rainjacktx
Six-man fan
oldfat&bald":318y5e5s said:What happens to that contract when the government subsidy runs out and the company goes bankrupt? You may get stuck with three huge hazards on your property that will be expensive to get rid of. At least that's better than having 40 of them.
Thinking that the wind energy royalties will last much longer than 5 years is silly. But the reality is that it looks like - at least up here in Briscoe County - they are going to be constructed. The leases I have seen pay the landowner $10,000 for each tower upon the commencement of construction. Supposedly, that is to pay for damages due to construction.
Then there's the royalty payments to occur after that.
How much would it cost to have a tower removed, assuming none of the leases last the full 30-year term? there's a lot of scrap metal to be salvaged, so it would not be all that cost prohibitive to remove the tower itself. The cost is going to be reclaiming the ground occupied by multiple, multiple yards of concrete and rebar. I'd imagine a cottage industry of windmill reclamation would spring up to help mitigate the unsightly mess. For a nominal fee, of course.
I guess you could learn to farm around the concrete slabs, but - in the case of the 40 windmill client - if I make $800K the first year, what's my incentive to do anything?
I understand your arguments and, as I have said, any land owner (or taxing authority) looking at wind energy as a long term income stream is an idiot. I guess I'm just saying that money drowns out most all words of caution. And in Briscoe Co. - first year income from most towers constructed will be $19.6K per tower - minimum. General money-fueled local wisdom is that there will never be another dry season. Or, more appropriately, another windless day.