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Nance Ranch has been home to everything from cattle to crops, but it could also be hosting wind turbines soon.
The Texas A&M University System's board of regents in College Station voted Friday to allow West Texas A&M University to give wind developer Higher Power Energy an option to lease the ranch for a wind farm.
Higher Power was one of two companies that responded to the school's request for proposals. WT's Alternative Energy Institute helped evaluate the responses to meet the school's expectations.
"We wanted to make sure it's the best plan, the most beneficial long-term to the school," said the institute's director, Ken Starcher. "Also, we wanted to not disturb the ag operations. They were there first."
The deal could involve about 20 turbines on the ranch's 2,283 acres.
Higher Power is to pay WT $1.50 per acre annually while evaluating the development opportunities, according to the agreement.
The school knows the ranch - a center for land, livestock and crop research just east of Canyon - has the possibility of being an ideal wind site.
"We did our first wind-test center out there, so we do have some data," Starcher said.
The school sees the wind farm as a good fit.
"Wind turbines go hand and hand with our research efforts and are a good clean source of energy," said Gary Barnes, WT's vice president for business and finance.
If the company exercises its option, the parties will enter a 30-year lease with the option to extend that by 10 years. While developing the wind farm, Higher Power would pay $15 per acre each year. When the turbines start producing electricity, the company would pay royalties based on how much energy is produced.
In addition, the company would pay a $5,000 fee for each turbine it builds, a lump sum for roads and transmission lines it builds on the property, and rental payments for substations and other buildings it constructs there.
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