AGEC 3713 – Exam 3 . Verified Q&A on Agricultural
Economics and Policy Tools
If you had to pick the one single most important term to define a wind energy lease, if we measure
importance by how you get paid, what would that term be? - ✔✔"Gross revenues"
What is the average initial royalty rate for most Oklahoma wind energy leases? - ✔✔4%
Which of the following is TRUE about the agricultural land use impacts of solar and wind power
projects? - ✔✔All of the above.
At least as of right now, what is about the only agricultural land use permitted by solar developers on
the land leased for the installation of the PV modules? - ✔✔Grazing of small ruminant animals such as
sheep and goats.
How are landowners typically paid in Oklahoma and the southern Great Plains for solar leases on their
property? - ✔✔A royalty of 4% of gross revenues
Assuming each solar developer wants to lease the entirety of one of your 50 acre parcels of land and
that your sole and only objective with a solar lease is "get them dollars" which of the following solar
leases are you going to choose? - ✔✔Solaris Energy LLC wants to install 5MW of PV capacity on your
land, and wants to pay you a flat $300/year/acre fee.
Pick the answer below that correctly matches the federal environmental law or regulation that would
apply to each scenario. - ✔✔CERCLA, CWA, WOTUS, CAA
When we talk about the "damages: that are payable to landowners under the Surface Damage Act, how
do we determine the value of those damages? - ✔✔The damages are the different between the fair
market value of the property before the oil and gas operations minus the fair market value of the
property after the oil and gas operations.
, Which of the following would NOT be considered in calculating the damages to Jed's property caused by
the production of oil and gas on his property by oil and gas operator Drysdale Energy? - ✔✔Actually, all
of the above would be considered factors in determining the damages.
True or false: the Oklahoma Surface Damage Act requires oil and gas developers to compensate surface
owners for damages caused by the seismic exploration of the property. - ✔✔False, because the
Oklahoma courts have determined that "seismic exploration" does not fall within the language of the
Surface Damages Act.
Which of the following is most likely to fit within the RCRA agricultural exemption for hazardous waste?
- ✔✔Liquid manure Penelope pumps out of her swine facility waste management system onto his corn
crop. Penelope tests the nutrient profile of both the waste and the soil and calculates how much waste
she can apply to meet the nutrient needs of his crop under a Nutrient Management Plan (NMP).
What is required to establish liability for the cleanup costs associated with a release of hazardous
substances under CERCLA? - ✔✔All that is required is to show that a person owns property where a
release occurred.
DE-FENSE! clap clap DE-FENSE! You actually can buy and own property on which a release of hazardous
substances has occurred and still avoid CERCLA liability for the cleanup costs, but only if you do what? -
✔✔Conduct an environmental survey (i.e. "all appropriate inquiry") of the property BEFORE you
acquired it so you can fit the definition of "innocent landowner," "contiguous property owner," or "bona
fide prospective purchaser" of the property.
Your professor appeared pretty wound up about the decreasing cost of solar PV modules as a major
driver of increased solar development in the US and the world at large. But he also got pretty wound up
about the decreasing cost of what other technology that he said would be a major driver of solar
development? - ✔✔Electric cars
Who was the guest speaker for the solar energy lecture? - ✔✔Mr. Shawn Ferrell
Which of the following factors have the greatest direct impact on the amount of energy that can be
theoretically generated by a wind turbine? - ✔✔The density of the air at the wind turbine;s location,
represented as p in the wind power equation.
Economics and Policy Tools
If you had to pick the one single most important term to define a wind energy lease, if we measure
importance by how you get paid, what would that term be? - ✔✔"Gross revenues"
What is the average initial royalty rate for most Oklahoma wind energy leases? - ✔✔4%
Which of the following is TRUE about the agricultural land use impacts of solar and wind power
projects? - ✔✔All of the above.
At least as of right now, what is about the only agricultural land use permitted by solar developers on
the land leased for the installation of the PV modules? - ✔✔Grazing of small ruminant animals such as
sheep and goats.
How are landowners typically paid in Oklahoma and the southern Great Plains for solar leases on their
property? - ✔✔A royalty of 4% of gross revenues
Assuming each solar developer wants to lease the entirety of one of your 50 acre parcels of land and
that your sole and only objective with a solar lease is "get them dollars" which of the following solar
leases are you going to choose? - ✔✔Solaris Energy LLC wants to install 5MW of PV capacity on your
land, and wants to pay you a flat $300/year/acre fee.
Pick the answer below that correctly matches the federal environmental law or regulation that would
apply to each scenario. - ✔✔CERCLA, CWA, WOTUS, CAA
When we talk about the "damages: that are payable to landowners under the Surface Damage Act, how
do we determine the value of those damages? - ✔✔The damages are the different between the fair
market value of the property before the oil and gas operations minus the fair market value of the
property after the oil and gas operations.
, Which of the following would NOT be considered in calculating the damages to Jed's property caused by
the production of oil and gas on his property by oil and gas operator Drysdale Energy? - ✔✔Actually, all
of the above would be considered factors in determining the damages.
True or false: the Oklahoma Surface Damage Act requires oil and gas developers to compensate surface
owners for damages caused by the seismic exploration of the property. - ✔✔False, because the
Oklahoma courts have determined that "seismic exploration" does not fall within the language of the
Surface Damages Act.
Which of the following is most likely to fit within the RCRA agricultural exemption for hazardous waste?
- ✔✔Liquid manure Penelope pumps out of her swine facility waste management system onto his corn
crop. Penelope tests the nutrient profile of both the waste and the soil and calculates how much waste
she can apply to meet the nutrient needs of his crop under a Nutrient Management Plan (NMP).
What is required to establish liability for the cleanup costs associated with a release of hazardous
substances under CERCLA? - ✔✔All that is required is to show that a person owns property where a
release occurred.
DE-FENSE! clap clap DE-FENSE! You actually can buy and own property on which a release of hazardous
substances has occurred and still avoid CERCLA liability for the cleanup costs, but only if you do what? -
✔✔Conduct an environmental survey (i.e. "all appropriate inquiry") of the property BEFORE you
acquired it so you can fit the definition of "innocent landowner," "contiguous property owner," or "bona
fide prospective purchaser" of the property.
Your professor appeared pretty wound up about the decreasing cost of solar PV modules as a major
driver of increased solar development in the US and the world at large. But he also got pretty wound up
about the decreasing cost of what other technology that he said would be a major driver of solar
development? - ✔✔Electric cars
Who was the guest speaker for the solar energy lecture? - ✔✔Mr. Shawn Ferrell
Which of the following factors have the greatest direct impact on the amount of energy that can be
theoretically generated by a wind turbine? - ✔✔The density of the air at the wind turbine;s location,
represented as p in the wind power equation.
