Wind Rights

[DaveW]

  Finally we are retiring back to West Texas where I grew up.  The trip this weekend was interesting, with a high load and 44 MPH winds pushing back on the windshield.  Gave me a new insight into gas prices with sub 10 mpg for the trip out.

  Once there and unloaded, I admired the new wind generators going up everywhere, From Abilene to past Sweetwater along interstate 20, from Roscoe up 84 to past Snyder, the Fluvanna mesa is covered with generators, even Big Spring is getting wind generators.  Family members are attending meetings to talk about allowing 3 MW generators on the property and the resulting income to be had. It makes the high rough hills out beyond the pastures worth some money for a change.  With $1,000 income per generator, a lease for the high scrubland can make over $20,000 per month.

  Of course, the down side is that land prices have shot up, land that 5 years ago was 250 an acre is now 800 - 2500 per acre and rising.  But the real shock was in reading the paper for a site to build.  Now a thing call wind rights is cropping up, people will sell land but want to retain wind rights, much like mineral rights in the past.

  Once home, I looked on the Internet and found that this idea is not new, just new to me.  Even worse is eminent domain, where the government can force you to allow some company to build wind generators for the public good.  I love the concept of wind power, but now I fear my little 16 footer will get lost in the shadows of the giants.

[finnsawyer]

I find it interesting that Texas, an oil state, is going big into wind power.  Just how big?  Michigan is supposed to have good potential too, but that's basically where it stands, potential.

By the way, do you think you could post or send me a copy of a standard contract.  As you may know, I've got an axe to grind about the approach up here.  Good luck with your mill.

[SparWeb]

Yikes!

http://windrights.blogspot.com/

http://www.impactlab.com/2008/03/07/the-growing-problem-of-wind-rights/

Hopefully I will have some "squatter's rights", having put up my turbine before the giants arrive!

People haven't actually signed such contracts, have they?

(I guess that they can't actually own up to doing so, without breaching some of those clauses).

[DaveW]

  Actually, Texas is the current leader in wind generation, approaching 3,000 MW of power production.  Next is California with just a little less.  As to the why, drive across West Texas on a spring day and you will feel the wind at work.

  I can get a copy of the proposed contract, but be aware that most are vetted by a lawyer and modified before signing.  I'll be back out there in two weeks, and can get copies then.  Meanwhile, what is your complaint with the contracts in your area?

[DanG]

Since the wind crosses State lines watch the Federal Government impose licensing and permitting on wind power soon.

[silvereye]

I have to figure when it all salts out that the courts will revert to protection simular to "Water Rights" that have been inplay for 200+ years.................

  You won't be able to completely stop the flow to someone 'downstream'....

  you can't divert flow onto someone else,....

  and you can't back up the ability of flow to someone 'up-stream'.

  Everyone will "share" a proportion of the 'flow' based on the land volumne, and any historic data retained by a third party which would substantiate a higher volume on your property would allow a variance of the above based on historical precidence of flow percent.

This will, in my estimate, produce allowable placement distance minimums of larger mills, and yet protect "grandfathered" smaller mills...with this in mind, folks may buy up properties with older water mills just to get the grandfather rule.    

[finnsawyer]

The outfit proposing the wind farm is getting people to commit their land for $10 a piece.  That seems ludicrously low for tying up the property for a number of years while the company sorts through the power potential.  Also, if a turbine is placed they will pay 4% of the income.  Neither seems acceptable to me.  I have property on the east end of the ridge were they plan to site the turbines.  I would require a considerable down payment just to have them talk to my lawyer.  I would also require a guaranteed monthly payment to tie up the land for 20 or so years in addition to the percentage.  I would like to know the standard boilerplate for Texas just to let people know what is being done down there.  Thanks for your interest.

[thefinis]

Hey now why the worry over wind rights AS LONG AS you still have them for your site. If you can strip land of mineral and water rights why not wind? It is what we are looking at doing on an estate we may have to sell. Oil runs out but wind is there forever sort of. The big wind farms are seeing some reduction in wind speed after they have a large number of turbines up but it is a small percentage if turbine spacing is done right.

The biggest problem we have seen around the San Angelo area is the land pools being formed by lawyers to gather the contracts of landowners supposedly to tempt wind farms to place there. Often the contract is vague and tends to give a low ball figure to landowners who often have to pay to be a part of the pool. Not all bad thing but still it ties everyone down to whatever the pool does. Neighbors fuss at each other if someone doesn't want to sign up because they want/need a solid block of land usually in the thousands of acres.

Luckily now there are many landowners that have oil leasing experience that are shaping the newer wind contracts to better benefit the landowners. They are giving the wind farm people a run for their money and often know more about expected revenues, damages and line easements than the agents of the proposed wind farms.

The biggest drawback on placing wind farms right now is the lack of high voltage transmission lines to carry the power out. Much of the development now is either along the I 20 corridor with the transmission lines that follow it or somewhere along the big transmission line the LCRA built from Macamey to near Commanche where it ties in to a big junction going to DFW area.

The biggest push now is to get the wind production up before the federal incentive runs out. You should see a slow down after 2008 when the program ends but only till the next big slug of federal money gets voted in. There is a one year plus wait now for turbines ordered today.

Land prices are up for several reasons wind is only one of them. Hunting is making a big comeback and lots of land is going to out of state buyers just for a hunting ranch. Lots of out of state or even in state big city folks are moving out and building a retirement home due to low prices and taxes (relatively). Farming has had several good wet years lately and many of the farmers and ranchers are looking to expand. It all adds up to inflated land prices.

You should see plenty of wind for that turbine were you are at.

Take care

Finis