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SF 3255

as introduced - 86th Legislature (2009 - 2010) Posted on 03/12/2010 03:40pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to energy; modifying provisions relating to wind easements; amending
Minnesota Statutes 2008, section 500.30, subdivisions 2, 3; proposing coding for
new law in Minnesota Statutes, chapter 216F.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [216F.10] WIND EASEMENT AGREEMENT.
new text end

new text begin new text end

new text begin (a) Beginning on the date the landowner signs the wind easement agreement, the
term of the easement is three years; providing that, the wind project developer may extend
the term for an additional five years on providing evidence that:
new text end

new text begin (1) the wind project developer has a signed interconnection agreement or has
submitted an interconnection application to the Midwest Independent System Operator
or other appropriate entity, and:
new text end

new text begin (i) the agreement has not been terminated; or
new text end

new text begin (ii) if an application, the application has not been terminated and is active in the
interconnection queue or interconnection process; and
new text end

new text begin (2) if the wind project developer is a utility that will develop and own the wind
project, the developer provides appropriate documentation that the output from the wind
project will be used to provide electricity service to its customers according to the
renewable energy standards in section 216B.1691.
new text end

new text begin (b) A wind project developer shall comply with this section throughout the entire
term of the extension; otherwise the extension period is terminated, subject to the
opportunity to cure provided in paragraph (e).
new text end

new text begin (c) Within 30 days of receiving a written request from the landowner, a wind project
developer shall provide proof of continuing compliance with the requirements of this
subdivision.
new text end

new text begin (d) A wind easement agreement must contain a cover letter containing the following
language, with the correct term of years filled in the blank, in at least 12-point type:
new text end

new text begin "This is an important agreement our attorneys have drafted that MAY BIND YOU
AND YOUR LAND FOR AS LONG AS EIGHT (8) YEARS BEFORE A WIND
TURBINE IS OPERATING, AND WILL BIND YOU AND YOUR LAND FOR UP TO
....... YEARS ONCE A TURBINE IS OPERATIONAL ON YOUR LAND. We will
give you sufficient time to study and thoroughly understand it. We strongly encourage
you to hire an attorney to explain this agreement to you. You may talk to your neighbors
about the wind project and inquire if they also have received a proposed contract. You
and your neighbors may choose to hire the same attorney to review the agreement and
negotiate changes on your behalf. STARTING THREE (3) YEARS AFTER YOU
SIGN THIS AGREEMENT, YOU MAY REQUEST, IN WRITING, PROOF THAT
WE HAVE A SIGNED INTERCONNECTION AGREEMENT OR AN ACTIVE
INTERCONNECTION APPLICATION AND, IF WE ARE A UTILITY WHO WILL
OWN AND OPERATE THIS WIND PROJECT, PROOF THAT THE OUTPUT FROM
THE PROJECT WILL BE USED TO PROVIDE ELECTRICITY SERVICE TO OUR
CUSTOMERS. WE WILL PROVIDE WRITTEN EVIDENCE THAT WE HAVE MET
THESE REQUIREMENTS WITHIN 30 DAYS, OTHERWISE WE MAY BE FOUND IN
VIOLATION OF MINNESOTA STATUTES, SECTION 500.30.
new text end

new text begin We encourage you to ask questions and to express your thoughts about this project
with us. We have included contact information for you and will provide, in writing, any
changes to this contact information.
new text end

new text begin Name or Title: ...............................................................................
new text end

new text begin Company: .......................................................................................
new text end

new text begin Phone: (.....)......-........
new text end

new text begin Address: ..........................................................................................
new text end

new text begin (e) On failing to satisfy the requirements of this subdivision, a wind project
developer is entitled to 30 days from the date that written notice of the default is received
to come into compliance. If the developer does not cure the default within that time, the
wind easement agreement is terminated.
new text end

new text begin (f) If a wind project is not operational by the end of the eighth year from the date
the landowner signed the wind energy land agreement, and the wind project developer
provides proof of a current signed power purchase agreement, or other appropriate
documentation if the project is owned and operated by a utility, and has a valid building
permit for the wind project, then the agreement may be extended for a period of time that
is equal to the term of the current power purchase agreement or valid building permit,
whichever term is shorter.
new text end

new text begin (g) For purposes of this paragraph, "utility" includes a public electric utility,
municipal electric utility, or cooperative electric association.
new text end

Sec. 2.

Minnesota Statutes 2008, section 500.30, subdivision 2, is amended to read:


Subd. 2.

Like any conveyance.

Any property owner may grant a solar or wind
easement in the same manner and with the same effect as a conveyance of an interest in
real propertynew text begin ; provided that, a wind easement is also subject to any applicable provisions
of chapter 216F
new text end . The easements shall be created in writing and shall be filed, duly
recorded, and indexed in the office of the recorder of the county in which the easement is
granted. No duly recorded easement shall be unenforceable on account of lack of privity of
estate or privity of contract; such easements shall run with the land or lands benefited and
burdened and shall constitute a perpetual easement, except that an easement may terminate
upon the conditions stated therein or pursuant to the provisions of section 500.20.

Sec. 3.

Minnesota Statutes 2008, section 500.30, subdivision 3, is amended to read:


Subd. 3.

Required contents.

new text begin (a)new text end Any deed, will, or other instrument that creates a
solar or wind easement shall include, but the contents are not limited to:

deleted text begin (a)deleted text end new text begin (1) new text end a description of the real property subject to the easement and a description of
the real property benefiting from the solar or wind easement; and

deleted text begin (b)deleted text end new text begin (2) new text end for solar easements, a description of the vertical and horizontal angles,
expressed in degrees and measured from the site of the solar energy system, at which
the solar easement extends over the real property subject to the easement, or any other
description which defines the three dimensional space, or the place and times of day in
which an obstruction to direct sunlight is prohibited or limited;

deleted text begin (c)deleted text end new text begin (3) new text end a description of the vertical and horizontal angles, expressed in degrees, and
distances from the site of the wind power system in which an obstruction to the winds
is prohibited or limited;

deleted text begin (d)deleted text end new text begin (4) new text end any terms or conditions under which the easement is granted or may be
terminated;

deleted text begin (e)deleted text end new text begin (5) new text end any provisions for compensation of the owner of the real property benefiting
from the easement in the event of interference with the enjoyment of the easement, or
compensation of the owner of the real property subject to the easement for maintaining
the easement;

deleted text begin (f)deleted text end new text begin (6) new text end any other provisions necessary or desirable to execute the instrumentnew text begin ,
including but not limited to, for a wind easement, the restrictions and requirements
of section 216F.10
new text end .

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective June 1, 2010.
new text end