you learn about T. Boone Pickens’ plan to switch America to wind power, the
more you realize that he seems willing to say and do just about anything to
make another billion or two.
This column previously discussed the plan’s technical
and economic shortcomings and marketing
ruses. Today, we’ll look into the diabolical machinations behind it.
Simply put, Pickens’ pitch is “embrace wind power to help break our
‘addiction’ to foreign oil.” There is, however, another intriguing component to
Pickens’ plan that goes unmentioned in his TV commercials, media interviews and
web site -- water rights, which he owns more of than any other American.
Pickens hopes that his recent $100 million investment in 200,000 acres worth
of groundwater rights in Roberts County, Texas, located over the Ogallala
Aquifer, will earn him $1 billion. But there’s more to earning such a profit
than simply acquiring the water. Rights-of-way must be purchased to install
pipelines, and opposition from anti-development environmental groups must be
overcome. Here’s where it gets interesting, according to information compiled
by the Water Research Group, a small grassroots group focusing on local water
issues in Texas.
Purchasing rights-of-way is often expensive and time-consuming -- and what
if landowners won’t sell? While private entities may be frustrated, governments
can exercise eminent domain to compel sales. This is Pickens’ route of choice.
But wait, you say, Pickens is not a government entity. How can he use eminent
domain? Are you sitting down?
At Pickens’ behest, the Texas legislature changed state law to allow the two
residents of an 8-acre parcel of land in Roberts County to vote to create a
municipal water district, a government agency with eminent domain powers. Who
were the voters? They were Pickens’ wife and the manager of Pickens’ nearby
ranch. And who sits on the board of directors of this water district? They are
the parcel’s three other non-resident landowners, all Pickens’ employees.
A member of a local water conservation board told Bloomberg News that,
“[Pickens has] obtained the right of eminent domain like he was a big city.
It’s supposed to be for the public good, not a private company.”
What’s this got to do with Pickens’ wind-power plan? Just as he needs
pipelines to sell his water, he also needs transmission lines to sell his
wind-generated power. Rights of way for transmission lines are also acquired
through eminent domain -- and, once again, the Texas legislature has come to
Earlier this year, Texas changed its law to allow renewable energy projects
(like Pickens’ wind farm) to obtain rights-of-way by piggybacking on a water
district’s eminent domain power. So Pickens can now use his water district’s
authority to also condemn land for his future wind farm’s transmission lines.
Who will pay for the rights-of-way and the transmission lines and pipelines?
Thanks to another gift from Texas politicians, Pickens’ water district can sell
tax-free, taxpayer-guaranteed municipal bonds to finance the $2.2 billion cost
of the water pipeline. And then earlier this month, the Texas legislature voted
to spend $4.93 billion for wind farm transmission lines. While Pickens has
denied that this money is earmarked for him, he nevertheless is building the
largest wind farm in the world.
Despite this legislative largesse, a fly in the ointment remains.
Although Pickens hopes to sell as much as $165 million worth of water
annually to Dallas alone, no city in Texas has signed up yet -- partly because
they don’t yet need the water and partly because of resentment against water
Enter the Sierra Club.
While Green groups support wind power, “the privatization of water is an
entirely different thing,” says the Sierra Club. Moreover, the activist group
has long opposed further exploitation of the very groundwater Pickens wants to
use -- the Ogallala Aquifer.
“The source of drinking water and irrigation for Plains residents from
Nebraska to Texas, the Ogallala Aquifer is one of the world's largest -- as
well as one of the most rapidly dissipating… If current irrigation practices
continue, agribusiness will deplete the Ogallala Aquifer in the next century,”
says the Sierra Club.
In March 2002, the Sierra Club opposed the construction of a slaughterhouse
in Pampa, Texas, because it would require a mere 275 million gallons per year
from the Ogallala Aquifer. Yet Pickens wants to sell 65 billion gallons of
water per year -- to Dallas alone. In a 2004 lamentation about local government
facilitation of Pickens’ plan for the Ogallala, the Sierra Club slammed Pickens
as a “junk bond dealer” who wanted to make “Blue Gold” from the Ogallala.
But while the Sierra Club can’t seem to do anything about Pickens’ influence
with state legislators, they do have enough influence to make his water
politically unpotable. This opposition may soon abate, however, now that
Pickens has buddied up with Sierra Club president Carl Pope.
As noted last week, Pope now flies in Pickens’ private jet and publicly
lauds him. The two are newly-minted “friends,” since Pope needs the famous Republican
oilman to lend propaganda value to the Sierra Club’s anti-oil agenda and
Pickens needs Pope to ease up on the Ogallala water opposition.
This alliance isn’t sitting well with everyone on the Left.
A TreeHugger.com writer recently observed, “… I am left asking myself why
the green media have neglected [the water] aspect of Pickens’ wind-farm plans?
Have we been so distracted by the prospect of Texas’ renewable energy portfolio
growing by 4000 megawatts that we are willing to overlook some potentially dodgy
aspects to the project?”
It shouldn’t sit well with the rest of us either. Pickens has gamed Texas
for his own ends, and now he’s trying to game the rest of us, too. Worse, his
gamesmanship includes lending his billionaire resources, prominent stature and
feudal powers bestowed upon him by the Texas legislature to help the Greens
gain control over the U.S. energy supply.