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HomeMy WebLinkAbout20231616 Ver 1_Eco Terra - Hazel's Ford - NCDEQ Letter Signed_20240209 1328 Dekalb Avenue NE, Atlanta, GA 30307 | EcoTerra.com February 8, 2024 North Carolina Department of Environmental Quality 401 & Buffer Permitting Branch Katie Merritt 1617 Mail Service Center Raleigh, NC 27699-1617 Dear Katie Merritt: As we have discussed, Eco Terra, LLC (“Eco Terra”) is seeking to develop a buffer and nutrient offset mitigation bank called the Hazel’s Ford project on a portion of the Cheek family property (an Orange County agricultural property) that is subject to an existing USDA Natural Resources Conservation Service Farm and Ranch Lands Protection Program easement held by Orange County, North Carolina (“NRCS Easement”). Land use currently consists of hayfields and mature oak-beech-poplar forest. The Hazel’s Ford project will encompass approximately 12.6 acres of area—or approximately 16.2% of the total land area of 77.6 acres covered by the NRCS Easement. Eco Terra believes that its proposed mitigation activities are entirely consistent with the existing NRCS Easement and the landowners’ reserved rights under Section 15 of that easement to conduct “natural resource restoration and enhancement activities.” More importantly, Eco Terra believes its project is consistent with the statutes and regulations governing mitigation banking in North Carolina. To that end, Eco Terra instructed its attorneys to draft the attached request to the Division of Water Resources (“DWR”), summarizing our assessment of the applicable law and terms of the NRCS Easement. Understandably, Eco Terra wants to ensure that DWR agrees with Eco Terra’s assessment of the law and viability of the site before investing in further planning, engineering, restoration work, planting, and related activities to establish a mitigation bank. 1328 Dekalb Avenue NE, Atlanta, GA 30307 | EcoTerra.com After you have had a chance to review our request, please respond to confirm that DWR agrees that the Hazel’s Ford site may generate buffer and nutrient offset credits despite the existing NRCS Easement. If you have any questions or if Eco Terra can provide any further information or details of the proposed project, please do not hesitate to contact me. If DWR’s attorneys wish to discuss the legal analysis, they may contact Eco Terra’s attorneys directly: Dan Smith (dsmith@brookspierce.com, 336-271-3139) or Alex Elkan (aelkan@brookspierce.com, 336-271-3139). Sincerely, Michael Beinenson Eco Terra LLC 1 of 7 To: North Carolina Division of Water Resources Nutrient Offset and Buffer Mitigation Program From: Daniel F. E. Smith and Alexander Elkan, on behalf of Eco Terra, LLC Date: January 25, 2024 Re: Request to authorize buffer/nutrient offset credits for an Orange County site subject to an existing USDA Natural Resources Conservation Service Farm and Ranch Lands Protection Program easement Our client, Eco Terra, LLC (“Eco Terra”) seeks to establish a buffer and nutrient offset mitigation bank on approximately 12.6 acres of rural, agricultural property owned by the Cheek family in Orange County approximately six miles northwest of Chapel Hill, North Carolina, off Dairyland Road. Eco Terra refers to this proposed project as the Hazel’s Ford Mitigation Site. See below Figure 4 (aerial map). Approximately 77.6 acres of Cheek family property, including the Hazel’s Ford Mitigation Site, are subject to an existing federal Farm and Ranch Lands Protection Program easement (“NRCS Easement”) pursuant to August 5, 2004 Deed of Conservation Easement between Everett Wesley Cheek et ux Hazel Cheek and Lewis Roberson Cheek et ux Evelyn Cheek, as grantors, and Orange County, as grantee. See Orange County Registry, Book RB3523, Pages 1-21 (Exhibit A hereto). The Division of Water Resources (“DWR”) should approve the Hazel’s Ford Mitigation Site to generate buffer and nutrient credits. As this memorandum explains, the applicable statutory and regulatory framework requires that a buffer or nutrient mitigation project preserve, restore, or enhance existing land conditions beyond what is currently required by law (e.g., zoning restrictions or other development limitations) or real property instruments (e.g., a preexisting conservation easement or deed restriction). Here, the existing NRCS Easement does not require the activities that would be conducted for a buffer and nutrient mitigation bank project. Approving the Hazel’s Ford project and its associated restoration activities will reduce nutrient runoff and sedimentation loading to the watershed, stabilize stream temperature, increase dissolved oxygen levels, and restore terrestrial habitat in the riparian area. As a result, the Hazel’s Ford project will satisfy the legal requirement for ecological benefits that exceed baseline conditions. 2 3 I. The statutory and regulatory framework for mitigation banking in North Carolina requires credit-generating projects to provide riparian buffer and nutrient reduction not otherwise required. A. Riparian Buffers As part of the Neuse River nutrient strategy, Session Law 1998-221 directed the Environmental Management Commission to establish a riparian buffer mitigation program in the Neuse River Basin “to allow [developers] to perform compensatory mitigation in lieu of” other regulatory requirements regarding protection for riparian buffers. See Session Law 1998-221, § 1.4. In this basin-specific program, the legislature recognized permissible mitigation to include “Establishment, restoration, or enhancement of a riparian buffer that is not otherwise required to be protected.” Id. (emphasis added). Moving to a statewide strategy, the July 2009 “Act to Promote the Use of Compensatory Mitigation Banks for Riparian Buffer Protection and Nutrient Offset Payments” authorized compensatory mitigation banking as a form of mitigation for riparian buffer loss. Like previous legislation, the July 2009 Act emphasized the requirement that mitigation occurs for preservation, restoration, or enhancement activities in the riparian buffer that are “not otherwise required.” See Session Law § 2 (amending N.C. Gen. Stat. § 143-214.20). As it currently reads, N.C. Gen. Stat. § 143-214.20 provides for mitigation through preservation, restoration, and enhancement that is not otherwise required: A government entity, as defined in G.S. 143-214.11, may satisfy compensatory mitigation requirements by any of the following actions: . . . (3) Restoration or enhancement of an existing riparian buffer that is not otherwise required to be protected, or creation of a new riparian buffer, that will provide protection of water quality that is equivalent to or greater than that provided by the riparian buffer that is lost in the same river basin as the riparian buffer that is lost and that is approved by the Department. N.C. Gen. Stat. § 143-214.20(a1) (West 2023; eff. July 24, 2009) (emphasis added) (authorizing compensatory mitigation for Government Entities); id. § 143-214.20(a2) 4 (compensatory mitigation for applicants “Other than Government Entities”) (containing identical language). Unsurprisingly, the regulations implementating riparian buffer mitigation credits are consistent with the statute. The regulatory definitions for preservation, enhancement, and restoration sites recognize that a mitigation project should enhance or restore a buffer beyond what is currently in existence: (b)(4) “Enhancement Site” means a riparian zone site characterized by conditions between that of a restoration site and a preservation site such that the establishment of woody stems (i.e., tree or shrub species) will maximize nutrient removal and other buffer function (b)(11) “Preservation Site” means riparian zone sites that, as determined by a site visit conducted by the Authority, are characterized by a forest consisting of the forest strata and diversity of species appropriate for the location. (b)(12) “Restoration Site” means riparian zone sites that are characterized by an absence of trees and by a lack of dense growth of smaller woody stems (i.e., shrubs or saplings) or sites that are characterized by scattered individual trees such that the tree canopy is less than 25 percent of the cover and by a lack of dense growth of smaller woody stems (i.e., shrubs or saplings). 