Energy

South Dakota possesses one of the finest wind regimes in the entire United States, with over 117,000 megawatts of generation, translating into over $250 billion of wind generation investment potential. Dakota Plains is already looking forward to the rapidly approaching day when America will seriously utilize their inherent renewable resources, and South Dakota will break out as a major energy supplier. We are working tirelessly to research the exact locations of the best wind resources and are building relationships with those landowners. Our travels have taken us throughout the state, and we have held substantive conversations with both formal and informal landowner associations, who control over 3,000,000 acres of land.

Steve Leuthold manages the $4.5 billion Leuthold Core Investment Fund, whose annualized 10-year return tops 98% of its peers (according to Morningstar), as reported in the May 3, 2010 issue of Business Week. “One of the sectors we’re big fans of for the long term is clean technology-wind, solar, efficient batteries. We can’t live on oil forever…we recommend to clients to buy cleantech and put it away, because changes won’t happen overnight.”

If you are a qualified investor interested in long-term renewable energy, and wish to learn more about Dakota Plains Energy projects, please contact Rob Johnson.

CAMPBELL COUNTY WIND FARM (CCWF)

With a superior wind quality/capacity factor, Campbell County Wind Farm has excellent wind generation potential in the heart of South Dakota. South Dakota is ranked #4 in the nation with the potential to provide over 117,000 megawatts (MW) of wind energy production, but is currently ranked only #17 in actual production with nearly 350MW operational. CCWF is on the leading edge of what promises to be a huge addition to that production total. At an estimated 300+ MW in size, we have the ability to greatly increase South Dakota’s wind power production with this single project.

Campbell County Wind Farm (300MW) pre-construction is underway with over 17,000 acres under contract. CCWF could easily be expanded to 1000MW with the availability of additional transmission capacity.

1. Three MET towers are collecting data.
2. Avian studies are underway.
3. Preliminary engineering has begun.
4. The project has been registered on the WAPA queue.
5. The Interconnection Application has been processed.

Beyond its excellent wind resources, what makes the CCWF stand out from other wind farm projects? First, are its readily available transmission lines with existing capacity that are not only close to the project, but also cross right through the project’s footprint. The second distinction is the level of expertise that we have interviewed, researched and selected to work with us to make certain that this project is completed on time and under budget with the fewest unforeseen issues we can hope for.

Dakota Plains Energy, Inc., based in nearby Aberdeen, SD, is the developer and managing partner behind this project. Dakota Plains Energy principals have utilized their lifelong relationships with key local citizens to create the cornerstones for this project, and have, over time, built strong relationships within the South Dakota state government to help achieve the goals of this project. Campbell County believed that they had excellent wind potential, and even placed their own anemometer in service over 18 months ago to begin collecting data for development purposes. The county then began to seek a reputable developer who understands the industry, the region and respects their local culture. Dakota Plains Energy was their obvious choice, and over 17,000 acres have already been acquired through signed Option Agreements with local landowners and their Landowner’s Association.

Jeff Paulson, JD, of Minneapolis, MN, is an “elder statesman” of the Midwest wind projects. Jeff has been in the renewable energy industry since 1998, helped launch and then spent 4 years with Northern States Power Renewables (NSP). Jeff has negotiated more than 50 Power Purchase Agreements with various utilities throughout the upper Midwest, and will secure a suitable PPA on behalf of the Campbell County Wind Farm, as well as provide us with his expert guidance in taking a project from idea to reality.

Fagen Engineering, Inc., Granite Falls, MN, is a subsidiary of America’s largest, most respected green design-builder in the U.S. With over 30 years of experience, Fagen will be heavily involved in the environmental and pre-engineering studies.

HDR Engineering, Omaha, NE. With 92 years in business, employee-owned HDR has blossomed into 8,000 professionals with 185 locations worldwide. HDR has retained the services of the recently retired, (30 years) WAPA Transmission System Planning Manager (TSPM). The responsibility of the TSPM is to review and process all transmission interconnection applications which, once completed, allow for placement on the interconnection queue. This consultant handled our WAPA application and ensured it to be fully completed, exactly as WAPA prefers, reducing time-delays and accelerating its placement into the queue. HDR has worked on over 9000MW of renewable energy projects in the United States.

