Jump to navigation
A Production Lease covers the construction and long term operation of a renewable energy project. The production lease requires Board approval and is tied to, among other things, local land use approval for the project. Typical exhibits to a Production Lease include local land use approval, proof of an off-taker for the power being generated, and Best Management Practices to protect natural resources and wildlife.
Following consultation on the proposed location and with direction from the Renewable Energy Program Manager, the applicant will need to submit an application for a Planning Lease. Planning Leases are approved at the staff level and take approximately 7-10 days to process.
If the lessee does not wish to renew the lease, or they do not notify the Board in the required time frame, the lease will expire at the end of the term.
Production Lease: If a lessee who holds a Production Lease wishes to extend the lease, they must submit an application for renewal at least twelve months prior to the expiration date of the lease. Lessee must provide proof of an agreement for an on-going revenue stream (PPA or other agreements for a buyer of the electricity being generated) and propose a new lease term. Renewal applications are processed in the same manner as the initial applications and all Production Lease extensions, unless renewal terms are specified in the original lease, it must be approved by the Board.
If the lessee does not wish to renew, or fails to provide adequate notice of a desire to renew, and the lease term expires, the lessee will be required to remove all improvements and remediate the site to its original condition.
If the lessee fails to surrender the leased premises and/or remove all improvements at the end of the lease term, all improvements remaining on the leased premises will be deemed abandoned and may, at the Board’s option, be removed by the Board at the lessee’s expense, retained by the Board, or sold by the Board with all proceeds going to the Board.