|
HUME – Efforts to create a wind farm across northern Edgar
and southern Vermilion Counties have land owners weighing
the pros and cons of the idea.
The Edgar County Office of the University of
Illinois Extension, the Edgar County Farm Bureau and
EnerStar Electric recently sponsored an education session to
help people in the area navigate the intricacies of
participating in a project to generate electricity by
capturing the power of the wind.
The basic advice for individuals approached about leasing ground
for a wind turbine is to keep their eyes wide-open whenever
entering a contract with a major corporation. The speakers
also stressed it is important for land owners to know what
limitations they can accept and be willing to walk away from
the financial incentives if they believe the project will be
too detrimental to their farming operations.
Jay Solomon, an agriculture
engineer with the extension, presented a brief history about
the development of wind energy in the U.S. He said the
initial focus was on the High Plains states in the west
which have a tremendous potential to generate wind-powered
electricity, but the small populations and lack of electric
grids for widespread distribution in those areas are serious
drawbacks.
Illinois’ “moderate wind resources” cannot match
the High Plains, Solomon said, but that disadvantage is
offset by the existence of major urban areas to provide a
market and an established grid network to carry electricity
generated by wind farms.
The most recent data from 2006 indicates that Illinois has 14
completed wind projects on line, six under construction, 12
permitted and 75 either proposed or contemplated. Solomon
said the project stretching from eastern Douglas County to
Indiana most likely falls into the proposed/contemplated
category.
“The site selection is when all of the rumors start,”
said Solomon.
He does not anticipate seeing turbines any time soon on the ridge
following the Edgar/Vermilion County line. The timetable
Solomon presented indicated a five-year development phase is
normal, followed by one year of construction, a
life-expectancy of 20 to 30 years for a wind farm, followed
by a one-to-two-year decommissioning phase.
A member of the audience challenged Solomon’s assertion that
wind turbines can generate electricity for approximately 3.5
cents per kilowatt hour. The individual claimed the figure
was excessively low and that coal is the cheapest way to
create electricity.
Solomon defended his numbers as accurate while adding this is
not an issue of wind versus coal since no power companies
have plans for building new coal fired plants.
“It’s a matter of keeping up with the increasing demand for energy,”
said Solomon.
Farm Bureau attorney Ryan Gammalgard echoed some of Solomon’s
comments and dispelled any notion that wind energy is just a
chimera.
According to Gammalgard, the pressure to create wind farms will
continue to accelerate as power companies face a state
mandate requiring an increasing percentage of renewable
resources be used for energy production. The mandate also
indicates how much of that energy must be provided by the
wind.
“These are becoming valuable properties,” said Gammalgard.
He noted the economic incentives are bringing some into the field
that may lack the needed expertise.
“Initially, it was a handful of established European companies that
came to the U.S.,” said Gammalgard. “Now we are seeing
startups that only get a contract that they sell to the
established companies.”
The attorney spent some time discussing the ins-and-outs of
contract negotiation and his advice essentially was to be
careful, to be aware of what is included and excluded from
the contract, to make sure that all concerns are addressed
and not to assume verbal promises will be honored by the
future owners of the wind farm.
“These contracts are complex,” said Gammalgard. “We always recommend
that you get your personal attorney involved or form a land
owners group with an attorney.”
He also recommended that land owners have their tax advisors review
the proposal as tax issues from crop reimbursements, income
from leases and increased property values all accompany the
development of wind farms.
Gammalgard emphasized those behind wind farm developments lack
an understanding of farming operations so it is important
that contracts specify such issues as the need to minimize
soil compaction, the location of roads and repair of
drainage tiles.
“It’s important that you get those terms in there and they are clear,”
said Gammalgard.
Land use involves more than building the huge turbines as
siting is
also necessary for transmission lines to get the electricity
on the grid. It is becoming more common to bury the
transmission lines, and Gammalgard said landowners should
have a say in how deep the lines are buried and what route
they take.
Another major issue to negotiate is liability protection for
landowners during the construction phase and afterward as
the massive towers attract trespassers eager for a close
look.
He mentioned other features that have been found in some contracts
that are detrimental to land owners such as surrendering
mineral rights to the development company, a confidentiality
clause prohibiting the land owner from discussing any aspect
of the project, and taking away a land owner’s right to sue
the company.
“You want to retain the right to sue the company if a problem arises,”
insisted Gammalgard. “You should be able to keep as many
legal rights as possible.”
He stressed these are long-term, contractual agreement that will
impact land use for two or three generations and the
documents should also spell out who is responsible for
decommissioning the massive towers.
“The same thing that happens to the land during construction will
happen during reconstruction,” noted Gammalgard.
Rob Sharkey, a Bureau County farmer, brought personal
experience to the discussion. He has turbines on his farm
and supports the efforts to develop wind energy.
Still, he advised those present to expect to lose every tile
in the field where the turbines are erected. Sharkey said
the trenching machines cut the tiles and the weight of the
huge cranes used in the operation crush them, but
surprisingly create little soil compaction.
“The biggest compaction is from the other construction
vehicles,” said Sharkey. “They’re going to use your whole
field. They are going to run all over it.” His main advice
was for neighbors to work together on the project as a way
to provide a more unified negotiating force and to minimize
the risk for hard feelings.
“Keep in mind the company comes in, puts up the turbine and is gone,
but the neighbors remain and you still have to live
together,” said Sharkey.
According to Sharkey, some residents in his rural
neighborhood opposed the turbines and claimed the gigantic
devices would be too loud and visually jarring.
He told the audience those are relative issues based on
what an individual values. He neither objects to the sight
nor the sound, adding his grain bin driers are louder than
the turbines.
“I’m not saying to do it or not do it,” said Sharkey.
“It’s a personal choice, but it is a pretty good paycheck.”
Sharkey receives a base payment of $10,000 per turbine and
an annual increase of either two percent or the cost of
living, whichever represents the greater figure.
Gammalgard has noted the contracts utilize a variety of
compensation methods and there does not seem to be a set
formula for determining payments. “There are a lot of
different revenue streams associated with wind turbines,”
said Gammalgard. “You need to be prepared to say, ‘you are
going to make a lot money from this and how am I going to
benefit?’”
|