Tulsa World: Wind powers western land rush

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Wind powers western land rush

Landowners are getting lucrative offers to lease land to build turbines for an energy source.

Wind turbines at the Oklahoma Wind Energy Center north of Woodward. Thetowering structures could become a more common sight as state leaders lookinto producing more wind energy. WORLD FILE PHOTO

By TOM LINDLEY World Capitol Bureau
Published: 8/11/2008 2:06 AM
Last Modified: 8/11/2008 3:54 AM

Related story: A windy investment

Landowners are getting lucrative offers to lease land to build turbines for an energy source.

OKLAHOMA CITY — How hard the wind blows across wide-open western Oklahoma is starting to matter to more than just a few ranchers.

Already a lot of landowners stand to benefit from what is being called a "massive land rush" that has been generated by wind farm developers who are crisscrossing at least 24 counties, offering lucrative leases that make wind seem like it is as valuable as oil.

The bet is that one day soon the wind will matter in Tulsa, where the demand for electricity produced by the American Electric Power-Public Service Company of Oklahoma reached an all-time high Tuesday, and where manufacturers of the giant turbines and other components that harness the wind may gravitate because of its central location in the wind tunnel of America.

"Our challenge is to go beyond the pure extraction of that resource," said Miles Tolbert, state secretary of the environment, about wind energy. "We want to see the turbines spinning and we want to see spin-offs."

Before that happens, energy experts and state leaders acknowledge that Oklahoma has some catching up to do. Despite an abundance of wind, the state ranks only eighth in the nation

in wind power production and will drop another notch later this year when Kansas adds more capacity.

"We are sitting in the middle of wind central, but they (wind developers) didn't look at us because of the perception that Oklahoma was hostile to alternative energy," said David Fleischaker, state secretary of energy. "But we have the resource, and now the light bulb has gone on."

A big step was taken recently when lawmakers approved a bill sponsored by Rep. Weldon Watson, R-Tulsa, to allow AEP-PSO and OG&E to pass along construction costs to consumers for what will be the largest wind-energy transmission line west of the Mississippi River.

In the next session, lawmakers also might be asked to consider setting thresholds for how much energy derived from alternative fuels should be part of a utility's portfolio. Although other states have used RPS's (Renewable Energy Portfolio Standards) to demonstrate their commitment to alternative fuels and attract new industry, there appears to be no consensus among wind proponents that it is essential to Oklahoma's success.

The state now has wind farms near Woodward, Weatherford, Fort Supply and Lawton, which contain about 500 wind turbines that generate about 700 megawatts of electricity. According to Scott Greene, director of the Oklahoma Wind Power Initiative, wind developers have submitted interconnect requests with the Southwest Power Pool, which monitors a regional power grid, to produce 10 times that much capacity in five years, serving more than a million homes.

If Oklahoma takes advantage of its potential — the National Renewable Energy Laboratory predicts Oklahoma will be the second-largest producer of wind power in the nation by 2030 — the industry could produce $500 million in tax revenue and 18,000 jobs, Greene said

"This isn't an alternative to anything," he said. "This is a major part of our electricity blend."

Greene said two companies that propose to build $200 million manufacturing facilities "somewhere in the plains" consider Tulsa a prime location because of its access to water, highways and rail transportation and because the Tulsa Port of Catoosa is a free trade zone. Using the port, manufacturers would have a cost-efficient way to import raw materials to assemble the components for the towers and could then use the port's connection to the Mississippi River to deliver the finished products.

It hasn't hurt Oklahoma, either, that energy investor Boone Pickens has made wind energy a keystone in his plan to make the U.S. energy independent. He is calling for 20 percent of the nation's electricity to be generated by wind, which would allow more compressed natural gas to be used to power vehicles, playing once again to Oklahoma's strength.

Pickens has been asked to be the keynote speaker at Oklahoma's first major wind energy conference Dec. 2-3 in Oklahoma City. The conference will be sponsored by the secretaries of energy and the environment.

The Commerce Department, which has set a wind conference next year, also is working with the CareerTech system and community colleges and universities to build a workforce that would entice wind developers and manufacturers.

"From my perspective, Oklahoma has a great opportunity in front of it that can help stabilize energy costs," said Reed Armstrong, president of the Wind Coalition and a wind developer. "The higher energy prices go, the more attractive wind looks. But it all has to come together with a good solid market and the transmission and great wind resources."

