Presentation to a group of concerned citizens about Wind Energy Plants and issues to address for same.

1. What is Blowing in the Wind?
PRESENTED BY: DANIEL S. SCHLECK
June 19, 2014
HALLELAND HABICHT PA
33 South Sixth Street, Suite 3900
Minneapolis, Minnesota 55402
612-836-5531
dschleck@hallelandhabicht.com

2. TOPICS TO BE DISCUSSED
 Land Use Issues
 Risk
 Property Values
 Aggravation and Health
 Contract Points
 Statutory Provisions

3. Land Use Regulation
Local land use regulations are laws enacted
by the local legislature for the regulation of
any aspect of land use and community
resource protection, including zoning,
subdivision, special use permit or site plan
regulation, or any other regulation that
prescribes the appropriate use of property ...

4. Risk Issues
 Property Values
 Tourism
 Aggravation, Health and Environment
 Airport and Air Ambulance
 Predicted Output of Electricity
 Backup when No Wind – Consistency
 Net Local Tax Revenue

5. Valuation Issues

6. Shadow Flicker

7. Bird Strike

8. Precautionary Principle

9. When an activity raises threats of harm
to the environment or human
health, precautionary measures
should be taken even if some
cause and effect relationships are
not fully established scientifically.

10. Q. Why should we take action before science tells us
what is harmful or what is causing harm?
A. Sometimes if we wait for certainty it is too late. Scientific
standards for demonstrating cause and effect are
very high. For example, smoking was strongly
suspected of causing lung cancer long before the link
was demonstrated conclusively. By then, many
smokers had died of lung cancer. But many other
people had already quit smoking because of the
growing evidence that smoking was linked to lung
cancer. These people were wisely exercising
precaution despite some scientific uncertainty.

12. “Across all model specifications,
we find no statistical evidence that
home prices near wind turbines
were affected in either post-
construction or post-
announcement/pre-construction
periods. Therefore, if effects do
exist, the average impacts are
relatively small.”

13. Concerns for LBNL Study
Bad assumption of maximum change of 3%-4%
Data taken from 27 counties, 9 states, 50,000 homes to
big a sample size more of “10,000 foot view”
Fail to address what realtors are saying “Buyer’s wont
even make an offer near turbines.”
Study based on county assessor values which may be
wildly different than realty.

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25. SUMMARY & CONCLUSION
 The sales study indicated three factors:
 (1) sales within the wind turbine influence area sold
for less than those outside of this area;
 (2) there were substantially fewer sales available
within the turbine influence area as compared to
those sales outside of the influence area; and,
 (3) the impact of the wind turbines decreased the land
values from -12% to -47% with the average being
-30%.
 Additionally, it can be said with a high rate of
confidence that the impact of wind turbines on
residential land sales is negative and creates a loss
greater than -12%, averaging -30%..

28. Property Tax
Latest Value Collected in 2006
$4,743,000
15% Reduction = -$711,000
20% Reduction = -$949,000
30% Reduction = -$1,423,000

29. AGGRAVATION, HEALTH
and
ENVIRONMENT

31. VI. Conclusions
Wind turbines generate a broad spectrum of low-
intensity noise. . . Low frequency noise is primarily a
problem that may affect some people in their homes,
especially at night.
The most common complaint in various studies of
wind turbine effects on people is annoyance or an
impact on quality of life. Sleeplessness and headache
are the most common health complaints and are
highly correlated (but not perfectly correlated) with
annoyance complaints.

32. Community-based health survey
Ontario
A self-reporting survey: adverse health effects with
industrial wind turbines and the need for vigilance
July 2009
by
Dr. Robert McMurtry, former Dean of Medicine at the
University of Western Ontario

33. “ . . . whenever industrial wind turbines have been located near
peoples' homes, family members are reporting adverse health
effects. Some of these families have been forced to abandon
their homes in order to protect their health. This phenomenon is
occurring world wide, not just in Canada . . .”
“Over a number of years, international media have reported adverse
human health effects attributed to wind turbine complexes.
Researchers and victims have reported altered living conditions,
loss of enjoyment of homes and property, and ill health as a
result of industrial wind turbines. The adverse health reports are
consistent globally and across 3 continents.”

34. “Sleep disturbance was the most common
complaint. Other health complaints include
inner ear problems, mood disturbances,
cardiac arrhythmias, and headaches.
Several suffered acute hypertensive
episodes which are most serious and
worrisome.”

