Public Comment. Volume III - Montana Legislature

Robert Ochsner
April 5, 1994
Page 5
tion with its other reserves outside of the immediate project
area. Meridian considers the rail spur to be a permanent appurtenance.
The Department argues that this is not consistent with
the intended purpose as applied for and/or that was reviewed and
contained in the environmental impact statement. A provision for
review and possible extension of the easement could be considered
if the Board so chooses.
Presently, the Department does not have damages settlement statements
between Meridian and two of the four surface lessees affected
by the proposed easement. These lessees also hold private
lands adjoining the state lands and are among some of the private
land owners who are not willing to grant easements or sell their
lands to Meridian for this rail spur. Meridian has indicated to
the Department that it intends to pursue condemnation action
against the remaining hold out land owners.
As mentioned above, the Department is not convinced Meridian will
be successful in this action and therefore does not feel it would
be in the State's best interest to unnecessarily encumber its
lands by issuing easements until such time as this matter has
been settled through the courts.
If the Board approves the easement request, the Department feels
the easements should not be issued until ~eridian successfully
acquires all of the other lands necessary for the rail corridor.
Meridian should be required to provide the Department proof of
said acquisitions prior to issuance of any easement or other
authorization of entry to begin any construction.
COMPENSATION
This item is related to two issues regarding compensation due the
state. First, the majority oi. the state school trust lands which
this easement would affect are enrolled in the Federal Conservation
Reserve Program (CRP). If the easement is issued, the affected
lands will have to be withdrawn from the existing CRP
contracts and funds, possibly plus penalties and interests, will
have to be repaid (reference ASCS memo attached). In addition
the Department and its lessees will be losing revenues that they
otherwise would have received had the contracts not been terminated.
The Department feels Meridian should be required to pay
all refunds, penalties, interest or damages levied by the U.S.
Government as a result of the cancellation or modification of the
CRP contracts. In addition Meridian should be required to pay,'
in advance, in one lump sum all future revenues lost as a result
of any CRP contract cancellation or modification.
The second matter is the valuation of the easement itself and
whether the compensation for the easement should be based on .
comparable sales of lands in the area or based on comparable
-252- Volume Ill: Public Comment