15A NCAC 2B .0295 (eff. Nov. 1, 2015). In terms of the ratios of square feet of buffer project area to mitigation units, restoration earns credits at a 1:1 ratio; while enhancement earns 1 credit for every 2 square feet enhanced; and preservation earns 1 credit for ever 3, 5, or 10 square feet preserved (depending on the location and type of stream. Id. 2B.0295(m). Rule .0295 also requires “a perpetual conservation easement or similar preservation mechanism to ensure perpetual stewardship that protects the mitigation site’s nutrient removal and other water quality functions.” .0295(l)(2)(A) (emphasis added). B. Nutrient Offsets With respect to nutrient offsets, the legislature in 2009 authorized the Environmental Management to adopt rules providing for nutrient offset credits that were consistent with existing rules “for implementation of nutrient management strategies.” Session Law 2009-337, § 4.(a). As it currently reads, the governing statute provides: 5 Nutrient offset credits may be purchased to offset nutrient loadings to surface waters as required by the Environmental Management Commission. Nutrient offset credits shall be effective for the duration of the nutrient offset project unless the Department of Environmental Quality finds the credits are effective for a limited time period. Nutrient offset projects authorized under this section shall be consistent with rules adopted by the Commission for implementation of nutrient management strategies. N.C. Gen. Stat. § 143-214.26(a) (West 2024; eff. Oct. 10, 2023). The Environmental Management Commission’s implementing regulations require any credit-generating nutrient offset activities to be additional to any existing requirements. This is found throughout the implementing regulations: • “Load reductions eligible for credit shall not include reductions used to satisfy other requirements under the same nutrient strategy.” 15A NCAC 2B.0240(c)(1) (eff. April 1, 2020) (emphasis added). • “Nutrient reduction credit sought on developed lands shall be calculated in relation to load reductions achieved relative to the project site’s current loading condition, as determined by the provider and verified by the Division.” Id. 2B.0703(d)(1) (eff. April 1, 2020) (emphasis added). • “Unless specifically excepted in Rule, reductions shall not include those already implemented to satisfy other requirements under the same nutrient strategy; other local, State or federal requirements; or those resulting from State or federal compensatory mitigation requirements. Specifically, a nutrient reduction project shall not generate nutrient offset credits and buffer or wetland mitigation credits in spatially overlapping areas. However, restored forest buffer areas associated with stream mitigation projects may generate both stream and nutrient offset credits in spatially overlapping areas within 50 feet from the top of the stream bank.” Id. 2B.0703(d)(3). • The Mitigation Banking Instrument (MBI) should detail how bank sponsor/landowner will “provide a conservation easement or similar legal mechanism to be recorded with the County Register of Deeds and that is sufficient to ensure protection and maintenance of load reductions for the stated duration. Id. 2B.0240(c)(6)(C) (emphasis added); see also id. .0703(e)(1) (“A nutrient offset banking instrument shall provide legal and 6 financial assurances that a provider will implement, maintain, and sustain nutrient reduction projects as proposed in subsequent project plans and associated nutrient reduction practice design specifications.” (emphasis added)). II. The existing NRCS Easement on the Hazel’s Ford site does not require the activities that would be conducted for a buffer and nutrient mitigation bank project. The August 3, 2004 NRCS Easement does not provide for riparian buffer and nutrient offset activities on the 12.6 acres that Eco Terra proposes to use for the Hazel’s Ford project. See Orange County Registry, Book RB3523, Pages 1-21 (Exhibit A hereto). The total acreage for the NRCS Easement extends across approximately 77.6 acres. The primary purpose of the NRCS Easement is “to protect the agricultural soils and agricultural viability and productivity” of the Hazel’s Ford property. See id. p. 1 (second whereas clause); id. p. 4, § 2. The secondary purpose of the easement is to protect “natural, wildlife habitat, and scenic resources.” Id. The more precise restrictions of the easement generally protect agricultural uses, but do not provide for the riparian buffer and nutrient offset functions that would be obtained from an Eco Terra-sponsored enhancement or restoration project. Specifically, those restrictions include the following: 1. The right to develop the property (except as permitted by the easement) is extinguished. NRCS Easement p. 4, § 1. 2. Cattle and other livestock must be excluded from a 50-foot stream buffer and the “Pickards Mountain Natural Area.” Id. p. 5, § 4. 3. The property may be subdivided once into two (2) parcels. No further subdivision of the property is permitted. Id. p. 7, § 8. 4. Mining is generally prohibited. Id. p. 9, § 11. 5. Paving and road construction is generally prohibited except on existing roads. Id. p. 9, § 12. Impervious surfaces are limited to 2% of the total property and 12% of the “Farmstead Area.” Id. p. 6, § 7(b). 6. Dumping and trash disposal is prohibited as is placement of underground storage tanks (except for those used to support agricultural use). Id. pp. 7, 9, 10, §§ 7(f), 13. 7. The construction of “buildings and other improvements” is generally prohibited unless authorized (for existing buildings or improvements to them). Id. p. 6, § 7. “However, under no circumstances shall golf courses or ranges, airstrips or helicopter pads be constructed, placed or permitted to remain on the Property.” Id. p. 7, § 7(e). 7 8. Billboards are generally prohibited. Id. p. 10, § 16. Although it does not provide for riparian buffer and nutrient offset functions, the NRCS Easement specifically reserves the landowners’ right to use of the property for additional restoration and enhancement activities, providing: Natural Resource Restoration and Enhancement Activities. Notwithstanding any terms contained within this Conservation Easement, Grantors may engage or contract others to engage in any activity designed to repair, restore, or otherwise enhance the natural resources found or once present on the Property, that are consistent with the conservation values of this Conservation Easement and subject to the written approval of Grantee [Orange County1] and NRCS. Id. p. 10, § 15. Relatedly, the landowners also specifically reserved: (1) the “right to farm”; (2) use of the Farmstead Area of the property for “customary rural enterprises”; (3) use of the entire property for “low impact recreational activities such as hunting, fishing, hiking, bird watching, etc.”; (4) the right to conduct certain forest management activities, with the level of restriction depending on the area of the property at issue; (5) the right to plant and remove an orchard within the areas identified as Agricultural Fields; and (6) the right to land apply sewage sludge (in accord with applicable laws). See id. pp. 5, 7-10 §§ 4, 6, 7(e), 10, 13. The NRCS Easement, since it is recorded first, arguably could restrict activities for the Eco Terra conservation easement required to generate riparian buffer and nutrient offset credits. But nothing in the NRCS Easement conflicts with the use of stream-adjacent portions of the Hazel’s Ford property to generate riparian buffer and nutrient offset credits. Instead, the two easements are compatible. Put simply, the landowners’ exercise of their reserved rights under the NRCS Easement cannot, as a matter of logic, conflict with the NRCS Easement. 1 Eco Terra is currently in the process of seeking the approval of Orange County and the NRCS to use the Hazel’s Ford site to generate riparian buffer and nutrient offset credits. EXHIBIT A Ill II Ill I II II I IIIIIIIIIII II IIII IIIIIIIIII Ill llll I Ill 20040805000220470 EASE Bk:RB3523 Pg:1 08/06/2004 04:26:66PM 1/22 Orange County NC 08/06/2004 State of North Carolina Real Estate Excise Tax Excise Tax: $1141 .00 STATE OF NORTH CAROLINA C\ 8 5 l) -') i .. 5 7 4-/ ,:~1 .. 