As wind use becomes more popular nationwide, landowners need to be aware of lease potentials and pitfalls. Corporate Learning at Oklahoma City Community College has received inquires from landowners who have requested information on how to negotiate a land lease. In response, OCCC and the Phillips Murrah Law firm joined forces to present the Wind Power for Landowners seminar.

As wind use becomes more popular nationwide, landowners need to be aware of lease potentials and pitfalls. Corporate Learning at Oklahoma City Community College has received inquires from landowners who have requested information on how to negotiate a land lease. In response, OCCC and the Phillips Murrah Law firm joined forces to present the Wind Power for Landowners seminar in the John Massey Center on Saturday. The seminar is designed to provide an overview of the wind industry as well as inform landowners of the components necessary for a successful lease.

I will have the pleasure of speaking at the event along with industry experts including Sally Hasenfratz, an attorney with Phillips Murrah P.C. specializing in real estate and land use; Dr. Shannon Ferrell, an attorney and professor of agricultural economics at Oklahoma State University; and Angie Albers, project coordinator for the Oklahoma Wind Power Initiative.A timely addition at OCCC, the Wind Turbine Technician Certificate Program, offers students a six-course program including basic electricity, industrial electronics, electromechanical devices, programmable controller systems and instrumentation and control operations, along with wind energy industry fundamentals.

Because of the long-term ramifications of wind leases and easements and because they often are complicated documents full of technical and legal terms, it is important for landowners to seek assistance in assessing any offer made to them when considering the placement of wind turbines on their property. Typically, a wind energy developer will approach a landowner with a wind energy lease. The lease will often contain the terms under which the developer will study the wind resource, as well as construct, operate and maintain wind energy facilities. Also included will be the financial terms for any power generated on the property.

Developers often will enter into leases with multiple landowners owning neighboring tracts of land. The goal of such a project is to develop adjacent properties into a large-scale wind farm. Being prepared and knowing the provisions a landowner wants included in a lease are keys to avoiding later problems. It is a good idea for rural neighbors to band together so leasing agents can't play them against each other.

Landowners want to know how much money they can make and how best to structure the financial portions of their contracts. I would recommend that landowners seek royalty interests based on the power output of wind turbines on their properties as opposed to a flat fee per turbine or acreage. It is important to negotiate the terms of the wind energy lease in advance as it will contain the terms by which the landowner will be paid for energy generated on their property along with access limitations, provisions for the installation, operation, maintenance and decommissioning of the facilities installed by the developer.

Entering into a wind energy lease can be a worthwhile experience for both landowners and developers. However, landowners must exercise caution to ensure that they get the best financial deal as well as adequate protections for their properties. I recommend that any landowner considering signing a lease or easement consult a lawyer with experience in wind energy development.

The Wind Power for Landowners Seminar will take place 10 a.m. to 1 p.m. Saturday. rbeam@occc.edu or visit http://www.occc.edu/corporatelearning/ .

Jim Roth, a former Oklahoma corporation commissioner, is an attorney with Phillips Murrah P.C. in Oklahoma City, where his practice focuses on clean, green energy for Oklahoma.

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