SECTION 175.15. Approval of Easements

(a) A contract holder may, with the approval of the board, grant easements or rights of way. These are of four general types:

(1) A right of way granted to the state or county for roads, channels, etc. The forms to be used in granting such an easement may be obtained from the board or the State Highway Department of Highways and Public Transportation.

(2) Utility easements for pipelines, electric lines, etc. The board requires use of its form when granting such an easement, except when an easement for a waterline is to be granted. In that case the FHA form may be used. If an FHA form is used, a course and distance description of the waterline must be attached.

(3) Flowage easements granted in connection with dams and reservoir projects. The agency administering the project furnishes the forms for such easements. An elevation contour map of the acreage involved, together with an engineer flood data sheet, may be used in place of a course and distance description.

(4) Easement for right of way purposes. The board does not require the use of a specified form for easements of this type. However, a form that may be used as a guide is available from the board.

(b) If a VLB form is not used, the following paragraph must be inserted into the grant of easement. This paragraph more fully explains the conditions of ownership of the tract of land: "The land herein described is under Contract of Sale and Purchase to grantor herein who will receive a deed to said lands from the Veterans Land Board when all the terms of said contract have been complied with. Grantor executes this instrument with the approval of the Veterans Land Board in accordance with the regulations of said board, which approval is signified by the signature hereon of its chairman." A signature block must be provided at the conclusion of the instrument, as follows: Approved this __________ day of __________, 20__ Veterans Land Board of the State of Texas by: ___________________________Chairman, Veterans Land Board.

(c) The contract holder must submit two original grants of easement to the board. These must be signed by the contract holder and acknowledged by a notary public.

(d) A fee must be paid to the board for review and approval of such easements. This fee is to be submitted to the board, along with the duplicate easement documents and any consideration paid, at the time the board's approval is requested.

(e) The consideration paid for the easement must be stated clearly and accurately. Statements such as "ten dollars and other good and valuable consideration" are not acceptable.

(f) All cash consideration paid for an easement must be submitted to the board. The board will distribute the consideration in light of the account's payment record, the amount of consideration and the effect on the value of the land. At least one-half of the consideration will be retained by the board and applied to the principal balance of the account.

(g) Any payment made to compensate for temporary damage to the land, such as to growing crops or to plowed fields, should be paid directly to the contract holder. The amount of such payment and its purpose must be specifically stated in the grant of easement.

(h) If payment is made for permanent damage to or depletion of the land (such as the cutting of timber), one half of that amount must be paid to the board. This amount is to be applied to the principal of the veteran's account.

(i) If the easement is to be donated, the grant of easement should so state

Source Note: The provisions of this §175.15 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective August 12, 2001, 26 TexReg 5838