14 "°~ COUNTY OF ORANGE , Y PREARED BY: GEOFFREY GLEDHILL AND RETURN TO: GEOFFREY GLEDHILL o.o. DRAWER 1s29, HILLSBOROUGH, NW~TY ·-g-e.v. s~ dlJJ"ll•DD DEED OF AGRICULTURAL CONSERVATION EASEMENT This Deed of Agricultural Conservation Easement ("Conservation Easement 11 ) is granted on this~ day of A"' ,,Jt , 2004, by EVERETT WESLEY CHEEK et ux HAZEL CHEEK, having an~dress of2328 Dairyland Road, Chapel Hill 27516 and LEWIS ROBERSON CHEEK et ux EVELYN CHEEK, having an address of 1811 Dairyland Road, Chapel Hill, NC 27516 (referred to as "Grantors"), to ORANGE COUNTY, NORTH CAROLINA, having an address of Post Office Box 8181, Hillsborough, NC 27278 (referred to as "Grantee"). WHEREAS: Granters are the sole owners in fee simple, of certain farm Property, more particularly described in Exhibit A, attached hereto and incorporated herein (the "Property"), which consists of approximately 77.6 acres of land, located in Chapel Hill and Bingham townships, Orange County, North Carolina and identified as "Tract l" on the plat of property titled "Boundary Survey for Lewis Cheek and Everett Cheek," prepared by Brady H. Goforth and Associates, Inc., which plat is recorded at Plat Book 'lS___, Pagef63 Orange County Registry (a part of the property having the Orange County PIN: 9850-96-5741). The Property includes buildings and other improvements, which are shown on Exhibit B, attached hereto and incorporated herein. The Property consists primarily of productive agricultural land. The majority of the soils on the Property have been classified as "prime" or "statewide important" soils by the Natural Resources Conservation Service, United States Department of Agriculture, (also referred to as "NRCS" or "the United States.") It is the primary purpose of this Conservation Easement to protect the agricultural soils and agricultural viability and productivity of the Property. The Property also includes outstanding woodland and riparian habitats for a variety of wildlife species of importance to the Granters, the people of Orange County and the people of Page 1 of 21 Book 3523 20B040805000220470 EASE k:RB3523 Pg·2 08/05/2004 04:26:56PM 2/22 North Carolina. A portion of the Property is within the Pickard's Mountain Natural Area, described on Pages 96-97 of the Inventory of the Natural Areas and Wildlife Habitats of Orange County, North Carolina, written by Dawson Sather and Stephen Hall in coordination with the North Carolina Natural Heritage Program in December 1988. Morgan Creek flows through the property on its way south to University Lake, a water supply reservoir for the towns of Carrboro and Chapel Hill. The entire property is within the University Lake Watershed. Furthermore, the Property contains outstanding scenic qualities that can be enjoyed by the general public, namely as the views along Dairyland Road (State Road 1112) northwest of Carrboro and Chapel Hill. It is a secondary purpose of this Conservation Easement to protect these natural, wildlife habitat, and scenic resources. The agricultural resources, including the protection of soils, and natural, wildlife habitat, and scenic resources of the Property to be preserved by this Conservation fa~sement are collectively referred to as the "conservation values" of the Property. The specific conservation values of the Property and its current use and state of improvement are described in a Baseline Report ("Report") prepared by the Grantee with the cooperation of the Grantors, and acknowledged by both parties to be accurate as of the date of this Conservation Easement. This Report may be used by the Grantee to document any future changes in the use or character of the Property in order to ensure the terms and conditions of this Conservation Easement are fulfilled. This Report, however, is not intended to preclude the use of other evidence to establish the present condition of the Property if there is a controversy over its use. The Grantors and Grantee have copies of this Report, and said report will remain on file at the office of the Orange County Environment and Resource Conservation Department. The Grantors and Grantee agree that the current agricultural use of, and improvements to, the Property are consistent with the conservation purposes of this Conservation Easement. The Grantors intend that the conservation values of the Property be preserved and maintained, and further, Grantors intend to convey to the Grantee the right to preserve and protect the agricultural and other conservation values of the Property in perpetuity. The conservation purposes of this Conservation Easement are recognized by, and the grant of this Conservation Easement will serve, the following clearly delineated governmental conservation policies: (1) Sections 1238 Hand 1238 I of the Food Security Act of 1985, as amended, which authorizes the Farm and Ranch Lands Protection Program, administered through the United States Department of Agriculture, Natural Resources Conservation Service, which provides funds for the acquisition of Conservation Easements or other interests in prime, unique, or other productive soils for the purpose of limiting conversion to nonagricultural uses of the land; (2) North Carolina General Statute 139-2 et seq., which provides that "it is hereby declared ... that the farm, forest and grazing lands of the State of North Carolina are among the basic assets of the State and the preservation of these lands is necessary to protect and promote Page 2 of 21 Book 3523 20040805000220470 EASE Bk:RB3S23 Pg:3 08/05/2004 04:26:56PM 3/22 the health, safety and general welfare of its people ... it is hereby declared to be the policy of the legislature to provide for the conservation of the soil and resources of this State;" (3) North Carolina General Statute 106-583 et seq., which states that "It is declared to be the policy of the State of North Carolina to promote the efficient production and utilization of the products of the soil as essential to the health and welfare of our people and to promote a sound and prosperous agriculture and rural life as indispensable to the maintenance of maximum prosperity;" ( 4) The Uniform North Carolina Conservation and Historic Preservation Agreements Act, North Carolina General Statute 121-34 et seq., which provides for the enforceability of restrictions, easements, covenants or conditions "appropriate for retaining in land or water areas predominantly in their natural, scenic, or open condition or in agricultural, horticultural, farming or forest use;" and which provides for tax assessment oflands subject to such agreements "on the basis of the true value of the land and improvement less any reduction in value caused by the agreement;" (5) The North Carolina Conservation Tax Credit Program, North Carolina General Statute 105-130.34 and 105-151.12 et seq., which provides for state income tax credits for donations of land that are useful for fish and wildlife conservation and other similar land conservation purposes; (6) The establishment of the North Carolina Farmland Preservation Trust Fund established in 1986 (N.C.G.S. 106-744(c)) to preserve important farmland in North Carolina; (7) The special use assessment of farm and forestland as set forth in North Carolina General Statute 105-277.2 et seq.; and (8) The zoning of the Property by Orange County as Rural Buffer. Granters and Grantee have the common purpose of protecting the above-described conservation values and current condition of the Property and preventing conversion of the Property to nonagricultural uses and Grantors agree to create and implement a conservation plan (hereinafter the "Conservation Plan") that is developed utilizing the standards and specification of the NRCS field office technical guide and 7 CFR part 12, and is approved by the local Soil and Water Conservation District; The Grantee is a body politic existing under Chapter 153A of the North Carolina General Statutes, and is qualified to hold Conservation Easements under the applicable laws of the State of North Carolina; NOW, THEREFORE, for the reasons given and other good and valuable consideration, and in consideration of their mutual covenants, terms, conditions and restrictions contained herein, the Grantors hereby grant and convey unto the Grantee a Conservation Page 3 of 21 Book 3523 20040805000220470 EASE Bk:RB3!523 Pg:4 08/05/2004 04:26:56PM 4/22 Easement, of the nature and character and to the extent hereinafter set forth, in respect to the Property as described in Exhibit A; The terms, conditions and restrictions of the Conservation Easement are as hereinafter set forth: l. Grant of Agricultural Conservation Easement Granters hereby voluntarily grant and convey to the Grantee, and the Grantee hereby voluntarily accepts, a perpetual Agricultural Conservation Easement in the Property, which easement is an immediately vested interest in real property the nature and character described herein. Granters promise that they will not perform, nor knowingly allow others to perform, any act on or affecting the Property that is inconsistent with the covenants herein. Granters authorize the Grantee to enforce these covenants in the manner described below. Granters hereby voluntarily grant and convey to the Grantee all development rights for the Property, except as otherwise reserved and provided by the terms of this Conservation Easement, that are now or hereafter inherent in the Property. The parties agree that such development rights are terminated and extinguished, and may not be used on or transmitted to any portion of the Property, as it now or hereafter may be bounded or described, or transmitted, transferred or otherwise conveyed to any other property. 