Wyoming Wind Energy Leases Need Not Connect to the Transmission Grid: “Including” Is Expansive

Case: Pronghorn H2, LLC v. Stephens Land and Livestock, LLC and Michael Stephens, 2026 WY 117

Court: Supreme Court of Wyoming
Decided: November 3, 2026
Opinion by: Chief Justice Boomgaarden

1. Introduction

This decision establishes that Wyoming’s regulatory definition of “Wind Energy Leasing” permits state-land wind projects that do not depend on a connection to the transmission grid. The definition’s use of “including” introduces an example of permissible electricity transmission, not a mandatory operational requirement. A wind project supplying electricity directly to a commercial hydrogen facility therefore falls within the definition.

The dispute arose after the Wyoming Board of Land Commissioners approved Wind Lease No. WL-1620 for Pronghorn H2, LLC. Pronghorn proposed a wind development intended to power an off-site green hydrogen manufacturing facility. Although the project might maintain a grid connection, that connection was not essential to its operations.

Michael Stephens and Stephens Land and Livestock, LLC, collectively “Stephens,” challenged the approval. The LLC owned adjoining property, where Mr. Stephens and his family resided. Stephens alleged adverse effects on scenic views, wildlife, property values, traffic, and residential and ranching uses.

The district court concluded that Stephens had standing but invalidated the lease because it interpreted the Board’s definition as requiring grid connection. In consolidated appeals brought by Pronghorn and the Board, the Supreme Court agreed that Stephens could seek judicial review but rejected the district court’s interpretation. It also resolved Stephens’s remaining objections and upheld the Board’s approval.

2. Background and Summary of the Opinion

The proposed development

Pronghorn initially applied for a wind lease in 2022 and amended its application two years later following stakeholder consultation. The amended proposal reduced the potential number of turbines and modified the proposed lease lands. It contemplated approximately 39 wind turbine generators, associated roads and electrical infrastructure, an estimated generating capacity of 230 megawatts, and facilities valued at approximately $322 million.

State lands would account for approximately 25 to 30 percent of the project area, with the remainder on private property south of Glenrock in Converse County. The Office of State Lands and Investments, or OSLI, received extensive public comments, most opposing the project. Following a public meeting and an executive session for legal advice, the Board approved the lease.

The principal holdings

  1. Standing: Stephens’s adjoining ownership and concrete allegations concerning property use, enjoyment, and value established standing under the Wyoming Administrative Procedure Act.
  2. No mandatory grid connection: “Including” in the Board’s definition of wind energy leasing is expansive. Transmission to the grid is an example, not a prerequisite.
  3. Trust obligations: Individually negotiated, variable operating fees complied with the applicable leasing framework. The lease also did not unlawfully displace mineral development.
  4. Sage grouse protections: The record did not establish a legal requirement to resubmit the amended application to the Wyoming Game and Fish Department or to insert express sage grouse provisions into the lease.
  5. Big game considerations: The Board considered the relevant concerns, and no applicable provision required express written findings in this informal approval proceeding.
  6. Financial assurances: The lease adequately required assurances before construction and preserved the Board’s reclamation oversight.

The Supreme Court’s disposition upheld the Board’s approval, not the district court’s judgment invalidating it. The decision did not eliminate the project’s remaining industrial siting and other regulatory requirements.

3. Analysis of the Court’s Legal Reasoning

A. Standing depended on concrete neighboring-property interests

Wyoming Statutes § 16-3-114(a) permits judicial review by a person “aggrieved or adversely affected in fact” by agency action. The court treated this as a question of statutory standing: whether Stephens possessed a legally recognizable interest affected by the lease approval.

The court applied the established requirement that the interest generally be substantial, immediate, and pecuniary rather than contingent or speculative. Stephens satisfied that requirement through adjoining ownership and identified effects on property value, scenic enjoyment, traffic, and residential and ranching activities. These were not merely objections shared indiscriminately by the public.

The Board argued that construction still depended on future approvals. The court nevertheless distinguished an abstract development possibility from the concrete project before it. Pronghorn had submitted extensive plans, completed the state-land application process, and obtained a 40-year lease granting the exclusive right to use the lands for wind energy development.

