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Wind Energy: Frequently Asked Questions

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Who is Geronimo Energy?

We are farmer-friendly. Geronimo Energy was founded with deep roots in agriculture and an understanding and respect for farming, farmers, and their local communities.

Geronimo Energy is a top Midwest renewable energy developer headquartered in Edina, Minnesota. We’re experienced, competitive, and trusted by both customers and industry partners. Geronimo boasts several operating wind farms and solar projects and has an aggregate development pipeline of over 3,000 megawatts – roughly enough to power 1 million American homes.

Geronimo is excited to partner with our landowners to bring millions of dollars into their local economy via renewable energy development. We promise prompt responsiveness and diplomacy at all times, as well as a willingness to answer questions from supporters and objectors alike.

We look to hire from the existing local work force near our projects.

We work closely with our landowners and their neighbors during the siting process to ensure that our projects are well-received by the community to yield sustaining support forthe long term operation of a project.

We know that nobody knows the land better than our landowner partners and tenants – which is why we retain open lines of communication with each of our land partners throughout the development process and compensate our land partners fairly.

farmer-friendlyadjective: exhibiting a respect and appreciation for hardworking farmers, their communities, and the rural American way of life.

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1. Inflow of wind.

2. Inflow of wind activates rotor (A) and blades (B). 3. Rotor and blades spin the

main shaft (C) and gearbox (D), which spins the generator (E), resulting in electrical output.

A

B

B

B

C

D E

Wind Energy Basics

How a Wind Turbine WorksElectricity from the Wind

Energy is created when the wind blows with sufficient enough speed to spin the rotor (A) and blades (B) of the wind turbine. The spinning rotors cause a shaft (C) inside the turbine to rotate. This slowly rotating shaft enters a gearbox (D) that significantly increases the rotational shaft speed. Another shaft, called the output (or high speed) shaft is connected to a generator (E), which converts the rotational movement into electricity. Finally, the newly produced electricity is sent through a series of collector lines to a project substation. At the project substation, the power is typically transformed from low voltage to high voltage and transported to the transmission grid at the point-of-interconnect (POI).

Wind Turbine Operation

When the wind speed reaches the “cut-in speed” of the turbine (usually 7-10 mph), the turbine blades will spin at operating speed. Operating speed is considered to be about 14 to 29 revolutions per minute (rpm). Electricity begins to generate when the blades hit operating speed. When the wind speed increases to the “rated wind speed” (usually around 30 to 35 mph), the generator will output the turbine’s name-plate-capacity. For example, a 750 kilowatt (kW) turbine would output 750 kW.

Wind Turbines Are Powerful

A 1.5-megawatt (MW) wind turbine at a reasonable site will produce approximately 5,000,000 kilowatt-hours (kWh) of electricity each year, which is enough to power roughly 500-600 homes per year.

Wind Turbines Are Just Like Cars

A wind turbine typically operates for 20 to 25 years. Just like a car, some parts of the turbine may need to be replaced and/ or maintained during its lifetime.

Wind Turbines Produce Electricity Just Like Any Other Source

Did you know that no power plant is 100% reliable? Backups are needed for every type of energy producer. A modern wind turbine produces electricity 100% of the time that the blades are spinning, but generates different energy outputs depending upon wind speed and other factors. Over the course of a year, a wind turbine can be expected to generate around 40-50% of its theoretical maximum output, which is known as its “capacity factor”.

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1000

Distance from Turbine (meters):

200 300 400 500 600

10

100

Decibels

20

30

40

50

60

70

80

90

105 dB(A)Lawnmower

90 dB(A)Blender

50 dB(A)Mid-size WindowAir Conditioner

40 dB(A)Refrigerator

80 dB(A)Vacuum Cleaner

At a distance of 500 meters (0.3 miles), the sound drops to 38 decibels. In most places, according to Keith Longtin of GE Global Research, “background noise ranges from 40 to 45 decibels, meaning that a turbine’s noise would be lost amongst it” (Longtin).

Wind Energy Facts

What Does a Wind Turbine Sound Like?

Over the last few decades, researchers in Europe and the United States have spent significant time measuring wind turbine sound. Research has shown that the levels of low frequency sound and vibration radiated from modern wind turbines lie below the threshold of perception. One study from GE Global Research determined that at a distance of 400 meters, the sound level produced by a wind turbine is actually softer than the average household refrigerator.