2. Statement of Purpose It is the primary purpose of this Agricultural Conservation Easement to enable the Property to remain in agricultural use by preserving and protecting its agricultural soils and agricultural viability and productivity. Except as specifically permitted herein, no activity that would impair the actual or potential agricultural use of the Property shall be permitted. To the extent that the preservation and protection of the natural, historic, recreational, habitat or scenic values referenced in this Conservation Easement are consistent with the primary purpose stated above, it is within the purpose of this Conservation Easement to also protect those values, and no activity that would significantly impair those values shall be permitted. This Conservation Easement shall be perpetual. It is an easement in gross, runs with the land and is enforceable by Grantee against the Grantors, their representatives, heirs, successors and assigns, lessees, agents, and licensees. 3. Rights and Responsibilities Retained by Grantors Subject to the terms and restrictions hereof, the Granters reserve to and for themselves and their successors the right to quiet enjoyment of the Property and the right to partake in passive recreation on the Property. The Granters reserve to and for themselves and their successors all customary rights and privileges of ownership, including the rights to sell, lease, and devise the Property provided such transaction is subject to the terms of this Conservation Easement and written notice is provided to the Grantee, together with any rights not specifically Page 4 of 21 Book 3523 20040805000220470 EASE Bk:RB3523 Pg·5 08/05/2004 04:26:56PM 5/22 prohibited by or limited by this Conservation Easement, and consistent with this Conservation Easement. Unless otherwise specified below, nothing in this Conservation Easement shall require the Grantors to take any action to restore the condition of the Property after any Act of God or other event over which they had no control. Grantors understand that nothing in this Deed relieves them of any obligation or restriction on the use of the Property imposed by law. 4. Right to Farm Grantors retain the right to farm, or to permit others to farm the Property, consistent with the conservation values of the Property and in accordance with applicable local, state and federal laws and regulations. Subject to the terms of this Agricultural Conservation Easement, farming, grazing, horticultural and animal husbandry operations are permitted only if conducted consistent with Best Management Practices promulgated by the State of North Carolina and in conformity with a Conservation Plan as required in Paragraph 9 of this Conservation Easement. Cattle and other livestock are allowed to exist and to graze on the Property, except a) within 50 feet of a stream or other water body orb) within the Pickards Mountain Natural Area- the locations of which are identified and marked on Exhibit B. 5. Right to Privacy Grantors retain the right to privacy and the right to exclude any member of the public from trespassing on the Property. This Conservation Easement does not create any rights of the public in, on or to the Property. 6. Right to Use the Property for Customary Rural Enterprises Grantors retain the right to use the portion of the Property within the "Farmstead Area" (which contains approximately 5 acres) as identified on Exhibit B, and more particularly described in the Baseline Report, for otherwise lawful and customary rural enterprises, such as, but not limited to, farm machinery repair, sawmills, firewood distribution, or educational programs so long as such activities are consistent with Orange County zoning regulations and permits required by and issued by Orange County under its laws and ordinances, and are conducted in buildings otherwise permitted under this Conservation Easement in a manner that is consistent with the conservation purposes of this Conservation Easement. Conducting customary rural enterprises on any other part of the Property is not permitted without the advance written permission of the Grantee in each instance. The Grantee shall not give such permission unless the Grantee determines that the proposed use will not diminish or impair the conservation values of the Property. Page 5 of 21 Book 3523 20040805000220470 EASE Bk:RB3S23 Pg·& 08/05/2004 04:26:56PM 6/22 7. Procedure to Construct Buildings and Other Improvements The Grantors' rights to construct or reconstruct buildings and other improvements are described in subparagraphs (a) through (f) below. Any construction or reconstruction not permitted below, or not previously approved by Grantee, is prohibited. Before undertaking any construction or reconstruction that requires advance permission, the Grantors shall notify the Grantee and obtain written permission. All construction or reconstruction is subject to Orange County zoning regulations and must be consistent with permits required by and issued by Orange County under its laws and ordinances for such construction activities. (a) Fences --Existing fences maybe repaired and replaced, and new fences may be built on the Property for purposes ofreasonable and customary management of livestock and wildlife or to fence off the perimeter of the Property without any further permission of the Grantee. (b) Structures & Improvements --Existing structures, including existing agricultural structures, and existing improvements may be repaired, reasonably enlarged and replaced at their current locations within the "Farmstead Area", as shown on Exhibit B, without further permission from the Grantee. New buildings, barns, sheds and other structures and improvements to be used primarily for agricultural purposes, including the processing or sale of farm products predominantly grown or raised on the Property, may be built on the Property without any further permission of the Grantee provided they are located in the "Farmstead Area" as identified on Exhibit B. Structures, improvements and other impervious surfaces located on the Property, including those existing on the date of this Agricultural Conservation Easement, shall not exceed 2 percent of the total area of the Property. Furthermore, structures, improvements and other impervious surfaces located in the "Farmstead Area," including those existing on the date of this Agricultural Conservation Easement, shall not exceed 12 percent of the total area of the "Farmstead Area" or result in exceeding the total impervious surface limit on the Property of 2 percent. Any new buildings, structures or improvements proposed for locations outside the "Farmstead Area" may be built only with the advance written permission of the Grantee. The Grantee shall give such permission within a reasonable time if it determines that the proposed building, structure or improvement would not diminish or impair the conservation values of the Property or otherwise be inconsistent with the purposes of this Conservation Easement. (c) Farm Support Housing-No more than one (1) new single -or multi-family - dwelling to house farm labor tenants, employees or others engaged in agricultural production on the Property may be built on the Property without any further permission of the Grantee, provided the dwelling is less than 1,000 square feet in floor area and it is located within the "Farmstead Area" identified on Exhibit B. At the time that construction of such structure is to commence, Grantee shall be notified so that its records can be updated. (d) Single-Family Residential Dwellings -No residential dwellings exist on the Property. No new residential dwelling may be built on the Property except for that which is authorized