OT Wind energy lease

[wrench101]

I have been contacted by a major power company about signing an easement lease for a Wind Energy Development. Witch may or may not include the placement of a wind turbin or turbins or susporting equipment on my farm in NE. Michigan. Has anyone had any experence with these type of developments or leases? Looking for some input befor I commit. Thank you

 

[Gun guru]

Be sure to have an attorney look over any contract and be sure to not be to low on the asking price, how much land for the easement?

Detroit Edison wanted a 660' X 30" easement down the entire south side of my land, I said no way, you get a 30'X 10" easement at the pole only. I didnt want some bozos hired by Edison to come in an cut down my trees.
Be careful......They likely dont give a rip about you.

 

[Anonymous-0]

I am seeing this happen all over the Country -- Wind Energy is going up everywhere it seems -- It is very wise of you to make yourself aware of any pit-falls there may be.

It would be smart to have your contract read by a Contract Attorney for pit-falls, (all contracts are different) with out reading the contract - I would say leave room for changes in the future to be at your advantage is my advise for you.

 

[IH2444]

Darn leasing wind now ? I guess they will lease sunlight next

 

[cornfarmer]

I am told around here landowners are getting about $5,000/year lease for each windmill and access road, and $$ for compaction caused by initial construction. Not too many refusing the offer.

 

[msb]

Involved with a new one in western Indiana. Google Indiana Farm Bureau. Think maybe its under community affairs or something like that.Lots of good info there. We will be getting $20 an acre for the exploratory lease and are expecting $7,000 annual per tower with a 20 or 25 year lease. Shop around.Lots of companies doing it.Don't sign with the first company that comes down the road.Google them too.Turbines are sold out for 2 years ahead . Be sure the company you go with can get turbines.Hire an attorney that is familiar with wind energy. There are a lot of fly by nites (speculators)out there just looking to make a fast buck.E mail me if you like. One tower will produce $630,000 per year on average here, so they have a lot of wiggle room in their bid.

 

[Anonymous-0]

I would worry about signing a lease agreement for more than a few years at a given amount of dollars per year. Why? Inflation! Twenty five years ago, who would have thought that we would be paying $3.50/gallon for gasoline like we are today. Maybe $5000 or $7000 is a good deal today, but will it still be in say, 15 years? I would try to either get the lease term be about 5 years or else have something in it to raise the amount paid if the cost of living or rate of inflation goes up significantly.

Our dollars sure don't buy as much as they used to...and I think that is only going to get worse.

 

[Anonymous-0]

I just returned my signed contract to Florida Light and Power. They are one of the bigger wind producers in the country. They are planning a big project in Northeast SD next year. They sent a copy of the contract to look at and ask questions about. If we were interested, they would send three copies of the actual contract with the legal descriptions and payment terms. One copy to keep and two to send back. They would send the third one back when they signed it. If we signed within 30 days of getting the contract, they gave a $1000 signing bonus. The payment for the actual lease option is $1000 per year regardless of how many acres you have. That runs for 3 years. If they decide to renew the option for another 2 years, you get a renewal bonus of $1000 plus your annual $1000 payment. The tower payment varies according to the size of the turbine they put up. If you don't get a turbine, you have given them the easement rights to your land, if they put a road in they pay extra for that. If they bury power lines or go overhead they pay for that also. Everyone that had a chance to sign up did as far as I know. There was another company that was working the area that paid $3.75 per acre per year for the lease option and about the same per turbine-in the $5000-$7000 range. The lease runs for 50 years. I think most of the guys went with FLP as they paid the best up front. The contract was long but not that hard to decipher if you have ever read any contracts and have some understanding of how they read. My brother had an attorney look at his and thought it was ok.

 

[Anonymous-0]

In the contract I described above, they give a 2% per year increase in the rate of payment on the turbines. Both companies were the same on that. Might or might not keep up with inflation. Towers cost 2 million each.

 

[BillinCentralMO]

We declined the wind turbines. Our farm is big , almost a mile deep. I thought the payment was nominal.I did not want folks coming and going for the next 50 years. It said they could come and go as they wished.I feel no need to look at a wind turbine.I think its a great idea. We need to use alternative energy sources. I did not want it at my favorite place to be. The salesman was aghast , stating everyone else was agreeing to it. I wished him and everyone else good luck with it. The electric co. approached us years ago. I am always glad we don't have overhead wires.

 

[Duner Wi]

I would have questions about real estate taxes?