State Takes Pronghorn Wind Lease Fight to Higher Court After Judge Nixes Project

Wyoming’s Attorney General Keith Kautz has officially filed an appeal in the ongoing legal battle over the controversial Pronghorn H2 wind energy lease, pushing back against a district court ruling that tossed out the project’s approval earlier this month, Gillette News Record reports.

The trouble began on Dec. 5, when Converse County District Court Judge F. Scott Peasley overturned the State Board of Land Commissioners’ April decision to approve a lease for part of the massive wind farm slated near Glenrock. The judge said the board’s own rules for wind energy leasing only apply to projects that deliver electricity to the grid – something Pronghorn’s plan didn’t do. Instead, the energy was meant to help power a green hydrogen facility, not feed power straight into the grid as the wording of state law seems to require.

Rather than accept that outcome, the state – through Kautz’s office – announced in mid-December that it would appeal Peasley’s decision to a higher court. The AG’s stance is that how Wyoming’s laws around wind leases are interpreted could have far-reaching implications beyond just this one project.

The move has stirred political friction at the highest levels of state government. Secretary of State Chuck Gray – who was the lone board member to vote against the original lease – blasted the appeal decision as procedurally flawed and lacking transparency. Gray said the board should have voted on whether to appeal and that sidelining public comment was “absolutely ridiculous.”

Supporters of the project – including the company behind Pronghorn H2 – say they still intend to pursue the development despite the legal setback. A spokesman confirmed that Pronghorn plans to file its own appeal as well, separate from the state’s, signaling that this dispute isn’t ending anytime soon.

Backers argue the project, which pairs a wind farm with a clean hydrogen production facility, could bring investment and jobs to Converse County. Opponents, meanwhile, counter that it simply doesn’t fit Wyoming’s current wind lease rules. That clash between economic development and strict legal interpretation will now play out in appellate court – a stage likely to shape how future energy projects are reviewed in Wyoming.

The legal wrangling also highlights broader divisions in state politics over energy policy: whether Wyoming should lean into renewable energy tied to emerging industries or stick to traditional interpretations of its land and leasing laws.

As of this week, no appeal hearing dates or timelines have been announced – but both sides are gearing up for a drawn-out fight that could influence wind energy policy in Wyoming well into 2026.