Requirements for Wind Development

Summary

In 2015 Oklahoma amended the Oklahoma Wind Energy Development Act. The amendments added new financial security requirements, setback requirements, and notification requirements for wind energy facilities.

In 2010 Oklahoma enacted the Oklahoma Wind Energy Development Act, which became effective January 1, 2011. The Act provides rules for owners of wind energy facilities related to decommissioning, payments, and insurance.

Decommissioning

Within one year of abandonment of a project, equipment from wind energy facilities must be removed and the land must be returned to its condition prior to the facility construction, except for roads, by the owner of the wind energy facility. An agreement such as a lease between a landowner and an owner of a wind energy facility may contain more restrictive decommissioning provisions than established in the statute. After 15 years of operation, wind energy facility owners must file an estimate of the decommissioning costs as well as evidence of financial security to cover the cost of the decommission (e.g., surety bond, collateral bond, parent guaranty, letter of credit, etc.). Facilities beginning commercial generation on or after December 31, 2016, must file estimated decommissioning costs and evidence of financial security within 5 years of the start of generation.

Payments

For any wind energy facility that makes payments to the landowner dependent upon the amount of electricity produced, facility owners are required to provide an explanation of the payment calculation to the landowner, allow for landowners to confirm the accuracy of payments and audit the records, and make records available to the state of Oklahoma.

Insurance

Wind energy facilities must have a general liability insurance policy. Proof of such insurance must be provided to the landowner before construction begins.

Setback Requirement

New wind energy facilities may not be constructed with the base of any tower within 1.5 nautical miles of any airport runway, public school, or hospital. 

Notification

Owners of new wind energy facilities must submit a notification of intent to build with the Corporation Commission, and submit copies of the notification to the county commissioners of any counties in which the facility will be located and the governing bodies of any municipalities (if any) in which the facility will be located. The notification to the Corporation Commission must be submitted within 6 months of the initial filing of commencement of construction with the Federal Aviation Administration (FAA); the copies must be submitted within 24 hours of the submission to the Corporation Commission.