Windmills

[Anonymous-0]

Was to a meeting the other night about electric windmills. Seems a couple of different companies are interested in placing the towers in the area. They were offering $5 an acre for a 3 yr holding agreement. Anytime in the 3 yrs. they can put an easment on the land for the towers. If they put a tower up, they pay $3500 to $5000 a year for the rights. The easment and towers would be there for 25 to 30 years and then they would either take them down or redo the contract. The yearly payment would be on a sliding scale. Some folks thought it was an ok deal, others said they wouldn't take it. Any one else run into this kind of deal?

 

[Anonymous-0]

Sounds similar to what they have done around here. Better than an oil well. 20 of them on 40 acres or less figures to be a good income. 150 or 200 of them..........not hard to figure. money is still there in drought and flood.

 

[Walt Davies]

My wife's niece works for a company that installs Windmills. She is coming up this way next year to look into putting then in the Colombia gorge area.
Walt

 

[Anonymous-0]

I just posted a long message that got lost. Email me at [email protected] if you wish. I have been deeply involved in a fledling wind farm for 4 years.
Keith

 

[Anonymous-0]

Don't know about the acreage involved, but seems to me $5/acre won't even cover the cost to have your attorney look over the "holding agreement."
That part just sounds a bit hokey to me.

I reckon the windmill deal is a good one if you can get it. Out in my neck of the woods cell phone towers are the money-from-nowhere makers

 

[Anonymous-0]

The big ones they put in now you are not going to get 20 on 40 acres or less. In our area 6 on a quarter section (160 acres) is the most you will get. They do steal wind from one another if too close together. They work best on rangeland (not really using up much space, cows graze right up to them. you make sure they lease the whole quarter at $5. In our case the lawyer (one very familiar with this sort of thing) charged $400.00 to a GROUP of us that signed a 60 quarter lease. Spending $400.00 to get $45000.00 per year makes the lease alone a good deal even if no development happens. I recommend that you don't sign a flat rate per tower without knowing what size tower you are talking about. We negotiated a rate per tower plus a percentage of GROSS REVENUE. Also access fees, etc. In the rate per tower we based it on a 1 MW size. You also have to consider whether the company you are dealing with is interested in development or exploration. BTW the company we picked, had 4 choices was Suncor who does have deep pockets,

 

[Anonymous-0]

MSD, Down here in Texas the usual rate is $1000/month/tower pmt on a 20 yr contract. I know that is the rate in the Sweetwater area. This area has more toweres than the entire state of Calfornia.
Personally I would wave the Hold Contract if they would guarentee me 20 towers with opitions for more.
And I stipulate the ingress/regress/damages contract.
They usually like about 5 acres or so/tower for a density. I would hold out for atleast $500/month/tower,If the above figures is the norm in your area. Or make it payable at the first of the year in a lump sum.
Remember you will have to Look at, Farm around, have service trucks on your place in all sorts of weather, and times of the day or night SO You Had Better Make It Worth Your While!!!!
Later,
John A.

 

[Anonymous-0]

have a good lawyer check out everything. a friend of mine has a chance to get one on his farm. after he read contact and changed things to the way he wanted windmill people said they don't want to deal with him as he asked to many questions.

 

[Anonymous-0]

Here they were talking that 4 per guarter was an ideal amount. They are pretty good size towers-400 ft. tall. They also are offering $18 an acre for the wind rights if you don't want to have the tower.

 

[Anonymous-0]

Keith, I couldn't get the email to go through to you. You can email the reply to me.

 

[buickanddeere]

Around here the wind turbine companies sent a innocent looking scout first.
He only got maybe 15 to 20% of land owners to sign the 1st offer.
However on a couple of hundred wind turbines. He saved the company 5-6 thousand/yr each turbine in payments. And no company liability for the tower and turbine neither now or in 40+ years when worn out and has to be removed.