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Minnesota Office of Energy Security , " office of sot s v401_ IF ecur FACT SHEET Rights-of-Way and Easements for Energy Facility Construction and Operation This fact sheet has been developed by Minnesota Department of Commerce, Office of Energy Security Energy Facility Permitting staff. It is intended for informational purposes only, as a result of and in response to questions and comments made at siting and routing public meetings throughout Minnesota. This document does not constitute legal advice, nor should it be relied on as such. Landowners are encouraged to independently verb any statements made herein. The Minnesota Department of Commerce, Office of Energy Security (OES) provides this fact sheet for landowners who may be affected by construction of energy facilities in the State of Minnesota. Its purpose is to explain the process by which utilities obtain rights-of-way for new energy facilities (i.e., transmission lines and pipelines) and to inform landowners of their rights in negotiating right-of-way agreements. Public Utilities Commission and Permits for Energy Facilities The State of Minnesota has established a state policy of facilities. locating energy facilities in an orderly manner compatible with environmental preservation, sustainable Route Permits: Route permits issued by the PUC for development, and efficient use of resources. The transmission lines and pipelines specify a route width Minnesota Public Utilities Commission (PUC) has and a right-of-way (ROW) width. The route width is authority to issue permits for certain energy facilities in typically larger than the ROW width — providing the state, including power plants, transmission lines, flexibility in ROW placement within the route to address wind farms, and pipelines. When it issues such permits, human and environmental concerns that arise after the the PUC must choose sites and routes that minimize permit has been issued. For example, the permitted adverse human and environmental impacts while ROW might be 150 ft. wide for a transmission line, but ensuring energy system reliability and sufficient energy the permitted route might be 1000 ft. wide. The route is supplies. larger than the ROW to provide flexibility in locating and constructing the energy facility. But the route is The land required for a specific energy facility may also specific — it identifies where the energy facility impact multiple landowners. In order to ensure that the must be placed, i.e. within the route. Thus, the route particular land and rights-of-way required for an energy provides flexibility and predictability; it specifies where facility can be obtained for a project, Minnesota law the energy facility must go and facilitates best placement gives utilities the power of eminent domain. Because of the facility within the route. the general public interest is enhanced by the addition of necessary energy facilities, the power of eminent domain Site permits: The PUC typically issues site permits for allows utilities to obtain property rights even if electric power plants and wind farms. A PUC site landowners are unwilling to negotiate right-of-way permit will specify the site of the energy facility, with agreements. Thus, Minnesota law gives utilities the limited flexibility for locating and constructing the power to acquire or "take" property interests (generally project. Eminent domain authority is not common for easements) by condemnation for constructing energy power plant sites, and is not available for wind farms. Rights-of-way The right-of-way(ROW)is the physical land area within outright (fcc simple ownership). An outright land a route that is needed to construct and operate the energy purchase is less common because utilities seek only facility. A utility is interested in having rights to this enough land interests to build and safely operate the land area sufficient to meet these uses. These rights may facility, and fee simple ownership may not be necessary be obtained through one of two means: (1) purchase of to accomplish this goal. an easement for the ROW, or (2) purchase of the land 12.13.10 1