Get informed before signing contracts
Renewable energy projects, whether wind, solar or other emerging technologies, are changing rural landscapes. For farmers, ranchers and other landowners, hosting a renewable energy project can create new revenue streams. But before signing a lease with a developer, it’s essential to understand what you’re agreeing to beyond the legal fine print.
That’s where a non-legal lease review comes in.
What Is a Non-Legal Lease Review?
A non-legal lease review is a professional service that focuses on evaluating and explaining the business, agricultural and operational aspects of renewable energy leases. Unlike legal counsel, which interprets laws and enforceable rights, this service looks at the practical implications of the lease for your land, your livelihood and your long-term plans.
It’s about making sure you understand how the agreement will work in real life, not just on paper.
Why It Matters for Landowners
Renewable energy leases often cover decades and can significantly affect how you use your property. A non-legal lease review helps you:
- Understand payment terms: What’s guaranteed? How are payments calculated? Are there escalation clauses?
- Assess land use impacts: How will construction, road access and equipment placement affect your farm or ranch operations?
- Plan for timelines: What’s the construction schedule? How long will equipment be in place?
- Consider the end of the project: What happens when the project is decommissioned? Who’s responsible for cleanup?
By breaking down these details in plain English, you get a clear picture of how the lease will fit into your business and lifestyle.
How It Works
A non-legal lease review is typically handled by experts who understand both renewable energy development and agricultural operations. These professionals:
- Summarize lease terms: Highlighting the most important clauses.
- Explain key provisions: Focusing on those that impact farm or ranch operations.
- Identify potential red flags: Spotting issues that might create financial or operational headaches down the road.
- Outline property rights impacts: Ensuring you know what you can and cannot do with your land during the lease term.
If desired, these insights can be shared with your attorney, creating a powerful one-two punch: practical clarity from the non-legal review, plus legal protection from your counsel.
How REFA Can Help You With Non-Legal Lease Reviews
REFA has partnered with Pinion, a leading advisory and accounting firm for the food and agriculture industry with a 90-year legacy, to provide tax and advisory services, including non-legal lease reviews.
Pinion serves as an independent contractor and under this agreement, Pinion explicitly affirms it will not provide legal services or legal advice.
The scope of Pinion’s work includes:
- Non-legal lease review and suggested edits: Offering clear, practical recommendations to protect your operational and financial interests.
- Negotiation support: Working directly with developers on behalf of members to help secure favorable terms.
This ensures landowners get a knowledgeable advocate who understands renewable energy leases, agricultural operations and the business realities behind the deal.
The Bottom Line
It’s important to note: A non-legal lease review is not legal advice. It won’t replace your attorney, and it won’t interpret the enforceability of contract language. Instead, it covers the two-thirds of lease issues that are business-related, leaving the strictly legal analysis to a qualified lawyer.
Renewable energy leases are complex, and their impact extends far beyond the legal realm. A non-legal lease review helps landowners make informed, confident decisions by focusing on what really matters for their business, operations and future.
If you’re considering a lease, think of a non-legal lease review as your practical guide: It helps you ask the right questions, avoid pitfalls and protect the way you work the land.
REFA members can access professional advice about renewable energy development, including non-legal lease reviews. Learn more about the benefits of a REFA membership today.
