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Model Conservation Funding Covenant and Commentary

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Author: Patricia L. Pregmon, Esq. and Andrew M. Loza
Org./Source: Pennsylvania Land Trust Association
Year: 2011

Used to secure payment of deferred contributions, private transfer fees and other conservation contributions promised by present landowners and to be paid by either them or future owners. The model offers ten basic ways to structure financial arrangements. Read the commentary, not just the model document!

Files for Download or Pages for Viewing

ConFundCovenant-Model111207.doc (68.0 KB)
ConFundCovenant-Commentary111111.doc (219.0 KB)

http://conserveland.org/modeldocs

Item type(s): Model
Topic tags: Conservation Easements, Transfer Fees & Stewardship Contributions
Related guides: Conservation Easement, Model Conservation Easement, Model Legal Documents, Pledges and Donation Agreements, Riparian Buffer Protection Agreement, Stewardship Fees: Binding Future Owners to Present Promises

Last modified by Andy Loza

Comments

Anonymous on 11-01-2011 11:30 AM

The provision granting to the holder a percentage of the proceeds of a timber sale raises several issues —

  • It gives rise to the appearance of a conflict of interest since the proceeds from a timber sale may have little relation to the actual costs of reviewing and monitoring the activity. Permitting poor forest management can significantly raise the proceeds from a timber sale, resulting in additional funds going to the holder. The appearance of a conflict of interest can easily have just as deleterious impact as an actual conflict and could easily be avoided by requiring a deposit to escrow and then invoicing for the actual expenses incurred.

*The way the section is worded implies that the holder will directly undertake activities such as insuring reforestation and E & S control/remediation. Those would more appropriately be addressed in the resource management plan and its review and approval and be the responsibility of the owner or timber sale contractor.


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Last modified Dec 07, 2011