From Five Questions to Ask Before Signing a Wind-Energy Lease

Source: Corn and Soybean Digest

March 15, 2012

1. How will the lease affect my farming operation?

A commercial wind project needs about 60 acres of land per megawatt (MW). But only 3% of that area — roughly three acres — is occupied by turbines, substations and access roads. The rest is a buffer zone to preserve wind flow. The lease should clearly state your rights to use the land for farming, grazing, development of subsurface minerals, hunting or other uses, Jambor-Delgado says.

Despite a relatively small footprint, a wind project can significantly affect farm operations, efficiency and production, says Dwight Aakre, North Dakota State University Extension farm management specialist.

Turbines and access roads can change field configurations, disrupting row orientation and creating inconvenient end rows or land fragments inaccessible to large equipment.

Field-drainage patterns may be altered. Center-pivot irrigation systems can be blocked. On grazing land, fences, gates and cattle guards may have to be changed.

“Aerial crop spraying is often an issue,” Aakre says. In the north, snow plowing can cause headaches for growers. “Those access roads have to be kept open, and if the snow piles up in the field it can take a long time to melt in the spring, delaying or preventing planting.”

Farmers should raise agricultural-production issues in the initial contract talks, says Dean Retherford of Halderman Farm Management, Lafayette, IN. Retherford has helped negotiate leases for several wind projects in northwest and west-central Indiana, involving 39 wind turbines on farms he manages.

“We learned to request input on the location of roads,” Retherford says. “And the wind companies found that landowners were more of a help than a hindrance” in site decisions, he says.

The lease should clearly state how you will be compensated if land is taken out of production or crops, livestock, soil or other property are damaged during construction or operation. On one of the farms Retherford manages, for instance, a crane crushed half a mile of brand new 12-in. tile.

2. How long will the lease tie up my land?

Wind-power leases often last 50 years. The long lease period is necessary to give the developer time to earn a return on the huge up-front investment needed to build a wind farm.

The initial lease term is usually 25 years — the expected life of a turbine. Wind-power leases also include a renewal provision, extending the contract for another 20 or 25 years. The decision on whether to renew the lease is almost always the tenant’s exclusively, Ferrell says. “Landowners don’t have any say.” However, some leases may allow landowners to renegotiate the commercial terms at renewal time. “This is where collective bargaining is a very helpful tool.”

Wind leases will probably affect your estate plans, too, he adds, so it’s a good idea to include your heirs in the discussions.

3. What are my obligations under the lease?

The lease will prohibit you from doing anything that obstructs the flow of wind over the surface of your property.

This includes restrictions on the height and location of structures such as barns, grain bins, cell towers, even houses and trees. In some cases, Ferrell says, the lease may prevent you from improving your property without permission from the wind company. “If you have improvements planned for the property, get approval for them” before you sign the lease, he says.

That goes for drainage upgrades, too, says Retherford, the Indiana farm manager. Wind farms often include underground power lines. “If you’re thinking of installing pattern tile in the next 10 years or so, do it before the turbines come.” After the project is built, you will need advance permission to maintain or repair tile, he adds.

You must also avoid damaging the wind-power structures. Vehicular accidents, fires or other mishaps can result in big losses, which may not be covered by your personal and farm-liability policies, Aakre says.

You will probably need to buy additional insurance to satisfy your indemnification obligations, Ferrell says. “This is especially important if you lease the property to hunters.” He adds: Increased insurance requirements for the landowner should be factored into compensation negotiations.

 Likewise, the developer should indemnify you from damage claims arising from the tenant’s use of your land, Jambor-Delgado says.

Wind-power leases may also affect your obligations under other land agreements, she says. If the property has a mortgage, for example, you may need your lender’s consent to enter into a wind-company lease.

The lease should address the payment of debts secured by the land as well as placement of new liens on the property, she says.

Be wary of lease provisions that require you to personally obtain subordination agreements from your creditors, or that prevent you from using your land to secure future credit, Ferrell says.

A wind lease may also affect your eligibility for government farm programs, Jambor-Delgado says, so don’t sign a lease before checking with the appropriate agencies.

4. How will I be compensated?

Lease payments can be structured in many ways, including:

            •fixed payments based on acreage, towers or megawatt capacity;

            •royalty payments based on a percent of gross revenue;

            •or some combination.

All the wind-lease payments that Dean Retherfordhas negotiated are based on gross revenue per turbine. Each 1.5- or 3-MW turbine earns an annual royalty payment of $5,000 and $8,000, he says. The wind companies pay property taxes on the commercial facility, but not on the leased land.

Most wind-power leases today provide for similar royalties based on revenue, Ferrell says — typically 3-5% of gross earnings. The contract should clearly spell out how your payment will be calculated.

For example, if your royalty is 4% of gross revenue, how will gross revenue be defined? Does it include only the sale of electricity, or does it also include revenue from the sale of tax credits or renewable energy credits? Will your payment be based on revenue from the turbines on your land alone, or on average revenue for the entire wind farm? What can be subtracted from gross revenue? Can the wind-power company deduct for power lost during transmission or for periodic curtailments?

Leases that include a royalty should also set a minimum rent that will be paid whether or not the turbines are generating power for sale, Ferrell says. In addition, many royalty leases now include an “escalator” provision raising the royalty percentage at specified intervals. This arrangement can be a good deal for both the developer and the landowner, he says. During the early years of the project, the company can recover its initial costs faster. In later years, the landowner shares in a greater percentage of profits.

