T. Boone Pickens’ Real Plan

We’ve all seen the heart-warming ads on television about how private industry is going to break our chains of oil addiction through wind power, right? I have to admit that I was quite sceptical, knowing the problem with wind-generated electricity, to wit: It isn’t reliable. The power plants have to have power generated through fossil fuel anyway to make up for the variances in wind power. As it turns out, I was right to wonder what the “real” motive was:

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 Pickens’ aid.

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 profiteering.

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.

I highly recommend reading the other articles about this sham at JunkScience.com.

Thanks to Robert D at Bob’s Bites for bringing this issue to my attention. “This is happening in TEXAS”, you’re probably saying. “It doesn’t concern US.” Uh huh. Do you really think that the outcome would be any different if ol’ T. Boone started some “renewable energy” rip off project in Florida?

Texanna provided some further clarification in the comment section:

I am so glad that the water issue is finally coming out. Just a couple of expansions and clarifications.

First, Pickens doesn’t own the all land where he is pumping the water. He made a deal with land owners to lease their water rights. A couple of years ago, he was paying land owners $500 per acre up front, plus another $500 when the wells are drilled. One land owner I spoke with stood to earn $2 million in water lease.

Second, with his water rights, and under current water conservation district rules( 1.5% of available water per well per year; the amount varies depending on how much is available at that particular well site) , he can pump up to 200,000 acre feet of water per year. That is 200,000 acres of land covered with a foot of water. One acre foot of water is 325,851 gallons. That is nearly double what the cities of Amarillo and Lubbock use combined per year.

Third, Roberts County officials DID NOT collude with Pickens. They attempted to prevent the creation of Roberts County Fresh Water Supply District #1 through delaying tactics, but when a county’s population is only about 2,000 and the big guns of a billionaire are threatening lawsuit, they had no choice.

Fourth, the legislators who sponsored the offending laws swear they were not contacted by TBP and had no idea what the consequences would be. Both the law and the amendment were passed during the last crazy days of session, so most lawmakers probably didn’t know what they were voting on.

Finally, for those who say this has no affect on them personally, I’d like to make two points. First, the Ogallala Aquifer makes it possible for the United States to lead the world in agriculture production. Without the water it provides, the corn, wheat and beef industries will be demolished. Second, if a person like TBP can do this is Texas, what will protect you where you live?

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15 Responses so far »

  1. 1

    Robert D said,

    Yer welcome Swamps. Take a look at the profits Tboone’s new buddy, Algore, is making.

  2. 2

    swampie said,

    I know! Carbon credits are the biggest scam around, and I cannot BELIEVE that people are falling for it.

  3. 3

    DaveF said,

    Thanks for this heads up! I knew something was up with this Pickens Plan deal but I, like most, hadn’t taken the time to dig into it.

  4. 4

    swampie said,

    As usual, when a politician or a businessman starts talking about doing things for “the public good”, keep a hand on your wallet.

  5. 5

    shelleybear said,

    “I have to admit that I was quite sceptical, knowing the problem with wind-generated electricity, to wit: It isn’t reliable.”

    Anyone with a brain knows that the solution will be multi-pronged.
    No one source will work.

  6. 6

    swampie said,

    Nuclear energy will.

  7. 7

    Robert D said,

    Hey Swamps. Take a look at This.

  8. 8

    Robert D said,

    Oh Crap! It’s been a long day. I’ll try it again.
    Pelosi & Pickens

  9. 9

    swampie said,

    Heh. Done beatcha to it, Robert D.

    (But I’ll be back at work and possibly school next week. Blogging may come to a screeching halt.)

  10. 10

    Texanna said,

    I am so glad that the water issue is finally coming out. Just a couple of expansions and clarifications.

    First, Pickens doesn’t own the all land where he is pumping the water. He made a deal with land owners to lease their water rights. A couple of years ago, he was paying land owners $500 per acre up front, plus another $500 when the wells are drilled. One land owner I spoke with stood to earn $2 million in water lease.

    Second, with his water rights, and under current water conservation district rules( 1.5% of available water per well per year; the amount varies depending on how much is available at that particular well site) , he can pump up to 200,000 acre feet of water per year. That is 200,000 acres of land covered with a foot of water. One acre foot of water is 325,851 gallons. That is nearly double what the cities of Amarillo and Lubbock use combined per year.

    Third, Roberts County officials DID NOT collude with Pickens. They attempted to prevent the creation of Roberts County Fresh Water Supply District #1 through delaying tactics, but when a county’s population is only about 2,000 and the big guns of a billionaire are threatening lawsuit, they had no choice.

    Fourth, the legislators who sponsored the offending laws swear they were not contacted by TBP and had no idea what the consequences would be. Both the law and the amendment were passed during the last crazy days of session, so most lawmakers probably didn’t know what they were voting on.

    Finally, for those who say this has no affect on them personally, I’d like to make two points. First, the Ogallala Aquifer makes it possible for the United States to lead the world in agriculture production. Without the water it provides, the corn, wheat and beef industries will be demolished. Second, if a person like TBP can do this is Texas, what will protect you where you live?

  11. 11

    swampie said,

    I know that this is going to be devastating for the Ogallala reservoir which is already diminishing. I can’t believe that it has gone this far.

  12. 12

    […] on his Plan, but there are plenty of skeptics suggesting he’s going to make more money in more ways than he’s letting on. It’s going to take some work to sort all of that out but, in the […]

  13. 13

    nk said,

    So are you suggesting we continue to support foreign oil to the tune of billions? What are the costs of the water preservation plan? If you haven’t noticed he already has control over the land, who stands to really suffer if the country is spending billions on foreign oil? Just being devils advocate for now.
    nk
    share your thoughts with me. knowledge is power and we can all use perspective I am very interested in the future seeing as I have no other choice than to proceed into it. torahboy@hotmail.com

  14. 14

    swampie said,

    Well, I propose that if we are going to invest in something, we invest in something that actually works. We have a lot of coal and untapped oil resources. We should have been building nuclear reactors for energy YEARS ago.

  15. 15

    Let’s not forget Proposition 10 on changing over to natural gas…
    I know that you think this is all expected, but the fact that Boone Pickens is not only getting the right of way to pump Olallaga Acquifer water to east Texas, he is also the brains behind the natural gas move in Calfornia with his Clean Energy Fuel Corp…

    http://www.semipolitico.com/2008/08/t-boone-pickens-natural-gas-push.html

    http://www.latimes.com/news/opinion/la-oe-rubenstein29-2008jul29,0,2980323.story

    http://www.oilwatchdog.org/articles/;jsessionid=FPCPFQPFA5020CQQPAASFEQ?storyId=22564


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