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By Sarah Doty
Post-Bulletin, Rochester MN
Peter Tangren has been a farmer for decades. He has driven his tractor over the same fields in Mower County time and again.
And then nearly eight years ago, Tangren was approached by two companies about harvesting another crop.
This "second" crop -- wind -- required a machine that stood hundreds of feet in the air, spinning in the breeze. It would take up only a small piece of land -- about two-tenths of an acre, and would generate several thousands of dollars worth of income each year.
The crop wouldn't require any work by Tangren, and the source would never run out. Additionally, it would generate a commodity that would be useful to Tangren and his family.
Who knew the wind could be so valuable?
"When we were first approached, we talked long and hard about whether we wanted it," Tangren said about the turbine. "But at the end of the day we realized that it was going to happen, so if we didn't sign up, we wouldn't have any turbines, nor would we get any payments, but we would still look at them."
So he decided to go ahead with it, and now his 640-acre farm in Grand Meadow Township has six turbines from the Wapsipinicon Wind Project and his 320-acre farm in Clayton Township has an additional four turbines from the Prairie Star Wind Farm.
The turbines and the roads take up about 10 acres of his Grand Meadow farm, and about 3 acres of the Clayton farm, but Tangren doesn't complain because the turbines generate more revenue than he could have ever earned by farming those 13 acres.
"(Turbine revenue) is way more than what I can get by farming," he said. "Significantly more, so I would have to say financially that it's a good deal for landowners. Even if you don't have a turbine, if you are in (the middle) of a wind farm, you are getting paid wind rights. You are getting paid for the wind that blows across your farm."
Tangren didn't share how much he is receiving from each turbine, but industry experts say the most common figures range between $6,000 and $10,000 per turbine, per year.
For Tangren, the money is enough to deal with the "inconveniences" that turbines cause.
"It makes life a little difficult (to farm), but it certainly isn't the end of the world," he said. "It's not just as simple to put the planter down and drag it across the field and put it down on the next row. Yeah, there are some minor inconveniences, but certainly it's not a major issue."
Active role
Since initially being approached, Tangren has taken an active role in the contract negotiating process.
It was a role that emerged soon after he was first contacted by Zilkha, now known as Horizon Wind Energy, because soon after Zilkha knocked on his door, enXco was there with another offer. Having more than one option to negotiate provided him with the opportunity to get a quick lesson on negotiating and allowed him to get the best possible deal that he could.
"The major thing that we wanted, and we got it in every contract, was that at the end of the day, when 30 years is up, or when the project is no longer economically viable, we wanted to know what they (the developer) had the financial capability to take the thing down," Tangren said. "To decommission the project ... you know, the last thing we want is a million-dollar lawn ornament out in the middle of our farm."
Another important aspect of the contracts was the 30-year term.
"If wind energy is still viable 30 years from now, you can come back and negotiate another contract," Tangren said. Also, the lease had to be indexed for inflation, and the developers had to pay all of the legal fees that were accrued during the negotiation.
"It took some time, but they obviously wanted to negotiate the best contract they can for themselves," Tangren said. "It was a give-and-take process and I found them to be very fair, in every instance. With the contracts, they got some things that they wanted, and we got some things that we wanted, and at the end of the day I think everybody's happy."
But Tangren recommends that landowners in his same position contact a lawyer to help throughout the negotiating process.
"My advice would be to talk to a lawyer who has been involved with these contracts, because when I look at the last one we negotiated, what they offered was a far cry from what we got," Tangren said. "So they offer what is a starting point, and you go from there. So I would say anybody, any landowners, need to be in contact with an attorney who is well versed in these contracts."
Positive experience
Tangren he would go through all of it again.
"Two reasons," he said. "It's the right thing to do, with green energy. I don't think that anyone would argue that green energy, no matter what form, is the way we need to go. That's the first reason. The second reason: financially it's a good decision. The payments are all indexed for inflation."
Concerns about noise, shadow flicker, bird and bat killing and blinking FAA lights, have some farmers and landowners worried about leasing their land. Tangren, however, says his experience has not been negative.
"I haven't seen any dead birds," he said. "There is some noise; if you are in the right direction from the way the wind is blowing you hear a whooping sound. There is a flicker, generally, in fact I think in every instance, they have set back permits so they have to be so far away from a building site.
"I would say overall, the companies -- every company we have dealt with, has been very cognizant of trying to do what is right," he said.
Tangren also realizes, however, that the decision to allow turbines on his property doesn't only affect him.
"I would agree that it does change the landscape dramatically, there is no question," he said. "Pluses and minuses. Pluses -- it is obviously good, clean, green energy. Pluses -- it increases the cash flow of the farmer. Minuses -- you have to look at them and you've got to hear them. At the end of the day, I think the pluses outweigh the minuses.
"From my standpoint I am very pleased with the project, with what they have done, with how they have done it, and I think we are being adequately compensated for the inconveniences of farming around them and I like the idea of green energy."