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,v Federal Register / Vol. 54. No. 40 / Thursday. March 2. 1989 / Rules and Regulations 8919 �r , in i 24.103(5)when the property value many alternative locations available, fraud waste,and mismanagement Is exceeds$2,500. and one of the owners will usually be readily apparent ';, Reply:That is not the intent of these happy to sell a satisfactory site. The reader la directed to the sections.Under the appraisal waiver Reply:It was this kind of situation discussion under 124.104 in Appendix A provisions of i 24,102(0(2),the utility FHWA contemplated when it developed for further information.As stated there, ' company has the option of not making the voluntary transaction policy and in low value,uncomplicated situationo a an appraisal if the value is estimated to criteria found at 124.101(a)(1).If an signature may suffice as the reviewer's i be less than$2,500,and the valuation acquisition meets the criteria,Subpart B statement. ! problem is simple and straightforward. requirements do not apply. _ See the preamble discussion of that 8.Section 24.102(j)regarding a deposit raised The foregoing discussion of issues section for further information. with the court is in conflict with our assist t n the comments as idtoth es to 4 Under the appraisal standards in State law on various points.State law assist utility companies and others in 1 •24.103(a).the utility company specifies a different place for the the implementation of these regulations and to describe bow the impact of these essentially determines its own appraisal deposit,and is likewise specific on how regulations on cooperatives will be documentation standards and policies. the amount of the deposit is to be limited.However.it is possible that particularly with respect to acquisitions determined. there may be other questions that have which do not require a detailed Reply:The provision comes from not been answered.We encourage any appraisal.The intent of this provision is section 301(4)of the Uniform Act.and. further comments to the impact to match the extent of the analysis and as noted above,is applicable to the of this regulation omment on rural electric documentation to the complexity of the greatest extent practicable under State cooperatives.Any further comments on appraisal problem. law on federally assisted projects.If thiso erativesubject will be wiperconsicom antnd.if in difficult,complex valuation State law prescribes a different process warranted thew regulationbwilld be situations,124.103(1)requires there is no conflict because State preparation of a"detailed"appraisal, eminent domain law prevails.See also amended and/or the discussion in the and specifies the minimum content of (l 24.4(a)regarding assurances. preamble will be supplemented. such appraisals.The minimum content 9.just compensation in our State is Most if not all.Federal financial specification apply only to detailed based on the before end after rule, assistance for utility companies comes appraisal reports.Several commenters rather than the take plus damage rule.If through the REA of the USDA.FHWA missed this point we were to appraise damages intends to work closely with Finally,there is no necessary separately,as seems to be necessary Departmental officials in effecting connection between the$2,500 appraisal under I 24.103(ax5),the appraisal would smooth implementation. waver ceiling,and the need to prepare not be admissable in court Section 24.102 Basic Acquisition a detailed appraisal report The decision Reply:The language in section 301(3) policies on when to secure e a detailed appraisal of the Uniform Act recognizes the f lies primarily with the utility company. differences in State law on what Section 24.102(cX2).This section based on its assessment of the situation. constitutes fust compensation.It was addresses waiver of appraisals.One 5.The regulation appears to require not FHWA intent to force a different comment said agencies should have the that we contract for the services of appraisal process.This oversight has latitude to decide not to obtain an independent appraisers,even though we been corrected by the addition of appraisal where property maybe have well qualified appraisers on our "where appropriate"to;24.103(1)(5). donated without first obtaining a release staff. 10.The requirement for a review from the owner. Reply:This is incorrect The use of appraisal in 124.104 should be deleted The Agency has that discretion for the staff or outside personnel for appraisal except for high value situations. under$2,500 value category.A prior work is entirely at the discretion of the Reply:FHWA has not adopted this release is not necessary.However,the utility company.The only policy which recommendation because of the FHWA does not agree with extending addresses this issue is I 24.103(d),which importance we place on the appraisal that same policy to all donation essentially states the appraiser must be review function. situations.An owner may want an qualified to perform the work.. The comment indicates there may be appraisal and an offer before making a 9.The regulation appears to require a misunderstanding.Section 24.104 does decision to donate,and it is only fair to that we give the owner a copy of the not require an appraisal by a reviewer maks the owner aware of this option. appraisal.which will hinder (although the reviewer may choose to do Onegotiations. so because of an inadequate appraisal the matter of establishing the Reply:The regulation does not require report).Rather,this section is intended dollar threshold at 52,500,four stated it that the owner be given a copy of the to require a review of the appraisal or was too high,seven said it was too low, appraisal.In some cases this Is a matter appraisals on a property. and ten stated$2.500 was acceptable. of State law,but in the typical situation The review is an essential part of the FHWA has decided to retain the it is a negotiation policy decision at the process of establishing the amount of proposed threshold. discretion of the Agency. the offer of just compensation to be A commenter raised the question of a In I 24.102(e),the owner la required to made to the owner.la simplistic terms, review where no appraisal has been be given a written offer and summary the reviewer checks for errors of fact. made.Other comments questioned how statement which.in very brief terms, consistency of value from property to an Agency is going to know if an amounts to a description of what the property,and general adequacy of the acquisition is worth less then$2.500 in offer is for.A utility company may wish appraisal as a basis for the offer of just the absence of en appraisal. to contact the State highway agency and co ation. Section 24.102f c)(2)contemplates that obtain a copy of its summary statement Wherenthere is only one appraisal.the an informed judgment will be made by a form or format for use as a guide. reviewer is that critical second party qualified person.While it is not a 7.These regulations are not - involved in the of setting the regulatory requhement.prudence a jpx use f n o amount of We o�The association suggests the-valve Calculation bo is - stadenfifes.Gen are with I24.4(c)eigardEaS rantionof writing,andbelstainsd ys•.rc.,c