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Showing posts from February, 2018

Renewable Energy Projects - Pitfalls for the Contractor / Subcontractor

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This is a continuation of my previous post on the topic of renewable energy project contracts.  The first post focused on contract drafting and review concerns for landowners to note. Again, wind and solar projects in particular have been moving forward through local government approvals lately.  Since my first post, the McLean County Board has, on a 10- 8 vote, followed the recommendation of its Zoning Board of Appeals and approved one wind proposal.  See this recent article from the Bloomington Pantagraph.

In this post, I want to focus particularly on one of the contract issues I mentioned last time, as it affects certain third parties - namely, contract provisions regarding liens and lien rights that are within the easement agreement / lease.  These provisions typically indicate that the renewable energy system is personal property and not an improvement to the real property itself, and that as such will be exempt from the Mechanics Lien Act.  This may also be extended to concrete…

Renewable Energy Projects - Landowners, Beware of Contract Landmines

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Illinois appears to be undergoing a resurgence in renewable energy projects, in the form of wind farms and now solar farms.    It's only a month into 2018, and McLean County, Illinois has had several such projects in the news, from at least three different energy companies (both wind and solar).  The Bloomington Pantagraph newspaper calls it a "renewable energy boom."  The news has primarily been about local government land use hearings, at which evidence is heard regarding the effects and economic benefits of such projects.  There's some opposition being raised for various reasons, with the economic development of the projects and the big picture benefits of renewable energy raised as supporting arguments.  I'm not here to debate all that.

These projects can be critical to landowner farmers and their families as a revenue stream that is not tied to the ups and downs of agricultural markets, but also can be realized without having to give up farming the land.  I…