Orono_Route_Permit_Application - Docket # W002/TL-11-223

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