Wind Farm Option Agreements

Other signs that the developer has the know-how and resources to build a wind farm include an agreement to sell wind energy to a distribution company and an agreement to connect to the electricity grid. III. The purpose of the agreement and the use of the property. Another common problem is the purpose of the wind farm contract and the uses the developer can make of the property to achieve this goal. The obvious objective of a wind farm contract is to enable the developer to identify one or more wind projects and then build and operate it. However, the developer and landowner cannot match the scope and extent of the property rights the developer needs to achieve this goal. As a general rule, developers want the right to take action and use the property that the developer deems necessary to achieve the objective of evaluating, building and operating its proposed wind projects on or via the property. This generally includes the right to grant other rights as part of the use authorized by developers if necessary or desirable for the developer. For his part, the landowner may wish: that these rights be restricted so that the landowner has more control over what, where and how the developer can develop the land, and that it has more flexible financial terms that consider the agreement of the landowner and/or additional royalties for the use of disposals or certain types of developments (such as substations, operating and maintenance sites (“O-M”) or others, as explained below. Wind energy leasing contracts can also affect your obligations under other land contracts, she says. For example, if the property has a mortgage, you may need your lender`s approval to enter into a wind company leasing agreement. Because of this complexity – and the huge amounts of money and time that are tied to a wind project – you need competent legal advice from someone who is aware of wind energy agreements, says Shannon Ferrell, a professor of agricultural law at Oklahoma State University who specializes in renewable energy contracts. Among the various energy projects related to storage, which could be available for a co-site with wind energy candidates, there could be a typical hydroelectric plant associated with a storage basin.

For what it is worth, in at least one known case, Contra Costa Water Dist., 68 Cal. Rptr. 2d 272 (better known for its attitude towards the separation of wind rights), the California Court of Appeal recognized the relative compatibility of wind and hydro production in the same general area. The Contra Costa Water District Court, with the benefit of additional information on the subjects, found in part that it was “satisfied that private wind energy production is fully compatible with the public uses of the water district [reservoir and related uses, including mitigation zones] for the country being ingested.” Id. to 277. Another variable for developers who have entered into combined solar and wind control agreements in Member States that set legal limits for the duration before the start of a particular project or before construction begins (such as North Dakota and South Dakota for wind and Kansas for the wind and solar) is the question of whether non-compliance with the deadline could terminate the agreement (including for the other resource) or whether the solar site management agreement could be maintained, regardless of the agreement that would be reached under the wind energy contract.