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Product ID: 386395EAU
 
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Current Issues in Wind Power Leases

OnDemand Webinar (86 minutes)

As the wind energy market has matured, the issues relating to the leasing of the surface property necessary to build wind farms have become more sophisticated and complex. No longer will a land owner blindly sign any lease offered. Negotiations in virtually all facets of the wind lease, from lease compensation, uses and reserved rights to restoration security and renegotiation options, have become highly evolved and creative. Land owners also are introducing new protections and presenting new proposals to share in the revenues of the wind farm or benefit from better than expected wind production. This OnDemand Webinar will cover the latest trends in wind leases, including the latest compensation structures and land owner requested provisions, as well as explore new pooling and co-tenancy arrangements that are at the vanguard of negotiating these contracts. This program will also look at the severance of “wind rights” as a mineral interest and the implications this has for wind leases. Lastly, the presentation will offer practical drafting ideas for tackling these issues.

Authors

George Humphrey, Andrews Kurth LLP

Agenda

Compensation Structures

  • Upfront Payments
  • Royalty Payments
  • Minimum Annual Payments
  • Performance Bonuses
  • One-Time Payments
  • Damage and Livestock Payments
  • Inflation Adjustments and Late Payment Interest

Term

Lease Uses and Reserved Rights of Lessors

  • Wind Power Uses
  • Transmission
  • Rights to Develop Solar or Other Energy Project
  • Reserved Rights of Lessors (Hunting, Recreation, Mineral Development, etc.)

Restoration Security

Financing Provisions and Issues

Severance

  • Comparison to Traditional Severable Mineral Interests
  • State Regulation of Severability
  • Case Law
  • Lease Implications and Practical Solutions

Pooling

  • Description of Pooling in Wind Leases
  • How to Accomplish a Pooling Payment System in Wind Leases
  • Practical Concerns for Developers Relating to Pooling Provisions

Co-Tenancy Issues

  • Securing Necessary Rights When Dealing With Undivided Surface Interests
  • Powers of Co-Tenant; Obligations to Absent Co-Tenants
  • Co-Tenant Issues Related to Title Insurance