Wind Lease Moves Forward

The Pronghorn H2 wind project near Glenrock, Wyoming, can now proceed to the next stage of permitting. The Wyoming Supreme Court issued a unanimous ruling on Tuesday that allows the lease on state trust land to advance to the Industrial Siting Council.

The decision reverses a lower court order that had blocked the deal. In Douglas County, District Court Judge F. Scott Peasley had previously thrown out the lease because the project did not yet connect to the power grid. Judge Peasley interpreted state rules to require that grid connection. The state's high court disagreed with that interpretation, clearing the way for the project to move ahead despite the lack of an immediate grid tie-in.

The lease was originally approved by the Wyoming State Board of Land Commissioners. The case reached the supreme court after neighboring landowners challenged the approval. Michael Stephens and Stephens Land and Livestock argued that the project affected their property. The justices agreed that the petitioners have standing to sue. The court described the potential harms to views and property values as substantial, immediate, and pecuniary.

The court rejected other legal challenges filed by the plaintiffs. These included arguments regarding the revenue the project would generate for the state, future mineral rights, and impacts on wildlife. The justices ruled that the land board has the authority to set lease rates on a case-by-case basis. They also determined that companies can continue to lease minerals on the state land, provided those operations do not unreasonably interfere with the wind farm.

Governor Mark Gordon issued a statement following the ruling. He said the decisions were never political and were made to ensure the highest and best value for state lands. Gordon noted that the legal and contractual obligations made by the state support the move. He added that the supreme court decision affirms the original vote by the State Board of Land Commissioners to grant the lease.

The Pronghorn H2 project is not yet built. It must still complete the Industrial Siting Council permitting process. That process can take several years and may address other concerns raised by the plaintiffs. The plaintiffs have 15 days from the ruling to file a request for a rehearing, though such requests are rarely granted.

Wyoming currently hosts about 1,500 wind turbines. These turbines have a generating capacity of approximately 3,700 megawatts. According to data compiled in April, this capacity represents about 25% of the state's total electrical generation.