Advanced Wind Turbine Technology Keeps You Safe

Wind farms have traditionally been safer producers of electricity than their non-renewable counterparts. For example, unlike some forms of energy, wind farms do not create stray voltage because wind energy systems are balanced, three-phase systems that do not use the ground for any return or unbalanced current.

The wind industry has always been diligent about developing safe reasons to choose wind power. In the last decade, the technology of wind turbine design has advanced dramatically. As a result, wind farms have never been more safe. For instance, turbines now have sensors that force them to slow their rotation if ice builds up on the blades, reducing the likelihood of ice throw. The reduction in speed is sensed by the turbine’s control system, which will cause the turbine to shut down.

Additionally, there has been extensive research into the effects of wind turbines on the people who live in nearby communities. The Massachusetts Departments of Environmental Protection and Public Health (among several other international institutions) found that there was “no evidence for a set of health effects from exposure to wind turbines” (“Truth About Wind Power”).

A common term landowners have questions about is “shadow flicker”. Shadow flicker is when the rotating blades of the wind turbine cause a moving shadow on the ground. With modeling, shadows from moving wind blades are predictable, and turbines can be sited to minimize shadow flicker. In fact, if shadow flicker does occur, it usually only takes place at the beginning or end of the day and would rarely present for more than a total of twenty hours per year (that’s a maximum of 0.2% of the full year’s 8,760 hours).

Wind Farms Have No Effect on Real Estate

Studies have found no measurable effect on property value or sale prices for homes located near and around wind farms. A Berkeley Lab study of nearly 7,500 sales of single-family homes situated within 10 miles of 24 existing wind facilities in the United States reported “the various analyses are strongly consistent in that none of the models uncovers conclusive evidence of the existence of any widespread property value impacts that might be present in communities surrounding wind energy facilities. Specifically, neither the view of the wind facilities nor the distance of the home to those facilities is found to have any consistent, measurable, and statistically significant effect on home sales prices” (Hoen, iii).

Neither the view of the wind facilities nor the distance of the home to those facilities is found to have any consistent, measurable, and statistically significant effect on home sales prices.

How loud is a wind turbine?

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Wind Energy and The Environment

Geronimo: Diligent Developer

Protecting the earth, environment and its inhabitants is at the heart of why we do what do: wind energy is one of the least harmful types of energy production. Wind energy as an industry off-sets billions of tons of carbon dioxide emissions, uses little to no water con-sumption, and uses a naturally occurring and replenishing fuel source. Our business is the business of environmental stewardship, and Geronimo will continue to take every step to ensure that we conduct business in the most environmentally responsible way possible.

Wind Farms Are Free Of Pollutants

Wind farms do not generate air or water emissions, produce any hazardous waste, deplete natural resources, cause environ-mental damage through re-source extraction and transportation, or require significant amounts of water during operation. Wind power’s pollutant-free electricity helps offset the environmental damage caused by other forms of power generation.

Wildlife Advocates

Prior to constructing a wind farm, Geronimo conducts local wildlife studies to ensure that each project is developed in the most environmentally-friendly way. Factors like bird migration routes and animal breeding areas are all considered when choosing a location for the turbines. Geronimo also develops a Bird and Bat Conservation Strategy for each of its wind energy projects, which addresses the protection of sensitive species.

As with all tall structures, birds and bats do occasionally collide with wind turbines, but these impacts are infrequent. In fact, compared to other sources of aviation mortality - such as collisions with vehicles and buildings, or becoming prey for larger animals like house cats - wind’s overall impact on birds is miniscule. Data presented at the National Wind Coordinating Collaborative biennial research meeting in November 2012 stated that “it is estimated that approximately 200,000 birds collide with turbines annually at current installed wind

energy capacity (60+ Gigawatts – enough to power the equivalent of over 15 million homes). That pales in comparison to other sources of avian mortality like buildings (97-970 million a year), telecommunication towers (some estimate as high as 40-50 million), and oil and waste water pits at oil and gas production fields (2-3 million), among other causes” (“Truth About Wind Power”).

