Recently, those looking to purchase property in Carroll County have discovered that active leases were attached to the land they were interested in. In at least one case, the landowners were under the incorrect impression that their lease agreement with Nimbus had expired.
The discovery of these leases, sometimes late in the purchase process, has scared off some buyers. That has left landowners who may have already vacated their properties scrambling to put them back on the market.
Leases and easements are not unusual. Pasture, hunting, cell tower, oil/gas, and utility easements are relatively common. Rarely, though, are their terms so broadly written.
The Times examined partial copies of different Nimbus leases and discovered that they grant sweeping permissions to the company. When contacted, Nimbus declined to comment on its lease agreements.
The length of the examined leases appears to extend beyond 40 years, giving Nimbus up to six years to develop the property, two years to complete construction and 35 years to operate the turbines.
During the development phase, Nimbus conducts surveys, builds access roads and starts preliminary construction. From there, the two-year construction phase begins. According to the examined leases, if operations don’t begin after two years, the landowner can terminate the lease.
It appears that the only other opportunity a landowner has to terminate the lease is if Nimbus fails to pay rent or otherwise breaches the lease. For missed rent payments, Nimbus has 30 days to adjudicate. With regard to other breaches, Nimbus has three months to begin curing them; not fix, but begin to fix.
Notably, the owner cannot terminate the lease even if Nimbus assigns it to another company, mortgages it, or declares bankruptcy. In fact, litigation, permitting delays, or regulatory actions that cause construction or operational delays actually extend the lease term.
In contrast, Nimbus may terminate the lease at any time for any reason with a 10-day written notice.
Broad property rights are granted under the lease, including Nimbus’s exclusive rights to capture wind and to install substations, transformers, roads, and overhead and underground transmission lines. Particularly open-ended is a line within the lease that allows Nimbus to undertake any activity, on the property or elsewhere, by them or a third party, that Nimbus reasonably determines is necessary, useful or appropriate.
The leases protect Nimbus from claims the landowner might make regarding shadow flicker, vibration, wake turbulence, visual effects or noise.
As written, Nimbus has 12 months to begin decommissioning turbines upon the ending of the lease. Below-ground facilities will be removed to at least three feet. Underground cables or other materials below three feet are not required to be removed. Significantly, decommissioning bonds are not required before the 20th year of operations.
The Department of Energy, citing a Berkeley Lab survey, says that the expected service life of wind turbines is approximately 30 years. That lifespan relies on regular replacement and repairs of components. The DoE stated that turbine blades, for example, have operational lifespans of 15-25 years. With reports out of Carroll County suggesting that about a quarter of the blades need to be repaired or replaced, it is important to remember that these lifespans are estimates based on nationwide data.
In exchange, the landowner receives a nominal amount of rent depending on how much infrastructure, including a turbine, is built on the property. Once the project is operational, participating landowners will receive a royalty paid from a pool consisting of 1% of gross revenues.
Payment terms are kept confidential and likely vary between landowners, so it’s unclear how lucrative these leases are. However, based on court documents submitted in a case involving several Carroll County residents and Nimbus, Nimbus Chief Commercial Officer Mark Grail estimated that the wind farm project would generate more than $14 million in lease payments to landowners over 30 years.
In a September 2024 interview with KUAF, Scout Clean Energy spokesperson Mark Wengierski said that Nimbus had signed lease agreements with 53 landowners. That would provide an average of $8,800 a year if all landowners received an equal share, which would not be the case given the variance in amount of land leased and the infrastructure built on it.
Wind energy lease agreements from two other companies operating in different states were also examined. They followed the same general structure with the notable exception that the Nimbus lease gives the developer much broader discretion over facility placement, modifications and other operational matters. Similar leases from other companies outside Arkansas give the landowner reasonable discretion over the placement of facilities and roads on the property, a term not included in the Nimbus leases.
Title experts spoken to on the matter recommend potential property buyers look for lease and easement agreements early in the process. A common misconception is that buyers need to go through their real estate agent to examine a title. In fact, buyers can work with title companies directly to see what’s attached to a property. While a full 30-year search of the property’s history can take a few days, a search for leases and easements can be done quickly. They said not to feel pressured into closing before the proper research has been done. Waiting a week or two can save decades of capitulation to an unwanted lease. They also recommended having a lawyer, working on your behalf, examine the agreement.
Scout Clean Energy has published interviews on their YouTube channel from three different landowners in Carroll County that they have lease agreements with. All have positive things to say about their interactions with Scout. All have at least one turbine on their property. One notes that County Road 905 has never looked better since the project began and noted that the extra cash flow allowed the purchase of needed farm equipment.
Another landowner said that she was one of the first to sign a lease with Scout and believed that turbines “enhance the beauty of the Ozarks.” She said that the land was too steep for her cows anyway, and wasn’t being used. Both noted that fluctuations in farming income meant a regular payment from Scout added to their peace of mind.
The final landowner also mentioned the increase in the quality of the road, speculating that more money had gone into its maintenance recently than had been spent altogether throughout its lifespan. He said he finds turbines to be graceful and has enjoyed watching their construction. The lease agreement, he said, has allowed him to take care of his property in a way that he was unable to accomplish prior.
It appears that the land leases are beneficial to some, if not all, of the landowners involved. What about the community as a whole? That likely depends on what taxes are generated for the county. The Arkansas Public Service Commission Chief of Staff Danielle Hoefer told the Times that it will likely centrally assess Nimbus for property tax purposes next year. According to the APSC, Nimbus is not yet operational and so has not been assessed yet.
County officials have made statements indicating they will only be able to collect property tax on the ground the turbines sit on, or about one acre per turbine.
Adding to the uncertainty were statements made by Justice of the Peace Jerry King in a May 2025 Budget and Finance Committee meeting. According to the minutes of that meeting, JP King reported that during a tour of the Scout Clean Energy project, Dave Idarolla, the project manager, proposed that Scout would like to limit their tax burden to $1 million each year, claiming that would be to the advantage of the county. The county treasurer, assessor and clerk questioned the legality of Idarolla’s claim, and cautioned seeking the counsel of parties more informed.
These statements support claims made on the Nimbus website. Among the community benefits expected to be provided to Carroll County through the project is listed $31.5 million in property tax revenue generated over the expected 30-year life of the project.
For their part, Nimbus told the Times that they are not seeking, nor have they received any sort of payment in lieu of taxes (PILOT), abatement or tax reduction plan from Carroll County. Until Nimbus Wind Farm is fully operational and the APSC has assessed their footprint, their financial impact on the county coffers will remain a mystery.
The Carroll County Quorum Court has formed a committee to study the impacts of large industrial projects. The committee is tasked with evaluating the effects of large industrial and high-impact projects on the county. It will be made up of five members of the court as chosen by the county judge. Their actions in the last year mark a stark contrast to their inability to pass anything regarding the turbines in the years leading up to the project.
With the Nimbus Wind Farm construction nearing completion, concerned citizens are keeping a weather eye on the project. For better or worse, it appears that it’s there to stay. As county quorum court meetings lately revolve around the possible shuttering of fire departments, the lack of money to maintain roads and the growing cost of construction, perhaps the wind farm’s tax contributions, whatever they may be, will provide relief in the coming years. If so, it may be something people on both sides of the issue can agree with.
Story reprinted courtesy of Harrison Daily Times