1. UTILITY EASEMENTS AND SUBDIVISIONS Prepared for Rapid Fire Case Studies October 31, 2012 Present by Donald A. Fisher, MAI

2. Survey Question: Do Pipelines and Powerlines have significant affects on adjacent residential properties?

3. Powerline and Pipeline East of Pinnacle Road along Blackwell Lane & Wickwine Lane, Henrietta

5. What do you think is the impact of the Powerline on adjacent homes?

6. Negative Factors

7. Positive Factors

8. South Side = $65 per SF average assessment North Side = $69 per SF average assessment +6% increase of average assessments from adjacent residences to houses one lot away from the powerline

9. Reverse of Golf Course Effect Use as Support for Negative adjustment to residential properties adjacent to Powerlines

11. Residential Lot & Existing Pipeline Easement

18. Total Lot Area = 4.200 Ac. Existing Gas Line Easements = 0.259 Ac. Crosses Lot in Front of House Original Fee Simple Area = 3.941 Ac. Assignment: Value Loss from Removal of Trees for New Pipeline

19. Does Removal of 25% of Trees on Lot Affect Value?

20. Survey of Residential Lots < 5% Tree-Covered > 5% & < 50% Tree-Covered >50% Tree-Covered

21. Category Average – Median Range Average $/Ac. Price Median $/Ac. Price Less than 5% Treed $252,315 - $271,258 $57,715$51,493 Less than 50% Treed $236,269 - $240,168 $64,910$63,856 More than 50% Treed $187,257 - $202,938 $47,257$54,848

22. Reasons for Heavier-Treed Lots to Have Lower Values

23. Reduced Views More Open Better Lighting Fewer Leaves Less Isolated

24. Heavily-Treed Lots (Before Value) Showed A Value That Was $15,000 Less Than Partly-Treed Lots (After Value)

25. Before Value of Lot = $225,000 After Value of Lot = $240,000 Damages to Lot Due to Removal of Trees » = - $15,000

27. Open Space / Farmland With Existing Pipeline & Powerline & New Pipeline

31. Highest and Best Use – Before Appraisal EU 1 – Residential Development Land (70 Ac.) EU 2 – Residential Development Land (9 Ac.) EU 3 – Livestock Farm (15.10 Ac.) EU 4 – Residential Development Land (23 Ac.)

32. Land Area Total Acres Easement Acres Fee Acres EU 1 (U/Ground) 0.82 EU 1 (M&R Station)0.22 EU 1 (High Voltage Electric) 3.37 Total Acres - EU 170.604.4166.19 Percentage of Total Acres 100%6%94%

34. Land Area Segment Acres Retained Rights % Effective Acres EU 1 - Fee Simple (Before)66.19100%66.19 EU 1 (U/Ground)0.8225%0.21 EU 1 (M&R Station)0.225%0.01 EU 1 (High Voltage Electric)3.3710%0.34 Totals70.6095%66.75 Lost Rights5%

35. Land Area Segment Acres Retained Rights % Effective Acres EU 1 – Fee Simple (After)64.04100%64.04 EU 1 (U/Ground) - Old0.8225%0.21 EU 1 (M&R Station) – Old0.225%0.01 EU 1 (U/Ground) - New1.8225%0.46 EU 1 (M&R Station) – New0.115%0.01 EU 1 (Perm. Access Rd.)- New0.2225%0.06 EU 1 (High Voltage Electric)3.3710%0.34 Totals70.6092%65.13 Rights Lost8%

37. Damages Direct Damages (Land) = $51,000 Indirect Damages = $0 Temp. Esmt. – Construction = $7,000 Temp. Esmt. – Access = $10,500 Cost-to-Cure (Fencing)= $20,000 Total Damages = $88,500

38. Alternative Valuation (from Owner’s 2-pg appraisal) Estate Lots @ $250,000 each (Gross Sum; No Expenses or Discount) Damages Loss of 1 Lot @ $250,000 2 Lots 50% Damages @ $125,000 Each Total Damages = $500,000

40. New Subdivision & Pipeline

43. #AcresComments 12.0134Pipeline easement 22.5660Pipeline easement 33.0400Pipeline easement 43.5074Pipeline easement 54.4691Pipeline easement 63.2944Drainage easement 72.11511+ acre drainage easement 84.7803Drainage & pipeline easements 94.1751Pipeline easement 102.0545Minimal pipeline easement 112.1688No easements 122.3665No easements 134.5409No easements 1423.1339No easements 152.2975No easements 164.5175Drainage easement Totals71.0404

46. Damages Direct Damages (Land) = $0 Indirect Damages = $0 Temp. Esmts. – Construction = $26,000 Cost-to-Cure (Re-drafting plans) = $10,000 Cost-to-Cure (Timber) = $5,000 (comment) Total Damages = $41,000

47. Survey Question: Do Pipelines and Powerlines have significant affects on adjacent residential properties?

48. QUESTIONS?