Академический Документы
Профессиональный Документы
Культура Документы
A Farmer's Perspective
Colette McLean
Essex County
Other sources
www.windaction.org
www.wind-watch.org
Wind Contracts
2 components:
Option agreement
− Usually for 5 years
− Payment usually of min. $1000 per year
− Once signed, grower is bound to the contract
− Developer can pull out at any time
Land Lease agreement
− Usually for 20 years, automatically renewed for
additional 20. (some are up to 50 years)
− Revenues are based on % of sales, avg over all
turbines in project area
Wind Contracts
Option agreement
− 5 years can be considered a long time
inhibits other developments
− Does not guarantee a turbine
But can subject you to no setbacks to lot lines
− Can subject you to other developments
(transmission lines, roadways, switching stations and
transformer stations)
− Once expired, not in any way obliged to
continue (Port Burwell)
Wind Contracts
Land Lease agreement
− Lease not an Easement
− Easements are difficult to discharge
− only on land the turbine will be located
− Term of 20 yrs is due to Planning Act
may want more time & notice when renewal is due
− Revenues depend on SOA or PPA
(usually 2-3% or a straight outright payment/yr
$5,000 to $12,000/yr
Revenues during construction
Wind Contracts
OTHER PITFALLS
First Rights of Refusal on sale of land or on
development or granting future rights
− (eg. gas, gravel, your own renewables)
Postponement of mortgage
Construction Liens
Maintenance & Location of Roadways
Renegotiations of terms
Arbitration for damages
Indemnification for damages to turbine,
worker safety, neighbours rights
Wind Contracts
PITFALLS (Continued)
Property values – landowner & neighbour
Effect on Financing??
Effect on landowners insurance??
Does developer have licenses(OEB), contracts(OPA),
or rights of connection (Ont. Hydro) etc?
− Wind Development has dominated all transmission
capability in Ontario, no more room
Is developer selling to a subsidiary?
Is developer getting carbon credits?
Will developer use your property for other activities
(storage, fuelling (spills))?
Wind Contracts
PITFALLS (continued)
Removal costs - responsibility?
− Include all wiring, all of the foundation
− scrap value is limited, $30/tonne
− est.cost in Europe $1.3 million
Bankruptcy – right to terminate
Legal fees – developers cost
Equipment removal
− time should be stipulated
Appearance of turbine
Stipulate times for maintenance work
How will disrupted lands be refurbished
− (tiles, imported soil, loss of crops)
Wind Contracts
PITFALLS (continued)
May limit future construction (new barns etc)
Non Disclosure Agreements (Ripley)
Contracts are with off-shore developers
Change over of lease – notification