Judge nixes H2 state leases

Peasley: State board failed to follow its own rules in granting lease. Pronghorn owners plan to continue

Eighth Judicial District Court Judge Scott Peasley on Dec. 5 struck down the state’s approval of a proposed major wind turbine lease slated just outside of Glenrock.
The wind farm was one piece of a behemoth hydrogen clean energy project planned for state and private lands in the county. The company behind the overall project said Monday they are committed to continuing the process for the overall project despite the ruling on this state lease.
The Pronghorn H2 Clean Hydrogen Project is highly controversial among ranchers and other landowners in the area, prompting the legal battle that began in mid-2025 by rancher Mike Stephens and others against the wind energy company.
The wind farm – which would have covered state lands (under “Lease 1620”) and some private lands – is a significant part of a $1.7 billion, 40,000-acre hydrogen extraction project proposed by Pronghorn south and east of Glenrock. Focus Clean Energy LLC, founded and led by Paul Martin, is in charge of the project.
Under their plan, the wind farm and a major solar project near the community would be used to power the hydrogen extraction segment of the project.
Stephens, of  Stephens Land and Livestock and whose land borders part of the project’s leased land, filed a lawsuit last summer in state district court against the Wyoming Board of Land Commissioners. He alleges the WBLC was “not following their own laws” in approving the wind farms associated with the project.
Stephens owns what he terms “generational land” next to the parcels in the state lease.
At this point, no one is sure what will happen next with the state land lease or what the ruling will mean for the entire project.

COURT'S DECISION
In their response to the lawsuit, the WBLC claimed Stephens’ “general assertions that he recreates on the state trust land subject to (the contested) Lease 1620, watches wildlife on adjacent state land and the property owned by Stephens Land and Livestock, and enjoys scenic views from the property” are insufficient to demonstrate that Stephens is aggrieved by the board’s decision to award Lease 1620.
Basically, WBLC claimed that Stephens did not have a valid reason for filing a lawsuit.
However, the Wyoming Supreme Court previously recognized “interference with scenic views” and “concerns about dust and noise that interfere with the ability to enjoy . . . the property” are valid harms to establish standing, Stephens’ attorneys countered.
“After carefully considering precedent and the record, the court finds petitioners (Stephens Land & Livestock) are indeed aggrieved by the lease and petitioners possess standing to challenge the board’s approval of Pronghorn’s wind energy lease,” the judge ruled.
Stephens argued that Lease 1620 failed to follow the WBLC’s own rules defining wind energy leasing. The board defines such as “(l)easing of state land for the exclusive right to convert wind energy into electrical energy including collecting and transmitting the electrical energy so converted to the substation from which the electricity will be transmitted from the wind energy development to the interconnection of the transmission grid.”
Thus, Stephens contended, a project which fails to transmit power to the grid does not meet the definition of wind energy leasing under the state land board’s own rules.
“Before approving Lease 1620, the state board was made aware that energy produced from Pronghorn’s project will be a key energy component of the Pronghorn Clean Hydrogen Center, which, via electrolysis, will produce clean hydrogen,” Peasley wrote in his ruling. Likewise, the board was aware that Pronghorn “. . . intended to use the land for development and infrastructure to support wind energy generation . . .” and the electricity would be transmitted to the hydrogen fuel facility that may or may not connect to the grid “because doing so was not essential to the project.”
Peasley, however, disagreed that the final use of the power was unimportant.
“. . . (T)he court must conclude that the board’s rule defining wind energy leasing recognizes wind energy leases that deliver energy to a grid as serving the greatest long term benefit of the state land trust,” he wrote.

‘VERY HAPPY’
Stephens said he was “very happy” with the outcome of the court’s ruling Friday.
“You never know what a judge is going to do, but the lawyers did a great job putting it together. You never know, though. I’m just tickled to death – and most of Glenrock is, too. I can’t go anywhere without people thanking me. It’s overwhelming just how much people here do not want this project. You wouldn’t believe all the emails, texts and calls I’m getting. The people here in Glenrock are against this project,” he said Monday morning.
When asked if he expects Pronghorn to file an appeal or ask the state land board to reconsider, he said he doesn’t know.
“I mean, it’s pretty cut and dried. Judge Peasley spelled it out . . . if they can’t connect to a substation . . . it’s not in accordance with the law, so he said Pronghorn’s lease had to be reversed.”
Stephens said one of the reasons Glenrock is so against the project is because it is on state ground, as well as private land.
“Pronghorn says once they build (the hydrogen extraction plant) they are going to expand. If you look at all the state land from Natrona to Glenrock, maybe 20,000-30,000 acres of state land. Once they got a hold of that, they might not want to stop,” he said.
Stephens’ lawsuit, filed in July, was at the heart of Peasley’s ruling Friday.

‘TRUTH WINS OUT’
Wyoming Secretary of State Chuck Gray hailed the judge’s ruling, which reversed the 4-1 vote by the state land board to allow the project to proceed. Gray voted against it while the other four top elected officials – Gov. Mark Gordon, Auditor Kristi Racines, Treasurer Curt Meier and Superintendent of Public Instruction Megan Degenfelder – voted to approve it.
Gray, at the time, was vocal in his opposition to the lease and the project and he worked with Stephens and others, including former county commissioner candidate Joe Benedetta, against it.
“I applaud the court’s ruling reversing the outrageously wrong Pronghorn wind lease. This ruling is great news for the people of Wyoming and vindication for those advancing the truth on this issue. Woke wind is wrong for Wyoming. As the only member of the State Board of Land Commissioners to vote against this boondoggle wind proposal, it is refreshing to see the truth win out.
“My opposition to these boondoggle wind projects is based on a number of factors. Perhaps most importantly, my opposition to these wind leases is based on the fact that these projects are bad for Wyoming, because they are based on the fantasies of left-wing, government-controlled, enviro-insiders, driven by Soros-funded green new deal schemes intent on destroying Wyoming’s core industries. The proposed project is absurd – as I noted in the meeting, the wind energy is being used by a Spanish company to fulfill woke billionaire fantasies, not doing anything productive for the grid, which the judge noted in his opinion. 
“It has been deeply troubling to see Gov. Gordon’s attempts to jam this proposal through, and the fact that the other members of the board backed Gordon up on this.  When I attempted to raise legal concerns with the leases, Gov. Gordon shut that conversation down by falsely claiming that it could only be discussed in executive session. The attempts of Gov. Gordon and others in power to shut down any discussion of these issues, including the legal issues brought in this case, has done much damage.  I’m glad that the truth won out with the ruling in this case.”

UP NEXT?
Pronghorn has not said if it will appeal the ruling to the Wyoming Supreme Court, but Martin did release a statement Monday afternoon.
Martin said the Pronghorn project team remains committed to advancing the project lawfully and responsibly.
“Challenges often occur during the development process, but we intend to continue our efforts to develop the Pronghorn project, which is located primarily on private land, while adhering to Wyoming laws and regulations. We look forward to creating an opportunity that offers significant benefits for Converse County,” he said.
More information about the wind farm project and the opposition to it can be found in the Dec. 10, 2025, print editions of the Douglas Budget and Glenrock Independent, as well previous articles (see both print and electronic editions from May 28, 2025, and July 16, 2025).