Royalty leases should always include an audit provision, Aakre says, which allows access to the company’s financial records “to verify the revenues produced by the wind farm.”

5. What happens when the project ends?

“A frequent fear of landowners is that the developer will default or dissolve, and the landowner will be left with huge, inoperable machines” littering the property, Ferrell says.

Such fears are not unfounded, Aakre says. “It’s a real risk.” North Dakota’s relatively weak reclamation law, for example, “permits turbines to stand idle so long that the company could be long gone.”

Your lease should provide for the removal of the wind farm structures and roads when the project is finished and restoration of the soils, Aakre says. The lease should outline your rights if the wind company doesn’t fulfill its obligation. Some agreements require a performance bond from the developer to ensure that money is available to pay for decommissioning.

Land reclamation is one of the most difficult parts of a wind-power lease negotiation, Retherford says. Although the towers have significant metal salvage value, they require specialized cranes to dismantle. And the massive foundations are expensive to remove.

“Each turbine has 40 yards of concrete in the foundation. One company wanted to grind the concrete down to 6 ft., but we negotiated removal down to 8 ft. so you could tile over it.” Benton County, IN, where the project is located, requires wind companies to deposit money in an escrow fund to pay for the reclamation, he adds.

Types of wind-power property agreements

There are several types of legal agreements that give developers access to your land and wind, says Jennifer Jambor-Delgado, a staff attorney at Farmers’ Legal Action Group, which has published a book on wind-power leases (www.flaginc.org). Farmers should keep in mind that “once you have a written agreement with a developer, that agreement controls” the rights and obligations of both parties, she says. “Any verbal agreements can’t be relied on if they are not written into the contract.”

Property agreements used to develop a wind farm include:

• Option: Gives the developer the right to lease the land at an agreed-upon price, subject to agreed-upon terms.
• Access Easement:Allows the developer to travel across your property and construct roads to reach turbine areas.
• Construction Easement: Gives access for construction of turbines and support equipment, as well as temporary “lay-down” areas for equipment and machinery storage.
• Transmission Easement: Allows developer to construct and operate underground and above-ground transmission lines and substations.
• Wind Non-obstruction Easement: You agree not to construct any improvements that could interfere with wind speed or direction.
• Overhang or Encroachment Easement: You agree to allow turbine blades to overhang your property, even if the turbine is not on your land.
• Noise Easement: You agree to allow a certain level of noise from the turbine.
• Covenant:Binds later purchasers of the land to abide by certain restrictions.
• Lease:Creates a landlord-tenant relationship for a set period of time allowing tenant the exclusive right to use the property. If the landowner wants to retain rights to use the land, such rights must be specifically stated.

Sources: Shannon Ferrell, Oklahoma State University; Windustry; Farmers’ Legal Action Group, Inc.

From Michigan

EXELON SAYS IT'S WORKING WITH UPSET LANDOWNERS

“To say landowners are irate is putting it mildly,” said Fred Hasen, Huron County Planning Commission chairman.

By Kate Hessling, Assistant News Editor,

Source: Huron Daily Tribune, www.michigansthumb.com

March 10, 2012 

ELKTON — A spokesman from Exelon Corp. said Friday the company is working one-on-one with landowners in the Harvest Wind II project to address concerns about land being damaged because of preliminary construction activities for the 59.5 megawatt expansion of Harvest Wind I.

During Wednesday’s Huron County Planning Commission meeting, officials said they had been contacted by landowners in the project area, which includes land in McKinley, Chandler and Oliver townships, because they had concerns that contractors installing underground electrical cables have not been respectful of the farm land, and they fear the activities will affect the condition of the land in the spring.

“To say landowners are irate is putting it mildly,” said Fred Hasen, Huron County Planning Commission chairman.

Bob Judge, communications manager for Exelon Corp., said in the process of trenching land to install underground electrical cable, there have been some issues with equipment because the ground hasn’t frozen as deep as it normally would in this milder-than-normal winter.

“We are handling this situation … and Harvest Wind II will restore the land to the conditions (that existed) before construction,” Judge said, noting conditions in the lease agreements with landowners require the project restore the land to pre-construction conditions. “We are dealing with landowners on a one-to-one basis as this issue arises.”

Exelon still needs final site plan review approval before any wind turbines are erected, and building and zoning officials said the concerns of area landowners will be a topic of discussion when Exelon comes before the planning commission for final approval for its work in McKinley Township.

Oliver and Chandler townships are not under the county’s zoning jurisdiction, but concerns of those landowners will be discussed at the county-level because they are Huron County citizens, planners said Wednesday.

Hasen said Exelon, as well as other wind developers, need to remember they are guests of Huron County, using Huron County’s resources, as wind development projects progress.

Judge said Exelon understands some temporary damage has occurred, and it will restore the land to its pre-digging condition once the trenching is done.

He said trenching began earlier this year, and the project currently is in the beginning phase of construction. Turbine assembly is expected to take place this summer, and the project is expected to be operational by the end of this year.

Project officials previously stated the project will consist of 30 turbines if it uses 2-megawatt turbines and 32 to 33 turbines if it uses 1.8-megawatt turbines.

In the Harvest Wind I project, there are five turbines in Chandler Township and 27 in Oliver.

