by Eileen Horn
“Remember, it’s not what they say, it’s what they write.”
They, meaning wind developers - and the many different varieties of wind lease agreements being waved in the faces of many Kansas landowners. This piece of advice was one of many tips shared at the Colby Wind Summit yesterday.
In a packed room at the City Limits Convention Center, over 250 landowners, state and county officials, and concerned citizens gathered to learn about wind energy in Kansas, and their potential stake in its development.
The morning began with a presentation by Dan Nagengast of the Kansas Rural Center, who set the tone for the Summit with a look at Kansas’ wind policy context. Nagengast noted that Kansas is 3rd among all states in wind energy potential, but only 12th in terms of wind energy development.
A particularly sobering moment occurred when he showed map after map of policies which support wind energy development in the U.S. (Sources for these maps can be found online at Pew Climate.) The maps showed states such as Texas, Oklahoma, Minnesota and Iowa pursuing policies like net metering, a state Renewable Portfolio Standard, and tax credits for wind development.
As he flipped through the slides, Kansas stayed blank. Not a single policy to support meaningful wind development. The woman seated next to me laughed and shook her head in disgust.
As Nagengast said, “A stream of federal dollars to support wind energy programs is flowing from Washington right around and past our state.”
Nagengast did provide an inspiring example - Minnesota’s pursuit of community wind. This type of wind development features large commercial towers, but not in the typically large arrays that Kansas has seen developed here. Community wind means that community members own a significant stake in the project, and share in its returns. These community entities might be a school, a municipal electrical utility, a farmers’ cooperative, or a rural electric coop. One of the advantages to community wind, Nagengast noted, is the local economic impact. Owner-investors are local and therefore the money stays close to home.
The economic impacts of wind development were echoed by Jennifer O’Hare, Attorney for Lincoln County, home to the new Smoky Hills Wind Farm developed by Tradewind Energy.
O’Hare noted that, in Lincoln County, their experience with the Smoky Hills Wind Farm development has been overall, very positive. Said O’Hare, “Our restaurants are lovin’ life…our motel has been full. It’s been a boom for sure, but there are things you as landowners need to be ready for.”
O’Hare went on to describe her experience as a county attorney and as a private practice lawyer in Lincoln County. As county attorney, she saw firsthand the aspects of wind energy development that Lincoln County hadn’t anticipated- including zoning and siting concerns, what to do if an accident occurs on the construction site, and how best to invest the county revenues generated from the development.
The focus of her talk though, was to provide practical advice for the 200+ landowners in the room, many of whom had already been approached by wind developers, or had neighbors who had.
O’Hare advised landowners to beware of leases with long “option periods.” These option periods tie up land, and give owners a one-time payment, but with no guarantees that a wind farm will actually be built. In some cases, these agreements have been signed for up to 150 years-effectively tying landowners’ hands.
She also advised landowners to consider the wind lease payment amounts, and to contact other landowners around the state who have developed wind energy to compare payment amounts. Other advice included a caution to carefully consider the proposed improvements that the wind project would make to your property, in terms of roads, etc. Would these new roads cause you to need to change culverts and access points to your land? Also, she advised farmers to consider any overlap with their oil and mineral leases.
As O’Hare spoke, the crowd was attentive. Many were furiously taking notes. Her closing statement especially seemed to strike a chord at the table where I was sitting:
“This wind is yours. But it’s also your kids’ and your grandkids’. Consider these leases carefully, because in many cases, these leases will extend beyond your lifetime.”
In the afternoon, Lieutenant Governor Mark Parkinson addressed the crowd, and posed the question: “Why is Kansas behind the times on wind when our resource is so good?”
He recalled conversations a few years ago with wind developers who perceived KS as “unfriendly” to wind development.
At the time, developers perceived that Kansas didn’t provide a rate for wind energy that would allow them to recover their costs. The Kansas transmission grid was underdeveloped. The Lt. Governor went on to describe the newly-convened Kansas Wind Working Group. The Governor and utilities also agreed to increase wind energy in their portfolios to 10% wind energy by 2010, and 20% by 2020.
In Parkinson’s view, Kansas is uniquely poised to benefit from wind energy development, especially if a federal cap and trade, carbon tax, or a federal Renewable Portfolio Standard is passed.
Parkinson was especially enthusiastic about the potential for Kansas to be a net energy exporter. If a federal RPS is passed, then states without access to renewable energy, especially Southeastern states, would have to buy renewable energy from other states- and as Parkinson hopes- that energy would come from Kansas.
The final presentation of the day highlighted an innovative project at the University of Minnesota. There, researchers and students are collaborating to develop a renewable energy research center which tests technologies on a practical production scale- ready for landowners to use.
The project highlighted by Corey MarQuart, Engineer at UM, was a project which would use wind energy to create hydrogen (by hydrolysis of water) and then use that hydrogen to combine with nitrogen and make anhydrous ammonia. This ammonia could then be used in multiple fertilizer applications.
According to MarQuart, this addresses the transmission line issue that many rural landowners face. Many landowners who are far from transmission lines could still use wind energy, but instead of connecting it to the grid for electricity, they could use it to create fertilizer on site.
As the Colby Wind Summit came to a close, many in the audience still had questions. They stayed to talk with the speakers - and with each other.
Clearly, this topic is of interest to Kansans. Conversations such as this wind summit are critical for those considering the impact of wind development on our state.
One thing the summit made very clear: If Kansans want to develop our wind resources, we can do it in a way that provides local economic benefits for schools, social services and roads. We can adopt state policies which attract responsible wind development and turbine manufacturers. We can adopt policies which protect landowners and provide benefits for multiple generations.
Or not.
The choice is ours.
— Eileen Horn, www.climateandenergy.org
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The Wind Summit was sponsored by National Renewable Energy Laboratory “NREL”, Kansas Rural Center, Northwest Kansas Planning & Development Commission, and the Thomas County Economic Development Alliance.
Educational materials distributed at the Wind Forum:
The Kansas Wind Map: http://www.kcc.ks.gov/energy/kswindmap.pdf
Wind Projects: Getting Started: http://www.climateandenergy.org/_FileLibrary/FileImage/WindGettingStarted.pdf
Wind Projects: Landowner Options: http://www.climateandenergy.org/_FileLibrary/FileImage/WindLeaseInfo.pdf
The KS Transmission Grid:
http://climateandenergy.files.wordpress.com/2008/03/kansas-electrical-transmission-map.png?w=577&h=433
Other offerings in CEP’s Wind Week so far:
Wind power and human health
Photo essay, Smoky Hills Wind Farm
What you need to know to get started on wind energy
Colby Wind Summit
Wind in the News