Wind Law

Question 1

Wind Lease - Purpose Clause

Answer 1

Gives rights to the wind company, make sure client wants them all - if they’re okay with it make company pay - may need a different agreement
Also needs a description of the property.

Question 2

Wind Lease - Lease Terms - Option/Development Term -

Answer 2

3-5 years to do studies; easements for ingress & egress, studies, need interconnect agreement and to get all permits from FAA and clearance from DOD

Question 3

Wind Lease - Lease Terms - Construction Phase -

Answer 3

Apprx. 18 months, specify if construction occurs during development or lease term

Question 4

Wind Lease - Lease Terms - Operations Term -

Answer 4

30-50 years, watch for added years

Question 5

S Tx Compensation Terms

Answer 5

Site Fees - 7500MW
New Roads - 25-50/rod
Improved Roads - 25/rod
Overhead Lines - 500-2500/rod
Buried Lines - 25-35/rod
Substations: 1st 5 yrs w/ increase of $500/MW or $5/acre - 7500/MW $25/acre
Royalty: increasing 1/2% year - 6%
Hunting: all acres or flat fee - 5k/year
Reimburse all attny fee
Sometimes signing bonus

Question 6

Compensation Terms

Answer 6

Install Fees - for install sites
Minimum Royalty
Royalty Gross Revenue