The lease agreement should include a clause that requires the developer to cover any damages to the farmer’s operation as a result of the wind project. Similarly, the lease should also include an agreement that the farmer pay for any damages that the operation causes to the wind project. Ideally, putting these indemnification clauses into the lease should prevent future disputes about who is responsible for damages caused by either party. However, these indemnification clauses may also require the party at fault to pay the other party’s attorney fees if a dispute arises.
In addition, both parties should be responsible for buying adequate liability insurance to cover any damages covered by the indemnification clauses.
For more information:
Farmers’ Guide to Wind Energy: Legal Issues in Farming the Wind.
Contributor: Christy Anderson Brekken, Oregon State University
Browse related Faqs by tag:
ag energy, ag law, agenergylegal, agenergywind, windenergy, aglawrenewableenergy