26 th Annual AAAE Basics of Airport Law Workshop Washington, DC and 2010 Legal Update September 12 - 14, 2010 Breakout #2 – Energy Development On and Around Airports John Putnam Eric Pilsk Kaplan Kirsch & Rockwell 1 International Municipal Lawyers Association
Oil/Gas, Wind, Solar and Biofuels Opportunities Risks • Revenue • Compliance • Grants • Safety • Environmental • Operations • Political • Economic development • [Include photos of oil rig/pump, wind turbine, solar] 2
Oil/Gas: Revenue Opportunities – E.g ., DFW: $20-40M per year – Beaufort: More than $27M since 11/09 3
Oil/Gas: Risks to Airports • Subsidence • Tremors • Interference from equipment • Blowouts • Frac issues • Air quality • Water quality • Spills • Mitigation through technology 4
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? 5
Solar: Good, Bad, Ugly • Photovoltaic (PV) – Generally safe – Airports using – Height and safety zones • Solar thermal – Glare – Thermal plumes – Height 6
Example: Ivanpah Solar Electric 7
Wind Power and Aviation: Good, Bad and Ugly • Green Energy • Interference with Savings on Airport Radar • Height/Obstruction 8
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 9
Height and Obstruction Issues • Obstruction: Penetrate Imaginary Surfaces • Interfere with IFR Routes, Missed Approach Procedures, Departure Procedures • Interfere with Regular VFR Routes 10
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) 11
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 12
Emerging Issue: Biofuels • Ability to subsidize • Revenue Diversion/Self Sustaining • Liability • Exclusive Rights/Discrimination • Rights to Self-Fuel • Environmental • Contractual Issues with Tenants 13
Questions and Follow Up Eric Pilsk - epilsk@kaplankirsch.com John Putnam - jputnam@kaplankirsch.com www.airportattorneys.com 14
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