(a) If Rural Development attempts to acquire real property at the request of a Governor through purchase or trade and is unable to do so, Rural Development may take action to condemn the real property by the following procedures:

(1) A request for condemnation shall be submitted by the Rural Development State Director to the Under Secretary for Rural Development, Washington, DC 20250 at the request of the Governor of the appropriate State. A copy of the Governor's request for Rural Development real property condemnation and the State Attorney General's opinion that State and local government condemnation authority is lacking shall be attached to the Rural Development State Director's request.

(2) The Under Secretary for Rural Development shall forward all requests for Federal condemnation to the OGC, USDA with a recommendation for action.

(3) The Under Secretary for Rural Development shall inform the Governor of any action on the request for condemnation.

(4) Real property condemned by Rural Development shall be transferred to the requesting State by a quitclaim Deed for a price equal to the fair market value of the real property in accordance with terms of a negotiated real property transfer agreement.

(5) After obtaining title to real property and prior to transfer to the State, the property shall be managed by Rural Development in accordance with part 1955, subpart B of this chapter.

(b) Rural Development may not condemn Indian Trust Land or U.S. Forest Service Land.