Quarry Quandry

[Frank Bertrand]

appraising a 80 acre tract with played-out slate quarry over 1 acre. State surface mining law dictates that after mining ceases, land must be restored to original contours and pasture. Owner claims that this would cost in excess of $150K. This expense is in excess of the total value of the land. The other 70+ acres are timbered over hilly woods. A seasonal cabin exists as well as a few 'ponds' from played out sites. The owner, who has been quarrying this site for 20+ years indicates that he has tested other sites without luck for slate.

Now its' anybody definition when 'mining' ceases and reclamation must commence.

Any suggestions would be appreciated.

 

[George Hatch]

I know nothing about state mining laws, but it seems that would fall under the definition of a 'legal restriction' that is of effect on the market value of your site. You could try to find comparable sales with similar conditions that therefore have similar legal issues and take your cue from them. Maybe the parcel is splittable; sell the good half and keep the bad half? Or, this maybe this parcel might be worth more as environmental mitigation to the local developer types som they can pillage other suburban parcels without too much objection from the treehugger types.


Sadly (or not), the low overall value does not relieve us of the burden of competency. Either take the time to become the expert, or take the time to find one to refer this assignment to. You'll be doing everyone a favor. Especially yourself.

 

[Chris Colston]

Wow, have you brought back memories. I had an assignment like this in Maryland over 18 years ago. I worked with an MAI and it took us over 6 months (we had 10 quarry sites to work onat once). We had to talk to planning boards, zoning boards, determine highest and best use after reclamation. If residential subdivision, how many houses would it grow and what was the rate of sales until build out. If commerical, what type, strip center, regional mall, etc. One site became the on ramp for a new extension to the interstate that had been in the planning stage for 20 years prior to the appraisal. This is not a simple assignment and I hope you have local help beyond this forum. If I remember correctly the fee for our assignment was in the $20's of thousands and it was for an estate.

 

[Frank Bertrand]

Thanks Chris & George

I have come to the conclusion that this is most like other land with easements burdened on it, the only difference one can argue is that this is a dissimilar burden.

I could see the mental gymnastics one would be involved in with development and
subdivisions, zoning laws, etc. Luckily this is a parcel in a rural area which the highest and best use is woods for recreation given the poor soils, lack of septic perc, topography and similar uses nearly. 20 acres is cornfield, then timbered woods, and a few ponds with cross trails throughout.

Based on the principal of substitution, one would most likely substitute a parcel of similar characteristics but without the legal sword hanging over it. That is the sale type I am looking for, but won't find, given the rural characteristics of the area. . There are few active 'mining' permits in the area, and the permit application does NOT reveal the amount of bond/cleaning & restoring costs.

The quarry has been in operation for over 20+ years and the 1978 permit or there abouts has grandfathered in much less horrific restoration issues than today's permit. FOr example today, one must have a wetlands deliniation if ponds were created by survface water runoff, but NOT by sub-surface seepage. Go figure. Than's for your input.

 

[Restrain]

Interesting thing about a quarry. It can become a protected wetland that you Can't remediate. City of Mt. Pleasant, TX bought an old gravel/sand quarry, purpose to be a landfill. There was no remediation, because the city liked the holes...gonna fill 'em up with trash. Well, between the purchase and the time to begin filling up the holes, the holes got filled up with water. With water came plants, ducks, etc. Now the city can't touch the thing because it's a protected wetland.

Roger