The proponent may also reserve the right to extend the duration of additional extensions, often from 20 to 30 years, and to extend all or part of the project over the life of the project or in some other way. “Repower” usually means that all or a significant number of wind turbines on the ground are replaced, additional wind turbines are installed on the field or both. The net result of these successive conditions is an agreement that has the potential to last more than 70 years (again subject to current government restrictions). The unusual length of the wind energy contract can be of concern to a landowner, especially when it is a family business or ranch that the landowner wishes to give to his or her successor or heir. The landowner may be reluctant to sign an agreement that may continue to burden the property, long after the landowner plans to transfer control of the land. In addition, the duration of the agreement may raise concerns about the landowner`s ability to sell the property at a later date or to raise questions about the long-term viability of the developer. The owner of the land will want some assurance that the developer or his successors will have the financial means to operate the project for the duration of the contract and restore the land in the event of termination. Dealing with a serious developer with a long track record of successful projects is a way for an owner to get more comfort as his developer has the experience, ability and means to develop a successful project that both benefit from. While the revenues generated by an operational wind project often significantly increase the market value of the owner`s underlying land, it is necessary to determine on a case-by-case basis whether and to what extent a project has an influence on the value of the land. 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. The heritage is very selective in the choice of a site for a wind farm. We conduct location studies and assess the country based on geographic, atmospheric, environmental and cultural factors. Just because it`s windy doesn`t mean a location is ideal for a wind farm. We recommend that all interested owners contact us (email@example.com) and we can conduct a preliminary analysis and determine our interest in your respective territory.