in Paragraph 7 (c) of this Conservation Easement. Page 6 of 21 Book 3523 20040806000220470 EASE Bk:RB3!523 Pg:7 08/06/2004 04:26:66PM 7/22 (e) Recreational Improvements -Grantors expressly reserve the right to engage in undeveloped, low-impact recreational activities such as hunting, fishing, hiking, bird watching, etc. and to control access of all persons for the purpose of hunting and fishing; provided that these activities do not impact the protection and conservation of any animal habitat or other conservation values of the property. However, under no circumstances shall golf courses or ranges, airstrips or helicopter pads be constructed, placed or permitted to remain on the Property. Recreational motorized vehicle use is prohibited from any locations on the Property. (j) Utility Services and Septic Systems --Installation, maintenance, repair, replacement, removal and relocation of electric, gas, and water facilities, sewer lines and/or other public or private utilities, including telephone or other communication services over or under the Property for the purpose of providing electrical, gas, water, sewer, or other utilities to serve improvements permitted herein, and the right to grant easements over and under the Property for such purposes, is permitted. Maintenance, repair or improvement of a septic system(s) or other underground sanitary system that exists on the Property at the time of this Conservation Easement, or the construction of a septic or other underground sanitary system, for the benefit of any of the improvements permitted herein, is permitted. The construction of a new well system and/or a new septic or other underground sanitary system on the Property is permitted within the area identified and marked as "Farmstead Area" on Exhibit B if necessary to serve the existing (or its replacement) residential dwelling located immediately adjacent to the Property on property identified as Orange County PIN: 9850-97-5155. All other utilities are prohibited. 8. Subdivision The Property currently consists of a portion of one single tract. Hereafter, the Property may be subdivided into no more than two (2) separate parcels. The subdivision of the Property may include combining one or both of the subdivided parcels of the Property with adjacent property. The further subdivision of the Property, the recording of a subdivision plan, partition, or any other division of the Property is prohibited. This prohibition applies regardless of how many separately described parcels are contained in the legal description attached as Exhibit A. In any event, all terms, restrictions, and conditions of this Conservation Easement shall apply to any subdivided parcel permitted by the terms of this Conservation Easement, including but not limited to the requirements of agricultural viability of the Property, the restrictions on future development, the necessity of a Conservation Plan, and the prohibition on activities that are described in this Deed of Conservation Easement. In the event that the Property as described in Exhibit A and as configured on the original date of this Conservation Easement is subdivided as allowed in this Paragraph, the total cumulative impervious surfaces found on all such subdivided parcels shall not exceed the limit as referenced in Paragraph 7(b) of this Conservation Easement. In the instrument of conveyance/subdivision, the total permitted impervious surface limit must be allocated between the said subdivided parcels by the Grantor with prior approval of the Grantee. It is understood that notice of this Conservation Easement will be recorded on any subdivided, partitioned or otherwise divided parcels. Page 7 of 21 Book 3523 9. Conservation Practices 2i0k40805000220470 EASE :RB3523 Pg·S 08/05/2004 04:26:56PM 8/22 As required by Section 1238 I of the Food Security Act of 1985, as amended, the Grantors, their heirs, successors, or assigns, shall conduct all agricultural operations on the Property in a manner consistent with a Conservation Plan prepared in consultation with NRCS and approved by the Soil and Water Conservation District. This Conservation Plan shall be developed using the standards and specifications of the NRCS Field Office Technical Guide and 7 CFR Part 12 that are in effect on the date of execution of this Conservation Easement. The Grantors may, however, develop and implement a Conservation Plan that proposes a higher level of conservation and is consistent with the NRCS Field Office Technical Guide standards and specifications. NRCS shall have the right to enter upon the Property, with advance notice to the Granters, in order to monitor compliance with the Conservation Plan. In the event of noncompliance with the Conservation Plan, NRCS shall work with the Granto rs to explore methods of compliance and give the Granto rs a reasonable amount of time, not to exceed twelve months, to take corrective action. If the Granters do not comply with the Conservation Plan, NRCS will inform the Grantee of the Granters' non-compliance. The Grantee shall take all reasonable steps (including efforts at securing voluntary compliance and, if necessary, appropriate legal action) to secure compliance with the Conservation Plan following written notification from NRCS that (a) there is a substantial, ongoing event or circumstance of non-compliance with the Conservation Plan, (b) NRCS has worked with the Granters to correct such noncompliance, and ( c) Grantors have exhausted their appeal rights under applicable NRCS regulations. If the NRCS standards and specifications for highly erodible land are revised after the , date of this Grant based on an Act of Congress, NRCS will work cooperatively with the Grantors to develop and implement a revised Conservation Plan. The provisions of this section apply to the highly erodible land conservation requirements of the Farm and Ranch Lands Protection Program and are not intended to affect any other natural resources conservation requirements to which the Granters may be or may become subject. 10. Forest Management Trees may be removed, cut and otherwise managed to control insects and disease, to prevent personal injury and property damage, to remove non-native species, for pasture restoration, for firewood and other non-commercial uses, including construction of permitted improvements and fences on the Property, so long as it is in accordance with the Conservation Plan referenced in Paragraph 9 of this Conservation Easement and a forest management plan prepared by a professional licensed forester approved by Grantee, such approval to not be unreasonably withheld, that is consistent with the above referenced Conservation Plan. Any other cutting, removal or harvesting of trees, including any commercial harvesting of trees, may be undertaken within the areas identified and marked as "Forest" on Exhibit B only if a) the purpose is for clearing land for cultivation or use by livestock, and b) it occurs outside of the stream buffer described in Paragraph 4 of this Conservation Easement, and c) it occurs Page 8 of 21 Book 3523 20040805000220470 EASE Bk:RB3523 Pg:9 08/05/2004 04:26:56PM 9/22 outside of the Pickard's Mountain Natural Area, which is located in the western end of the Property and is identified on Exhibit B, and d) it is in accordance with the Conservation Plan and forest management plan referred to in this Paragraph 10. Trees may be planted, harvested and removed within the area identified and marked as "Farmstead Area" on Exhibit B without the advance written permission of the Grantee, so long as done in accordance with the Conservation Plan and forest management plan referred to in this Paragraph 10. Fruit bearing trees may be planted and removed from an orchard within areas identified and marked as "Agricultural Fields" on Exhibit B without the advance written permission of the Grantee. 11. Mining There shall be no filling, excavation, dredging, mining or drilling, removal of topsoil, sand, gravel, rock, peat, minerals or other materials; and no change in the topography of the land in any manner except as necessary for the purpose of combating erosion or flooding in accordance with the Conservation Plan and as reasonably necessary for any permitted maintenance, construction or reconstruction on the Property. Disturbed areas for the purpose of removing soil, gravel, rock, peat, minerals or other materials will be limited to 1 acre in total surface area and will be restored as soon as practicable after the disturbance. Under no circumstances is the drilling for or exploration for hydrocarbons permitted in, on or to the Property. 