Policy Bulletin 309 - Refused Easement
Adopted 2007/12
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In the event the Corporation requests an easement to facilitate the construction of its system, and the owner of the parcel across which the easement is requested refuses to grant an easement, then the following rules apply:

1. The Corporation may redesign the affected portion of the system in order to avoid the property over which an easement has not been granted, and the increase in cost necessitated by that change shall be recorded in the records of the Corporation.
2. At such time as water service from the Corporation is requested by the person who owns the parcel on which an easement was refused, then the applicant for service shall be required to pay for the increased construction cost described above, as well as any regularly applicable membership fees and charges for water services.
3. These rules apply to water service requested on the parcel upon which the easement was refused, as well as the request for service on any other property owned by the person who refused to grant an easement.
4. The construction cost recapture provisions of this policy shall run with the land and with the person who refused to grant an easement.
5. In the event that an owner of property grants an easement on certain property but refuses an easement on a different parcel of land, the Southern Black Hills Water System in its sole and exclusive discretion may decide if the refused easement warrants application of the rules set out in items I through 4 of this policy.
6. In the event that certain construction costs are recaptured pursuant to the provisions contained in items I through 4 of this policy the funds recaptured shall be paid to the party or parties (as their interests may appear) that incurred the cost of increased construction expenses. If said party or parties are person(s) or entities other than Southern Black Hills, then Southern Black Hills may withhold a reasonable amount from the funds recaptured to defray expenses associated with the collection and/or dispensation of said funds.
7. In the event a parcel of land subject to the construction cost recapture provisions of this policy is the subject of a bonafide, irrevocable sale, donation or other transfer of fee simple title to a person or entity not otherwise subject to the construction cost recapture provisions of this policy to be used (and actually used) for religious, cultural, educational, charitable or other, similar uses, then the construction cost recapture provisions of this policy may be waived in whole or in part by the Board ofDirectors in its sole and exclusive discretion. This section of this Policy Bulletin 309 may in the sole and exclusive discretion of the Board ofDirectors be applied retroactively.
8. In the event a person or other legal entity subject to the construction cost recapture provisions of this policy makes a bonafide transfer of real estate to a person or entity not otherwise subject to the construction cost recapture provisions of this policy to be used (and actually used) for religious, cultural, educational, charitable or other, similar uses, then the construction cost recapture provisions of this policy may be waived in whole or in part by the Board of Directors in its sole and exclusive discretion. This section of this Policy Bulletin 309 may in the sole and exclusive discretion of the Board of Directors be applied retroactively.
9. The construction cost recapture provisions of this policy shall not be applied retroactively to remove a service location or discontinue service if the construction cost recapture provisions of this policy were not applicable to the real property or real property owner at the time the service location was installed.
10. Nothing contained in this policy shall be construed as a waiver of Southern Black Hills power of eminent domain.