Cypress Creek Renewables Solar PV Continues Farm Land Lease Activity

Cypress Creek Renewables, LLC has continued to solicit leases from Illinois landowners in many areas of Illinois. CCR’s approach is to have the landowner sign a lease and easement agreement that contains a relatively inexpensive “option” through specifying a 6 month diligence period, with a nominal payment to the landowner. This allows CCR both to try to obtain other properties and to conduct engineering and other analyses to determine whether it wishes to proceed to the next step. The agreement then gives CCR a 2nd option through another 18 month diligence period, with a larger though still relatively modest payment to the landowner. These two “option” periods afford CCR opportunities to terminate and walk away from the agreement. The form of agreement also provides other opt-out provisions that soften CCR’s commitment to pay the landowner all the rent and other compensation expected through the term of the lease. The form agreement contains many other provisions that are slanted heavily in CCR’s favor. To date, it appears CCR is resisting any meaningful revisions that the landowner and landowner’s attorney may propose. It should be remembered that CCR does not have eminent domain authority in the State of Illinois and therefore cannot force any landowner to sign any type of agreement. Landowners are advised to obtain advice and negotiating assistance from an attorney experienced in leases and easements with utility and energy project developers.

Shay Phillips Ltd. is experienced in negotiating leases and easements on the behalf of landowners for wind energy projects, gas and oil pipelines, and electric transmission lines, which provides us valuable experience in providing quality legal representation to landowners who may wish to negotiate land lease terms, both financial and non-financial, with developers like Cypress Creek Renewables.