12. Paving and Road Construction Construction and maintenance of unpaved farm roads and farm roads not covered by any other impervious material that may be reasonably necessary and incidental to carrying out the improvements and uses permitted on the Property by this Conservation Easement are permitted. Other than the existing entrance driveways within the Farmstead Area, as indicated on Exhibit B, no portion of the Property shall be paved or otherwise covered with concrete, asphalt, rock or any other impervious material, without the advance written permission of the Grantee. The Grantee shall not give such permission unless the Grantee determines that the proposed paving, or covering of the soil, or the location of any such road, will not diminish or impair the conservation values of the Property. Any such road covered by any impervious material is subject to impervious surface requirements in Paragraph 7. 13. Dumping and Trash Dumping or storage of soil, trash, refuse, debris, ashes, garbage, waste, abandoned vehicles or parts, appliances, machinery, or hazardous substances, or toxic or hazardous waste, or any placement of underground or above ground storage tanks or other materials is prohibited. Provided, however, that the storage of agricultural products, byproducts (including the composting of biodegradable material for on-farm use) and agricultural equipment used on the Page 9 of 21 Book 3523 20040806000220470 EASE Bk:RB3!523 Pg:10 08/06/2004 04:26:66PM 10/22 Property is allowable, so long as such storage is done in accordance with all applicable government laws and regulations and in such a manner so as to not impair the conservation values of the Property. The land application, storage and placement on the Property of domestic septic effluent and municipal sewage sludge or liquid generated from such sources for agricultural purposes may be undertaken only if in accordance with all applicable federal, state and local laws and regulations. 14. Water Rights Grantors shall retain and reserve the right to use any appurtenant water rights sufficient to maintain the agricultural productivity of the Property. Grantors shall not transfer, encumber, lease, sell or otherwise separate such water rights from title to the Property itself, except as may be necessary for a potential well site for an existing or replacement residential dwelling located immediately adjacent to the Property consistent with Paragraph 7(f). 15. Natural Resource Restoration and Enhancement Activities Notwithstanding any terms contained within this Conservation Easement, Grantors may engage or contract others to engage in any activity designed to repair, restore, or otherwise enhance the natural resources found or once present on the Property, that are consistent with the conservation values of this Conservation Easement and subject to the written approval of Grantee andNRCS. 16. Signs No new signs shall be permitted on the Property except interpretive signs describing activities and conservation values of the Property, signs identifying the owner of the Property and the holder of the Conservation Easement, and signs giving directions or proscribing rules and regulations for the use of the Property. All signs permitted on the Property shall conform to applicable Orange County zoning, subdivision and building code regulations. 17. Ongoing Responsibilities of Grantors and Grantee Other than as specified herein, this Conservation Easement is not intended to impose any legal or other responsibility on the Grantee or the United States, or in any way to affect any existing obligation of the Grantors as owners of the Property. Among other things, this shall apply to: (a) Taxes --The Grantors shall continue to be solely responsible for payment of all taxes and assessments levied against the Property. If the Grantee is ever required to pay any taxes or assessments on its interest in the Property, the Grantor will reimburse the Grantee for the same. Page 10 of 21 Book 3523 20040805000220470 EASE Bk:RB3!523 Pg:11 08/05/2004 04:26:56PM 11/22 (b) Upkeep and Maintenance --The Grantors retain all responsibilities and shall bear all costs and liability of any kind related to the ownership, operation, and upkeep and maintenance of the Property, including the maintenance of adequate comprehensive general liability insurance coverage. The Grantee and the United States shall have no obligation for the upkeep or maintenance of the Property. Grantors will remain responsible for upkeep, maintenance, and repairs to any impoundments located on the Property. (c) Liability and Indemnification --Grantors agree to indemnify and hold Grantee and the United States harmless from any and all costs, claims or liability, including but not limited to reasonable attorneys' fees arising from any personal injury, accidents, negligence or damage relating to the Property, or any claim thereof, unless due to the negligence of Grantee or its agents, in which case liability shall be as provided by law. In addition, Grantors agree to maintain liability insurance covering the Property with the limits as follows: $300,000, $300,000 personal injury; and $300,000 property damage; and warrant that Grantee is and will remain a named insured on Grantors' Property insurance policies covering the Property. Grantors shall provide Grantee with a certificate of insurance coverage on the effective date of this Conservation Easement and within 10 days of each insurance renewal date. 18. Extinguishment of Development Rights Except as otherwise reserved to the Grantors in this Conservation Easement, the parties agree that all development rights appurtenant to the Property are hereby released, terminated and extinguished, and may not be used on or transferred to any portion of the Property as it now or hereafter may be bounded or described, or used or transferred to any other property adjacent or otherwise, nor used for the purpose of calculating permissible lot yield of the Property or any other property. 19. Enforcement With reasonable advance notice provided to the Grantors or with the Grantors' prior verbal consent, the Grantee shall have the right to enter the Property for the purpose of inspecting for compliance with the terms of this Conservation Easement. The Grantee shall have the right to prevent violations and remedy violations of the terms of this Conservation Easement through judicial action, which shall include, without limitation, the right to bring proceedings in law or in equity against any party or parties attempting to violate the terms of this Conservation Easement. Except when an ongoing, or imminent violation could irreversibly diminish or impair the conservation values of the Property, the Grantee shall give the Granters written notice of the violation and thirty (30) days to cure the violation, before commencing any legal proceedings. The Grantee may obtain an injunction to stop a violation or a threatened violation, temporarily or permanently. The parties agree that a court may issue an injunction or order requiring the Grantors to restore the Property to its condition prior to the violation, as restoration of the property may be the only appropriate remedy. In any case where a court finds that a violation has occurred, the Grantors shall reimburse the Grantee for all its expenses incurred in stopping and correcting the violation, including but not limited to reasonable attorneys' fees. The failure of the Grantee to discover a violation or to take immediate legal action shall not bar it from doing so at Page 11 of 21 Book 3523 20040805000220470 EASE Bk:RB3523 Pg:12 08/05/2004 04:26:56PM 12/22 a later time for that violation or any subsequent violations. In any case where a court finds no such violation has occurred, each party shall bear its own costs. In any case where the court finds that there was a complete absence of a justiciable issue of either law or fact raised by the losing party, the court may award a reasonable attorney's fee to the prevailing party as provided by law. In the event that Grantee fails to enforce any of the terms of this Conservation Easement, as determined in the sole discretion of the Secretary of the United States Department of Agriculture, the said Secretary of Agriculture and his or her successors and assigns shall have the right to enforce the terms of the Conservation Easement through any and all authorities available under federal or State law. In the event that Grantee attempts to terminate, transfer, or otherwise divest itself of any rights, title, or interests of this Conservation Easement without the prior consent of the Secretary of the United States Department of Agriculture and payment of consideration to the United States, then, at the option of such Secretary, all right, title, and interest in this Conservation Easement shall become vested in the UNITED STATES OF AMERICA. 