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Reason Farms Conservation Easement Deed by the City of Roseville (“Grantor”) in favor of Placer Land Trust (“Grantee”)

A. Granter is the sole owner in fee simple of certain real property in the County of Placer, State of California, commonly lmown as the Reason Farms Environmental Preserve, more particularly described in Exhibit A attached hereto and incorporated herein (the “Property”).

B. The Property possesses wildlife and habitat values (collectively, “Conservation Values”) of great importance to the people of the City of Roseville, the County of Placer, the State of California, and the United States.

C. This Conservation Easement Deed covers·· 222.67 acres of real property more particularly described in Exhibit B attached hereto and incorporated herein (the “Mitigation Property”). The Mitigation Property contains 6.112 acres of preserved vernal pool/swale for the Roseville Energy Park Project (“REP”), 11.5 acres of preserved grassland for the REP, and 191.729 acres of Swainson’s hawk foraging habitat/Critical Habitat for the West Roseville Specific Plan Project (“WRSP”). The Mitigation Property will also be used to restore 0.552 acres of vernal pools and create 0.746 acres of seasonal wetlands for the REP. A total of 12.031 acres of Mitigation Property supporting upland/grassland has not been allocated to any specific mitigation project. This includes.11.2 acres of upland/grassland that is also designated as critical habitat for vernal pool fairy shrimp, and 0.831 acres of upland/grassland with no critical habitat designation. The future use of these 12.031 acres as mitigation would be subject to separate approvals as discussed in Section 5 below and is in no way intended to oblige or imply acceptance of these 12.031 acres of the Mitigation Property as acceptable future mitigation acreage.

D. This Conservation Easement Deed is being executed and delivered pursuant to the the settlement agreement for Defenders of Wildlife and Butte Environmental Council v. Norton, et al., Case No. 04-2478 DFL DAD, Eastern District of the United States District Court as described in the U.S. Fish and Wildlife Service Biological Opinion 1-1-05-F-0061 (the “WRSP Biological Opinion”) and the U.S. Army Corps of Engineers Permit (the “WRSP Permit”) and permit amendment (“Amendment”) (Regulatory Branch Number 200200666) issued for WRSP, and pursuant to the Final Environmental Impact Report for the West Roseville Specific Plan and Sphere of Influence Amendment – State Clearinghouse No. 2002082057. This Conservation Easement Deed is also being executed and delivered pursuant to the U.S. Fish and Wildlife Service Biological Opinion 1-1-05-F-0105 (“REP Biological Opinion”), the U.S. Army Corps of Engineers Permit, Regulatory Branch Number 200300637 (“REP Permit”), and the
California Energy Commission Preliminary Staff Assessment Roseville Energy Park Application for Certification (03-AFC-l). WRSP and REP are both located in the City of Roseville, Placer County California. All of these documents allow that mitigation/conservation requirements may be satisfied through the establishment of a conservation easement deed on the Mitigation Property. The Biological Opinions (Exhibit C), the Permits and Amendment (Exhibit D), and the Reason Farms Environmental Preserve Operations and Management Plan (Plan) (Exhibit E), dated June 14, 2005, which are attached hereto and incorporated herein by reference as though fully set forth (the “Conservation Instruments”).

E. The City is allowing the WRSP project proponent to mitigate the WRSP through the recordation of this Conservation Easement Deed at the Mitigation Property according to the provisions of the Reason Farms Conservation Agreement and Letter Amendment (“Agreement”). The Agreement is attached as Exhibit F.

F. The Mitigation Property provides or is capable of providing significant ecological and habitat values that benefit endangered, threatened, and other species ( collectively, “Conservation Values”), as set forth in the Conservation instruments, including: foraging habitat for Swainson’s hawk (Buteo swainsoni) and potential habitat for vernal pool species such as vernal pool fairy shrimp (Branchinecta lynchi).

G. The United States Fish and Wildlife Service (“USFWS”), an agency within the United States Department of the Interior, has jurisdiction over the conservation, protection, restoration, and management of fish, wildlife, native plants, and the habitat necessary for biologically sustainable populations of these species within the United States pursuant to the Endangered Species Act, 16 U.S.C. §§ 1531, et seq. (“BSA”), the Fish and Wildlife Coordination Act, 16 U.S.C. §§661-666c, the Fish and Wildlife Act of 1956, 16 U.S.C. §§742(f), et seq., and other provisions of Federal law.

H. The United States Army Corps of Engineers (“USACOE”), an agency within the United States Department of the Anny, has jurisdiction over Waters of the Unites States, meaning that Area defined in 40 CFR 122.2 as a feature under the regulation of the Federal Clean Water Act (“CWA”), and which is authorized by Federal law to administer the Federal Clean Water Act,§ 404, and other provisions of Federal law.

I. Grantor intends to convey to Grantee the right to preserve, protect, sustain, and enhance and/or restore the conservation values of the Mitigation Property in perpetuity.

J. Grantee is a publicly supported, tax exempt private nonprofit organization and a qualified organization under sections 501(c)(3) and 170 (h), respectively, of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (the “Internal Revenue Code”), and Section 815.3 of the California Civil Code, and whose primary purpose is the permanent preservation of natural and agricultural lands in the Placer County region.

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