WIND POWER DOCUMENTARY TAKES A SKEPTICAL TURN

Via National Public Radio

February 2, 2012

By Mark Jenkins

As is often the case, the outside developer's biggest asset was the local elite, which was certain it knew best. Farmer and town council leader Frank Bachler joined the town's attorney in overruling a skeptical planning commission report about the effects of erecting the turbines.

Not even the most ecologically minded are always keen on the prospect of giant wind turbines near their homes. But Meredith, N.Y., welcomed "Big Wind" when it first came whistling through town. That's what makes Windfall so interesting: The documentary is the story of an education.

In some ways, Meredith seems a natural place for a wind farm. Situated in one of New York's poorest counties, it's in an agricultural area whose principal enterprise, dairy farming, has dramatically declined. But the area is mostly home to small landowners, with few large tracts that could be developed without affecting nearby neighbors. And some of those neighbors are refugees from New York City, where they learned to be skeptical and outspoken.

Director Laura Israel is among the Meredith residents who split their time between the town and the big city 160 miles to the southeast, which explains why she was able to follow the controversy over a year or more, as pro-windmill sentiments gradually shifted to anti-.

This is no first-person piece, though; Israel stays off camera, allowing her neighbors to speak. She doesn't present the views of the wind-power developer, Airtricity (originally Eiretricity, before the Irish firm was sold to Scottish and German interests), but that may be because the company is a low-profile one that didn't address the community collectively, and insisted on confidentiality agreements before it would even enter into negotiations with property owners.

As is often the case, the outside developer's biggest asset was the local elite, which was certain it knew best. Farmer and town council leader Frank Bachler joined the town's attorney in overruling a skeptical planning commission report about the effects of erecting the turbines.

Bachler and other supporters labeled the anti-windmill forces "a vocal minority." But with an election looming, the pro-wind forces had to double-check their math. Even Bachler, one of the principal on-screen proponents of the turbines, would give the whole idea a second thought.

In Meredith, the case against wind turbines turned on their size — about 400 feet high and 600,000 pounds each — not to mention their grinding noise, their bone-shaking vibrations and the flickering shadows they cast, which disrupt light and sleep (and video games). One of the opponents, Ken Jaffe, is a retired doctor who looked into the high-tech windmills' medical side effects.

Also, the turbines sometimes fall over, catch on fire or hurl dangerous ice projectiles. They kill birds and bats in large numbers. And there's more.

To optimize the investment, wind-power developers tend to build a lot more turbines than they initially propose. In Tug Hill, farther north in upstate New York, a proposed 50 high-tech windmills became 195. As skeptics began to investigate, they learned that wind power is too unreliable to replace dirtier forms of generation, and that the wind business is based less on electricity than on tax credits: Big investment companies keep flipping the companies so as to restart the depreciation process.

A veteran film editor making her first feature, Israel emphasizes the area's low-key beauty. She conducted most of the interviews outside to show the landscapes. When the movie finally gets to Tug Hill, the contrast is all the more striking. Meredith, N.Y., may not be paradise, but it's clear why residents didn't want to sacrifice its rustic appeal to the steady whomp of industrial windmills.

 Second Feature

"WINDFALL"

By John Anderson,

Via The Wall Street Journal, wsj.com

February 3, 2012 

Speaking of horror movies, the monsters are 400 feet tall in “Windfall,” easily the more haunting film of this week and a sublimely cinematic documentary by the film editor-cum-director Laura Israel. Her subject is the battle waged over wind power in the tiny upstate New York town of Meredith. What’s so scary? Industrial wind turbines, the fetish objects of the green-minded, those sleek, white, propellered and purportedly eco-friendly energy collectors that one might have seen dotting the desert outside Palm Springs, and which may soon be sprouting out of Nantucket Sound. They’re sustainable, they produce no emissions and they’ll reduce U.S. dependency on foreign oil. Right? Not quite. And living next to one seems like a nightmare.

Ms. Israel’s movie proves, once again, that the best nonfiction cinema possesses the same attributes as good fiction: Strong characters, conflict, story arc, visual style. The people of Meredith, be they pro or con the wind-turbine plan being fast-tracked by their town council, are articulate, passionate, likable. The issues are argued with appropriate gravity, and even though Ms. Israel, a Meredith homeowner herself, is clearly antiturbine, the other side gets a chance to speak its piece: Farmers, an endangered species, need income. Turbine leases are a way to it. But not only do the energy and ecological benefits fall short of what they’re cracked up to be, the turbines themselves are an environmental disaster: The monotonous whoosh of the propellers, the constant strobing effect caused by the 180-foot-long propellers, the threat of ice being hurled by the blades, the knowledge that it’s never going to end, all adds up to a recipe for madness. And that’s just during the movie.

“Windfall” is thoroughly engaging, educational and entertaining; the neo-blues music by Hazmat Modine is a real plus. Ms. Israel might deny it out of respect for her collaborators past and future, but documentaries are all about the editing. Many filmmakers might have been able to assemble the parts of “Windfall.” Far fewer would have produced as stylish a result.

TILTING AT WINDMILLS

By ROBERT BRYCE

via New York Post, www.nypost.com

February 4, 2012 

The battle in Meredith (population: 1,500) pitted landowners who stood to profit by putting the wind turbines on their property against those who didn’t. Israel interviews one couple, Ron and Sue Bailey, who took money from a wind company, a move they soon came to regret. The couple said they “were blinded by the money” and “never thought about what our neighbors across the road would think.”

