Creston News Advertiser, IA
07-06-07
In the air: Adair County landowners get informed on wind farm implications
By Andy Goodell
CNA staff reporter
ORIENT — Landowners in Adair County may be better equipped to understand
MidAmerican Energy’s efforts to install wind turbines on their land.
An informational meeting at Orient-Macksburg High School Thursday evening
included presentations from Wind Turbine Specialist Tom Wind; Iowa State
University Agriculture Law Professor Roger McEowen and MidAmerican Energy
General Manager of Wind Development Tom Budler.
Budler said there are five meteorological towers up in the area, which are being
used to study the feasibility of installing wind turbines in Adair County.
He said the studies, which began this month, should conclude by mid-August.
“We’re getting some good information as to what the wind resources are for
project sites,” Budler said. “We continue to look for landowner and community
acceptance. Everything we’re looking to do with project development is on a
voluntary basis.”
Why here?
Wind said landowners who are able to have a wind turbine on their property
should feel lucky to have land in a windy area, which has peaked MidAmerican’s
interest.
“Those of you that have been contacted by MidAmerican for an easement,
congratulations,” Wind said. “You are a selected minority of people in Iowa.”
Wind power is a rapidly-growing industry throughout the country and across the
world, Wind said.
Iowans who own land along the highest elevations in the state, which begin in
northwest Iowa where the Missouri and Mississippi rivers divide (or “M&M
Divide”), and extending southeast, are more likely to be courted by energy
companies, he said.
“We have good wind resources in the state,” said Wind. “The M&M divide
extends into Adair County, and that’s why MidAmerican is here.”
Wind said energy lines connected to grids throughout the state are a crucial
ingredient when companies consider where to foster wind farms, because the
energy created by wind turbines needs to readily connect to a grid.
“That’s your second blessing,” Wind said. “You have these big, high-voltage
transmission lines going through your county. That gives you a highway to get
the wind power out of there, and that’s why MidAmerican is interested.”
Lease rates
Budler said the lease rate MidAmerican is offering landowners is $3,500 a year
per turbine, with a 2 percent escalator clause if a turbine is constructed.
Wind addressed the wind-turbine lease-agreement issue by saying he has seen
a variety of annual payments made to landowners from large companies.
There are several factors involved, including the size of the wind turbine and how
much land the turbine renders unable to be farmed, he said.
“When the first wind turbines went up in Storm Lake, at first the lease rate was
$2,000 a year,” he said. “I’ve seen $4,000 or $5,000 for one renter.”
Legal questions
McEowen discussed several legal factors, including contract negotiations and tax
implications associated with wind-turbine lease agreements.
He stressed involving a lawyer in any potential contract negotiation Adair County
landowners would have with MidAmerican, adding, most companies do not like to
renegotiate contracts.
“These are long-term agreements,” he said. “Never negotiate a contract without a
lawyer.”
McEowen said these kinds of energy negotiations are nothing new.
“These agreements you see coming out of wind companies right now will mirror
oil and gas contracts of 100 years ago,” said McEowen. “Over half of the clause
language is identical.”