Wind Farms and Bats

Recently, the northern long-eared bat received protection under the Endangered Species Act. The protection of the northern long-eared bat was enacted due to the decline of the species, which was primarily caused by white-nose syndrome, The known habitat range of the northern long-eared bat includes much of the United States and Canada. Northern long-eared bats spend winters hibernating in caves and abandoned mines and summers roosting under bark or in trees.

In order to protect this endangered species, and before constructing any renewable energy project, Geronimo contracts with wildlife biologists to better understand the local bat population within our project footprints. Wildlife biologists collect and analyze acoustic data (bat calls), bat species samples (through mist-netting), and data identifying known hibernation locations. Together, this data helps Geronimo make informed decisions about the locations of its projects and the protection of sensitive species.

Wind Farms and America’s Eagles

It goes without saying that eagles are the most revered bird in the United States. As our national symbol for freedom and courage, eagle populations have long been protected by the U.S. government. As American energy companies increase the number of clean wind energy projects, there is an inevitable increase in the construction of tall wind turbines across the country. Both wildlife agencies and

wind energy developers, including Geronimo Energy, recognize the need to provide guidance on how to make wind facilities safe and compatible with eagle conservation laws. The U.S. Fish and Wildlife Service has developed the Eagle Conservation Plan Guide (ECPG), which supplements the Land-Based Wind Energy Guidelines (WEG), to protect current eagle populations, as well as the species’ development and growth. While following these guidelines is voluntary, Geronimo actively advocates for the protection of our nationally renowned eagles and is committed to always build wind projects with both the ECPG and WEG guidelines at the heart of construction and operation.

As with all tall structures, birds and bats do occasionally collide with wind turbines, but these impacts are infrequent.

Wind power’s pollutant-free electricity helps offset the environmental damage caused by other forms of power generation.

Geronimo actively advocates for the protection of our nationally renowned eagles and is committed to always build wind projects with nationally recognized wildlife and avian guidelines at the heart of construction and operation.

Air QualityAs carbon dioxide (CO2) emissions increase, oxygen levels decrease. By offsetting CO2 emissions, our projects decrease CO2 levels and increase oxygen levels, and this improves both local and global overall air quality.

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The Economics of Wind Energy

The strong market for wind energy

Given historical pricing during a Production Tax Credit (PTC), electricity generated by wind turbines on average costs between two and five cents per kilo-watt hour (kWh). This is cost competitive with traditional energy sources and is the least expensive renewable energy resource available in many areas of the United States today.

Wind energy is a stable investment

Unlike fossil fuels, whose costs fluctuate with the market, wind energy does not rely upon market-dependent fuel costs. Such stability means there is a possibility of locking in wind energy pricing for the life of the project. Furthermore, because of the recent significant technological advancements, wind energy has seen a steady decrease in its cost to produce energy, so today’s fixed price is significantly

less than the fixed prices of years past. In fact, according to the US Department of Energy in their report “2012 Wind Technologies Market Report”, since 2009, the US average wind energy price has dropped from $0.068/ kilowatt hour (kWh) to $0.038/ kWh (Bolinger).

Wind farms are popular and lucrative for farmers

Wind farming is popular with farmers because their land can continue to be used for growing crops, and it provides an additional source of revenue for their business. Geronimo calls this supplemental revenue “Extraordinary Seed Crop”.

Extraordinary Seed Crop is guaranteed revenue provided by having land and/or hosting turbines within the footprint of a Geronimo Energy wind farm. In uncertain times, our operating wind projects provide American farmers (our land partners) with income certainty.

As we all know, the commodity markets fluctuate up and down and are

unpredictable. Wind energy provides income certainty for generations to come. No other “seed crop” can promise that kind of certainty. Additionally, whenever you add revenue streams, you diversify your income, raise your income certainty and lower the risk related to your existing farming revenue.

The average turbine and its associated access road takes less than half an acre of land out of production. Plus, each turbine provides guaranteed revenue above and beyond that of the crops that would have grown on that half acre. This means that even though each turbine will use a half acre of land, landowners make more money on that half acre with a turbine than on that same half acre with only crops.