Documentary makers are always hoping that their film will come out at just the right moment, when a favorable news cycle and popular sentiment are converging so that the public is primed for their message.

In 1989, Michael Moore made his career with “Roger & Me,” a documentary that pinned the decline of his hometown — Flint, Mich. — on General Motors. By focusing his fire on GM’s chairman, Roger Smith, Moore tapped into the public’s anger at tone-deaf corporate bosses as well as the growing disenchantment with the American car industry.

Laura Israel’s new film, “Windfall,” has the same sort of fortuitous timing. Her documentary — which focuses on the fight over the siting of wind turbines in the small upstate town of Meredith — premieres at the same time that “green energy” stimulus failures fill the news, and the wind-energy industry faces an unprecedented backlash from angry rural residents.

Consider this Nov. 1 story from The Village Market, a news outlet in Staffordshire, England, about 150 miles northwest of London. The paper’s reporter, covering the staunch local opposition to a proposed wind-energy project near the tiny village of Haunton, wrote, “Huge numbers of people in rural areas are rising up against the technology, despite government assuming they would support it.”

Throughout the UK — indeed, all over the world — fights against large-scale wind-energy projects are raging. The European Platform against Windfarms lists 518 signatory organizations from 23 countries. The UK alone now has about 285 anti-wind groups. Last May, some 1,500 protesters descended on the Welsh assembly, the Senedd, demanding that a massive wind project planned for central Wales be stopped.

Although environmental groups like Sierra Club, Natural Resources Defense Council and Greenpeace claim that wind energy is the answer when it comes to slowing the rate of growth in carbon dioxide emissions, policymakers from Ontario to Australia are responding to angry landowners who don’t want 100-meter-high wind turbines built near their homes.

Last September, CBC News reported that Ontario’s Ministry of the Environment has logged “hundreds of health complaints” about the thumping noise generated by the province’s growing fleet of wind turbines. In December, government officials in the Australian state of New South Wales issued guidelines that give residents living within two kilometers of a proposed wind project the right to delay, or even stop, the project’s development.

Back here in the States, many communities are passing ordinances that prohibit large-scale wind energy development. On Nov. 8, for instance, residents of Brooksville, Maine, voted by more than 2 to 1 in favor of a measure that bans all wind turbines with towers exceeding 100 feet in height.

Meanwhile, the promoters of Cape Wind, a large offshore wind project proposed for Nantucket Sound, are still hoping to get their project built. But they continue to face lots of well-heeled opposition, including, most notably, environmental lawyer Robert F. Kennedy Jr. Well-known for his advocacy of renewable energy, Kennedy opposes the wind project — because it will be built a few miles from his family’s estate in Hyannis Port.

As “Windfall” is premiering this week in New York, wind-energy lobbyists in Washington are desperately hoping to convince Congress to pass a multi-year extension of the 2.2-cent-per-kilowatt-hour subsidy for wind energy. Without it, the domestic wind business, which is already being hammered by falling natural-gas prices, will likely end up becalmed.

Israel’s portrayal of the bitter feuding that happened in Meredith over wind-energy development is similar to fights that have occurred in numerous other rural communities around the world. The battle in Meredith (population: 1,500) pitted landowners who stood to profit by putting the wind turbines on their property against those who didn’t. Israel interviews one couple, Ron and Sue Bailey, who took money from a wind company, a move they soon came to regret. The couple said they “were blinded by the money” and “never thought about what our neighbors across the road would think.”

The landowner faction in Meredith was led by the town’s supervisor, Frank Bachler. Israel portrays him as a well-intentioned man who, in favoring the wind development, is trying to help the area’s struggling farmers. Bachler dismisses the opponents of the wind project as “a minority of people who are very aggressive.”

But Bachler is proven wrong. The anti-wind faction quickly gains momentum and the resulting feud provides a textbook example of small-town democracy. Three wind opponents run for election to the town board with the stated purpose of reversing the existing board’s position on wind. In November 2007, they win, and a few weeks later pass a measure banning large-scale wind development.

Israel’s film also features a colorful interview with Carol Spinelli, a fiery real-estate agent in Bovina, a town of about 600 people located a few miles southeast of Meredith. Bovina passed a ban on wind turbines in March 2007. Spinelli helped lead the opposition, and she nails the controversy over wind by explaining that it’s about “big money, big companies, big politics.” And she angrily denounces wind-energy developers “as modern-day carpetbaggers.”

That’s a brutal assessment. But it accurately portrays the rural-urban divide on the wind-energy issue.

Lots of city-based voters love the concept of renewable energy.

But they are not the ones who have to endure the health-impairing noise that’s created by 45-story-tall wind turbines, nor do they have to see the turbines or look at their red-blinking lights, all night, every night.

So many want to make the world green — so long as it’s not them who have to suffer for it.

NEXT FEATURE

TOPPLING TAX DOLLARS FOR TURBINES

by Marita Noon,

via finance.townhall.com

February 5, 2012 

On February 1, an urgent alert was sent to supporters of wind energy. It stated: “The PTC is the primary policy tool to promote wind energy development and manufacturing in the United States. While it is set to expire at the end of 2012 … the credit has already effectively expired. Congress has a choice to make: extend the PTC this month and keep the wind industry on track…”

The wind energy industry has reason for concern. America’s appetite for subsidies has waned. Congress is looking for any way it can to make cuts and the twenty-year old Production Tax Credit (PTC) for wind energy is in prime position for a cut—it naturally expires at the end of 2012. Without action, it will go away.