Atwell-Hicks, Ann Arbor, MI. Established in 1905 and renowned for their expertise in wind, they have completed eight major Midwestern wind projects in the past few years. Atwell has assisted Dakota Plains Energy with budgets and timelines and will be heavily involved in the micro-siting, detailed engineering and other survey work.

CCWF DETAIL

The Campbell County Wind Farm, located in north central South Dakota, will encompass three ridges just east of the Missouri River and south of Pollock, SD. There are two north/south transmission lines running on the ridges. One is owned by Basin Electric and is full; the other is owned by WAPA and has sufficient capacity available. The project will encompass nearly 25,000 acres, which according to the South Dakota Infrastructure Authority, will be able to easily support over 250 turbines, more than enough to complete this project.

Dakota Plains Energy was selected as the Project Developer by the Campbell County Landowner’s Association over Just Wind of North Dakota and Florida Power & Light/NextGen Energy (the largest developer of wind projects in the U.S.) of Juno Beach, FL. Over 17,000 acres have been secured through Option Agreements with local landowners and their Landowner Association. The remainder of the necessary Option Agreements will be secured as we move forward with the project but, at this time, we already control enough acreage to proceed with our application to WAPA. A First Look wind resource assessment and Windlogics Site Evaluation are available for review. The first 50 meter MET tower was installed in September of 2008; this has been replaced by a 60m tower and two additional 60m towers were also erected. The meteorological readings are continuously collected and interpolated by an unrelated third party entity.

To expedite our project, we have divided the project into two phases. This method reduces the initial environmental studies requirements and will speed up the timing to construction. The Western Area Power Administration has accepted our Interconnection Application, and we are now in the WAPA/Oasis queue.

A question you may have is, “What will CCWF do with the power?” Transmission has always been a challenge for any wind project, but that issue is likely non-existent because of the nearby transmission line with spare capacity. CCWF will likely enter into a Power Purchase Agreement with a utility company, which allows for a stable and predictable source of revenue from the power generated.

There are five major regional utilities that serve South Dakota and nine other states who are excellent potential buyers of our power. They include:

1. Xcel Energy, ranked #1 in wind production by a utility (2900MW); 3,400,000 customers.
2. Basin Electric serves 540,000 square miles and has plans in place for 555MW of wind.
3. Heartland Consumers Power District serves seven states and owns 85,000 miles of transmission lines; currently provides 50MW of wind.
4. Montana Dakota Utilities serves 168,000 square miles, less than 100MW wind.
5. Ottertail Power, 50,000 square miles, 138MW wind generated.
6. Missouri River Energy Services, powering 78 communities in 4 states, < 2MW wind.
7. Black Hills Power serves 4 states including Colorado. Six percent of BHP’s power is wind-generated via PPA and to meet Colorado’s 20/20 RES, BHP recognizes they will be purchasing wind power from additional outside sources in the future.

The 10 states serviced by these utilities carry renewable energy standards of 10-30% in the next 5 to 15 years.

To meet the U.S. Dept of Energy’s goal of 20% renewable energy by 2030, the United States would have to generate 300,000MW versus the 25,300MW wind generation today. All of the wind generated today would only amount to 8% of the goal. This opens the door for great opportunity in wind development.

As an investment, CCWF has huge long-term potential for return. If the project becomes attractive to an international investor or large utility, it could be purchased at any time during development, usually when certain milestones have been achieved. The project could also be brought to the construction stage and sold, or go on to full development, with Dakota Plains Energy bringing CCWF online and supplying reliable power, and reliable returns for years to come.

Construction of the Campbell County Wind Farm is scheduled to commence in the Fall of 2012/Spring of 2013.

CCWF IMPACT

On a national level, CCWF can help America’s quest for energy independence, and become part of a comprehensive plan to wean our nation from fossil fuels to green alternatives. There is also the human factor, and investors in CCWF know their dollars have a direct effect on families in rural South Dakota, providing much needed economic growth, a stable income source, and local taxes that support the roads and schools they depend on, all while creating a huge step forward in revitalizing rural America.

Campbell County Wind Farm is a project with a local impact that we can all be proud of. Whether the investors, the developer or simply the person who turns on a light switch, knowing that power comes from a quiet place called Campbell County, SD, we are all taking charge of America’s energy future while revitalizing our rural communities in South Dakota.