t be more thrilled with his conservation decision. “My dream is that, 100 years from now, this forest is thick with centuries-old trees,” said Michael. “I hope that future generations will enjoy this place and appreciate its beauty and service to the natural world. That they’ll see the wildlife and hear the myriad birds that frequent this special place and be reminded that someone just like them walked in this forest many years ago and dreamed a bold dream to make a difference that would last for all time.”

Kit Werner, Senior Director of Communications, Natural Lands

Image Credits:

Mud Run Nature Preserve and Red eft, by Michael Kaczenski. Used with permission.

Blackburnian Warbler and Ovenbird, by Jeff Kaboly. Used with permission.