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A Publication of Guidry News Service |
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A Publication of Guidry News Service |
General Land Office
"Wind Rush" Under Way Texas is once
again pioneering a new frontier
AUSTIN -- By April
2004, the Texas General Land Office (GLO) will have leases available for
wind power generation, or exploration, on state-owned lands. That's the
announcement made today by Jerry Patterson, Commissioner of the Texas
General Land Office. "The 'open for
wind business' sign is on our door," said Patterson during a press
conference at the GLO's 10th Annual Border Energy Forum in Austin.
"The oldest state agency will once again be a pioneer of land
initiatives, while finding a new revenue source for the Permanent School
Fund." This initiative is
the starting gun for a 21st Century Wind Rush, where "wind
prospectors" will have the chance to lease land to develop wind
power. The Land Office hopes to create an arena for businesses to step
in with existing technology and potentially expand new technologies just
coming into the wind energy marketplace. Ultimately, Patterson sees this
"wind rush" as a catalyst to spur the construction of wind
power facilities in prime wind areas like far West Texas or along the
Gulf coast. "In five years,
I think we are going to be doing a lot of wind business," Patterson
said. "But we can't wait five years to start -- we've got to start
now." As part of the GLO's
responsibility to make money for the Permanent School Fund (PSF),
Patterson plans to open the doors for bidding on leases of state land
tracts for the purpose of wind power generation or exploration. The wind
lease process will emulate a proven system -- the GLO's minerals leasing
program. As charged by the
Texas Constitution, the Land Office is responsible for making money for
the PSF. By maximizing assets on state lands such as oil, gas, and now
wind, the GLO has helped the PSF grow in value to about $18 billion. As
of October 2003, the PSF pays more than $700 million a year toward the
education of Texas' schoolchildren. Patterson believes that wind power
should be fully utilized, as it is an endless source of energy and
revenue for the schoolchildren of Texas.
The PSF is a key to
this initiative, because any profit the Land Office makes will go to the
schoolchildren of Texas. "Land leases for
wind development are cutting-edge, and the GLO hopes that businesses
will step up to the plate and use new ideas and technology to make this
a reality," Patterson said. "Because we've got a proven track
record with our Minerals Leasing program, the power industry knows we
can make this work." The most promise for new wind development is along the 367 miles of Texas Gulf Coast. Demand for wind
production along the coast is rising. Transmission constraints to
wind-rich areas in far West Texas have hindered wind power companies'
efforts to move electricity to customers. Coastal wind production would
be an ideal alternative. "We think that
wind businesses will see the one-stop-shopping advantage that only the
GLO can offer. We can handle your land lease, we can take your
product to market, or we can take your payment as a royalty. All of this
will generate an innovative revenue source to the Permanent School
Fund," Patterson said. "Furthermore, with coastal wind
development there would be only one landowner for a lessee to deal with
-- the State of Texas." Texas enjoys some
unique advantages for wind production along its coast. The Gulf of
Mexico is much more shallow than coastal waters of other states. Also,
since Texas owns the submerged land out to 10.3 statute miles in the
Gulf, developers could deal with one landowner, versus many. And oil and
gas production platforms already built along the Texas coast -- many of
which are now abandoned -- could be revived and used to make power with
wind. At the commissioner's
direction, staff of the GLO's Energy Resources Division have begun the
process of mapping tracts of land, which will become available for lease
nomination. The process will mirror the process by which the Land Office
conducts lease sales for oil and gas production and exploration. Staff
is also currently working on creating the lease applications that will
be used, as well as working to include language within the program that
adheres to terms and conditions within Texas code.
In preparation for a
lease sale next April, staff will work to develop maps of available
tracts. Once those tracts have been identified, staff will assess
minimum bid price, or minimum value, to the tracts using criteria such
as wind classification or proximity to transmission lines. The
School Land Board will then have to approve the tracts for lease before
notices for bid will be published in news publications and a sealed-bid
lease sale takes place. Today's announcement
is a landmark event in state government's involvement in the promotion
of clean, sustainable energy. It brings specificity to Patterson's Plan
for Sustainable Energy, which he announced in April on Earth Day. The
plan features a series of achievable, commonsense goals to boost the
state's sustainable energy output, with special focus on wind power.
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