The State Board of Land Commissioners took a series of 3-2 votes that will begin the process of canceling two controversial eastern Wyoming wind leases that the panel approved last year.
The decision came after extensive and emotional public comment Thursday opposing the leases — one related to the Pronghorn H2 Clean Energy Project in Converse County and one for the Sidewinder Clean Hydrogen Project in Niobrara County.
The State Board of Land Commissioners consists of Gov. Mark Gordon, Auditor Kristi Racines, Treasurer Curt Meier, Secretary of State Chuck Gray and Superintendent of Public Instruction Megan Degenfelder. Gray, Racines and Degenfelder voted in favor of rescinding the leases while Gordon and Meier opposed the motion.
Commissioners supporting the reversal — which still must play out procedurally — cited a December ruling by Eighth Judicial District Court Judge Scott Peasley that invalidated another state land lease for the Pronghorn project. That lease, on a state land parcel south of Glenrock, was unlawful, the judge concluded, because it didn’t expressly prescribe that electricity from the windfarm would be pumped into the grid — a violation of the state’s own rules.
“These wind leases are inconsistent with our values, they’re inconsistent with our fiduciary duty and they’re wrong,” said Gray, who brought the motion to cancel the leases. “And we have a [court] decision saying that this is an illegal purpose.”
Degenfelder said she doesn’t believe it’s a “loud minority” of Wyoming residents opposed to wind energy development, but an actual majority. “I do think that we got the decision in April wrong. I should speak for myself. I know that I did.
“I’ve long been opposed to wind industry development, being that my career was spent in the coal industry and oil and gas, and seeing the unfair advantage that [wind energy has] received.”
The vote comes amid rising animus toward renewable energy — both in Wyoming and nationally. President Donald Trump has sought to halt multiple offshore wind projects, though the courts have repeatedly blocked those efforts. In Wyoming, wind projects have faced increasingly vocal opposition from politicians and from members of the public.
State land board under fire
The board appeared to agree that it faces a conundrum: trying to balance its fiduciary duty to generate revenue from state lands — which are dedicated to the benefit of Wyoming K-12 schools — along with energy priorities, neighboring property rights and the will of locals closest to industrial development on state lands.
“I believe that we are going to have a problem with this in the courts,” Meier said, regarding the action to rescind the leases. The board reversing its own initial approval creates uncertainty for all state land lessees, he added. “It’s going to end up in a situation where we are going to have some blowback on this.”
The lands board has come under increasing criticism for allegedly ignoring concerns by landowners and local officials over industrial developments, as well as granting leases that it sometimes comes to regret and tries to undo.
During public comment prior to the board’s action, Cheyenne resident Marguerite Herman warned commissioners not to lose sight of their duty to ensure state lands benefit Wyoming students. Additionally, rescinding the leases creates legal uncertainty for anybody doing business on state lands, she said.
“Do you have any kind of guiding principles here when you decide whether to grant or rescind a lease?” Herman asked. “Is it the level of political difficulty? Is it the complaints of neighbors? Is it people who are against all renewable energy, which one of your board members seems to be? Is that sort of the overriding principle that’s going to drive these things, or is it going to be the best situation that produces revenue, consistent with your trust duty for public education?”
Legal conundrum
Further complicating matters, both the developer of the Pronghorn H2 and Sidewinder projects and the Wyoming attorney general are seeking to overturn Peasley’s decision at the Wyoming Supreme Court. But the state lands board, also on Thursday, voted along the same 3-2 division to instruct Attorney General Keith Kautz to withdraw the state’s appeal.
Gray said he brought the motion because “the board did not consent to the appeal.”
Meier, who joined Gordon in voting against the successful motion, suggested the board was likely overstepping its authority.
“I feel it’s problematic when a state board takes it into their hands to be the Legislature, the court and the executive branch all at one time,” Meier said. “We totally bypass any type of due process. I’m not sure whether or not we even have the authority to tell the attorney general to tie his shoelaces, let alone stop an appeal.”
Meanwhile, Focus Clean Energy, the Colorado-based Pronghorn H2 and Sidewinder developer, says it is confident Wyoming’s top court will reinstate its wind lease.
“We believe we’re very likely to have that overturned at the Supreme Court, and then that just reinstates the lease and we move forward,” the company’s President Paul Martin told WyoFile.
Sending the wind-generated electricity onto the grid has been, and remains, an option under consideration, he added.
Regarding the state’s vote this week to unwind its previous approval of the Pronghorn H2 and Sidewinder leases, Martin said the company will “let the process play out” and be prepared to sue if the state board ultimately cancels the leases.
“We had executed leases that we relied upon, and we invested millions of dollars in projects based on executed, valid leases,” Martin said. “We’re definitely disappointed to see the state trying to back out of a commitment.”
The company recently announced it was dropping the hydrogen production portion of its Pronghorn H2 wind and solar energy project.
“It allows us to be more flexible,” Martin told WyoFile. “Over the five years that we’ve been developing it, this project has changed and demand for electricity is growing pretty dramatically.”
I’d suggest that Supt. Degenfelder educate herself about the subsidies the fossil fuel industry has received.
Who will be responsible for removing the windmills when they become obsolete or unsubsidized?
I keep saying, if we don’t like the production of energy, we should cut back on using the stuff. Easy peasey.
My name is Eber Butler and i live north east of medicine bow wy. When i bought my property 8 years ago there was only about 8 wind turbines up 487. Wyoming was beautiful everywhere you look. Thats gone do to 100s of wind turbines. Nothing pretty about those ugly things. At night it was beautiful secluded black and stary nights. It now looks like i live in New York City as there are hundreds of red flashing lights. UGLY UGLY UGLY. Out of state business should stay out of state. Let them put these ugly things in there yards. Wyoming is just a play ground for the rich out of state. As long as they dont have to look at this mess they dont care how much they destroy wyoming and what it once looked like. Governor Gordon and anyone supporting this ugly mess should be jailed for life somewhere that the only thing they could see out the jail window is wind turbines. Real bad people. Again my name is Eber Butler.
Yeah let’s give up cheap energy and go with the more expensive stuff. So short sighted. Trump is already increasing electricity rates around the country by keeping open failing coal plants. Enjoy your rate hikes to keep dirty, nasty coal alive for a few more years.
Not a good way to portray that Wyoming is open for business.
I’ve long been opposed to wind industry development, being that my career was spent in the coal industry and oil and gas, and seeing the unfair advantage that [wind energy has] received.” Not too many complain about the unfair advantage the Union Pacific received in receiving every other section on both sides of the tracks. Will this be challenged? According to our Secretary of State “These wind leases are inconsistent with our values, they’re inconsistent with our fiduciary duty and they’re wrong,” said Gray, who brought the motion to cancel the leases. “And we have a [court] decision saying that this is an illegal purpose.” It seems that these wind leases will bring in more income for the state than a grazing lease,
It’s pathetic the pandering that politicians do during election years. These leases were approved by the land board. Now they want a do over.
Oops, we’re sorry. We didn’t really mean to Ok these leases……get a grip folks. These politicians are supposed to be educated and capable of making sound business decisions for the benefit of public education.
It’s a “loud” majority that’s against the proposed gravel mines near casper mountain. So………..