EC Bar Ranch Conservation Easement

1. What is a Conservation Easement?
A conservation easement is a voluntary agreement that allows a landowner to limit the type or amount of development on their property while retaining private ownership of the land. The easement is signed by the landowner, who is the easement donor, and the Conservancy, who is the party receiving the easement. The Conservancy accepts the easement with understanding that it must enforce the terms of the easement in perpetuity. After the easement is signed, it is recorded with the County Register of Deeds and applies to all future owners of the land.

Another way to visualize a conservation easement is to think of owning land as holding a bundle of sticks. Each one of these sticks represents the landowner's right to do something with their property. The right to build a house, to extract minerals, to lease the property, pass it on to heirs, allow hunting are all rights that the landowner has. A landowner may give up certain development rights, or sticks from the bundle, associated with their property through a document called a conservation easement.

2. How can the EC Bar Ranch Estates subdivision help protect open spaces, wildlife habitat, and conservation values?
The EC Bar Ranch is a 400+ acre working cattle ranch that includes 94 acres of Nutrioso Creek riparian corridor with 3 miles of perennial stream channel that has been restored in recent years to one of the highest standards for water quality and aquatic/wildlife habitat in Arizona (see Publicity). The controlled timing, duration, and frequency of livestock grazing through riparian pastures has helped in the restoration process. The EC Bar Ranch Conservation Easement was donated to the New Mexico Land Conservancy, a qualified charitable organization, to ensure the preservation of natural habitat, scenic open space, and agricultural values within the riparian corridor. Creation of the EC Bar Ranch Estates subdivision will enable members of the EC Bar Ranch Estates Property Owners Association, Inc. to enforce Covenants, Conditions, and Restrictions (CCR's) that compliment provisions in the conservation easement agreement affecting subdivision lots that adjoin the easement property. While the easement property will remain privately owned and not open the public, a limited number of lot owners may have an opportunity to voluntarily assist the easement owner in the maintenance and monitoring of Nutrioso Creek from the subdivision to the Apache Sitgreaves National Forest downstream. Through a collaborative partnership between those associated with an ongoing working ranch, a conservation easement, and subdivision, the protection and preservation of open spaces, wildlife habitat, and a rural lifestyle may be assured for many generations to come.

3. Why do people grant conservation easements?
People grant conservation easements because they want to protect their property from unwanted development but they also wish to retain ownership of their land. By granting a conservation easement a landowner can assure that the property will be protected forever, regardless of who owns the land in the future. An additional benefit of granting a conservation easement is that the donation of an easement may provide significant financial advantage to the donor.

4. What kind of financial advantages result from donating a conservation easement?
Many landowners receive a federal income tax deduction for the gift of a Conservation Easement. The Internal Revenue Service allows a deduction if the easement is perpetual and donated "exclusively for conservation purposes." The amount of the tax deduction is determined by the value of the conservation easement. In addition, the donor may have estate and property tax relief.

5. What activities are allowed on land protected by an easement?
The activities allowed by a Conservation easement depend on the landowner's wishes and the characteristics of the property. In some instances, no further development is allowed on the land. In other circumstances some additional development is allowed, but the amount and type of development is less than would otherwise be allowed. Conservation easements may be designed to cover all or only a portion of a property. Every easement isunique, tailored to a particular landowner's goals and their land.

6. Can the landowner still sell or give the property away?
The landowner continues to own the property after executing an easement. Therefore, the owner can sell, give or lease the property, as before. However, all future owners assume ownership of the property subject to the conditions of the easement.

7. Does the public have a right of access to easement-protected property?
The public does not have access to property protected by an easement unless the original landowner who grants the easement specifically allows it. Most easement donors do not want, and therefore do not allow, public access to their property.

8. How long does an easement last and who upholds it in the future?
To be eligible for a federal income tax deduction the easement must be "perpetual," that is, it must last forever. The New Mexico Land Conservancy (NMLC) monitors the property, generally once a year, to assure that the easement is not being violated. If the easement has been breached the Conservancy will take whatever steps are necessary to uphold the terms of the easement, including taking legal action. Because of this obligation the Conservancy asks all easement donors to make a financial contribution to the Conservancy's Endowment Fund. This fund ensures long-term monitoring and enforcement of every easement the Conservancy receives..

9. Who owns the conservation easement?
To qualify for a tax deduction the easement must be donated to the government or a qualifying conservation or historic preservation organization. The EC Bar Ranch Conservation Easement has been donated to the New Mexico Land Conservancy (NMLC), a qualified federally recognized public charity (the "Conservancy") under Internal Revenue Code Section 501(C)(3). See www.nmlandconservancy.org. .

10. Who owns and manages easement protected land?
The landowner retains full rights to control and manage their property within the limits of the easement. The landowner continues to bear all costs and liabilities related to ownership and maintenance of the property. The Conservancy monitors the property to ensure compliance with the easement's terms, but it has no other management responsibilities and exercises no direct control over other activities on the land.

11. Does the easement have to cover all of the landowner's property?
No, some easements only cover a portion of the landowner's property. Again, it depends on the landowner's wishes. For example, the EC Bar Ranch is over 400 acres, of which 94 acres include Nutrioso Creek riparian corridor, defined as the FEMA 100 year floodplain plus 100 ft buffer on each side. The landowner has decided to restrict development only on these 94 acres. The remaining 300+ acres is not covered or affected by the easement. In the future, the landowner may wish to expand the easement property to adjoining lands. 

12. What kind of land can be protected by conservation easements?
IRS regulations require that the property have "significant" conservation values. This includes forests, wetlands, endangered species habitat, beaches, scenic areas and more. The Conservancy also has its own criteria for accepting easements. At the invitation of the landowner, Conservancy staff will evaluate the property to determine whether it meets these Conservancy criteria.