Once Geo Texas begins to produce electricity, the state’s permanent school fund will earn a 2.05% royalty for years 1-10 of the lease, and 3.8% on years 11-30. Even without any energy production, the state’s permanent school fund will earn more than $386,000 a year.
“Texas is the nation’s new frontier for renewable energy and today’s lease sale is more evidence of that,” Patterson said. “These leases should earn the state’s school fund millions and show that renewable energy is profitable in Texas.”
In 2005, Patterson and the School Land Board signed the nation’s first-ever lease for offshore wind energy production off the coast of Galveston. In 2007, Patterson signed the state’s first leases for solar and geothermal energy production.
This push to exploit the Permanent School Fund’s renewable energy resources is one of Patterson’s top goals. Oil and gas have earned more than $9 billion for public education in Texas, but oil and gas are depletable resources.
“We must take action now to diversify our revenue stream for the PSF,” Patterson said.
“For the schoolchildren of Texas, renewable energy means renewable revenue.”