Wind energy brings substantial money to local communities

Wind farms bring significant economic impact on their host communities through-out the development, construction and operation phases. During the development phase, wind farms bring an influx of spend-

ing to the host and surrounding communi-ties in the form of sponsorships, travel, lodging, meals, legal fees, remote office leases, recording fees and landowner rent. Developers will often set up an office in the host community, which not only increases revenue in the form of rented office space, but also brings construction companies, power purchasers and other wind industry constituents into the local area on a regular basis. That puts money back into the community’s pocket via restaurants, gas stations, hotels and retail shops.

During the construction phase, wind farm communities experience another boom in all of the above mentioned spending categories, but this time, multiplied by the dozens. Because of the large size of a wind farm construction project, hundreds of construction workers come to the local area. That means even more revenue for local shops, restaurants and hotels, plus a boost to the local economy in the form of increased resident income. Additionally, in order to deliver and build these large

turbines, many of the towns’ roads are improved, refined and ultimately left in better condition than they were prior to the wind farm. These road improvements are paid for by the developer and the construction company and will never be at any cost to our landowners or community members.

Once a wind farm is operational, it contributes significantly to the local tax base, which can include increased income for local school districts, fire and police departments, counties and townships. These additional revenue streams afford communities the ability to build and improve schools, roads, bridges and other infrastructure items.

Wind energy provides land-owners with new revenue streams, income diversifica-tion, increased income certain-ty and lower related risk for existing farming revenue.

Because of recent technological advancements, wind energy has seen a steady decrease in its cost to produce energy.

Wind farms bring an influx of spending to the host and surrounding communities in the form of sponsorships, travel, lodging, meals, legal fees, remote office leases, recording fees and landowner rent.

Once a wind farm is operational, it contributes millions of dollars to the local taxbase and significantly reduces property tax bills for local residents over the life of the project.

For every Geronimo Energy-developed wind farm that goes into operation, Geronimo creates a Community Fund for the local host community, the purpose of which is to fund local charities and non-profits. The allocation and spending of these funds are at the sole discretion of an elected board of community leaders.

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The Life of a Wind FarmConstruction of a wind farm is much like building a home

Just like building a home, construction of a wind farm typically takes at least one year from commencement of construc-tion to commercial operation. As you can imagine, a lot goes into the construction of a wind farm, but the process always includes: public roadway improvements, the construction of access roads to each turbine site, the placement of new under-ground cabling, site excavation, pouring of the foundation, erecting the tower, placing the nacelle, flying the blades, quality as-surance testing and the commencement of operations. After construction, any property that may have been disturbed is restored to its pre-construction state.

Any type of crop damage incurred by our development process will be compen-sated by Geronimo and delivered to the landowner. Geronimo repairs and cov-ers the cost for this crop damage repair by placing a very generous crop damage clause in every lease we sign. Geronimo works with our landowners to ensure they are educated about our crop damage pay-ments and to make sure they are comfort-able with the reimbursement levels.

Wind Farms Are Constructed Legally, Openly and Honestly

Setback requirements are mandated by your local community and state laws. Generally, wind turbines need to be set back a distance at least 1,000 feet from the nearest home and at least 250 feet from the nearest right-of-way.

Wind turbines are usually spaced at least 5 to 10 rotor diameters apart, which allows room for approximately four turbines on a one square mile (640-acre) section of land. Developers place wind turbines as close together as possible to minimize road and wiring costs, but too close of spacing produces turbulence, which reduces the efficiency of the turbines. Throughout the development process, Geronimo will remain open and honest – we will work with you to make sure you are comfortable with the proposed turbine locations and will answer any questions you may have regarding the locations of turbines.

Decommissioning and Repowering

Geronimo and its partners always make every effort to repower wind farms at least once during their lifetimes. Repowering is the act of replacing of older turbines and equipment with newer versions to extend its usefulness for many more years.

A decommissioning event is planned for years in advance and is done by the facility owner and is never at any cost to the landowners or the host community. After a decommission, the ground is returned to its pre-wind farm condition. A decommission is always handled with the utmost respect by the facility owner and incorporates input from host landowners and the necessary local officials, such as roads commissioners and other experts and stakeholders.

