Wind Royalties and Lease Payments in Texas

Wind projects by county in Texas

Nolan County, Willacy County and Scurry County have the most recorded wind capacity in Texas, with 2,173 MW, 1,687.7 MW and 1,564.1 MW.^[1]

Wind projects in Texas came online between 1999 and 2026.^[1]

Source: U.S. Wind Turbine Database (USGS, ACP, LBNL), version 9.1, released September 28, 2026. Data compiled November 3, 2026.

How wind leases pay

In royalty arrangements, the developer pays the landowner a percentage of the revenue received from the electricity produced by the turbines.^[2] In a flat or fixed-fee arrangement, the developer pays a fixed fee per turbine, per unit of land or per megawatt of installed capacity on a monthly or yearly basis.^[2] Wind power leases generally have terms of 20 to 40 years, often with an option to extend, while a typical utility-scale wind power project has a useful life of 20 years.^[2]

Wind leases in Texas

Texas's wind power facility agreement law, Utilities Code Chapter 301, applies only to agreements entered into on or after September 1, 2019; an earlier agreement is governed by the law as it existed before that date.^[3]

In Texas, a wind power facility agreement covered by Chapter 301 must make the grantee responsible for removing its facilities, including turbines, substations and buried cable to a depth of at least three feet.^[4]

The Texas agreement must also require the grantee to deliver financial assurance for that removal, such as a parent company guaranty, a letter of credit or a bond.^[4]

Chapter 301 as amended in 2025 by H.B. 3228 applies only to agreements entered into on or after September 1, 2025; an agreement entered into before that date is governed by the law as it existed immediately before it.^[5]

Under a Texas agreement covered by Chapter 301, when ownership of the wind power facilities is transferred, the existing decommissioning financial security stays in place until the landowner receives security that meets the statute.^[4]

The five states with the most electricity generation from wind in 2025 were Texas, Iowa, Oklahoma, Kansas and Illinois.^[6]

What you sell and what you keep

What Buckhead buys depends on the deal, and Buckhead tells the seller up front which interest it is offering to buy — for example, the payments for the rest of the current lease term, a term easement, or a longer-term interest. A wind lease rents land for a term of years, and wind power leases generally have terms of 20 to 40 years, often with an option for extending the lease.^[2] Under a wind lease, the landowner typically keeps the right to continue to grow crops, raise cattle or otherwise use the land outside the project.^[2]

Frequently asked questions

Related pages

Selling Wind Royalties and Wind Lease Payments

Mineral rights in Texas

Solar Lease Payments and Royalties in Texas

Coal Mineral Rights and Royalties in Texas

Sources

[1] U.S. Wind Turbine Database (version 9.1, released September 28, 2026) — U.S. Geological Survey, American Clean Power Association and Lawrence Berkeley National Laboratory (accessed November 1, 2026)

[2] New York Wind Energy Guide for Local Decision Makers: Land Agreements — New York State Energy Research and Development Authority (NYSERDA) (accessed November 1, 2026)

[3] H.B. 2845 (86th Legislature, 2019), enrolled: wind power facility agreements — Texas Legislature (accessed November 3, 2026)

[4] Texas Utilities Code, Chapter 301: Wind Power Facility Agreements — Texas Legislature (accessed November 1, 2026)

[5] H.B. 3228 (89th Legislature, 2025), enrolled: wind and solar power facility lease provisions — Texas Legislature (accessed November 3, 2026)

[6] Wind explained: Where wind power is harnessed — U.S. Energy Information Administration (accessed November 1, 2026)