Wind Farm Lease Agreement

You`ll probably need extra insurance to meet your compensation obligations, Ferrell says. “This is especially important when you rent the property to hunters.” He added that the increased insurance requirements for the landowner should be taken into account in compensation negotiations. They must also avoid damaging wind structures. Vehicle accidents, fires or other breakdowns can result in significant losses that may not be covered by your personal and agricultural liability policy, Aakre says. Ferrell is also asking landowners to form a bargaining group “when you hear that someone in your area has been approached with wind energy. You are strengthening your bargaining power.┬áLandowners should also ensure that the agreement fairly compensates them for the ongoing damage caused by these restrictions, or provide that the developer repairs the damage to the landowner`s property in time. For example, the agreement should stipulate that the developer must repair (within a reasonable time) all debit tiles damaged as a result of the developer`s activities. The agreement should also provide for repairs and/or compensation for soil compaction and other similar types of damage. This material is the work of the author. Not all of the views expressed are necessarily those of National Wind Watch. The copyright of this document is due to the author. As part of its non-commercial efforts to present the environmental, social, scientific and economic issues of large-scale wind energy development to a global audience seeking such information, National Wind Watch strives to observe “fair use,” as provided by Section 107 of the U.S.

Copyright Act and the “fair” provisions of other nations` copyright laws. Ask for the e-mail. The wind farm contract generally grants the developer an automatic right to extend the agreement beyond the early stages of the investigation for an additional period of 30 to 50 years (or more, subject to current government restrictions). As a general rule, the developer agrees to one of the following conditions: (1) to make a regular minimum payment to the owner for the extended period of time, (2) to pay the owner a payment at the beginning of the extended term, or (3) to install on the land a number of wind turbines producing electricity (or starting to pay an extended minimum payment stream). The number of wind turbines that the developer must install on the ground to trigger the automatic duty to an extended period without having to pay a higher minimum payment to maintain the existing agreement is the subject of negotiations by the parties. When determining the proposed initial and extended duration of a wind farm contract, the developer should take into account all the requirements or restrictions imposed by current national legislation. As has already been mentioned, some states, particularly in the Midwest, set strict deadlines that must be met to maintain the current wind energy contract, and, depending on the state, development of the project must begin or commercial development must begin within a specified time frame, even if the wind energy contract contains a more flexible provision.

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