LL&D Law
Wind Energy: Thoughts for Landowners

by Johnny Beech
12/22/2010 10:21:00 AM

 

     The wind does indeed come sweeping down the plains more often than not in Oklahoma, and energy companies seeking green, renewable alternatives to traditional energy sources have taken notice. Wind is a renewable natural resource in plentiful supply in western Oklahoma. Wind energy is becoming a good supplemental energy source for utility companies engaged in generating electricity especially as environmental concerns over coal and other traditional energy have grown. 
 
     Wind farms are already in operation in several western Oklahoma locations, notably Custer and Woodward Counties. Other wind farms are being planned. The lack of electrical transmission lines from wind farm to urban areas, which has been the major hurdle for wind energy, is being addressed so that wind farming can continue its forward progress. The benefits for landowners of leasing their property for wind farming are numerous but there are also pitfalls to be avoided.
 
     Unlike oil and gas leases, a wind lease may be 25 pages long and can create terms 30 to 50 years in duration. Wind turbines are massive and require a good bit of maintenance as opposed to the much less intrusive oil or gas site. Thus, the location of the turbines as well as access roads, electrical transmission lines and electrical substations must be carefully considered and addressed in the lease to lessen the impact on the landscape. These structures will almost always preclude any residential development. A wind lease can potentially interfere with farm related buildings, irrigations systems and fencing. 
 
     The land owner should also consider such things as the financial payment arrangement, liability allocation and restoration of the property after operations cease. A daunting task will face the unprepared landowner confronted with the prospect of removing of a 200 foot tall windmill.
 
     A wind lease will grant the energy producer exclusive rights to develop a specific number of acres for wind energy. The landowner should reserve the right to farm and ranch, hunt and use the property for oil and gas development. An oil and gas drilling rig may interfere with wind generation and be precluded under the wind lease if not addressed in the lease. While a wind lease may appear to be a financial windfall, a landowner should consult legal counsel to assist in examining a wind lease to avoid unexpected consequences adversely affecting the land for years.

 



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