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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