Thursday, August 2, 2007

Resource Based Payment View


This shows how much each quarter section is paid using a resource model. In this model, using a 1.5 MW capacity turbine with 100 meter rotor diameter, the amount available for leasing is $5,000 annually (with escalators).

Twenty-five percent of the $5,000 goes to the owner of the land upon which the turbine tower and road sits (2 or fewer acres). The remaining 75% goes into the wind resource pool to be shared by all whose wind resource is likely to be impacted.

We have 305.7 acres above which the wind is disturbed or consumed by the turbine. Thus, each acre receives approximately $12.27. I did some rounding in the figures provided.

Landowner of the NE quarter of Section 1 has 19.6 acres used and is entitled, therefore, to 6.4% of the wind pool or about $240 per annum. NW quarter of Section 2 has 9.4 acres receiving $116 per annum; SE quarter of Section 1 has 82 acres of wind resource used and receives an annual payment of $1,005; SW quarter of Section 2 has the real estate for the wind turbine and collects that $1,250 annually along with his/her 16.5% share of the wind pool for another $619 or $1,869 annually; NE quarter of Section 3 has 16.6 acres taken for 5.4% of the wind pool paying $203 annually; NW quarter of Section 4 has 116 acres taken and receives 38% of the wind pool for $1,425 annually; and, last SW quarter of Section 4 has 11.7 acres receiving about 3.8% of the wind pool or $143 annually.

Everybody is fairly paid.