§ 17-04-05 — Wind energy leases - Termination

1. A lease for wind energy purposes is void and terminates if the following have not
occurred with respect to the property that is the subject of the lease within five years
after the lease commences:
a. A certificate of site compatibility or conditional use permit has been issued, if
required; and
b. A transmission interconnection request is in process and not under suspension.
2. A wind lease is presumed to be abandoned if a period of thirty-six consecutive months
has passed with no construction or operation of the wind farm facility. If the operator of
the wind farm facility does not file a plan with the public service commission outlining
the steps and schedule for continuing construction or operation of the facility within the
thirty-six month period, the owner of the energy rights may provide, by certified mail or
other personal delivery to the owner of the wind easement, a sixty-day written notice of
the intent to terminate the lease. If, within sixty days of the receipt of the notice of the
intent to terminate, the owner of the lease fails to provide a written objection to the
notice by certified mail or other personal delivery, the owner of the energy rights may
file a notice of termination with the county recorder in the county in which the real
property is located. Termination of the easement becomes effective when the notice of
termination is filed and recorded with the county recorder.