The important distinction is that remaining regulatory steps did not render the completed leasing decision legally inconsequential. The holding does not establish standing for every neighbor challenging every preliminary administrative action; it rests on a developed proposal, a substantive lease approval, and identifiable property-related injuries.

B. The applicable standard separated legal interpretation from administrative judgment

The Supreme Court reviewed the agency decision directly, without deferring to the district court’s conclusions. Because the Board acted after a public meeting rather than a formal contested-case hearing, the governing standard was whether its approval was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law under § 16-3-114(c)(ii)(A).

Within that framework, interpretation of statutes and agency rules remained a legal question reviewed de novo. The court also reaffirmed that agency rules have the force of law and bind the agency itself. Thus, the Board could not approve an otherwise desirable project if its own rules prohibited that project.

The opinion also recognized deference to an agency’s interpretation of its own rules unless clearly erroneous or inconsistent with their plain language. Here, however, the court independently concluded that the rule’s text supported the Board’s interpretation. The result therefore did not depend solely on administrative deference.

C. “Including” did not transform grid transmission into a compulsory feature

The disputed rule defined “Wind Energy Leasing” 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.”

Stephens read the language following “including” as an indispensable component of the definition. The court instead identified the essential activity as leasing state land to convert wind energy into electrical energy. The remaining language described one covered use of that electricity.

Dictionaries and precedent supported this reading: “including” ordinarily introduces a partial list and enlarges rather than restricts the preceding category. The specificity of the grid-transmission example did not make it compulsory.

The court also rejected two arguments for a narrower construction. First, a definition’s opening use of “means” does not necessarily make every example introduced later by “including” a mandatory condition. Second, locating language in a definitions section does not trigger a special rule requiring stricter interpretation. The court declined to invent such an interpretive rule.

The opinion further explained that “including,” “including without limitation,” and “including but not limited to” ordinarily introduce nonexclusive examples. Accordingly, the absence of the additional words “but not limited to” did not make this definition exhaustive.

The holding is best understood as a textual interpretation of this particular regulation, informed by the ordinary expansive meaning of “including.” It does not dispense with contextual interpretation of different statutory or regulatory language.

D. Judicial economy justified deciding the remaining objections

The district court had not addressed Stephens’s alternative grounds because its grid-connection ruling disposed of the case. Although remand is often appropriate in that situation, the Supreme Court resolved the remaining issues itself.

The record was sufficiently developed, the issues had been fully briefed below, and the additional arguments largely presented legal questions. These circumstances permitted a complete review without requiring the district court to undertake another round of proceedings.

Stephens had withdrawn a separate challenge concerning statutory authority over improvement-removal requirements. The court expressly did not decide that abandoned issue.

E. The state-land trust mandate allowed project-specific leasing terms

Section 36-5-114(b) authorizes leases that bring about compatible surface use and “inure to the greatest long term benefit of the state land trust.” Stephens argued that the lease failed this standard because its operating fee for electricity delivered to the grid exceeded the base rate applicable without grid delivery.

The court rejected the proposition that this difference established noncompliance. The Board’s rules required rental determinations on an individual-lease basis. OSLI negotiated the fees with the hydrogen project’s characteristics in mind, and the application did not entirely foreclose future grid connection. Either fee structure could therefore become applicable during the lease term.

The decision accepts individualized leasing arrangements rather than treating a higher hypothetical grid-connected payment as dispositive. Its reasoning is record-specific: the court upheld the negotiated structure before it, not an unrestricted power to disregard trust returns.

Stephens also argued that the lease improperly subordinated mineral interests. The court emphasized that existing mineral leases remained protected, future mineral leasing was not prohibited, and future mineral lessees were only restricted from unreasonably interfering with the wind project. Those provisions accommodated concurrent uses rather than rendering underlying minerals valueless.