The payroll tax extension will be a hot topic over the next few weeks as it expires on February 29. Wind energy supporters are pushing to get the PTC extension included in the bill. Whether or not it is included will be largely up to public response—after all, regarding the PTC’s inclusion in the payroll tax extension bill, the February 1 alert stated: “our federal legislators heard us loud and clear.” In the December payroll tax bill negotiations, the wind energy PTC was placed on a “short list of provisions to be extended through that bill.” Wind supporters are worried—hence the rallying cry.

Due to a deteriorating market, Vestas, the world’s largest manufacturer of industrial wind turbines, is closing a plant and laying off workers. Everyday citizens, armed with real life information gleaned from the wind energy’s decades-long history, are shocking lobbyists and killing back room deals by successfully blocking the development of industrial wind plants in their communities.

As news of actual wind energy contracts are coming in at three and four times the cost of traditionally generated electricity becomes widespread, and natural gas prices continue to drop due to abundance, states are looking to abandon the renewable energy mandates pushed through in a different economic time and a different political era. American Wind Energy Association spokesman, Peter Kelley, reports: “Industry-wide we are seeing a slowdown in towers and turbines after 2012 that is rippling down the supply chain and the big issue is lack of certainty around the production credit that gives a favorable low tax rate to renewable energy.” All of this spells trouble for the wind energy industry.

The PTC is part of a push for renewables that began in the Carter era. Enacted in 1992, the twenty-year old wind energy PTC was designed to get the fledgling industry going. However, after all this time, wind energy is still not a viable option. Even the industry’s own clarion call acknowledges that government intervention is still needed to keep it “on track.” If the training wheels are removed, it will topple.

Wind energy lobbyists have a plan: HB 3307 will extend the PTC for another four years. If the PTC extension passes, it will add an extra $6 billion to the $20 billion in taxpayer dollars the wind industry has already received over the past 20 years. These are monies we borrow (typically from China) to give to Europe—where most of the wind turbine manufacturers are located.

With advertisements featuring blue skies, green grass, and the warm and fuzzy images of families (and not one shot of a 500-foot wind turbine looming over their home), it is easy for the average person to be taken in and think we should continue to underwrite this “new technology”—after all, there is an energy shortage. “What will we do when we run out of oil?” Wind energy is electricity and electricity doesn’t come from oil—even if it did, we don’t have an oil shortage. Electricity comes from clean-burning natural gas and coal—both of which we have in abundance and know how to use effectively. They don’t need an expensive replacement.

Wind energy supporters often tout turbines because of the misguided belief they will get us off of fossil fuels—when, in fact, they commit us to a fossil fuel future. Optimistically, a wind turbine will generate electricity 30% of the time—and we cannot predict when that time will be. Highly variable wind conditions may mean the turbine generates electricity in the morning on Monday, in the middle of the night on Tuesday, and not at all on Wednesday. A true believer might be willing to do without electricity at the times when the wind is not blowing, but the general population will not. Public utilities and electric co-ops cannot—they are required to provide electricity 24/7 and to have a cushion that allows for usage spikes.

So, during that average 30% of the time that the turbine blades are spinning, the natural gas or coal-fueled power plants continue to burn fossil fuels—though possibly slightly less in an extended period of windy weather, and full-steam-ahead the remaining 70% of the time. (Research shows that turning up the heat on power plants, and then turning it back down, and up again actually increases the CO2 emissions.) Absent a major breakthrough in expensive energy storage, wind can never save enough fossil fuel to make any significant difference. After twenty years of subsidies, wind energy has not replaced one traditional power plant.

Some argue that many new technologies got their start through government support. This might be a good viewpoint if wind energy were “new.” But after twenty years of subsidies it is little better now than it was in the late 1800s. Windmills produced electricity then, and modern industrial wind turbines generate electricity now. It is not that they do not work, they do. They just don’t do so effectively, economically, or 24/7—and they still need Uncle Sam to prop them up.

Those who favor free markets need to seize upon this opportunity to push for the government to get out of the business of picking winners and losers. Clearly the “green” experiment has failed. Billions have been lost in the effort.

If we truly believe in free markets, why stop at just cutting the subsidies to wind energy? Stop the subsidies to all energy! May the strongest survive! The fact is, such a move is afoot. While HB 3307 aims to stretch out the subsidies for wind energy, HB 3308 will stop subsidies for all energy sources—wind and solar, oil and gas. The playing field will be level; billions will be saved!

A congressman I spoke to fears that, in the current political climate, his colleagues will cave on the wind energy subsidy, as they seem unwilling to take a strong stand on any issue. While wind energy supporters are calling their representatives, free-market advocates and everyone who believes the government-gone-wild spending must stop has to place a call, too.

Call, or e-mail, your Congressman, and as many others as you can take the time for, and tell them to stop subsidizing energy: “Do not include HB 3307 in the payroll tax extension bill. Support HB 3308 which will repeal the PTC and numerous other renewable energy tax incentives including the investment tax credit, the cellulosic biofuel producer credit, the tax credit for electric and fuel cell vehicles, and tax credits for alternative fuels and infrastructure. Additionally, HB 3308 will also repeal the enhanced oil recovery credit for producing oil and gas from marginal wells.”

