HomeMy WebLinkAboutRESOLUTION-Decommissiong.pdfRESOLUTION #2016______
TOWN OF ENFIELD RESOLUTION ESTABLISHING AMOUNT AND TERMS OF
DECOMMISSIONING BONDS AND OTHER SECURITY FOR FUTURE PERFORMANCE
OF DECOMMISSIONING AND REMMOVAL OBLIGATIONS OF DEVELOPER
WHEREAS, the Town’s Wind Farm law requires a decommissioning bond, or equivalent security as
approved by the Town Board, to be determined in amount for each tower in relation to each permit, but
not less than $125,000 per tower as delineated in Article I § 1(10) and Article VI §§ 1(D through F);
and
WHEREAS, a permit application and review are in progress and while no permits have issued to erect
towers, it is necessary to attend to many details, including decommissioning costs and securitization of
the developer’s obligation to decommission and deconstruct towers and facilities upon obsolescence,
loss, closure, and other like circumstances; and
WHEREAS, the general form of a decommissioning bond, written as a surety bond guaranteeing
developer’s performance, has been generally, but not specifically, reviewed and approved by the town
attorney pursuant to said Articles I, § 1(10) and IV, §§ 1(D),(E), and (F) of the local law; and
WHEREAS, engineering estimates, duly reviewed by the Town, establish a cost per tower for
decommissioning and deconstruction, and such amount of $180,000 be and hereby is established as the
gross initial decommissioning amount that developer shall duly guarantee or securitize in a manner as
approved by the Town, with such amount to be applied severally in proportional allotments to each
tower; and
WHEREAS, the developer has proposed a plan whereby it may, in the future, displace bonds with cash
deposits (and pledged accounts) and, subject to approval of the same at such future time as substituted
security is proposed, and the approval of the terms and amounts thereof by the Town Board per Article
VI § 1, it is agreed in principal that the developer may replace the initial bonds with a cash escrow or
similar pledge accounts in the amount of $1,260,000.00 (or $180,000.00 per tower, whichever is
greater) to securitize the decommissioning obligations of developer; and
WHEREAS, the Enfield Town Board is concerned about the potential to adversely affect road
conditions during the decommissioning process and
WHEREAS, upon due consideration and deliberation thereupon by the Town Board of the Town of
Enfield, BE IT RESOLVED AS FOLLOWS:
1. The amount of $1,260,000 be and hereby is set and approved as the gross project
decommissioning cost, and a proportionate amount must be securitized by surety bond for each tower
permit issued. Such amount is subject to change over the life of the tower and facilities as periodic
reviews of the decommissioning costs may hereafter occur under the local law.
2. The amount of $100,000 be and hereby is set and approved as the amount which must be set as
the maximum amount to be set aside for the restoration of Town roads, and a proportionate amount
must be securitized by surety bond. Such amount is subject to change over the life of the wind farm as
periodic reviews of the decommissioning costs may hereafter occur under the local law. Subject to the
approval of the Town Board as to the terms and amounts of such escrow or other pledge, the developer
may substitute cash or cash-based accounts in lieu of, and in replacement of, surety bonds, upon such
schedule and at such times as developer may elect. For this purpose the sum of $100,000 be and is
hereby set as the initial cash or depository pledge amount to securitize the future decommissioning
costs and removal obligations of the developer. Such amount is subject to change over the life of the
tower and facilities as periodic reviews of the decommissioning costs may hereafter occur under the
local law.
3. Subject to the approval of the Town Board as to the terms and amount of such escrow or other
pledge, the developer may substitute cash or cash-based accounts in lieu of, and in replacement of,
surety bonds, upon such schedule and at such times as developer may elect. For this purpose the sum of
$1,260,000 (or $180,000per tower, whichever is greater)be and is hereby set as the initial cash or
depository pledge amount to securitize the future decommissioning coasts and removal obligations of
the developer. Such amount is subject to change over the life of the tower and facilities as periodic
reviews of the decommissioning cost may hereafter occur under the local law.