F. Wildlife review did not require every recommendation to become a lease term

Sage grouse and Executive Order 2019-3

The Wyoming Game and Fish Department, or WGFD, reviewed the initial application and identified sage grouse concerns, including lands within a Core Protection Area and buffers around occupied leks. Pronghorn subsequently removed all proposed state lease lands within the Core Protection Area. OSLI informed the Board that the amended application site was outside the sage grouse core area.

Stephens did not identify a requirement in Executive Order 2019-3 obligating a second WGFD review of the amended application. The court treated the initial comments and recommendations as continuing to stand; it did not hold that amendment erased other wildlife concerns.

Nor did the omission of express sage grouse stipulations from the lease establish arbitrary action. The Board knew of WGFD’s feedback and the application changes. On this record, neither the executive order nor the Board’s management-goals rule required a species-specific clause in the lease.

Big game habitat and written findings

WGFD also identified mule deer and antelope crucial winter range and recommended avoiding development in those areas from November through April. The court acknowledged that the record did not clearly establish whether the amended application excluded that winter range. It did not resolve that uncertainty by assuming the habitat concern had disappeared.

Instead, the court focused on the governing legal requirements. Chapter 6, § 3(b) required the Board to determine that the lease would not adversely affect its land management goals. It did not mandate adoption of every WGFD recommendation or require a written finding addressing each concern.

OSLI had consulted WGFD, conveyed the feedback to the Board, and reported that the lease lands were outside designated migration corridors. The court concluded that approval on the assembled record reasonably reflected the required management determination.

This is a distinction between a duty to consider and determine, and a duty to issue formal written findings. The former remained operative even though the latter did not apply. Similarly, the hunting-access provision merely allowed Pronghorn to request OSLI approval for specified temporary closures; it did not grant an unrestricted power to exclude hunters.

G. Financial assurances could be coordinated across regulatory stages

The Board’s rules required financial assurances sufficient to secure compliance with lease terms. The lease required Pronghorn to provide them before construction, supplied methods for calculating the amount, and contemplated coordination with the Department of Environmental Quality during industrial siting review.

That additional process included requirements concerning decommissioning, reclamation, financial assurances, and cost estimates. Crucially, the Board retained sole discretion to determine when final reclamation had been achieved and when assurances could be released.

The holding therefore concerns the adequacy of an enforceable assurance framework, not a finding that every bond had already been posted. Interagency coordination was permissible because the lease preserved the Board’s own compliance protections and continuing oversight.

4. Precedents Cited and Their Influence

A. Standing and neighboring-property injuries

  • Williams v. Bd. of Cnty. Comm'rs of Johnson Cnty., 2025 WY 127, and Protect Our Water Jackson Hole v. Wyoming Dep't of Env't Quality, 2025 WY 36, supplied the rule that standing presents a legal question reviewed de novo. Their role was to establish the court’s independent review of Stephens’s entitlement to challenge the approval.

  • HB Fam. Ltd. P'ship v. Teton Cnty. Bd. of Cnty. Comm'rs, 2020 WY 98, supplied the principal framework for statutory standing under the WAPA. Together with Wyodak Res. Dev. Corp. v. Wyoming Dep't of Revenue, 2017 WY 6, it required a legally recognizable interest that is generally substantial, immediate, and pecuniary. The court applied this framework to Stephens’s adjoining ownership and property-related harms.

  • Tayback v. Teton Cnty. Bd. of Cnty. Comm'rs, 2017 WY 114; N. Laramie Range Found. v. Converse Cnty. Bd. of Cnty. Comm'rs, 2012 WY 158; Hoke v. Moyer, 865 P.2d 624 (Wyo. 1993); and Northfork Citizens for Responsible Dev. v. Park Cnty. Bd. of Cnty. Comm'rs, 2008 WY 88, illustrated standing based on neighboring development’s concrete effects. The opinion drew on their treatment of viewsheds, wildlife habitat, traffic, density, and interference with property enjoyment.

  • Moose Hollow Holdings, LLC v. Teton Cnty. Bd. of Cnty. Comm'rs, 2017 WY 74, supplied the principal counterexample. There, administrative determinations did not approve an actual development, and future development remained uncertain. The court distinguished that speculative situation from Pronghorn’s detailed proposal and completed lease approval. This distinction explains why remaining permits did not defeat standing here.