Instead of propping up energy policy based on politics rather than sound science, we have to prop up our representatives and give them the backbone to do what is right.

Tell them to end energy subsidies.

NOTE FROM THE BPWI RESEARCH NERD:

Wind developers-- sometimes called "landmen"-- a term for those who get rural property owners to sign long-term leases to permit development on their property-- use a lot of the same tactics used in the gas industry to get those contracts signed.

A memo that recently surfaced in Ohio lays those strategies out. For those of us who have been following the story of how Big Wind came to Wisconsin, these tactics are identical to those used to get rural landowners in our state to sign onto contracts with wind developers they now regret.

"Remember, if at all possible, try not to deliberately mislead the landowner."

CAUGHT RED-HANDED:

According to an article in Businessweek.com, a memo that appears to coach buyers of oil and gas drilling leases in rural Ohio to use deceptive tactics on unsuspecting landowners surfaced earlier this spring.

"Door-to-door lease buyers called "landmen" have proliferated for months in hopes of landing rights that will give their companies access to potential energy riches."

This memo tells them 'how to hunt and catch a rural mid-westerner'

DOWNLOAD THE ENTIRE MEMO BY CLICKING HERE

EXCERPTS

 Know your demographics!

We have paid for an analysis of Ohio and its people. Use that Data.

 Ohio is a conservative leaning, Mid-west state. The typical Ohio resident will welcome you into their home and allow you to speak. This is critical. Face to face interaction can make all the difference.

Most mid-west Americans dislike confrontation. Even if they disagree on a selling point, they are unlikely to confront you over it. Therefore it is critical to obtain a lease signature at the first meeting or at least the agreement to sign and take the lease to a notary.

Drive them to the notary if you have to. If they have time to think it over, they are more likely to decline the offer.

Provide the overall position of the nation

Most landowners will be patriotic Americans and will desire to free our nation from foreign oil dependence...Fear of foreign encroachment is the biggest asset we have in selling our development strategy. Our analysis of Ohio shows that even the most liberal landowners will agree on this point.

ALWAYS start your conversation with a new potential signee on a point they will agree with. This is pure psychology. They will be more likely to let you stay and talk. Studies show the longer you talk, the more chance we have of signing.

At any point in the pitch, if talk turns to local issues, environmental hazards etc-- a good way to re-direct hte conversation is to re-engage over the nation's energy needs....

Talk about our business

... More educated landowners may know that we often sell our land leases to larger corporations. While this is often true, we don't always sell our interests. So it is reasonable to say we plan all developemnt in Ohio without partners. Future plans do not need to be fully disclosed......

[POSSIBLE PROBLEMS]

Truck Traffic: There will be extra traffic, but stress that we will do everything to keep it to a minimum... just tell landowners the more trucks, the more royalties. Money will usually deflect most arguments. Return to the nation's energy needs if you need to.

Noise: If pressed for details tell them we monitor noise to endure it is approximately [#] decibels at [#] feet.

They will not likely understand the details and will not admit that the technical data means little to them. Do not compare it to anything tangible, like train noise or airplane noise.

Stick with the numbers. They provide the truth but make it hard to understand the exact implication.

GET THE LEASE SIGNED!

If a landowner is undecided, there are several ways to offer incentives:

-Offer a slight increase in the initial lease payment. Even a $50 increase may be enough to sway the decision. Tell them it's to cover the Notary Public costs. That way you are making a concession without caving and getting into a negotiation. Mid-west Americans appreciate feeling valued. This will work in your favor.

-Tell the landowner that all their neighbors have signed. Even if the neighbors have not, this will often push an undecided landowner in favor of signing. Remember, the first visit is the most crucial. They will not know if their neighbors have signed and even if they do they will want to sign so they do not lose out on potential profits. Once they have signed, you can show those leases to undecided neighbors for added pressure.

FROM US & CANADA

Why pro-wind studies often use a 10 km radius

by Alec Salt, Professor, Department of Otolaryngology, Washington University School of Medicine

Last week I was reading of an Australian study, by a Professore Gary Wittert, which had shown sleeping pill usage for those living near wind turbines was no greater than the general population .

The study compared those living within 10 km of turbines with those living more than 10 km away. There have been similar studies with property values using a 5 mile or 10 km radius that showed property values are not affected by wind turbines.  Had you ever thought why they pick a 10 km radius?

Consider this graphic. It shows 1 km bands with the calculated area for each band shown in blue.

Let’s keep it easy and assume that households are evenly distributed and there is one household for every 10 square kilometers.

So, within 2 km (the two innermost bands) of the turbine, the area is 3.1 + 9.4 km2 (=12.5 km2) which would represent 1.2 households.

Now let’s consider the two outermost (9 km and 10 km) bands. The area of these bands is 53.4 + 59.7 km2 (= 113.1 km2) which represents 113 households. So the outermost bands have about TEN TIMES the number of households of those living within 2 km, making sure that the contribution of the inner bands is diluted, swamped, covered up or however else you would describe it.

Or consider if you live within 2 km of a turbine. The outer bands of those living from 2 – 10 km from the turbine adds up to 301.6 km2, which would represent 30.1 households – which is 24 TIMES the number of households within 2 km.

