Katherine Strasburg - Page 13




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          one of 19 accredited rural appraisers (ARA's) in the State of               
          Montana.  The ARA designation is the highest professional                   
          designation offered by the American Society of Farm Managers and            
          Rural Appraisers.  Wheeler's area of expertise is the appraisal             
          of conservation easements throughout the western United States.             
                    b.  Wheeler's Methodology and Conclusion                          
               Wheeler used the "before and after" method to determine the            
          fair market value of the MLR easement in 1993.  Wheeler produced            
          two reports containing purported comparable sales related to the            
          fair market value of the MLR easement.  The first report,                   
          produced in 1993 (the 1993 report), was Wheeler's original                  
          analysis of the easement's fair market value.  The second report,           
          produced in 1998 (the 1998 report), was referred to as a                    
          "consulting report prepared to serve as a supplement to my                  
          original appraisal."                                                        
               The 1993 report provides Wheeler's conclusions as to the               
          fair market value of the MLR easement.  In the report, before the           
          MLR easement, Wheeler opined petitioner's property had a fair               
          market value of $7,500 per acre or $2.4 million (i.e., 320 acres            
          x $7,500).9  After the MLR easement, Wheeler concluded that                 

               9This per-acre "before" value is different from the value              
          stipulated by the parties.  In his 1993 report, Wheeler used                
          petitioner's 1992 cost basis as the "before" value of                       
          petitioner's property.  Later, Wheeler agreed with respondent               
          that the proper fair market value of petitioner's property in               
          1993 before the grant of the MLR easement was $8,200 per acre or            
                                                             (continued...)           





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