Appraisal Report for ALP Relinquishment Areas 1 & 2

LOVE APPRAISALS, INC.
PROPERTY RIGHTS APPRAISED
The nature of this appraisal, estimating the market value of Reclamation's
perpetual easement in the Relinquishment Areas, first requires the analysis of the
fee simple estate on the larger parcels because no sales are available of a similar
perpetual easement or sales with similar perpetual easements. The fee simple
estate is defined as, "Absolute ownership unencumbered by any other interest or
estate, subject only to the limitations imposed by the governmental powers of
taxation, eminent domain, police power and escheat" (Appraisal Institute, The
Dictionary of Real Estate Appraisal, 5th Edition, Chicago 2010, Page 78).
I do not have a current title policy for the Relinquishment Areas. The Title
Policy included in the Addenda encompasses all 46.27 acres including the
Relinquishment Areas. It shows that the fee simple estate had numerous
encumbrances. Exceptions 1 through 8 are typical exceptions. Exceptions 9
through 20 are utility and access easements associated with the historic use and
remediation project. Inspection of the property, and all of the plats that I have of
the Durango Pumping Plant, indicate that these exceptions have either been
abandoned or are typical utility easements on the periphery of the property.
Exception 19 is for two electric transmission lines which transect the Durango
Pumping Plant portion just north of the Relinquishment Area #2. Exception 20 is
for the same power lines, but on property west of Relinquishment Area #1.
Exceptions 21 and 22 are contained below. The documents referenced in
the exceptions are included in the addenda.
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