A fifth-generation West Texas rancher twice rejected plans to put wind turbines on his family’s property before eventually agreeing to host seven turbines. Today, the wind project has become an important source of regular income for John E Davis, helping him continue his ranching operation and invest in other projects in the community.
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Davis, a former Texas state representative and former chair of the House Economic and Small Business Development Committee, owns the ranch with his brother, Keith Davis. The property is near the Concho County-Menard County line. The family was first approached about the wind project in 2016, but Davis said they did not want “any of those ugly old wind turbines” on their land, Texas Energy and Power.com reported.
The developers returned about a year and a half later. The brothers rejected the proposal again before eventually agreeing to join the Cactus Flats wind project in Concho County. Developed by RES, the Cactus Flats Wind Facility has a capacity of 148 MW and includes 43 turbines. Seven of them are now on the Davis family property.
The turbines began going up in 2018 and started generating income for the ranch in 2019. Davis said the regular payments have helped him continue operating the ranch. He also described the wind revenue as “a lifeline for us”.
Why Davis changed his mind
The decision eventually came down to the need for a stable source of income from the ranch. Davis said his brother negotiated a contract that included minimum royalty payments, with the payments adjusted upwards every five years.
The family also discussed the proposal with Davis’s father, who had worked for Shell Oil and was involved in land and right-of-way work. Davis recalled that his father asked, “Well, does it pay any money?” When Davis told him that it did, his father agreed to the idea.
The wind payments became important as the ranch dealt with changing livestock prices, drought and rising feed costs. Davis raises sheep, goats and cattle, including Wagyu cattle, Rambouillet sheep and Angora goats.
The regular income helps pay for ranch workers, animal feed, fences, water equipment and repairs. While livestock income can rise and fall with market conditions, the wind lease provides a more predictable source of money.
Davis also recalled what happened when the first payment arrived. His wife, Jane, received half of the income because they were married. She initially offered the cheque back because the land had come from Davis’s family. Davis told her, “give to Jane Davis what is Jane Davis’s.”
He said she now receives an automatic payment every three months. Her response, he recalled, is, “Thank you very much” and “John, keep ranching.”
