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value offer will be developed. The right-of-way agent then contacts the property owner(s) to ' <br /> present the offer for the easement and discuss the amount of just compensation for the rights to <br /> build, operate, and maintain the transmission facilities within the easement area and reasonable <br /> access to the easement area. The agent will also provide maps of the line route or site and maps <br /> showing the landowner's parcel. The landowner is allowed a reasonable amount of time to consider <br /> the offer and to present any material that the owner believes is relevant to determining the property's <br /> value. This step is often performed prior to full evaluation in the form of an "option to purchase" <br /> contract and can be very helpful in obtaining permission for completion of all necessary evaluations. <br /> In nearly all cases, utility companies are able to work with the landowners to address their concerns <br /> and an agreement is reached for the utility's purchase of land rights. The right-of-way agent <br /> prepares all of the documents required to complete each transaction. Some of the documents that <br /> may be required include easement,purchase agreement,contract, and deed. <br /> In rare instances, a negotiated settlement cannot be reached and the landowner chooses to have an <br /> independent third party determine the value of the rights taken. Such valuation is made through the <br /> utility's exercise of the right of eminent domain pursuant to Minnesota Statutes, Chapter 117. The <br /> process of exercising the right of eminent domain is called condemnation. <br /> Before commencing a condemnation proceeding, the right-of-way agent must obtain at least one ' <br /> appraisal for the property proposed to be acquired and a copy of that appraisal must be provided to <br /> the property owner. Minn. Stat. § 117.036, subd. 2(a). The property owner may also obtain another <br /> property appraisal and the company must reimburse the property owner for the cost of the appraisal <br /> according to the limits set forth in Minnesota Stat. § 117.036, subd. 2(b). The property owner may <br /> be reimbursed for reasonable appraisal costs up to $1,500 for single-family and two-family residential <br /> properties,$1,500 for property with a value of$10,000 or less,and$5,000 for other types of properties. ' <br /> To start the formal condemnation process, a utility files a Petition in the district court where the <br /> property is located and serves that Petition on all owners of the property. If the court grants the <br /> Petition, the court then appoints a three-person condemnation commission that will determine the <br /> compensation for the easement. The three people must be knowledgeable of applicable real estate <br /> issues. Once appointed, the commissioners schedule a viewing of the property over and across <br /> which the transmission line easement is to be located. Next, the commission schedules a valuation <br /> hearing where the utility and landowners can testify as to the fair market value of the easement or <br /> fee. The commission then makes an award as to the value of the property acquired and files it with <br /> the court. Each party has 40 days from the filing of the award to appeal to the district court for a <br /> jury trial. In the event of an appeal, the jury hears land value evidence and renders a verdict. At any <br /> point in this process,the case can be dismissed if the parties reach a settlement. <br /> As part of the right-of-way acquisition process, the right-of-way agent will discuss the construction <br /> schedule and construction requirements with the owner of each parcel. To ensure safe construction <br /> of the line, special consideration may be needed for fences, crops, or livestock. For instance, fences <br /> may need to be moved, temporary or permanent gates may need to be installed; crops may need to <br /> be harvested early; and livestock may need to be moved. In each case the right-of-way agent and <br /> construction personnel coordinate these processes with the landowner. ' <br /> i <br /> Orono Project June 7, 2011 , <br /> MPUC Docket No. E002/TL-11-223 28 <br />