Leasing Your Land to a Developer
Currently, most landowners who participate in commercial-scale wind development do so by entering into a lease or easement agreement with a large wind developer.
In a case like this, the landowner would sign an agreement granting the developer the right to use their land for wind development, and in return, the landowner would receive compensation from the developer. Typically, the developer would own any turbines that are put up and would do all of the work of developing the project.
Wind leases and easements are often written to cover extremely long periods of time--30 to 60 years is typical, and they can be longer than 150 years in some cases. Because of the long-term ramifications of wind leases and easements, and because they are often complicated documents full of technical and legal terms, it is important for landowners to seek assistance in assessing any offer made to them.
We recommend that any landowner considering signing a lease or easement consult a lawyer with experience in wind energy development.
In addition, Windustry has developed a series of resources designed to accomplish two things: 1) to help landowners make informed decisions about their land, and 2) to promote agreement practices that are mutually beneficial to both landowners and project developers. These resources were last updated in September, 2005.
Use the links below to access these resources:
- Project Summary - Updated September 2005
- Wind Energy Easement and Lease Agreement Guidelines - An updated version of Windustry's original leases and easement information. This expanded document covers wind energy land leases as well as wind energy easements and features updated information on provisions, recommendations, and items to watch out for.
- Compensation Packages for Wind Energy Land Agreements - This short paper summarizes published information about compensation packages for landowners and discusses the factors that seem to drive compensation levels. It also highlights several more detailed stories about land agreements for specific projects around the country.
- Wind Energy Land Agreements: Best Practices and Policy Recommendations - The Wind Easement Workgroup developed a list of recommended policies and practices for facilitating orderly and sustainable wind energy development. These policies are designed to protect landowners, enhance economic development opportunities in wind energy, and broaden access to wind energy market information.
- Wind Energy Easement and Lease Bibliography - This document lists a variety of useful resources related to wind energy lease and easement agreements.
Additionally, many people wonder how they can get a developer to come put up turbines on their land. In most cases, the developer approaches the landowner, not the other way around. This is largely because developers tend to have large-scale strategies already in place. It is a bad idea to make financial or other decisions based on the assumption that you will be able to convince a developer to lease your land.
That said, if you are determined to try to find a developer to lease your land, we'd suggest starting by looking and asking around to see if any developers are already working in your immediate area and contacting them. If there's no one in the area, you could try looking through Windustry's directory of commercial-scale developers or searching the American Wind Energy Association directory for developers. Keep in mind that it is unlikely that you will be successful!
Read more:
This speach was given by Bernard Noling of the Southwest Kansas Royalty Owners Association in 2003. He goes over suggestions and things to look out for in negotiating a wind lease, and describes how wind leases are similar to mineral leases.
This document was writted by Stoel Rives Attorney Samual J. Panarella, March 2004. Also adapted for North American Windpower in September 2004 and The Law of Wind: A Guide to Business and Legal Issues, Third Edition, 2005. Click here to go to the Stoel Rives web site.
Wind Energy Toolkit
2005: New York State Energy Research and Development Authority, Power Naturally ProgramIncludes a legal guidebook for landowners, a section on lease agreements, and a sample annotated lease agreement.
