Noble
Liens Snare Landowners
Several
property owners who entered easement agreements with an arm
of Noble Environmental Power now find themselves with
mechanic liens on their land after the company reportedly
failed to pay a bill to an electrical company. On March 11,
three separate mechanics liens were filed in the Franklin
County Clerk¹s office in connection with properties used by
Noble for development of the Noble Chateaugay Windpark.
March 18, 2009 by Darcy Fargo in Malone Telegram
Several
property owners who entered easement agreements with an arm
of Noble Environmental Power now find themselves with
mechanic liens on their land after the company reportedly
failed to pay a bill to an electrical company.
On March 11, three separate mechanics liens were filed in
the Franklin County Clerk¹s office in connection with
properties used by Noble for development of the Noble
Chateaugay Windpark.
The liens, filed by electrical contractor Stuart C. Irby
Company of Jackson, Miss., indicate that Noble has not paid
$784,692.88 for electrical materials and equipment and
related services in connection with the construction and
installation of a wind turbine project known as "Noble
Chateaugay Windpark, LLC" in the State of New York.
While the lien documents are filed as a liability on Noble
Chateaugay Windpark LLC's interest, they also include the
property owners. One property is owned by Michael Garrow of
Chateaugay; another is owned by Alonso Domingo of West
Orange, N.J.; and the other is owned by Marjorie Cornell of
Pawling, and Gary Cornell of York, Pa.
Officials in the county clerk's office explained that the
liens would be recorded against the property owners, as
well as against Noble Chateaugay
Windpark.
Having a lien on a property in addition to potentially
damaging credit scores renders the owner unable to obtain
a clear title to the property.
It can also impact the owners' ability to obtain loans and
lines of credit. When reached for comment Tuesday, Gary
Cornell said he was not yet familiar with the terms of the
lien.
"I don't know enough about it to have an opinion," he said.
"The property's not worth $700,000 I can tell you that.
If you know someone who's interested in buying it, I think
I'd be happy to sell it."
Numbers listed for Garrow and Marjorie Cornell were out of
service. Domingo did not return a call for comment Tuesday.
When reached Tuesday at the company's Connecticut
headquarters, Noble Environmental Power Communications
Associate Maggie Wisniewski would not comment on the liens.
"We can't comment on these matters, so I guess I have to
say "no comment," Wisniewski said.
Noble Environmental Power entered into easement agreements
with more than 50 area landowners in Franklin County for
use of land for wind turbine development. The agreements
specific to the liens were entered into by property owners
and Noble Chateaugay Windpark LLC one of many Limited
Liability Corporations (LLCs) operated under Noble¹s
umbrella.
Documents on file in the county clerk's office show at
least 11 different LLCs under Noble's umbrella: Noble
Bellmont Windpark LLC, Noble Burke Windpark LLC, Noble
Chateaugay Windpark LLC, Noble Chateaugay II Windpark LLC,
Noble Chateaugay LLC, Noble Chateaugay Windpark II LLC,
Noble Cherry Hill Windpark LLC, Noble Clinton Windpark I
LLC, Noble Development LLC, Noble Environmental Power LLC
and Noble Environmental Power 2008 LLC. The LLCs are based
in Delaware, according to the New York Department of State.
More than a handful of documents transferring easement
rights between the different LLCs are signed by the same
person on behalf of two different Noble LLCs.
Jim O'Connor, senior counsel of the legal team at Noble
Environmental Power's headquarters, did not return a
message seeking an explanation for the creation of the
numerous LLCs.
Several local attorneys consulted on the matter, but not
familiar with Noble specifically, said a company may form
multiple LLCs if it has multiple projects and wishes to
keep the funding and liability for those projects separate.
One attorney, who asked not to be named, said each LLC
would be "insulated from the others in terms of liens and
liabilities."
"The Limited Liability Corporation is a form of corporation
set up for a specific use or purpose," the attorney said.
"Generally, it's meant to isolate and insulate assets and
liabilities."
According to documents filed with the state, Noble
Environmental Power sells the output of its facilities
exclusively at wholesale in the spot markets administered
by the New York Independent System Operator, or neighboring
control areas. The company also sells environmental
attributes or renewable energy credits to purchasers such
as green energy marketers, the New York State Energy
Research and Development Authority (NYSERDA) or other
customers.
According to NYSERDA's procurement contract report filed in
spring 2007, the government agency has a contract with
Noble to pay the company $65.3 million for the Noble
Chateaugay Windpark under the Renewable Portfolio program,
which administers the renewable energy credits. Further
details about that contract were not immediately available.
Noble earned renewable energy credits, which it could then
sell, for the Chateaugay park for the calendar year 2008,
though the project wasn't completely online until late
December of that year.
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