Landowners and developers of wind power have operated under lease and easement instruments in Texas for more than two decades. In light of the well-developed oil and gas industry here, landowners and their counsel have attempted to incorporate features of traditional mineral leases into wind leases. Unfortunately, their efforts are hampering wind lease negotiations due to the differences between mineral and surface ownership in Texas.
First, it helps to have a little background on wind project development. Many early developers acquired easements rather than leases from landowners. Although both easements and leases are acceptable and financeable methods to develop wind projects, in recent years there has been a decided tilt in favor of leases. This is largely due to the fact that landowners understand the landlord/tenant lease relationship better than the grantor/grantee easement relationship.
