R850-40-1600. Easement Assignments

  1. An easement may be assigned to any person, firm, association, or corporation qualified under R850-3-200, provided that:

  (a) the assignment is approved by the agency;

  (b) if the easement term is perpetual, the easement shall be amended so that the term is 30 years beginning as of the original effective date. However, if the remaining number of years on an easement so amended is less than 15 years, the ending date of the easement shall be set so that there will be 15 years remaining in the easement; and

  (c) payment is made of either:

  i) the difference in easement rental between what was originally paid for the easement and what the agency would charge for the easement at the time the application for assignment is submitted, or

  ii) alternate consideration established by, and at the discretion of, the director. In allowing for any alternate consideration the director may consider the following factors:

  A) the consideration established under R850-40-1600(1)(c)(i) would create an undue financial burden upon the applicant, or

  B) the assignment facilitates an agency objective.

  2. An assignment shall take effect the date of the approval of the assignment. On the effective date of any assignment, the assignee is bound by the terms of the easement to the same extent as if the assignee were the original grantee, any conditions in the assignment to the contrary notwithstanding.

  3. An assignment must be a sufficient legal instrument, properly executed and acknowledged, and should clearly set forth the easement number, land involved, and the name and address of the assignee and, for the purpose of this rule shall include any agreement which transfers control of the easement to a third party.

  4. An assignment shall be executed according to agency procedures.

  5. An assignment is not effective until approval is given by the agency. Any assignment made without such approval is void.

  6. Assignments made for no consideration in money, services, or goods, to include assignments made to affiliates (e.g. wholly owned subsidiaries) of the easement grantee, and to include inter vivos or testamentary assignments made to immediate family members (parents, spouse, children, grandchildren, and full siblings) and assignments from and to business entities wholly owned by an immediate family member or members, may be exempt from the requirement to pay the difference in easement rental established under R850-40-1600(1)(c)(i).