No wonder your voice is being “drowned out”. The bigger the circle, the more “dilution” occurs.

Add this to the list of things where “size matters”, and next time you see a study like this, consider the radius and area that was chosen. The choice of the circle size plays a major role in the result obtained and speaks volumes about the motivation of the author.

Alec Salt

AN OPEN LETTER FROM A WISCONSIN FARMER WHO REGRETS SIGNING A WIND CONTRACT

 "By signing that contract, I signed away the control of the family farm, and it's the biggest regret I have ever experienced and will ever experience."

-Gary Steinich, Cambria, Wisconsin. June 2011

     Sometime in late 2001 or early 2002, a wind developer working for Florida Power and Light showed up near the Wisconsin Town of Cambria looking to get in touch with someone at the Steinich family farm.

He wanted to talk to the landowner about leasing a bit of land for the installation of a met tower. He needed to measure the winds in the area for a possible windfarm and Walter Steinich's land looked like a good place to do it.

The wind developer seemed like a good guy to Mr. Steinich who was in his early 70's at the time. The money seemed good. A met tower didn't seem like a big deal. It was just a tall pole with some guy wires, and it was temporary. Mr. Steinich signed the contract.

That was nearly ten years ago. Mr. Steinich has since passed away and now his son, Gary, runs the farm. He's written an open letter to Wisconsin farmers about his experience with the wind company since then.

Photos below are of access roads and turbine foundations in various farm fields in the Glacier Hils project now under construction in Columbia County, Wisconsin

Turbine access road cutting diagonally across field in Glacier Hills project. May 2011

From One Wisconsin Farmer to Another:

This is an open letter to Wisconsin farmers who are considering signing a wind lease to host turbines on your land. Before you sign, I’d like to tell you about what happened to our family farm after we signed a contract with a wind developer.

In 2002, a wind developer approached my father about signing a lease agreement to place a MET tower on our land. My father was in his 70’s at the time. The developer did a good job of befriending him and gaining his trust.
 
He assured my father that the project wasn’t a done deal and was a long way off. They first had to put up the MET tower to measure the wind for awhile.

He told my father that if the project went forward there would be plenty of time to decide if we wanted to host turbines on our farm. There would be lots of details to work out and paperwork to sign well before the turbines would be built. The developer said my father could decide later on if he wanted to stay in the contract.
 
In 2003 the developer contacted us again. This time he wanted us to sign a contract to host turbines on our land. We were unsure about it, so we visited the closest wind project we knew of at the time. It was in Montfort, WI.
 
The Monfort project consists of 20 turbines that are about 300 feet tall and arranged in a straight line, taking up very little farmland with the turbine bases and access roads. The landowners seemed very satisfied with the turbines. But we were still unsure about making the commitment.

We were soon contacted again by the developer, and we told him we were undecided. Then he really started to put pressure on us to sign.

This was in March of 2004, a time of $1.60 corn and $1200 an acre land. It seemed worth it have to work around a couple of turbines for the extra cash. We were told the turbines would be in a straight line and only take up a little bit of land like the ones in Monfort.

And we were also told that we were the ones holding up the project. That all of our neighbors had signed, and we were the last hold-outs. It persuaded us.

What we didn’t know then was the developer was not being truthful. We were not the ‘last hold-out’ at all. In later discussions with our neighbors we found out that in fact we were the very first farmers to sign up. I have since found out this kind of falsehood is a common tactic of wind developers.
  
My father read through the contract. He said he thought it was ok. I briefly skimmed through it, found the language confusing, but trusted my father's judgment. We didn’t hire a lawyer to read it through with us. We didn’t feel the need to. The developer had explained what was in it.
 
The wind contract and easement on our farm was for 20 years. By then my dad was 75. He figured time was against him for dealing with this contract in the future so we agreed I should sign it. A few months later, my father died suddenly on Father's Day, June 20th, 2004
 
After that, we didn’t hear a whole lot about the wind farm for a couple years. There was talk that the project was dead. And then in 2007 we were told the developer sold the rights to the project. A Wisconsin utility bought it.
 
After that everything changed. The contract I signed had an option that allowed it to be extended for an additional 10 years. The utility used it.
 
The turbines planned for the project wouldn’t be like the ones in Monfort. They were going to be much larger, 400 feet tall. And there were going to be 90 of them.

They weren’t going to be in a straight row. They’d be sited in the spots the developer felt were best for his needs, including in middle of fields, with access roads sometimes cutting diagonally across good farm land. Landowners could have an opinion about turbine placement but they would not have final say as to where the turbines and access roads would be placed. It was all in the contract.

Nothing was the way we thought it was going to be. We didn't know how much land would be taken out of production by the access roads alone. And we didn't understand how much the wind company could do to our land because of what was in the contract..

In 2008 I had the first of many disputes with the utility, and soon realized that according to the contract I had little to no say about anything. This became painfully clear to me once the actual construction phase began in 2010 and the trucks and equipment came to our farm and started tearing up the field.

 In October of 2010 a representative of the utility contacted me to ask if a pile of soil could be removed from my farm. It was near the base of one of the turbines they were putting on my land. I said no, that no soil is to be removed from my farm.

The rep said that the pile was actually my neighbor’s soil, that the company was storing it on my land with plans to move it to another property.

Shortly afterwards I noticed the pile of subsoil was gone.

