Who is responsible to clean up energy projects on farm land? Alberta missed setting solid policy for oil and gas wells. We need a plan for farmland reclamation once wind turbines and solar farms reach their end of life.

Considerations when engaging with renewable energy production

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Ever since Leduc No.1 started pumping oil in 1948, the energy industry has transformed the Prairie landscape and created unintended consequences impacting agriculture. Renewable energy projects such as wind turbines and solar farms present a similar set of challenges. While leasing land to renewable energy companies can provide supplemental income, farms entering into land supply agreements will want to carefully consider what protections should be in place before signing on the dotted line.

Clean up

One of the largest unintended consequences from the first energy boom in the Prairies are the thousands of orphaned and abandoned fossil fuel wells littering the countryside. Through boom and bust cycles, companies forced to shut their doors left behind their well-site infrastructure, forcing landowners to operate around these physical obstacles.

In Alberta alone there are 7,395 orphaned wells. These wells do not have an entity legally or financially liable for their reclamation. The Orphan Well Association is now responsible for them. Regulators, policy makers, landowners, and energy companies must learn from these mistakes to manage the environmental impact of industrial renewable energy facilities.

First and foremost, farms leasing land to these companies should have a reclamation agreement to remove solar panels and wind turbines at their end of life. All parties must understand the expected standards and their role in returning agricultural land back to its former glory. This includes agreement on who will pay reclamation costs, which will be far higher than they are today, and how they will pay. Financial bonds or trust holdings are possible mechanisms.

Property tax

Land use changes can have a substantial impact on property tax rates. The transition from agricultural usage to industrial usage will certainly cause changes to property taxes associated with a title of land. A lease agreement should also describe who will be responsible for property tax increases and any necessary compensation.

Local bylaws should also allow for quick rezoning back to agriculture land so future agricultural practices are not stuck paying industrial rates of property tax.

Pest management

The initial agreement could include pest management mitigation strategies. These include movement of contaminated soil during construction, or annual weed control programs in and around renewable energy infrastructure. Moving soil can move clubroot. And unmanaged weeds can increase populations of glyphosate-resistant kochia.

Neighbours

Energy projects may also impact neighbours, if it means utility lines, noise, increased traffic and a changed landscape from their picture window. Co-existence is necessary for those directly engaged in producing renewable energy as well as those living in the surrounding area.

Farming around solar panels

Practices of co-existence like agrivoltaics, the concept of dual land usage between agricultural production and solar energy production, have been proposed in other jurisdictions. How feasible would it be on the Prairies to have strips of solar panels running through fields? Creating gaps that match sprayer, drill and combine widths may be easier said than done in Western Canada.

Jurisdictions across the Prairies do not have standard procedures for negotiations or contracts relating to renewable energy facilities, so careful due diligence is critically important throughout the process. Should an issue arise at any point from construction, production or reclamation, the establishment of binding arbitration or third-party mediation can limit the recourse a landowner could take.

We need energy. We also need food. When we take away agriculture land to produce energy, the final consideration is the opportunity cost of losing our food production capacity.

Consider all of these points before signing farmland leases for renewable energy projects. Short term benefits may provide a nice boost in income, but make sure the farm is not stuck with unexpected bills throughout the life and death of the project.