Energy Development On and Around Airports John Putnam Eric Pilsk - - PowerPoint PPT Presentation

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26th Annual AAAE Basics of Airport Law Workshop and 2010 Legal Update

Washington, DC September 12 - 14, 2010

International Municipal Lawyers Association

Breakout #2 – Energy Development On and Around Airports

John Putnam Eric Pilsk Kaplan Kirsch & Rockwell

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Oil/Gas, Wind, Solar and Biofuels

Opportunities

• Revenue
• Grants
• Environmental
• Political
• Economic development
• [Include photos of oil

rig/pump, wind turbine, solar] Risks

• Compliance
• Safety
• Operations

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Oil/Gas: Revenue Opportunities

– E.g., DFW: $20-40M per year – Beaufort: More than $27M since 11/09

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Oil/Gas: Risks to Airports

• Subsidence
• Tremors
• Interference from equipment
• Blowouts
• Frac issues
• Air quality
• Water quality
• Spills
• Mitigation through technology

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Oil/Gas: Some Legal Considerations

• Revenue Use/Self-Sustaining Airport

– Pittsburgh opinion – Unitized field issues

• Assurance 4: Adequate Title

– Surface rights issues

• Assurance 5: Rights and Powers
• Assurance 6: Consistency with Local Plans
• Assurance 20: Hazard Removal
• Assurance 21: Compatible Development
• Air permits and air conformity rules
• Water quality permitting
• NEPA?

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Solar: Good, Bad, Ugly

• Photovoltaic (PV)

– Generally safe – Airports using – Height and safety zones

• Solar thermal

– Glare – Thermal plumes – Height

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Example: Ivanpah Solar Electric

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Wind Power and Aviation: Good, Bad and Ugly

• Green Energy

Savings on Airport

• Interference with

Radar

• Height/Obstruction

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Radar Interference Issues

• “Line-of-sight” can impair

accurate tracking – Shadowing – False Returns – Clutter

• No established methodology

to assess impacts

• No established solutions

– Hardware Upgrades – Adjust “aim” and angle – “Stealth” materials

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Height and Obstruction Issues

• Obstruction: Penetrate

Imaginary Surfaces

• Interfere with IFR

Routes, Missed Approach Procedures, Departure Procedures

• Interfere with Regular

VFR Routes

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Avoid Surprises

• Prepare

– Zoning codes – State laws and regs. – FAA Part 77 Process – Grant Assurances

• Monitor:

– Filings with FAA – Local news – Permit requests – Legislation

• Review

– Consider local context

• Act

– Technical case to FAA – Permit processes

• Federal (BLM, MMS, etc.)
• State (PUCs, etc.)
• Local (land use)

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Wind/Solar Energy On Airports

– Eligibility for grants/funding such as VALE, DOE, PFCs, etc. – Grant Assurances

• Airport Hazards
• Revenue Diversion/Self-

Sufficient Airports

• Land release
• Rates and Charges
• Unjust Discrimination
• Rights and Powers

– Part 77 – Ownership of RECs or Credits – Federal/state utility laws

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Emerging Issue: Biofuels

• Ability to subsidize
• Revenue

Diversion/Self Sustaining

• Liability
• Exclusive

Rights/Discrimination

• Rights to Self-Fuel
• Environmental
• Contractual Issues

with Tenants

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Questions and Follow Up

Eric Pilsk - epilsk@kaplankirsch.com John Putnam - jputnam@kaplankirsch.com www.airportattorneys.com