Wind Farm Option Agreements

Sometimes the use of an option is fueled by certain state laws. At other times, it is simply a function of the developer`s historical practice. For example, options are generally used by wind developers in California to avoid reassessing the project site property tax, which would be triggered at the beginning and end of the rental period if the lease term was 35 years or more (including extension options). The processing of initial due diligence during the option period prior to the conclusion of the long-term lease allows for more time for the actual operation of the wind project when the option is exercised during the term of the lease, without triggering the revaluation limit. By not using the option and concluding the lease itself only after the completion of the first investigation period, the developer maximizes the duration of the lease available for revenue generation operations without having to trigger a potentially costly basic tax valuation. Another variable for developers with combined wind and solar site control agreements in states that set legal limits for the duration before a given project begins or before construction begins (such as North Dakota and South Dakota for wind and solar) is whether non-compliance with the deadline could end the agreement ( (including for the other resource) or whether the solar site control agreement could be pursued. the agreement would be terminated under the status, as it relates to wind development. On the other hand, some landowners may be motivated to limit the amount of land subject to the wind energy contract. This may be because the owner wants to limit the impact of the wind project on his other activities on the land (especially if the landowner is a farmer or rancher and plans to continue to use the land in this way while the wind project is on the ground) or to have the opportunity to lease the excluded land for other purposes (for example. B , cell towers).

, or the landowner may simply be hesitant to give up a control measure over too much of the property. VII. Co location. Co-location can have a number of meanings. One of the meanings is the sharing of a domain by two or more different entities. Another project is the use of different energy resources in the same field, such as wind energy generators (active electricity generation) and storage, which power these generators (passive electricity available) or active solar energy. In a sense, virtually all wind energy contracts provide for the co-location of different operations: the use of the wind farm and the continuation of the operation by the landowner outside the project site. Similarly, we sometimes see a project that is first documented as a single and vast territory, which will then be divided or divided into several smaller sites, each with its own wind project under a “split” autonomous land contract or a partial allocation of the initial site management agreement.