Minnesota Power has notified the North Dakota Public Service Commission of its intent to begin the second phase of the Bison Wind Farm project in central North Dakota. The additional capacity will increase total power generation to 185 MW. The Bison 2 wind project  will use 35 3-megawatt turbines manufactured by Siemens AG. Further expansion of the Great Plains wind farm is planned to meet Minnesota’s mandate for 25 percent of its electricity from renewable resources by 2025.

“The timing is fortunate for expanding our renewable energy production,” said Alan Hodnik, president and CEO of Minnesota Power’s parent company, ALLETE. “Development of Bison 2 will leverage substantial investments we’ve already made in North Dakota and take advantage of the federal production tax credit and a very competitive wind turbine market.”

“Bison 2 will be very economical for our customers,” Hodnik added. “This project is an example of our larger strategy of meeting the demands of a changing energy landscape, reducing our overall reliance on fossil fuels, and making effective use of existing transmission capacity.”

Electricity generated by the Bison Wind Farm travels to Minnesota via transmission lines used for coal-generated power from the Milton Young station near Center, North Dakota.

Read more HERE.

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The Nature Conservancy (TNC) has sold conservation easements covering 89,000 acres in New York’s Adirondack Mountains to the State of New York. The deal is the most recent transaction related to the conservancy’s 2007 purchase of 161,000 acres of Finch Paper Holdings forestlands. In 2009, it sold 92,000+ acres of this timberland to a subsidiary of the Danish pension fund ATP for $30+ million. TNC has now the sold conservation rights and certain access rights to 30 miles of snowmobile trails on the ATP land to the state for $30 million.

According to the New York Times:

The latest transaction will result in improved public access to thousands of acres of forest, the Nature Conservancy said. It includes provisions for a better network of snowmobile trails in the region, important to the winter tourist economies of several small towns. The plan, approved by 27 towns on or near the former Finch lands, relieves some villages of having to make annual lease payments for snowmobile trails.

“It’s a very exciting day for us, and I think a really strategic investment by the state of New York in the Adirondack economy, and really, the tourism economy of the state,” said Michael T. Carr, executive director of the Adirondack chapter of the Nature Conservancy.

Mr. Carr said the conservation easement contains an innovative provision meant to allow biologists of the future greater flexibility in coping with climate change. With species expected to migrate north and to migrate higher up mountain slopes in a warming world, the conservation easement requires biological monitoring and a re-examination of management plans for the property, allowing for course corrections to be made if plants or animals require greater protection.

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Tejon Ranch (TRC) will sell five conservation easements covering some 62,000 acres of the 270,000-acre property to the California Wildlife Conservation Board for $15.8 million. The transaction is yet another step by California’s largest private landowner to monetize remote areas of the ranch with little near-term development potential.

The following, more complete account of the transaction was posted at Tejon Ranch’s website:

Tejon Ranch Co. (NYSE: TRC) announced today the California Wildlife Conservation Board (WCB), has approved the purchase, for $15.8 million, of five conservation easements covering approximately 62,000 acres of land located on various portions of the 270,000 acre Tejon Ranch. This furthers the implementation of the historic Tejon Ranch Conservation and Land Use Agreement signed in 2008. The 62,000 acres is a component of the 240,000 acres designated for protection under the 2008 agreement.

The $15.8 million purchase price represents the conservation easement value for the acreage as determined by an independent appraisal directed by the WCB. The WCB, at its November 18, 2010 Board Meeting, accepted the appraisal and authorized the use of existing bond funds approved by California voters in 2006 under Proposition 84 to acquire the conservation easements. Tejon Ranch Co. will retain fee ownership of the 62,000 acres and continue to operate current revenue generating activities including farming, cattle grazing, filming, oil and gas and other mineral exploration and production on portions of the acreage. The conservation easements will preclude the Company from pursuing any long term development on the 62,000 acres. This transaction allows the Company to realize an immediate value, as opposed to what possibly could have been realized through development of those areas sometime in the distant future.

