Wisconsin resident walks us through a wind farm contract

WADING INTO A WIND CONTRACT-- A resident lets the PSC know what is worrying him:

Source: Public Sevice Commission of Wisconsin, Docket 1-AC-231

Please consider the following Un-Ethical Practices by Wind Energy Cpmpanies.

This is a common thread throughout the industry and needs to be addressed in the new rules being proposed by the PSC.

[This is a] 

Summary of Element Power Contracts 

Element Power Worksheet

· Sidebar at the bottom of the page is a disclaimer that renders all of the terms "subject to change" at the sole discretion Element Power. Essentially, that statement makes the entire term sheet worthless.

· Uses vague terms such as "are deemed" for soil compaction (deemed by Element Power - are they soil compaction experts?) and "all necessary insurance" (necessary for what coverage and to protect whom?)

Element Power Agreement for Waiver of Setback Requirements

· 1. Waiver of Setback by Grantor - You are agreeing to ignore legal setback requirements!

· 3. Binding Effect - This section binds you into ignoring setback rules even when you are no longer under contract.

Element Power Renewable Energy Lease

1.3 Phase of Contract

- Phases shall be determined by [wind devloper/owner operator] in its reasonable discretion.

1.4 Development Period - Up to 10 years.

1.5 Operations Period - Up to 50 years - 30 years plus option of two 10-year extensions.

1.6 Commercial Operation Date - Don`t get paid until 95% of operation is installed and output is at 95% and reliable! That could be that 10 year development stage.

4.4 Tenant`s Right to Terminate - which refers to section 16.2. Summary of both sections - they (Element Power) can terminate the operation contract at any time with 30 days written notice, take 1 ½ years to remove the tower where the landowner gets paid squat and if they don`t "get around to removing the tower" the landowner "may" remove it at the landowner`s expense (there goes all of the profit) and try to get reimbursed back from Element Power.This is called a one - way clause (going one way towards Element Power and one - way against the landowner).

5.1.5 Generate electromagnetic, audio, flicker, visual, view, light, noise,Vibration, air turbulence, wake, electrical, radio interference, shadow or other effects attributable to the Facilities or any other operational or development activities 
If these turbines don`t produce these concerns why list them as possible effects?

5.2 Solar Development - Element Power has the right to use your land for solar development without paying you until you have an alternative 3rd party to offer you remuneration. Element Power could then match your offer from 3rd party or decline. Of course, that is providing that landowner meets all notification deadlines in writing!

5.3 Substations and O&M Buildings - In this section, they are setting the price of your land and can force you to sell your land to them, either by taking their offer or by way of arbitration.

5.6 Right of Access - Roads can go anywhere they choose, even on land not under contract.

6.5 Taxes and Assessments - Landowner does not submit tax bill to Element Power within 10 days, Element Power does not have to pay it

7.1 & 7.2 Liens against property - restrictive language including landowners responsibility to post notices in court and notify tenant within 10 days of discharging lien and then seek reimbursement from Element Energy. No notice within 10 days, no reimbursement.

7.3 Maintenance of Premises - Element Energy will restore to their liking (commercially reasonable, i.e., they determine).

7.4 Tranmission and Collection Lines - Any lines buries will remain buried in perpetuity (forever)!

7.5 Erosion and Weed Control - Landowner notifies Element Energy in 10 days or may not get reimbursed for costs.

7.7 Crop/Lifestock Damage - Maximum of $30/acre.

7.9 Drainage Tiles - Who determines if drainage tiles are damaged?

9.1 Insurance - $5,000,000 of "the right to use a qualified program of self insurance"... What is Element Energy goes bankrupt?

12.3.3 Defualt - This section deals with Element Power being in default (bankrupt). And if they`re bankrupt, sole responsibility of restoration of land (that includes the astronomical costs of removing turbines falls squarely on the shoulder of the landowner).

14.7 and 14.8 Takes away any right for the landowner to sue them for punitive damages. If landowner gets sued for having turbines on their land for any reason, the landowner cannot take Element Energy to court for punitive damages (which is the majority of lawsuits).

14.9 Arbitration - Does any landowner want to negotiate with a third party as to what their land is worth and once the negotiation is finished, the landowner must sell their land to Element Energy at that "arbitrated price"?

16.2 Restoration of Premises - Refer to Section 4.4. Also, under no conceivable circumstances will the landowner ever get "re-imbursed" if Element Energy goes bankrupt.

16.3 Removal Security - This section essentially states that unless mandated by Government, Element Energy does not have to post any bond or assurance that they will take down the turbines when they are done with them or have filed bankruptcy. The Net Removal costs will be the whole cost of removal, unless the whole turbine with tower is sold as a working unit.

There is little, if any, real salvage value with the cut up materials. It also says that after fifteen years, they will determine, at their sole discretion, what the cost is to remove the turbines and all its parts, connections, concreate foundation, etc., and then what the salvage value is. The landowner gets stuck to pay the difference.

17.15 Setback Waive - Refer to Element Energy Set - back Agreement addressed in beginning. 

Addendum to Element Power Contracts 
Tisch Mills project worksheet.

( If you based your decision to sign up on the preceding project worksheet. I would be very nervous about this statement at the bottom of that calculation!!)


The information contained herein is purely an estimation, based on several assumptions, all of which are believed to be reasonable as of the date hereof. When reviewing this information, please be reminded that it is preliminary and is subject to change based on any number of variables that may change or be introduced over time.

Such changes may be material and we cannot guarantee that the information contained herein will reflect the actual performance or financial terms of the project if and when it enters operation.

This is NOT an offer to purchase or a solicitation of an offer to purchase and any transaction will only be consummated upon execution of negotiated agreements between the parties. 

Agreement for waiver of setback requirements.