In order to apply for a Condition Use Permit, Geronimo Energy must create a “Decommissioning Plan” for every wind farm it develops. Geronimo Energy’s

Decommissioning Plans typically include: 1) an estimate for the cost to decommission the entire project, 2) a plan that details how, when and why the county would begin the decommissioning process, and 3) a financial security (letter of credit, bond or cash escrow) to cover the full cost of decommissioning the wind farm, including crop damages. Additionally, the plan will include the name of the financial institution responsible for the management of the funds and the procedure that the county will follow to draw upon those funds. The plan in its entirety will be reviewed and approved by the appropriate local officials before construction can begin.

Wind Turbines Can Be Built on Conservation Reserve Program (CRP) Land

Wind turbines can be sited on CRP land. Typically, the square footage occupied by the turbines and access roads may have to be removed from the CRP agreement if the landowner is receiving land-lease payments.

Meticulous PlanningWind turbines will be set back far enough so as not to impact the infrastructure that is installed.

ConstructionAfter construction, any surrounding property that may have been disturbed is restored to its pre-construction state.

Decommission or RepowerIf a decommission or repower becomes necessary, it will never be at any cost to our landowners or community members.

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Wind Farms and Your Land

How Wind Energy Developers Select Sites for Their Projects

Sustained wind speeds are critical to a project’s economic viability, so developers look for the windiest sites. The proximity of turbines to electric transmission lines is another important factor in evaluating the economic viability of a wind farm. Additionally, land features (such as hills and ravines), vegetation, and nearby structures can affect how a site is valued for wind farm development. Environmental impacts related to view-sheds, sound, birds, wetlands and historical preservation also affect the viability of a project. Lastly, in addition to wind and transmission considerations, a highly motivated landowner group that wants wind energy is key to a successful wind farm project. Together, these three ingredients - wind resource, transmission and local support - form the recipe for a successful wind farm project.

Wind Farms Have Little Effect On Land - and Guarantee Income For Landowners

Wind farms, like all other energy tech-nologies, have environmental impacts. However, unlike most conventional energy sources, which can have regional and global effects due to their emissions and fuel imports, the impacts of wind energy

systems are minimal. For this reason, wind farms are easier for local communi-ties to monitor than any other energy source.

In general, most wind-generating facilities and related infrastructure require a half acre of land per turbine, which means landowners typically maintain over 97% of their existing land use. Additionally, as a result of lucrative land leases, landowners have the comfort of knowing they have guaranteed income for the duration of their lease – usually a term of 20 years.

No Stone Left Unturned – Wind Farms Are Meticulously Planned

The design of a wind farm will take into account any right-of-ways that may already exist on your land, including utility easements. Wind turbines will be set back far enough—usually 250-300 feet—so as not to impact the infrastructure that is installed, but can be farther away depending on the terms of the easement and the type of infrastructure.

Planning for the Future – Meteorological Towers

Meteorological towers (met towers) are scientific tools that are used to gather weather information at a particular site. A met tower is a tubular structure that stands about 190 feet high. Most met

towers have sophisticated weather vanes, thermometers and a piece of equipment called an anemometer used to measure wind speeds. Temporary met towers may be up for one to five years before a project is built. The information gathered from them is used to maximize the electrical generation potential of the wind farm. Once the project is operational, it is very common that permanent met-towers will also be installed within the footprint of the wind farm. Continuous measurement of the wind resource is crucial for the warranty of turbines.

Meteorological towers are placed in locations that are representative of the wind farm area as a whole. This includes locations with no unusual ground covering or land use and an average elevation relative to the whole project area. In addition, there are a number of local zoning and building regulations that vary from site to site that determine where a met tower can be located.

Drain Tile

At the heart of Geronimo’s development philosophy is our embodiment of “Farmer Friendly.” We have a strong rural background, and we know what it’s like to live and work in rural America. Part of our farmer-friendly approach is our promise to minimize impact on both our landowners’ and their neighbors’ existing drain tile system.

Geronimo is keenly aware of the importance and value of drainage tile. Having a functional tile network is important in maximizing a farm’s yield - so we take every tile cut seriously. Geronimo factors in the existing (and planned) tile system throughout the entire development process. To help us minimize impacts to the tile network, Geronimo collects tile data from various sources so that we have the best information possible. Some of these data sources include:

• Landowner tile maps• Local tile company data• Aerial infra-red imagery• County tile data

Meticulous planning on our part means that not only are we the best prepared that we can be, but we are also able to ensure that anything that may be disturbed during the construction process will be returned to the way it was prior to construction. This translates to less time and less hassle and no cost for our landowners.