 In November of 2011 I saw several trucks loading up a second pile of soil on my land and watched them exiting down the road. I followed them and then called the Columbia County Sheriff. Reps from the company were called out. I wanted my soil back.

 A few days later the rep admitted they couldn’t give it back to me because my soil was gone. It had been taken and already dispersed on someone else's land. I was offered 32 truck loads of soil from a stockpile they had. I was not guaranteed that the soil would be of the same quality and composition as the truck loads of soil they took from my farm.

I was informed by the lawyer for the utility that I had until April 30, 2011 to decide to take the soil. There would be no other offer. Take it or leave it.

I contacted the Public Service Commission for help. The PSC approved the terms of project and I believed the utility was violating those terms. The PSC responded by telling me they could do nothing because the issue involved a private contract between myself and the utility.

They told me my only option was to sue the utility.

My father and I both worked those fields. Watching the way they’ve been ripped apart would sicken any farmer. But what farmer has the time and money it would take to sue a Wisconsin utility?

By signing that contract I signed away the control of the family farm, and it’s the biggest regret I have ever experienced and will ever experience. I have only myself to blame for not paying close enough attention to what I was signing.

We had a peaceful community here before the developer showed up, but no more. Now it’s neighbor against neighbor, family members not speaking to one another and there is no ease in conversation like in the old days. Everyone is afraid to talk for fear the subject of the wind turbines will come up. The kind of life we enjoyed in our community is gone forever.

I spend a lot of sleepless nights wishing I could turn back the clock and apply what I've learned from this experience. Now corn and bean prices are up. The money from the turbines doesn't balance out our crop loss from land taken out of production. The kind of life we enjoyed on our family farm is gone forever too.

I would not sign that contract today.  As I write this, the utility is putting up the towers all around us. In a few months the turbines will be turned on and we'll have noise and shadow flicker to deal with. If I have trouble with these things, too bad. I've signed away my right to complain. These are some of the many problems I knew nothing about when I signed onto the project.

If you are considering signing a wind lease, take the contract to a lawyer. Go over every detail. Find out exactly what can happen to your fields, find out all the developer will be allowed to do to your land. Go through that contract completely, and think hard before make your decision.

I can tell you from first hand experience, once you sign that contract, you will not have a chance to turn back.

Gary Steinich
Steinich Farms, Inc.
Cambria, WI
June, 2011

UPDATE: JUNE 5, 2011 Gary Steinich contacted Better Plan to let us know he and the utility have reached an agreement on his soil restoration.

EXTRA CREDIT READING:

CLICK HERE TO DOWNLOAD A COPY OF THE FLORIDA POWER AND LIGHT WIND LEASE CONTRACT  MUCH LIKE THE ONE THE STEINICH FAMILY SIGNED.

It can be found on the PSC Docket for the Glacier HIlls project. [ #6634 CE 302]

NEXT STORY: From Rock County, WI

SPRING VALLEY CONSIDERING BAN ON WIND TURBINES

SOURCE: The Janesville Gazette, gazettextra.com

June 4, 2011

By GINA DUWE

SPRING VALLEY TOWNSHIP — Town officials in Spring Valley are considering a new moratorium on wind turbines after the largest wind company in North America inquired about town wind ordinances.

The town board will discuss and likely vote on a moratorium at its Monday, June 13, meeting, Clerk Judy Albright said.

Spring Valley is among several area townships that wrote wind moratoriums while new rules to regulate wind projects less than 100-megawatts are decided at the state level.

Town officials discovered their previous moratorium expired Dec. 1 after Ted Weissman of NextEra Energy recently inquired about ordinances related to wind development and the process for placing a met tower.

A met tower gathers weather data to help wind developers determine if a site is good for development.

Weissman said he couldn’t comment but the company was looking at the area and hadn’t made any decisions. A company spokesman, however, said NextEra is not pursuing a met tower in Rock County.

Spokesman Steve Stengel said Weissman might have conducted some inquiries, but “we are not proposing it at this point,” he said. “What may or may not happen in the future (is) all speculation.”

NextEra owns and operates two wind farms in Wisconsin: 36 turbines at Butler Ridge Wind Energy Center in Dodge County and 20 turbines at Montfort Wind Energy Center in Iowa County.

Neighboring townships Magnolia and Union became possible sites for wind turbines a few years ago, and one met tower was placed in each town to gather data.

A spokeswoman for Acciona, the company that eyed those townships, said this week it is not pursuing “the early stage development project in Union and Magnolia. This enables (Acciona) to focus efforts and resources on other projects that are a better fit for their portfolio.”

Developers would be interested in hooking into the major transmission line that runs east-west through the northern part of Spring Valley, town officials said.

Smaller wind projects are permitted through local ordinances until lawmakers enact statewide rules.

Under state law, the Public Service Commission has to develop the rules, and a committee worked through most of last year to write the rules. When the rules were set to take effect in March, Republican lawmakers suspended them. It’s now up to legislators to approve new rules by May 2012 or the suspended rules would go into effect, a PSC spokesman said.

Republican Sen. Frank Lasee has proposed a bill that would add additional requirements to the PSC rules. The bill was referred to the Committee on Energy, Biotechnology and Consumer Protection, but no hearing is scheduled.

If you go

The town board will discuss and likely vote on a wind moratorium at its 7 p.m. meeting Monday, June 13, at the Orfordville Fire Department, 173 N. Wright St., Orfordville.