Frequently Asked Questions

Invariably the subject of easements raises many questions in the minds of landowners contemplating their use. The following is a compilation of some of the more commonly asked questions.

Who may sell an Environmental Assets Easement?

Any landowner of record may sell an environmental assets easement establishing self-imposed restrictions on the uses of his or her property. If there is a lienholder on the property, the lienholder must accept and agree (subordinate) to the terms of the easement. Taxes are still paid on the property by the owner of records.

What rights and duties does the landowner retain?

A landowner is selling only those rights which are consistent with achievement of the conservation intent specified in the easement. All other rights of ownership remain unchanged. Except for the specific restrictions set forth in the environmental assets easement document, the landowner retains all other rights which were originally conveyed when the property was acquired. The land can be sold, leased and/or conveyed to heirs at the death of the original owner. Additionally hunting, fishing, other recreational uses, timber management and utilization of other natural resources such as minerals can all be enjoyed as long as such activities are consistent with the restrictions that are chosen and placed in the initial easement conveyance.

Does an environmental assets easement grant public access to my property?

No. Landowners retain control of access to their property.

Can I still sell my property?

Yes. Property with an environmental assets easement can be bought, sold and inherited. However, the easement is tied to the land and binds all present and future owners to its terms and restrictions for the length of the easement.

What will an environmental assets easement mean for my children?

Future landowners, including family members, will abide by the terms of the environmental assets easement and will continue the relationship with the organization that holds the easement. A easement may reduce estate taxes paid by heirs. Families should consider the trade-off between the satisfaction of conservation goals, tax benefits resulting in reduced property value and permanent restrictions on land use.

What if the property is owned by more than one person?

All owners of a property must agree to the terms of the environmental assets easement before it can be legally sold.

What if I don't own the mineral rights to my property?

This is a complicated issue that should be discussed with professional advisors. However, a landowner who does not own the mineral rights to his or her property can qualify to sell an environmental assets easement if the owner proves that the probability of surface mining occurring on the property is "so remote as to be negligible."

Where are environmental assets easements recorded?

Like deeds or other types of easements, environmental assets easements are recorded with other land records in the county in which the property exists.

Can environmental assets easements be changed or revoked?

Landowners should assume that it will not be possible to revoke an environmental assets easement. However, easements may be amended if both the easement holder and the landowner agree to the terms of the change of if the "purpose" of the easement is not affected.

What are the financial benefits to the landowner?

The value of an environmental assets easement is established by the market. The current value is approximately $400 per acre.

Will you still qualify for a conservation easement?

Yes. Basically, if your property is undeveloped, forested or in any other agricultural use, it will meet the basic qualification for conservation easement conveyance. In Mississippi most property currently in prairie, upland or bottomland hardwoods or longleaf pine qualifies for development of a conservation easement. For more information on conservation easements, contact the Mississippi Land Trust, P.O. Box 23, Stoneville, MS 38776.

Will I still qualify for an income tax deduction if I place a conservation easement on top of my environmental assets easement?

Yes. To qualify as a charitable contribution, conservation easement donations must be perpetual, must be donated to a qualified organization (a nonprofit land trust or public agency) and meet one of the "conservation purposes" tests outlined in the Internal Revenue Code. Easement donors should be aware that these contributions are subject to review by the Internal Revenue Service for a number of years.

What is the purpose of the $2.50/acre application fee?

First, the fee (along with the information submitted with the application) initiates a site review to determine if the land under consideration is eligible for The Carbon Fund's Environmental Assets Easement Program. If the land is not eligible the fee is refunded - in full. If the land is determined to be eligible, the next step is the development of a Forest Management Plan that will determine how the land will be developed and used for the duration of the Environmental Assets Easement (the landowner, working with a team of professionals, will assist in the development of this plan). The plan will include tree species mix and locations on the site for planting, projections of timber management and harvest, etc. The fee will also facilitate the initial determination of site environmental quality which will lead to projections on Carbon uptake rate. Finally, the fee will result in the development of a draft Environmental Assets Easement and the listing and marketing of the properties future Carbon Credits for sale. These Carbon Credits will be marketed but will not be sold nor the Easement signed until a client has made an offer for the purchase of part, or all, of the credits and the landowner has agreed to the sale. At that time, the full fee will be returned along with the agreed proceeds from the sale.

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