Frequently Asked Questions by Wind Power Project Owners
American Wind Capital (“AWCC”) is in the business of investing in properties that host wind turbines. AWCC acquires the rights to receive the payments under the landowners’ lease or easement with the wind power project. This FAQ sheet answers questions for wind power project owners. Of course, nothing in this FAQ supersedes a particular transaction’s documentation.
To whom do I send the royalty payments?
You will received a letter signed by AWCC and your landowner providing you with notice of our transaction and directing you to send all payments due under the lease or easement to AWCC. The payment redirection package will include additional supporting documentation.
Will I ever have to send payments to multiple parties?
No. As specified in our Notice to Redirect Royalty Payments, the attached Memorandum of Agreement and other documents, all payments due under your lease or easement will go to AWCC. It is unlikely that this payee will change throughout the remainder of the term of your lease or easement, so you will no longer have to manage through royalty assignment changes due to probate, divorce or sale.
To whom do I send the 1099?
Our documentation package contains an AWCC W-9. Please send the federal 1099 statements to AWCC.
Tell me something about your agreement with the landowner.
In our package to you, we provide a Memorandum of Agreement that, along with the Warranty Deed, is recorded in the relevant county land records and will outline the general terms and conditions of our agreement.
Does AWCC always enter into this type of royalty acquisition agreement?
No, there are occasions where we purchase a 100% interest in the property. We also look at sale/leaseback transactions. In large transactions, we may create a special purpose partnership with the landowner. We will gladly answer any of your specific questions about alternative structures.
How do we interact with a project’s other landowners?
As a policy matter, we do not join project landowner groups, and take no collective action with other project landowners. We do not participate in efforts to share audit or legal fees. Also, as a policy, we seek at all times to work through questions we may have directly with the windfarm owner. We do, however, strive to have a community presence and have a public outreach program focused on the communities that host wind projects.
What if I need an estoppel certificate or other cooperation for a project sale or financing?
Simply contact our Operations Department and they will coordinate a response. We do not charge a processing fee for standard cooperation activities. The property’s other landowners have no rights to take any actions under your lease or easement for this or any other matter.
What about the landowner’s audit rights?
As experienced wind power project investors, we possess a significant amount of information that allows us put into context any particular royalty payment. We also have a high degree of trust and confidence in the owner/operators of the wind power projects in which we invest. Under no circumstance would AWCC team with a landowner group to exercise audit rights.
If I need to modify my lease or easement in the future, whom will I deal with?
You will deal with AWCC on all landowner matters that relate to payment or with regard to lease or easement contract administration.
AWCC’s Accounting Department will assist you with accounting-related issues.
AWCC’s Operations Department will assist you with other contract administration issues. Under our agreement with the landowners, we act as attorney-in-fact on behalf of the landowners regarding the lease or easement contract administration.
What about the confidentiality provisions of my lease or easement with the landowner?
As a prospective investor and potential purchaser of the land, we enter into a Confidentiality Agreement with the landowner prior to any exchange of confidential information. We keep all information strictly confidential.
What about preemptive or other rights I may have under my lease or easement?
AWCC will honor any preemptive or other approval rights you may have. We generally do not see restrictions on the assignment rights in leases or easements. Should the landowner require your consent in order to enter into a transaction, we will assist him in obtaining the consent.
Does AWCC receive NDAs from the property’s existing mortgage holders?
In many cases, the property’s lender is fully repaid prior to or contemporaneously with our transaction. If significant debt remains on the property, AWCC and the existing lender will generally enter into a Non-Disturbance Agreement, under which the lender will agree not to interfere with AWCC’s right to receive all future royalty payments under the lease or easement.
What rights does AWCC have with regard to ensuring that landowner obligations are being met under the landowners lease or easement with you?
Our standard agreement with the landowner gives AWCC broad rights to ensure that there are no land-related obstacles to running the windfarm.
Other than transferring the wind-related payments, what other restrictions are there for the landowner?
The landowner will still have all rights and non-wind income that he had before.
Does AWCC purchase the “wind rights”?
No. AWCC typically purchases a defined real property interest in the land, as well as an explicit assignment of the payments under the landowner’s lease or easement with the wind power project. Any wind rights or benefits beyond the payments specified under the lease are not part of AWCC’s transaction.
How does AWCC make money?
The single largest lever to our business success is scale; we need to grow our business. In order to do this, we need satisfied landowner counterparties. We also need cordial long-term relationships with wind power project owners.
Why is this a good thing for me?
You will have a partner in assuring that real estate-related cooperation is in place and, depending on AWCC project penetration, fewer payees to manage.
If your questions aren't answered here, call 1-877-669-2922, or email us at: info@americanwindcapital.com
AWCC Contacts
Complaint hotline, call the CEO:
Chuck Hinckley
CEO
(860) 767-1666
chinckley@americanwindcapital.com
Billing
Accounting Manager
(860) 767-1579
acct@americanwindcapital.com
Operations/Contract Administration
VP, Operations
(860) 767-1579
Sales/Marketing
VP, Sales
Phone: (860) 767-1579
If you are interested in turning wind lease or easement assets into cash, give us a call at 1-877-669-2922 to discuss your options.
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