After decades of contaminating ranch land, San Miguel Electric buys it in $38 million deal

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After decades of contaminating ranch land, San Miguel Electric buys it in $38 million deal
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After years of court battles, the owners of the ranch decided to sell. One eminent domain lawyer said the reason: 'Their property was so destroyed ... And they were paid well for it.'

Two mining haul trucks — with tires over ten feet tall and capable of carrying more than 100,000 pounds of material each per load — drive Tuesday Dec. 27, 2022 near a massive pile of overburden material dug out of the ground at the San Miguel Electric Cooperative’s lignite coal mine facility.

The Peelers sought to kick San Miguel off their land in 2018, but the cooperative went to court to block its eviction and won. That same year, the cooperative moved to force the family to sell more than 8,000 acres through eminent domain, the taking of privately held land to use for a public good in exchange for fair compensation.

The family had planned to fight it out in court. But the parties ultimately struck a deal. San Miguel ended its push for condemnation, and the Peelers and the cooperative withdrew their lawsuits in September 2021. “The Peeler family, San Miguel and South Texas are pleased to put this dispute behind them and look forward to continuing to contribute to Jourdanton and Atascosa County,” they said.an Miguel formed in 1977 as a member-owned nonprofit cooperative. Through a wholesale contract with South Texas Electric Cooperative, San Miguel sells the power it generates in Atascosa County to eight other agencies, including Medina and Victoria electric co-ops, which then sell it to customers around South Texas.

The operation also has produced a lot of coal ash, the hazardous waste left over from burning coal. And some of the ash has contaminated groundwater and surface water surrounding San Miguel’s plant, the Peelers said in their lawsuit.released in November by two environmental organizations — the Washington, D.C.-based Environmental Integrity Project and San Francisco-based Earthjustice — accused San Miguel of not cleaning up its toxic waste properly.

Rectangular coal ash retention ponds, left, and a water well storage pond are seen Dec. 27, 2022 at the San Miguel Electric Cooperative’s 400-megawatt, lignite coal-fired power plant south of Pleasanton. At San Miguel, hazardous contaminants are over 100 times the EPA’s health-based groundwater standards, a report by nonprofits Environmental Integrity Project and Earthjustice found.San Miguel dismissed the organizations’ report, which followed a similar study in 2019.

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