Q. How can I be assured of receiving my lump-sum payment promptly?
A. Because American Wind Capital Company is owned by Barclays Natural Resource Investments, NGP Energy Technologies Partners, and other investors.
Q. How much will I get for my lease or easement?
A. We can determine the current cash value and the expected payments you will receive once we examine your lease or easement and review any payments you have collected.
Q. Is a lump-sum payment tax deferred?
A. It can be. AWCC is paying you for a real estate right. The money may qualify for capital gains treatment. The money might be tax deferred under a 1031 Exchange if the money received, or a portion of the money received, is re-invested in a similar "like-kind" investment. We can provide basic guidance, but AWCC is not a licensed tax advisor and recommends that you consult your tax advisor.
Q. Do I pay more taxes by taking a lump-sum payment?
A. No. Right now you pay ordinary income tax on your lease/easement or royalty payments. When you convert your lease/easement, in many cases the lump-sum payment is eligible for the Capital Gains tax rate, which is lower than the ordinary income tax rate. In addition, the transaction could qualify for a 1031 Exchange. Arrangements for a 1031 exchange need to be made prior to converting your existing lease. AWCC is not a tax advisor and strongly recommends that you retain a 1031 Exchange advisor.
Q. Will the operator of the wind farm allow me to convert the lease to a one-time payment?
A. Yes. Most lease/easement documents allow the operator to “Assign” the lease to other parties. In addition, normally there are provisions within the document for the landowner to “Assign” the lease to 3rd parties. We will review the document with you and make sure the lease is assignable.
Q. If I convert my lease/easement, do I still own the land?
A. Yes, the landowner only is transferring the easement and lease payment rights and the landowner retains ownership and all use of the land. AWCC may take an interest only so far as it is related to your lease/easement.
Q. What happens if I have a mortgage?
A. You will need a simple Non-Disturbance Agreement from your bank that releases the lease/easement payments from the mortgage. We will be happy to work with you to get bank approval.
Q. If I convert my lease/easement, can I still sell my property?
A. Yes. Nothing in the transaction between you and AWCC will prevent you from selling your property and retaining all of the money normally due you from that sale.
Q. What happens if the operator damages my property after lease/easement conversion?
A. The agreement is still in effect after the lease/easement is converted; therefore, the operator is still responsible for any damage caused by activities on the property. Any payment for damages caused by activities on the property by the operator would go to you.
Q. Do I have to convert the entire lease/easement, or can I convert a portion of the lease/easement?
A. You can convert all or a portion of your lease, it is up to you and American Wind Capital is happy to work with you to determine what is best for your needs.
Q. Are there any factors that could delay the lease/easement conversion process?
A. Any unresolved issue could delay converting your lease/easement. Those delays include divorce, estate issues, liens, or title issues. We will work with you to get any unresolved issues taken care of.
Q. Where does American Wind Capital get the money to convert my lease/easement?
A. We work with a team of world-class investors and we have sufficient cash on hand to close transactions within 30 days.