Geronimo understands that not all drain tile can be mapped and avoided, so it is company practice in areas of high tile to trench underground collector lines instead of plowing. This way, we can see the tile that is cut and fix the tile on the spot. Additionally, it is Geronimo Energy policy

to work with a local tiler throughout the entire development process for this work. Geronimo will repair any damaged tile at no cost to the landowner for up to five years after construction is completed.

Interaction with Pivots

Do you have pivots on your quarter section? Geronimo Energy has perfected wind farm development in areas with center pivot irrigation systems by identifying parcels early in the development process and working with the landowners to “micro-site” the turbines in dryland corners just outside the path of the irrigation system. Our team of surveyors, engineers and meteorologists will define the buildable area within the dryland corner and work with the landowner on the turbine location and access road. Geronimo Energy is committed to minimizing the impact wind energy has on landowners’ operations and would never place a turbine inside a center pivot irrigation unless it was the very last resort and we had received the express written consent of the landowner.

Drain Tile Resources collected by Geronimo include:• Landowner tile maps• Local tile company data• Aerial Infra-red imagery• County tile data

PivotsGeronimo works with the landowners to “micro-site” the turbines in dryland corners just outside the path of the irrigation system.

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Company Headquarters Geronimo Energy7650 Edinborough WaySuite 725Edina, MN 55435P 952-988-9000F 952-988-9001

Fargo Office 3003 32nd Ave S.Suite 260BFargo, ND 58104P 701-356-1010

ONeill OfficeMailing Address:P.O. Box 913O’Neill, NE 68763Street Address:112 South 4th StreetO’Neill, NE 68763

Paynesville Office970 Highway 23 WestPaynesville, MN 56362

Pigeon Office 78 S. Main StreetP.O. Box 589Pigeon, MI 48755P 989-453-7667

Walnut Office 800 West College DriveMailing Address:P.O. Box 517Walnut, IL61376Street Address:108 Jackson StreetWalnut, IL61376P 815-379-2784F 815-379-2851

Windom Office 93525 US Hwy 71Windom, MN 56101P 952-988-9000

We would love to show you around!If you are interested in visiting one of our operating wind farms, or to learn more about Geronimo Energy, visit any one of our office locations or call us at 952.988.9000. You can also email your questions and comments to info@geronimoenergy.com, or visit us on the web at www.geronimoenergy.com.

www.geronimoenergy.com

SourcesBolinger, Mark et al. “2012 Wind Technologies Market Report.” United States Department of Energy. August, 2013.

DeMeo, Ed, and Brian Parsons. “Some Common Misconceptions about Wind Power.” All States Wind Summit. 22 May, 2003. Web. 19 Dec. 2013.

Ellenbogen, Jeffrey M. et al. “Wind Turbine Health Impact Study: Report of Independent Expert Panel.” January 2012. Web 20 Dec. 2013.

Erickson, Wallace P.; Johnson, Gregory D.; Young Jr., David P. “Summary and Comparison of Bird Mortality from Anthropogenic Causes with an Emphasis on Collisions”. USDA Forest Service Gen. Tech. Rep. PSW-GTR-191. 2005.

Hoen, Ben et al. “The Impact of Wind Power Projects on Residential Property Values in the United States: A Multi-Site Hedonic Analysis”. Environmental Energy Technologies Division, Berkeley Lab. December, 2009.

Longtin, Keith. “How Loud Is A Wind Turbine?” GE Global Research: GE Reports. 10 Nov. 2010. Web. 20 Dec. 2013.

http://www.fws.gov/midwest/endangered/mammals/nleb/FAQsFinalListNLEB.html

http://www.truthaboutwindpower.com/truth/health-safety/shadow-flicker_1/more-info. Web 19 Dec.2013.

http://www.truthaboutwindpower.com/truth/health-safety/sound. Web. 19 Dec. 2013.

http://www.truthaboutwindpower.com/truth/wildlife/birds/more-info. Web 19 Dec. 2013.