B. Administrative review and interpretation

  • Hart v. State ex rel. Dep't of Workforce Servs., Workers' Comp. Div., 2022 WY 81, established that appellate review proceeds as though the matter came directly from the agency. The district court’s interpretation therefore received no special deference.

  • Tayback v. Teton Cnty. Bd. of Cnty. Comm'rs supported arbitrary-and-capricious review of the informal approval. Dale v. S & S Builders, LLC, 2008 WY 84, provided the contrast: substantial-evidence review applies to evidentiary decisions following contested-case proceedings.

  • Leal v. State ex rel. Dep't of Workforce Servs., Workers' Comp. Div., 2024 WY 86, reinforced that agencies must follow their own binding rules. Richardson v. State ex rel. Wyoming Dep't of Health, 2024 WY 47, established de novo review of regulatory interpretation. These authorities required the court to test the lease against the governing text rather than approve it merely as a policy choice.

  • SP v. State, 2025 WY 101; Beckwith v. State, 2023 WY 39; and Tayback v. Teton Cnty. Bd. of Cnty. Comm'rs supported use of ordinary statutory-interpretation principles for agency rules, beginning with plain meaning.

  • Matter of RTT, 2026 WY 23, and Bankers Standard Ins. Co. v. JTEC, Inc., 2025 WY 51, supplied the ambiguity standard. Language is ambiguous when uncertain and susceptible to varying interpretations, not simply because parties advocate competing readings. The court found the disputed use of “including” unambiguous.

  • Brazinski v. Bd. of Cnty. Comm'rs of Teton Cnty., 2024 WY 40, supported deference to an agency’s interpretation of its rules unless clearly erroneous or inconsistent with their plain language. The Board’s reading satisfied that limitation.

  • Wyoming Dep't of Revenue v. PacifiCorp, 2025 WY 126, reiterated that agency legal conclusions must accord with law. It framed the court’s examination of Stephens’s additional challenges.

C. The expansive meaning of “including”

  • Board of County Commissioners of Teton County v. Bassett, 8 P.3d 1079 (Wyo. 2000), was the central interpretive precedent. It explained that “includes” generally enlarges statutory coverage and allows unenumerated matters within a defined category. Its treatment of the statutory definition of “fault” supported treating grid transmission as nonexclusive here.

  • Yager v. State, 2015 WY 139, quoting Lyman v. Town of Bow Mar, 188 Colo. 216, 533 P.2d 1129 (1975), reinforced that “include” ordinarily expresses extension or enlargement. These cases corroborated the ordinary-language reading adopted by the court.

  • Helvering v. Morgan's, Inc., 293 U.S. 121 (1934), was invoked by the district court and Stephens but did not support their restrictive construction. Its distinction between “means” and “includes” recognizes that “includes” can identify particular instances of a general class. The Supreme Court concluded that this reasoning supported, rather than undermined, the Board’s interpretation.

D. Deciding issues the district court did not reach

  • Wyoming Pub. Serv. Comm'n v. Hopkins, 602 P.2d 374 (Wyo. 1979), illustrated the usual option of remanding unresolved alternative arguments. The court acknowledged that approach without treating it as obligatory.

  • Wells Fargo Bank Wyoming, N.A. v. Hodder, 2006 WY 128, demonstrated that a sufficiently developed record can permit appellate resolution for judicial economy. Winney v. Jerup, 2023 WY 113, similarly supported deciding unaddressed issues when the record permits thorough review. These authorities justified resolving all preserved challenges in this appeal.

  • The footnote authorities—Dell v. Citizens Ins. Co. of Am., 312 Mich. App. 734, 880 N.W.2d 280 (2015); Panhandle Baptist Found., Inc. v. Clodfelter, 54 S.W.3d 66 (Tex. App. 2001), citing Cincinnati Life Ins. Co. v. Cates, 927 S.W.2d 623 (Tex. 1996); and Lincoln v. BNSF Ry. Co., 900 F.3d 1166 (10th Cir. 2018)—provided comparative support for addressing preserved issues when the legal questions and necessary record are already before the appellate court.

