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These are some of the typical questions asked by landowners:
We usually install 1.5 MW to 2.5 MW wind turbines with 230 to 290 feet diameter blades on 215 to 260 feet tall towers. These are some of the largest turbines in the world and each can power up to 1000 homes. We specialize in this size in order to maximize the power output and minimize energy costs per given land area. This also maximizes the landowner’s royalty revenue per turbine.
We typically pay landowners a 2.0% royalty on gross revenues. The annual cash amount will depend on the size of the turbines, the wind farm capacity, the quality of the wind resource, and the price of the power sold to the utility. We strive to install the largest possible turbines on your land to maximize your income. Be careful if you shop around merely on gross percent as the end result may be smaller annual revenue if a developer places smaller turbines on your land. Royalties for the 2.5 MW turbines scheduled for future projects are projected to pay landowners well in excess of $5,000 per year per turbine
The payments will occur while the turbines are in operation on your land. A wind turbine has a projected life in excess of 20 years. In addition the project financing is structured such that funds are available to replace the turbines every 20 years so the revenue stream to you continues into perpetuity
This is a complicated issue depending on land topography. However, as an example, turbines are spaced at least 700 feet apart in a row with multiple rows spaced a minimum of 1000 feet from adjacent upstream rows.
This also depends on the acreage, transmission loading issues, wind direction, infrastructure such as required road access, etc. As few as one turbine to as many as 300 or more can be placed on one wind farm.
The amount of sacrificed land is actually very small. The diameter of the tower at the ground is only 35 feet. Land impact is usually so minimal that the landowner can continue to use the land as always whether that be crops, cattle, building access, etc.
We don’t believe that lump sum payments are fair to the landowner and therefore we do not recommend them. A long term royalty stream is the best way to maximize landowner income. However, we are open to structuring a lump sum payment upon request.
Placement of turbines usually increases property taxes in many counties. We pay for the increase in property tax associated with the value of the turbines.
Some unscrupulous developers will tell you they will build a wind farm very quickly but may tie up your land for a long period of time in order to hedge the value with little intention of building a wind farm. We suggest you never sign an open ended document like that. Wasatch Wind asks only for a minimum commitment to be able to measure the wind resource to confirm the wind potential. This measurement period usually takes one to two years depending on the requirements of our lenders. Should the wind be adequate, we will then ask for a permanent extension to the agreement subject to us completing the wind farm development in a timely manner. If we don’t perform, the wind development rights immediately revert back to you.
We understand you may be relying on us to estimate the amount of revenue and therefore the royalty each turbine will generate. We are very confident of the revenue predictions therefore we can guarantee a minimum royalty payment commencing with turbine operation for a somewhat lower royalty %.
Our revenue books will be open and are always available upon request.
Because our performance requirements are short term, a sell of these rights also includes the same obligations to the buyer to perform. Just as with us, if this buyer does not meet the timely development guidelines in the contract, those rights revert back to you.
Because the feasibility of a project is not fully known until wind resource data is gathered from a temporary wind monitoring tower, we have an early termination clause to allow removal of the tower and relinquish the rights back to the land owner. At such time the landowner is free to develop the project.
Our performance responsibilities are clear and obvious. If we do not complete our timely responsibilities, the landowner can execute his rights with a simple notification and response.
For turbines that fail to meet minimum revenue requirements, the contract states we must provide timely removal of turbines and related infrastructure at our cost.
We are completely open about the terms of our land contracts. They provide good protection for the landowner and follow the general guidelines as endorsed by Windustry.org (see the link below), an advocate of wind energy and landowner rights. In addition, we specialize in smaller projects that respect community and land owner interests. The turbines we use are among the worlds largest, most advanced turbines in order to maximum land owner value. Finally, we provide technology developed by Wind Tower Systems (www.windtowersystems.com ) that allows us to avoid the use of large track cranes and the need for 35' wide access roads. Additionally, the technology allows us to place the largest, most efficient turbines on the tallest towers in order to maximize energy extraction and royalty payments.
http://www.windustry.org/opportunities/easements.htm
http://www.awea.org/pubs/factsheets/WindyLandownersFS.pdf
http://www.bpa.gov/corporate/BPAnews/archive/2001/nr092001A.pdf
http://www.ucsusa.org/clean_energy/renewable_energy/page.cfm?pageID=1013
http://www.windustry.com/basics/04-knowland.htm
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