“Wind energy is here to stay. I see rising energy prices and environmental concerns.”

Shannon Ferrell, Oklahoma State University associate professor of agriculture law, gave that assessment Thursday during a meeting for landowners in Garfield and Grant counties being approached by wind energy developers. The meeting, sponsored by Oklahoma Cooperative Extension Service offices in the two counties, was at Autry Technology Center.

Ferrell spoke to an overflow crowd of rural Enid-area property owners about the legal issues involved in dealing with wind power developers and how to lease land. Ferrell, who also is an attorney, conducted an overview of the wind power industry and gave a short course on understanding wind power agreements and discussing what questions needed to be asked when negotiating them.

At least four companies currently are negotiating leases to erect wind turbines to provide wind energy, with a number of leases obtained in the Breckinridge, Garber and Hunter areas.

Entering a wind power agreement is as significant commitment, and Ferrell urged people to obtain legal assistance if they need it. Wind power provides an opportunity for an additional revenue stream from rural land, but he said land owners need to understand some key things, including length of the lease, how payments will be calculated, responsibilities of land owners and the wind power companies and impact development of projects will have on property use.



Anywhere the wind blows



The area around Enid is not as good for development of wind farms as other areas, Ferrell said, but is sought after because of its large cross section of power transmission lines. Being close to transmission lines lowers project costs. Ferrell said when negotiating with wind power developers, landowners should remember agreements must be a good deal for themselves and the company.

Locations are partly determined by terrain, he said. A good site will speed up the effect of wind and will not have any type of wind block.

On an open, flat terrain, he said, about 60 acres per megawatt of installed capacity will be necessary. But only about 5 percent or less of the land actually is occupied by turbines, access roads and other equipment.

The rest will remain free for other compatible uses, such as farming and ranching, as long as they are clear of wind obstructions.

“The best wind speed gets more power,” he said.

Ferrell told the audience turbines are designed to multiply the wind speed through the gear housing, resulting in more power. A three megawatt turbine will be about as tall as the Washington Monument, he said, and length of the rotors is equal to that of a 747 wing. Ferrell said he does not expect any three megawatt turbines here but said there may be some as large at two megawatts.

In 2002, Oklahoma had no wind generation, he said, and by 2007 the state generated more than 700,000 megawatts of electricity from wind. The profitability in wind is determined by the quality of the wind resource, market for power, costs incurred in capturing and selling power, transmission costs, land owner payments and any available incentives, such as tax credits, he said.



Don’t breeze by research



There are four phases of a project: the option phase, when the company purchases an option to determine if the land will be suitable; construction and operation phases; and decommissioning phase after the lease is over.

When an operation begins, turbines will be connected by underground cable and then connected to as substation by overhead wires, he said.

U.S. Fish and Wildlife Service has established requirements on ways to reduce the impact on wildlife, he said.

Landowners must be sure the contract specifies who will be responsible for taking down and disposing of turbines during decommissioning at the conclusion of a project. Contracts generally extend from 20 to 50 years, he said.

Ferrell also discussed questions that need to be asked during negotiation for easements and leases, including compensation and when compensation starts. He said there are a number of ways the landowner can be compensated, and he should discuss those methods and determine which is best for him.

He also cautioned landowners to research the company they are dealing with to know who they are and their reputation.

Ferrell was sponsored by law firms of Field, Trojan & Long P.C., Brown & Associates and Mitchell and DeClerck PLLC.