20. Transfer of Conservation Easement Subject to the contingent rights of the United States of America as specified in paragraph 19 and other pertinent paragraphs herein, and with timely written notice to and approval of the United States Department of Agriculture, the Grantee shall have the right to transfer the Conservation Easement created by this Deed to any public agency, provided the agency expressly agrees to assume the responsibility imposed on the Grantee by this Deed. 21. Transfer of Property The Grantors agree to incorporate by reference the terms of this Conservation Easement in any deed or other legal instrument by which they transfer or divest themselves of any interests, including leasehold interests, in all or a portion of the Property. The Grantors shall notify the Grantee in writing at least thirty (30) days before conveying the Property, or any part thereof or interest therein. Failure of Grantors to do so shall not impair the validity of this Conservation Easement or limit its enforceability in any way. 22. Amendment of Conservation Easement This Conservation Easement may be amended only with the written consent of the Grantee and the Grantors. Any such amendment shall be consistent with the Statement of Purposes of this Conservation Easement and with the Grantee's Conservation Easement amendment policies, and shall comply with Section 170(h) of the Internal Revenue Code or any regulations promulgated in accordance with that section. Any such amendment shall be duly recorded. Grantee shall give notice of any amendment to and secure prior approval from the United States. Page 12 of 21 Book 3523 20040806000220470 EASE Bk : RB3523 p . 13 08/06/2004 04:26~66PM 13/22 23. Procedure in the Event of Termination of Conservation Easement If it determines that conditions on or surrounding the Property change so much that it becomes impossible to fulfill the conservation purposes of this Conservation Easement, a court with jurisdiction may, at the joint request of both the Granters and the Grantee and with prior consent of the United States Department of Agriculture as provided herein, terminate or modify the Conservation Easement created by this Deed in accordance with applicable State law. If the Conservation Easement is terminated and the Property is sold then as required by Section 1.1 70A-14(g)(6) of the IRS regulations, the Grantee shall be entitled to sixty-nine percent (69%) of the net sale proceeds ( equal to the ratio of the appraised value of this Conservation Easement to the unrestricted fair market value of the Property, as these values are determined on the date of this Conservation Easement), subject to any applicable law which expressly provides for a different disposition of the proceeds. The Grantee and the United States of America shall divide the resulting proceeds in accordance with the percentage of the purchase price of the Conservation Easement that each party contributed. The percentages are 59% for the Grantee and 41 % for the United States of America. All termination related expenses, including reasonable attorney fees, incurred by the Granters and the Grantee shall be paid out of any recovered proceeds prior to distribution of the net proceeds as described herein. 24. Procedure in the Event of Condemnation or Eminent Domain Granters and Grantee recognize that the partial sale of this Conservation Easement gives rise to a property right, immediately vested in the Grantee, with a fair market value equal to the proportionate value that the Conservation Easement bears to the value of the Property prior to the restrictions imposed by the Conservation Easement. Accordingly, if any condemnation or eminent domain action shall be taken, on all or part of the Property, by any authorized public authority, said authority shall be liable to the Grantee for the value of the property right vested in the Grantee at the time of the signing of this Conservation Easement. Due to the federal interest in this Deed, the United States must consent to any such condemnation action. If condemnation or a taking by eminent domain of a part of the Property or the entire Property by a public authority renders it impossible to fulfill any of the conservation purposes of this Conservation Easement on all or part of the Property, the Conservation Easement may be terminated or modified accordingly through condemnation proceedings. Granters and Grantee agree that the Conservation Easement is a currently vested real property right with a value equal to the proportionate value of the Conservation Easement to the unencumbered value of the fee, as of the date of this grant. If the Conservation Easement is terminated or modified and any or all of the Property is sold or taken for public use, then, as required by Section l. l 70A-14(g)(6) of the IRS regulations, the Grantee shall be entitled to the proportionate value of the Conservation Easement, which has been predetermined at sixty-nine percent (69%) of the Property's unrestricted value, subject to any applicable law that expressly requires for a different disposition of the proceeds. Page 13 of 21 Book 3523 20040805000220470 EASE Bk:RB3!523 Pg:14 08/05/2004 04:26:56PM 14/22 If this Conservation Easement is extinguished or terminated, the United States and the Grantee shall receive its proportional share of the Conservation Easement value at the time of termination. Those proportional shares of the Conservation Easement are as follows: 59% to Grantee and 41 % to the United States. If, however, after the condemnation or eminent domain proceedings, a court of jurisdiction does not include in the just compensation awarded as a result of the taking, the amount of the Conservation Easement value, then the Grantor shall not be responsible to share any proceeds awarded. All condemnation-related expenses, including reasonable attorney fees, incurred by the Grantors and the Grantee shall be paid out of any recovered proceeds prior to distribution of the net proceeds as described herein. 25. Interpretation This Conservation Easement shall be interpreted under the laws of the State of North Carolina and the laws of the United States, resolving any ambiguities and questions of the validity of specific provisions so as to give maximum effect to its conservation purposes. 26 Perpetual Duration; Severability The Conservation Easement created by this Deed shall be a servitude running with the land in perpetuity. Every provision of this Deed that applies to the Grantors or the Grantee shall also apply to their respective agents, heirs, executors, administrators, assigns, and all other successors as their interests may appear. Invalidity of any of the covenants, terms or conditions of this Conservation Easement, or any part thereof by court order or judgment shall in no way, affect the validity of any of the other provisions hereof which shall remain in full force and effect. 27; Merger The Parties agree that the terms of this Conservation Easement shall survive any merger of the fee and easement interest in the Property. 28. Notices Any notices required by this Deed shall be in writing and shall be personally delivered or sent by first class mail to the Grantors and the Grantee respectively at the following addresses, unless a party has been notified in writing by the other of a change of address: Page 14 of 21 Book 3523 20040806000220470 EASE Bk:RB3523 Pg•15 08/06/2004 04:26:SSPM 15/22 To the Granters: Lewis and Evelyn Cheek 1811 Dairyland Road Chapel Hill, NC 27516 To the Grantee: Orange County ERCD PO Box 8181 Hillsborough, NC 27278 29. Grantor's Title Warranty Everett and Hazel Cheek 2328 Dairyland Road Chapel Hill, NC 27516 To theNRCS: State Conservationist 4405 Bland Rd., Suite 205 Raleigh, NC 27609 The Granters warrant that they hold fee simple title to the Property, free from all encumbrances and hereby promise to defend the same against all claims that may be made against it, except for the following: (a) All enforceable easements and rights of way currently depicted in the Orange County Registry, including the 50' wide Public Services, North Carolina natural gas line easement recorded at Book __ , Page __ , Orange County Registry; and (b) Public Road rights of way affecting the Property; and ( c) Current Orange County property taxes and any deferred taxes as provided by law. 30. Subsequent Liens on Property No provisions of this Conservation should be construed as impairing the ability of Grantors to use the Property as collateral for subsequent borrowing. Any such liens shall be and remain subordinate to this Conservation Easement. 