Author Topic: Just Another Windpower Scam?  (Read 325 times)

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finnsawyer

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Just Another Windpower Scam?
« on: October 26, 2007, 03:31:13 PM »
The company wanted to put up a 300 foot high wind turbine along the paved road.  They would give the owner $10.00 for the right to use an acre of his land, and promised payments of 4% of some factor of the revenues per year.  The assumption was that that would amount to $2,500.00 per year.  The wind turbines would be made in Germany.


I guess because of all the Green Power talk these things can really be seductive.  Before signing on today I called the fellow.  Turns out he was thinking about putting one on his land until I pointed out that as soon you take the $10.00 and sign the papers you put yourself at risk.  If the WT fails and happens to fall on the road and hurt or kill somebody a lawsuit will follow.  The wind power company probably has limited liability and essentialy no equity.  But it has been my observation that a landowner has unlimited liability.  So, I said that I thought he would need a $10,000,000.00 liability policy.  A performance bond to assure removal of the turbine if it fails would also be advisable.  One should also consider the effect on the value and saleabilty of the land while the turbine is on it.


Turns out I have a potential 20 acre site that would be better than any of theirs.  The land slopes down to the north toward Lake Superior a mile away, south toward the Portage Shipping canal a mile away, and south toward their sites in the valley.  To the west the land rises slightly, but the rise is no worse than for them, maybe better.  I still would be concerned by the liability issues, but I don't see why the mill couldn't be set back far enough so that it could not fall on the road.  Of course, parts could still fly off, hence the liabilty policy.  That would mean a different type of contract.  I would need a non refundable deposit (to pay the lawyer fees) to talk to them, as well as a large down payment.  I would also need a guaranteed yearly payment to compensate for having the value of the land essentially tied up while the wind turbine was on it.  And, of course, that 4%, if it ever materializes.  



This should be a Diary since it seems mostly about you. Please repost it there.
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« Last Edit: October 26, 2007, 03:31:13 PM by (unknown) »