“The Wildlife Conservation Board’s action gives the Company an opportunity to monetize, in the near term, potential long-term value associated with these remote areas of the Ranch that have little, if any, near-term development potential,” said Michael H. Winer, Portfolio Manager for Third Avenue Management LLC, the Company’s largest shareholder, and member of the Tejon Ranch Co. Board of Directors. “Further, it will preserve in perpetuity the environmentally important values of these lands through the imposition of conservation easements, administered by the independent Tejon Ranch Conservancy.”

The 62,000 acres represents the total acreage of five separate acquisition areas negotiated as part of the 2008 Conservation and Land Use Agreement. In that Agreement, the Resource Groups: Audubon California, Endangered Habitats League, Natural Resources Defense Council, Planning and Conservation League, and the Sierra Club, were given an option to acquire conservation easements over those areas. This action today by the WCB fulfills that option. The remaining balance of the property protected by conservation easements as defined within the landmark Agreement, approximately 178,000 acres, will be dedicated by Tejon Ranch Co. to the Conservancy over the next several decades as the Company achieves entitlement and ultimately develops the communities of Tejon Mountain Village, Centennial and the future 12,400 acre planning area at the base of the Grapevine.

Robert A. Stine, President and CEO of Tejon Ranch Company, stated, “today’s action by the WCB is the culmination of a long process involving many entities who came to the table with a vision and desire to create a new way to resolve the competing interests of land development and environmental preservation. In that regard, I am grateful for the role our partner in Tejon Mountain Village, DMB Associates, and its CEO, Eneas Kane, played in assisting Tejon Ranch in achieving the landmark agreement, which today’s action by the WCB fully embraces. This action is a major positive step forward for our company and its shareholders. It allows us to continue current revenue generating operations; to realize current revenue from the sale of easements on longer term potential land development opportunities; and proceed with Tejon Mountain Village, Centennial and the 12,400 acre development opportunities at the base of the Grapevine. All of these actions will result in greater shareholder value. Further, this is a major milestone in preserving in perpetuity environmentally important property for future generations of Californians to enjoy.” Additional steps are required before the sale of the easements will close, including the filing of various public notices, the completion of title review and the execution of the Grant Agreement between the WCB and the Tejon Ranch Conservancy.

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International Paper (IP) will sell 163,000 acres in the Southeast for a minimum of $200 million to an affiliate of Rock Creek Capital, a Jacksonville-based asset management firm that invests in unique, resource-rich land. According to wire reports, IP will receive a minimum $160 million when the deal closes later this quarter. It will receive the balance, plus interest, within three years. The company will also receive 20% of the net profit generated from the land after the Rock Creek affiliate achieves “certain financial returns.”

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Silver was first discovered in the Big Bend region of Far West Texas in the 1880s and mined at La Mina Grande in Presidio County from 1883 until 1942. More than 35 million ounces were produced. This area of the Lone Star State is home to some of the largest ranching empires in the country, and includes several Land Report 100ers: Brad Kelley, Jeff Bezos, and Clayton Williams, among others. The recent and sustained increase in the price of silver led Aurcana, a Canadian mining company, to pay $43 million to Silver Standard Resources to acquire the flooded mine, which it plans to reopen in 2010. Annual production estimates of 3.2 million ounces per year are forecast. More to come.

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BY STEPHEN O’KEEFE, CFA

Not all of us are ready yet to retire from urban life and spend all our time at our ranches, our beach homes, our hunting lodges, and our lake houses, but there’s no reason for our fields to lie fallow, so to speak. One way or another, there’s money to be made.

By buying stock in a wide range of businesses, you can participate in and profit from the land game without ever stepping foot on a piece of property. There’s the obvious, of course: timber, mining, petroleum, agriculture. But that just scratches the surface. Peek inside for an introduction to the myriad ways you can increase your land portfolio without once getting your hands dirty. As investments go, raw land can be rock solid.