35. Other Studies to consider:
 Acousticians Rick James and George
Kamperman
 British Courts found a cause of Action for
“Blade Swish or Thump Noise”

36. Shadow Flicker
 People have suggested it
causes epilepsy, migraines,
nausea, potential distraction
to drivers and general
distress

37. Analysis of Selected Wind
Lease and Easement
Provisions

38. Section 1.1 (b)
 “ . . .but Lessee shall have sole discretion
over all final siting decisions. Lessee has
the right to relocate existing Wind Facilities
upon the Premises during the term of this
Lease.”

39. Section 1.2
 “Lessor may not place or plant any trees, structures or
improvements on the Easement Premises . . . which may, in
Lessee's sole judgment, impede or interfere with the flow of wind
to any Site or Wind Facility, unless Lessor has received approval
from Lessee . . . Notwithstanding the foregoing, Lessor may
replace any structure or improvement located on the Easement
Premises . . .with a new structure or improvement in the exact
same location that does not exceed the size and dimensions in
any direction as the Original Structure or Improvement, provided
further that such New Structure or Improvement does not
obstruct the free flow of wind in any way that is more detrimental
to the Easement Premises than the Original Structure or
Improvement.”

40. Section 2.2 (c) & (d)
Termination of Lease
 “(c) An uncured material breach of this Lease by
either party and the election of the non-breaching
party to terminate the Lease pursuant to Article IX;
or
 (d) Lessee's execution and delivery of written notice
of termination to Lessor, in Lessee's sole and
absolute discretion, as to all or any portion of the
Premises and, if applicable, the decommissioning
and removal of the Wind Facilities in accordance
with Section 4.3.”

41. Section 6 Indemnification
“ Each party agrees to defend, indemnify and hold
harmless the other party . . . against any and all
losses, . ., including, without limitation, reasonable
attorneys' fees, to the extent resulting from or arising
out of (i) any operations or activities of the
Indemnifying Party on the Premises (including, as to
Lessor, any operations or activities conducted on
the Premises by any person or entity other than
Lessee prior to the Effective Date) or This
indemnification shall survive the termination of this
Lease.”

42. Legal and Regulatory
Issues

43. Wind Easement Statutes – South Dakota Title 43-13
Easements
§17 – Must be in writing, filed with county and
development must occur within 5 years of granting or
extinguished.
§ 18 – Required Terms, Property Description, Angles from
Tower for no obstructions, Grant terms, Compensation
terms, Grantee Grantor
§ 19 – Accommodation of other Development
§ 20.5 - No Confidentiality
§ 21 – Small Wind Energy System defined as one or more
turbine where height is less than 75 feet. Everything else is
a Large Wind Energy System.
§ 24 – Setback equal to 500 feet or 1.1 times height from
property line except by agreement

44. TAX Provisions – South Dakota Title 10-35 Taxation of
Electric, Heating, Water and Gas Companies
10-35-18, Annual Tax on Gross Receipts
$3 per kilowatt-hour name plate capacity + 2% of revenue, not
including tax subsidies.
10-35-21 Distribution of Wind Energy Tax Fund
20% of Total to County
Then County Distributes
 50% to School District
 15% to Township
 35% to County

45. Admin. Rules of South Dakota
Energy Facility Siting Rules
Local Land Use Controls Chapter 20:10:10:22 :19
If the proposed facility violates local land use controls,
the applicant shall provide the commission with a
detailed explanation . . . shall include a detailed
description of the restrictiveness of the local controls
in view of existing technology, factors of cost,
economics, needs of parties, or any additional
information to aid the commission in determining
whether a permit may supersede or preempt a local
control pursuant to SDCL 49-41B-28.

46.  49-41B-28. Supersession of local land use
controls by facility permit upon finding by
commission
 A permit for construction of a transmission facility
may supersede or preempt any county or municipal
land use, zoning, or building rules, regulations, or
ordinances upon a finding by the Public Utilities
Commission that such ordinances, as applied to the
proposed route, are unreasonably restrictive in view
of existing technology, factors of cost, or economics,
or needs of parties where located in or out of the
county or municipality.

47. For Further Information Contact
Daniel S. Schleck
Halleland Habicht
33 South Sixth Street Suite 3900
Minneapolis, MN 55402
612-836-5531
dschleck@hallelandhabicht.com