Published Thursday October 16,
2008
Wind-farm contracts stir up lots of questions
To some, wind farms are a
boon for rural economic development. For others, they are a sign of hope for
renewable energy. And, as area farmers are finding out, they can mean thousands
of dollars in the pockets of rural landowners each year.
But, experts say, read the fine print. Under some contracts with wind
developers - contracts ranging from 30 to 180 years - rural lands could be
affected for generations to come.
Wind farms are relatively new in
Susan Williams Sloan, outreach manger for the American Wind Energy Association,
said there is great opportunity for landowners.
"I know there are quite
a number of landowners who are very happy with what they have done, because
they're making new revenues they haven't had before," she said. "It
frees 
them up to do other things with that money."
Indeed, there is big money at stake - from $2,000 to $5,000 per wind turbine
per year, on average, although some landowners report getting as much as
$10,000 per turbine.
But, without an accepted industry standard, farmers wonder: When is a contract
a good contract?
About 20 times each week, that question is asked of John Hansen, president of
the Nebraska Farmers Union. And it's what
More than 170 people from southwest
Rural advocates and farmers groups have hosted other informational meetings
around
It's a hot topic because both
Norma and Tom Troxel, of rural
They came to
Agricultural attorney Roger McEowen covered a myriad
of problems common among some wind energy contracts offered to farmers. But the
answer boils down to this: Read the fine print and hire a knowledgeable lawyer,
said McEowen, director of the
Too often, landowners hear a sales pitch and sign a contract without reading
it.
"If the wind blew at your place yesterday and it blew there today, it's
probably going to blow there tomorrow," said Hansen, who urges farmers not
to let wind developers rush them.
Iberdrola Renewables, a
Spanish energy company, has planned a 73-turbine wind farm near
"Certainly we feel like the leases that we offer are, in all cases,
fair," said Paul Copleman, Iberdrola
spokesman. "We don't feel like we have anything to hide in these leases
we've signed."
The company, which has leased wind rights from thousands of landowners all over
the country, doesn't try to dissuade landowners from getting more information
or legal counsel, Copleman said.
But that can be difficult. The newness of the industry in
Nebraska Sen. Annette Dubas said she has heard from
Nebraskans on this issue in recent years.
She sponsored legislation last year that would have put parameters on wind
rights contracts, limiting the length of leases, among other things. It was
similar to a
The
"I just want to make sure we have protections in place, so people won't be
taken advantage of," Dubas said.
A wind energy company approached
And, to top it off, the contract contained a confidentiality clause, ensuring
that neighbors couldn't compare offers.
"We had no bargaining power," said BreDahl,
who opted not to take that offer.
Confidentiality clauses have kept many wind farm contracts under the radar, but
both Hansen and McEowen have seen their fair share of
offers.
Farmers and landowners need to spend time researching what they could lose by
signing.
Landowners can be asked to sign over more than a little land for a wind
turbine. The company will need roads to get on and off the land to maintain the
turbine. And the company could propose other conditions.
Because of potential damage to turbines, hunting on farmland could be prohibited, causing farmers to lose out on money earned
through eco-tourism, and landowners could be prohibited from erecting new
buildings that could disturb the wind in the area.
Roads to access the turbine sites could cause erosion or other problems that
could jeopardize participation in federal farm programs that have environmental
requirements.
Landowners should anticipate those possibilities and ask for compensation in
their contracts, McEowen said.
The questions seem endless.
How and when will payments be made? Is the amount fair? What are the tax
consequences? Can the wind developer sell or transfer the lease? Who is responsible
for dismantling and removing the turbine? (It takes a semi to haul just one
blade.)
"People get excited about these things, and they'll sign them before
realizing the rights they've given up and what they've agreed to," McEowen said.
BreDahl eventually decided to form a collective with
his neighbors and hire an attorney to negotiate with the wind companies. Some
neighbors were worried about losing the opportunity and signed contracts. Most
did not, and after negotiating with three different companies, the group of
almost 60 landowners found a contract they thought was fair.
"They (wind developers) are not doing anything illegal. They're not doing
anything unethical," BreDahl said. "They're
protecting and looking out for their own interests. They're not going to
protect and look out for yours. If you want that done, you'll have to do it
yourself."
444-1310, elizabeth.ahlin@owh.com
Contact
the Omaha World-Herald newsroom
Copyright ©2008 Omaha World-Herald®. All rights reserved. This material may not
be published, broadcast, rewritten, displayed or redistributed for any purpose
without permission from the Omaha World-Herald.