E. Administrative discretion and formal findings

  • Monaghan Farms, Inc v. Bd. of Cnty. Commissioners of Albany Cnty., 2023 WY 31, drawing on N. Laramie Range Found. v. Converse Cnty. Bd. of Cnty. Comm'rs, supplied the deferential inquiry whether the agency reasonably could have reached its decision on the evidence before it. This standard supported the wildlife-related rulings.

  • Wilson Advisory Comm. v. Bd. of Cnty. Comm'rs, 2012 WY 163, quoted through the foregoing administrative precedent, established that formal findings in informal proceedings are necessary only when a statute or regulation requires them. It was decisive in rejecting the claim that the Board had to issue express written big game findings.

5. Potential Impact and Limits

Broader eligibility for non-grid wind projects

The immediate consequence is that the existing wind-leasing definition accommodates electricity used directly by an industrial customer, including hydrogen production. Applicants need not establish grid dependence merely to fit within that definition. Similar non-grid proposals may benefit, although each remains subject to applicable lease terms and other regulatory requirements.

A significant drafting lesson

Agencies cannot ordinarily rely on an example introduced by “including” to impose a mandatory condition. If grid connection or another operational feature is intended to be essential, the regulation should say so expressly. Conversely, the decision reduces the need to amend broadly written rules whenever technology produces a new use within their existing language.

Meaningful access to review, but substantial merits deference

The opinion combines two principles that may pull in different practical directions. Adjoining owners can obtain review of a concrete lease approval despite remaining permits. Yet obtaining review does not entitle them to substitute their preferred leasing or wildlife-management choices for a lawful, reasonably supported agency decision.

Administrative records become especially important

The Board prevailed without species-specific lease clauses or express written management findings because the record documented consultation, agency feedback, project modifications, and the information presented for approval. Future agencies should not mistake the absence of a formal-findings requirement for permission to leave no evidence of consideration.

Unresolved factual concerns remain distinct from legal invalidity

The court did not find that all wildlife impacts had been eliminated, that winter range was necessarily excluded, or that the project had received every necessary authorization. Nor did it comprehensively define how competing lease proposals must be compared under the trust-benefit mandate. Its decision upheld this approval against the particular legal challenges and record presented.

6. Complex Concepts Simplified

Statutory standing
The right to bring a challenge under the governing statute. Here, Stephens qualified because the approved project threatened identifiable interests associated with adjoining property.
De novo review
The court decides a legal question independently, rather than accepting the lower court’s answer.
Arbitrary-and-capricious review
A restrained review asking whether the agency acted reasonably and lawfully on the record—not whether judges would have made the same policy choice.
Contested case versus informal proceeding
A contested case involves formal adjudicatory procedures. This lease approval followed a public meeting, so the rules governing formal evidentiary adjudications did not automatically apply.
State land trust
A legal arrangement requiring the Board to manage covered lands for their trust beneficiaries, including through leases serving the trust’s greatest long-term benefit.
Surface and mineral estates
Rights to use the land’s surface and rights to develop minerals beneath it. The lease accommodated both rather than automatically extinguishing either.
Financial assurances
Security intended to ensure that lease obligations, including decommissioning and reclamation, can be fulfilled if the developer does not perform.
Lek
A location where sage grouse gather for breeding displays, making surrounding disturbance and habitat protections relevant to development review.

7. Conclusion

Pronghorn H2, LLC v. Stephens Land and Livestock, LLC and Michael Stephens confirms that Wyoming’s wind-leasing definition does not require transmission-grid connection: “including” introduces a covered example, not an indispensable condition.

The decision also preserves neighboring owners’ access to judicial review while respecting lawful administrative discretion over individualized lease terms, wildlife considerations, and staged financial assurances. Its broader significance lies in allowing existing regulatory language to accommodate new energy uses without relaxing the Board’s obligation to follow its rules and support its decisions with an adequate record.