Wednesday, April 21, 2010

A Step in the Right Direction

The Norco County Commissioners came to an agreement with Pennwind on a new lease of county land yesterday. The new agreement calls for Pennwind to pay the county a 6% royalty on a kilowatt produced versus 3% in the original contract. The acreage from the lease was reduced from 900 to 75 acres.

Pennwind still has deed and title issues to settle with a California-based company on the 30 million dollar project.

Like I indicated before, once the project is completed the cost to produce a kilowatt should relatively remain stable of the life of the 29-year lease.

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