31. Subsequent Easements/Restrictions on the Property The grant of any easements or use restrictions that might diminish or impair the agricultural viability or productivity of the Property or otherwise diminish or impair the conservation values of the Property is prohibited. Any such easements or restrictions shall be subordinated to this Conservation Easement. 32. Grantor's Environmental Warranty The Grantors warrant that they have no actual knowledge of a release or threatened release of hazardous substances or wastes on the Property, as such substances and wastes are Page 15 of 21 Book 3523 20040805000220470 EASE Bk:RB3523 Pg:16 08/05/2004 04:26:56PM 16/22 defined by applicable federal and State law, and hereby promise to defend and indemnify Grantee and the United States against all litigation, claims, demands, penalties and damages, including reasonable attorneys' fees, arising from or connected with any release of hazardous waste caused by the intentional or negligent act of the Grantor or violation of federal, State or local environmental laws caused by the negligent or intentional act of the Grantor. Without limiting the generality of the foregoing, nothing in this Conservation Easement shall be construed as giving rise to any right or ability in Grantee or the United States, nor shall Grantee or the United States have any right or ability, to exercise physical or managerial control over the day-to-day operations of the Property, or otherwise to become an operator with respect to the Property within the meaning of The Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended. 33. Entire Agreement This instrument sets forth the entire agreement of the parties with respect to the Conservation Easement and supersedes all prior discussions, negotiations, and understandings or agreements relating to the said easement. 34. Recording Clause The Grantee shall record this instrument and any amendment hereto in timely fashion with the Office of the Register of Deeds of Orange County, North Carolina, and may re-record it at any time as may be required to preserve its rights under this Conservation Easement. TO HA VE AND TO HOLD this Deed of Conservation Easement unto Grantee, its successors and assigns, forever. [The remainder of this page is intentionally left blank. Signature page follows.] Page 16 of 21 Book 3523 20040805000220470 EASE Bk:RB3!523 Pg:17 08/05/2004 04:26:56PM 17/22 IN WITNESS WHEREOF, the Granters and Grantee, intending to legally bind themselves, have set their hands on the date first written above. GRANTORS: ~~ ckL Everett Wesley Cheek U~.s. ~ HazelCek < ~ R~ ~ Lewis Roberson Cheek ~~411/ ckiv Accepted: GRANTEE: ORANGE COUNTY, NORTH CAROLINA ATTEST: By·~~ ·DoB tg tlle- .Boaoo of C9aiwi ssianers ACCEPTANCE OF PROPERTY INTEREST BY THE NATURAL RESOURCES CONSERVATION SERVICE The Natural Resources Conservation Service, an agency of the United States Government, hereby accepts and approves the foregoing Deed of Conservation Easement, and the rights conveyed therein, on behalf of the United States of America. {)...Jt '¥Ji~ ~-I. S,kl,~ Oiwu.wo.~ Authorized Signatory for th~ NRCS Page 17 of 21 Book 3523 .. 20040805000220470 EASE Bk:RB3!523 Pg:18 08/05/2004 04:26:56PM 18/22 Acknowledgments NORTH CAROLINA COUNTY OF ORANGE I, P..tn VIL( 6 · FlcJ<e,,, a Notary Public of Orange County, North Carolina do hereby certify that fvevetl kVe:1:Af Cb:e?K , Ha:y.L s. C.b:e.e-K , 1 l?-l ,ns Rpoo~"' £t.be.e_K and &'Ve, L4t1 CJ1:e,,e.JL personally appeared before me and acknowledged the due execution of the foregoing instrument.en ,_.._.......,,.,.c,IIA I ooq, Pifl. . ,,,, .. ti It',',,, .......... , ~noo ~ ,,,, ,, 1o"-\; •••••••• $.A .. ',, ' 't-".•• •• "'V~ :; .:-~ ... .. ~ ~ ~ -~ -· ·-~ , ~-~'--~~-,f-1.-L--c-/-~L._----i pf -:,\"\Bl)ct \ 0 1 = : _. • -: = : : .-\.LI 0~ • = M . . . -: ~. '"'" .L! .: :: y comm1ss10n expnts: ,..,:•.. / bf .., 'Tl, • •• _,I>) .. J/'],a ' r' ,,,,:J>,;;·:s··~~,-............. --1...j ~If d1JO) ,,,,,,,,,.. .. ,,,,,, .. NORTH CAROLINA COUNTY OF ORANGE . I, ~ ~~e,y , a Notary Public of Orange County, North Carolina do hereby Dcertify tha(,0~ personally appeared before me this day and acknowledged that ;he isi~rk to the Board of Commissioners for Orange County, North Carolina and that by authority duly given and as the act of Orange County, North Carolina the foregoing instrument was signed in its na~ by Barry Jacobs, Chair of the Orange County Board of Commissioners, and attested by l½er k,"' alflerk to said Board of Commissioners. Witness my hand and official stamp or seal this the ffi day of A-w, &A.S+ , 200~ My commission expires: Page 18 of 21 Book 3523 Joyce H. Pearson Register of Deeds Orange County North Carolina State of North Carolina, County of Orange 20040806000220470 EASE Bk:RB3!523 Pg:19 08/06/2004 04:26:66PM 19/22 The foregoing certificate(s) of ANN S. RIMMER, NOTARY PUBLIC, PENNY S. FLAKE, NOTARY PUBLIC for the Designated Governmental units is/are certified to be correct. See filing certificate herein. This day August 5, 2004. Joyce H. Pearson, Register of Deeds BY:~~ Deputy I Assistftftt Register of Deeds Yellow probate sheet is a vital part of your recorded document. Please retain with original document and submit for recording. Book 3523 .. STATE OF NORTH CAROLINA COUNTY OF ORANGE 20040806000220470 EASE Bk:RB3!523 Pg:20 08/06/2004 04:26:66PM 20/22 The Foregoing (or annexed) Certificate(s) of ____________ _ Notary(ies) Public (is)(are) Certified to be correct. This instrument was filed for Registration on the Day and Hour in the Book and Page shown in the First page hereof. This instrument prepared by and return to: Geoffrey E. Gledhill Coleman, Gledhill, Hargrave and Peek P.O. Drawer 1529 Hillsborough, NC 27278 Joyce H. Pearson, Register of Deeds Page 19 of 21 Book 3523 t • II • EXHIBIT A The property consists of approximately 77.6 acres of land. It is located in Chapel Hill and Bingham Townships, Orange County, North Carolina and identified as "Tract 1" on the plat of property entitled "BOUNDARY SURVEY FOR LEWIS CHEEK AND EVERETT CHEEK", prepared by Brady H. Gorforth and Associates, Inc., which plat is recorded in Plat Book 'JS'°, Page~' Orange County Registry (a part of the property having Orange County PIN: 9850- 96-5741). Book 3523 Ill 0 0 " c.., 0, I\) 'c.., I Toben Burlingame \~ \ } I Less/er / . . ~ Bu mg~me I ,-----· \ \ I ,--\ \ / ·. L , a ~ ( -...., \ \ __,,,J , ! ess,er \ J I ~ I • ,,::::::::::::',,, · / Burlingadpe , _ _,(, \ , -. '\ '-•• \ i l'. J (\._ ~ I Ii'," M. Cheek \ I"-.....,\ I 'l Cameron ............................ ............. , ............ _ Falkiner ,,~A. ~ ... ~~ I Ora~ge Co~nty ....... _~1 :" i Foushee Yourigblood i t t Orfangei Courty Tms MAP IS NOT A CERTIFIED SURVEY AND HAS NOT BEEN REVIEWED BY A LOCALGOVERNEMENTAGENCYFOR COMPLIANCE WITH ANY APPLICABLE LAND DEVELOPMENT REGULATIONS. □ Cheek Property Parcel Boundary a~ I j l / ~oushef / i i mm i I i I ----L__MARioNs fORDI Foushee I Exhibit B i 111 --..... ~ §2 ....;: .~---1 ~ --~ '" \ ~/ // /l " / / .. \ • ' ) .... , \ I -T____z__-- \ I I , \~/ ,l \ I \ I \ I ·ope/and I Ne;;,i'e 1/ I ,,\ .. Ji\ 1--------,--' ',, ,, r-\ I \, I '\, ' ', ... ,... ... ...... ...... ... ... ...... .... ... ....... ... ... ....... ... ... .......... ........... ............. ......... ,, ,, / \ / '\ r ........ ~ ,/ ......... / ( ~ /~~-- \ '-... S N aims s~i ur •. s '-;:um ~m~ . 1'm__on Area S(,IS ""c.ng SNN :':"W~ GI' ~"U~ ··.as g: •• m -uN» :.:NI': N N -N N -Beaver Pond Agricultural Fields -Forest ll!il Buildings ~ Pickards Mt.Natural Area N Morgan Creek /\/Streams Agricultural Conservation Easement (77 .6 Acres) (PIN 9850-96-5741 82.6 Acres) @ 1~d 100 2'f' Feet County af Orange Environment & Resolrce Conservation Depar1ment M Jones 617/04 • • Existing Sign: "The Catbriar-Baskets, Chairs, Crafts" Note: Stream buffer varies in width; at a minimum it is 50 feet from the water body ,I'