Tom Lindley (405) 528-2465
tom lindley@tulsaworld.com By TOM LINDLEY World Capitol Bureau

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	Report Comment Tony G, (8/11/2008 6:41:28 AM) I am all for alternative energy--but I see real problems with this ---A big step was taken recently when lawmakers approved a bill sponsored by Rep. Weldon Watson, R-Tulsa, to allow AEP-PSO and OG&E to pass along construction costs to consumers for what will be the largest wind-energy transmission line west of the Mississippi River.--- Will the taxpayers receive credit for this? If tax payers are buying this, why do we need AEP? I really cannot see this in the best interest of Oklahoma--if the taxpayer pays for it and AEP keeps all the profits
	Report Comment Hijinx, (8/11/2008 7:27:40 AM) I agree, We pay for construction of the turbines and transmission lines then AEP gets to charge us for using the turbines we basically own? I’m with you what’s the point of having AEP just sending out the bills and taking the profits? Taxpayers should keep them and charge AEP for the power they use from our generators at least equal to the rates they charge us now. Looks like another republican in the pocket of AEP.
	Report Comment Graychin, Eucha (8/11/2008 9:29:30 AM) "We are sitting in the middle of wind central, but they (wind developers) didn't look at us because of the perception that Oklahoma was hostile to alternative energy," Where would wind developers get a silly idea like that? How long is the useful life of a wind turbine? Thirty years? I'm perfectly willing to pay my share of one-thirtieth of the cost of wind turbines, plus the transmission cost, in order to receive wind-generated electricity with no fuel cost. The utility companies were planning to build a coal-fired generating plant in central Oklahoma before the Corporation Commission turned them down last year. Who would have paid for that? And for the coal?
	Report Comment Mr. Rowland, Black Wall Street (8/11/2008 10:43:47 AM) Lets Get It!
	Report Comment Bliss, Okc (8/11/2008 12:05:05 PM) FREE ENERGY! Oklllllahoma where the wind comes sweeping down the plain.......
	Report Comment Polar Bear, (8/11/2008 2:46:39 PM) I think we should convert the oil derricks in the State Capitol into windmills .They could sit on top of and in combination with the oil derrick..The past that oil has brought to this state would be commemorated and the need to live with sustainable energy would be recognize.How foreward looking!!
	Report Comment oldrustytulsa, (8/12/2008 4:48:05 AM) The Mormon Church is the largest land owner in the State, and Lots of land owners lease their land for Hunting, Cash only, No taxes paid, Funny aint it.
	Report Comment bear53, (8/12/2008 8:19:54 AM) this is not only alternative energy but renewable energy. the wind is free so steps need to be made to prevent the fleecing of taxpayers & landowners.
	Report Comment Legal Citizen, (8/12/2008 12:38:48 PM) Hijunx: "We pay for construction of the turbines and transmission lines then AEP gets to charge us for using the turbines we basically own?" Who should pay for it? The infrastructure isn't going to build itself for free. If there's going to be an investment, someone has to make a return on that investment. Where could that come from other than the ratepayers? Bliss: "FREE ENERGY! Oklllllahoma where the wind comes sweeping down the plain....... " Free? Hardly. Even after it's built, it has to be maintained and the landowners leasing the land have to be paid. Actually, they're the ones who'll get rich from all this. Hijinx: "Looks like another republican in the pocket of AEP." This Republican helped open the door to the whole thing. From the aritcle: ..."but they (wind developers) didn't look at us because of the perception that Oklahoma was hostile to alternative energy," said David Fleischaker, state secretary of energy. "But we have the resource, and now the light bulb has gone on." A big step was taken recently when lawmakers approved a bill sponsored by Rep. Weldon Watson,..." Read much? So according to this article, the GOP (friends of Big Oil who oppose all alterntives) actually helped set the stage for the type of clean energy that the Left wants. What have the Democrats done in this area? And the Left still whines about it because someone might make a little money from it and will likely put a stop to it because it'll kill some birds. Go figure.
	Report Comment my 2 cents, America (8/12/2008 4:00:42 PM) Legal Citizen: "Who should pay for it? The infrastructure isn't going to build itself for free. If there's going to be an investment, someone has to make a return on that investment. Where could that come from other than the ratepayers?" Wait, I thought the money for an "investment" that a company undertakes is suppose to come from the "stock holders" who own the company. They buy stock, that gives the company money to operate (pay for new construction) and if the company is ran well, they get a "return" on their investment from an increase in stock prices. What you're telling me, a rate payer, is that I should be forced by MY (?) lawmakers to give my money to AEP-PSO and OG&E so they can build(invest in) something to sell back the end product to me! So, where or when do I get my return on my forced investment? Just my 2 cents.
	Report Comment Legal Citizen, (8/12/2008 10:35:19 PM) 2 cents: "Wait, I thought the money for an "investment" that a company undertakes is suppose to come from the "stock holders" who own the company." It can work that way, but more often the corporation finds other means of financing capital improvements. That aside, the stock price isn't determined by how well the company is run, it's how profitable it is. Ultimately, it's the customers who end up paying for it either because there are more of them or they're paying more. The difference is that in the private sector, the company doesn't have to go through the corporation commission to raise its prices. To me the investment should be made by those who will most benefit. If it's such a good idea, then the ratepayers should benefit from all this "free" (no fuel cost) energy. If you require that it be financed from the outside, then you'll need to raise rates enough to compensate the investors for their risk. So what's the difference? Besides, can you imagine the whining if ratepayers had to pay a premium in order to line the pockets of billionaire investors? I'm with Graychin on this. Or...Just consider this part of doing your share to fight global warming. We all have to make sacrifices, right? This one can be yours.
	Report Comment Legal Citizen, (8/12/2008 10:37:50 PM) 2 cents: One more thing. " So, where or when do I get my return on my forced investment?" Every month when you're buying cheaper electricity.

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