Windfall: Turbines generate
tidy sum for landowners
Jul 12, 2007 - Knight Ridder Tribune Business
News
Author(s): Anthony A. Mestas
Jul. 12--SPRINGFIELD -- For farmers and ranchers with a flat, breezy
field and a contract with a utility company, a lucrative future could be
blowing in the wind.
Wind power is the fastest growing energy source in the world,
expanding at the rate of 28 percent more capacity each year. This kind
of growth bodes well for farmers and ranchers willing to lease their
land to wind-power companies. Colorado boasts an estimated 6 million
acres of windswept lands, particularly on the Eastern Plains.
Construction of the Colorado Green Wind Project in 2003 was well
received. Jan Johnson, a spokeswoman for PPM Energy, which runs the
project, said that actual amounts vary, but leasing land from landowners
can generate payments of from $3,000 to $6,000 or more annually per
turbine.
Johnson said PPM works with private and public landowners to create a
win-win situation for everyone. The company's wind projects provide
additional revenue for landowners while preserving existing land use,
Johnson said. Current agreements typically pay lease payments to
landowners based on kilowatt hours produced by the projects on their
land. This arrangement protects the landowner from fluctuation in the
electricity market prices. "We are kind of limited on what we can say
about these arrangements -- we don't tend to discuss our private
arrangements," Johnson said. The Bob Emick family, whose land is home to
98 of the Colorado Green Project's 108 1.5-megawatt wind turbines, say
they couldn't be happier with their arrangement.
The Emicks run an estimated 1,000 mother cows on their two ranches,
which are adjacent to U.S. 287 about 30 miles south of Lamar. The
Emicks' X-S Ranch and Emick Farms encompass 11,840 acres of land in the
middle of a roaring forest of spinning turbines. Bob Emick's son,
Kenneth Emick, who works under that shadow of the towering turbines each
day, said he and his family have been inancially relieved of some of the
pressure they had before the wind farm was constructed in 2003. In 2003,
the Emicks signed a 30-year lease with PPM Energy and Shell WindEnergy
that gave the companies permission to erect the turbines on their land.
Emick would not say how much money the two companies are paying his
family. "We receive a royalty of what the wind turbines produce and I
can't tell you what that is -- I mean it's confidential," Emick said.
"It is helping us out a lot though -- it's been great for us," he added.
Emick said his family is operating the ranch the same as always. "We are
used to them (turbines) now; they are just part of the land. The ranch
operates as it always did, it hasn't affected the cattle or anything
like that," Emick said. The Colorado Green wind energy facility is on
ranchland primarily used for cattle grazing.
Agricultural activities take place directly adjacent to the wind
turbine foundation pads. Footprints of the turbines use less than 2
percent of the total acreage. John Stulp, the state's commissioner of
agriculture, said wind energy is a great investment for farmers and
ranchers. "There's no question that this is a real benefit to the
landowner who is fortunate to have available land for turbines," Stulp
said. Stulp, who Gov. Bill Ritter appointed as Colorado's top
agriculture director in January, says that leases with utility companies
are usually confidential because they are competing with each other.
Stulp said his son, Jensen, who leases land for three turbines to the
Lamar Utility Board, receives about $3,000 per turbine per year. "It's a
win-win for everyone involved -- now I know there are some contracts out
there with higher amounts. I've heard of payments up to $5,000 per
turbine per year, but a lot of that depends on the size of the turbine
and the company," Stulp said. Stulp, who is involved with Prairie Wind
Energy LLC, a group of five farmers, ranchers, and landowners who have
been working toward locally owned wind energy in Southeast Colorado,
said wind energy is a new alternative for farmers and ranchers.
"It's a pretty good trade to get that amount of revenue," Stulp said.
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