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Ray Fitzpatrick, partner at Augustus Cullen Law spoke with the Irish Examiner’s Rita de Brún about the most common legal topics around land development for renewable energy.
Q1. Which parts of the legal agreements with renewable energy developers tend to be non-negotiable and which parts should farmers be particularly mindful of?
RF: “The farmer should pay particular attention to the area of land included in the option. The developer is entitled to take a long lease (typically 30 years) over the entirety of those lands and likely longer through an extension or automatic renewal. Furthermore, the developer is normally entitled to create access roads or cable easements over retained lands, or other lands owned by the landowner. So, if particular lands should be excluded, or do not fit in with the long-term plans of the farmer, these should be expressly mentioned or excluded.”
Q2. What sorts of questions might farmers ask renewable energy developers and their agents?
RF: “They could ask about rent. They could ask for confirmation that the rents are index linked, i.e. to the Consumer Price Index. Also, they could look for a commitment for a minimum acreage to be included, in the event that the option is exercised. That way they can be sure that if the project goes ahead, they will earn a minimum amount.”
To read the full interview, visit Irish Examiner: Understanding the fine print is key in any land development deal.
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