But how can you profit from the increasing demand for ethanol if you don’t already own in the Corn Belt? What’s the best way to catch some upside when millions of acres of timberland are sold off? Simple. Diversify your portfolio. From the nation’s largest private landowner to Colorado’s biggest ski mountain and California’s biggest ranch, these publicly traded securities are all about land.

TRC
Tejon Ranch Company
LEBEC, CA. With more than 270,000 acres, TRC owns the largest expanse of private land in California. The ranch is located approximately 60 miles north of Los Angeles. TRC generates about half of its revenue from real estate operations and the other half from farming. Revenues have grown 10 percent per year since 2003.

PCH
Potlatch Corporation (REIT)
SPPOKANE, WA. PCH owns and manages 1.5 million acres of timberland in Arkansas, Idaho, Minnesota, Wisconsin, and Oregon. This stock converted to a Real Estate Investment Trust (REIT) structure in 2006 and may be best suited to income-oriented investors. PCH reviews its land holdings to see which parcels have high non-tim-berland values and are candidates for sale using the Section 1031 exchange program to minimize capital gains taxes.

PCL
Plum Creek Timber
SEATTLE, WA. Plum Creek has more than 8 million acres in major timber-producing regions of the United States, making it the largest and most geographically diverse private landowner in the nation. Management has acquired hundreds of thousands of acres in the last 15 years and is identifying where sales or development can be made. PCL has an attractive 4 percent yield.

WY
Weyerhauser
TACOMA, WA. An international forest products giant with sales of $21.9 billion in 2006, WY is under pressure to unlock shareholder value by restructuring its timber-lands into a REIT for more favorable tax treatment.

MTN
Vail Resorts
BROOMFIELD, CO. Skier visits were up this year, and so were lift ticket prices. MTN operates numerous ski resorts, including Vail, Breckenridge, Keystone, and Beaver Creek-and has a majority interest in RockResorts. A growing segment for MTN is real estate operations, which contributed less than 10 percent of 2006 earnings but look like a good source of future earnings growth.

SWC
Stillwater Mining Co.
BILLINGS, MT. The recent spike in platinum prices has been a boon to this Montana mining company, which refines and markets palladium, platinum, and associated metals. Both of the company’s mines (Stillwater Mine, near Nye, Montana, and the East Boulder Mine near Big Timber, Montana) are located on the geological formation known as the J-M Reef. Norilsk Nickel owns about 55 percent of shares.

CHK
Chesapeake Energy Corporation
OKLAHOMA CITY, OK. As natural gas goes, so does CHK. The prospects for a rebound in prices have propelled shares of the country’s third largest independent producer. Headquartered in Oklahoma City, the company focuses on exploratory and developmental drilling as well as acquisitions in the Mid-Continent, Permian Basin, South Texas, Texas Gulf Coast, Barnett Shale, Ark-La-Tex, and Appalachian Basin.

CWEI
Clayton Williams Energy
MIDLAND, TX. Want to throw in with one of the country’s most successful wildcatters? Clayton Williams Jr. is not your typical oil man. He owns an interest in more than 6,000 oil and gas wells, primarily in Texas, Louisiana, and New Mexico. He’s also made a name for himself as a cattleman and ranks No. 59 on this year’s Land Report 100.

TIN
Temple-Inland Inc.
AUSTIN, TX. The company owns or leases 1.8 million acres of timberland in Texas, Louisiana, Georgia, and Alabama. Pressure from financier Carllcahn is triggering a restructuring plan with TIN retaining its lumber mills and manufacturing and spinning off its Forestar Real Estate Group and its Guaranty Federal division, which has substantial presence in the highly desirable Texas and California markets.

GMTN
Gander Mountain
SAINT PAUL, MN. Like gear? Gander Mountain likes you. The company’s 105 outdoor lifestyle stores in 22 states specialize in hunting, fishing, camping, marine, and outdoor lifestyle products and services. It is poised to open 9 more stores this fall.

ADM
Archer Daniels Midland Company
DECATUR, IL. Eager to cash in on ethanol? Then take a look at this Illinois giant, which was founded in 1902. ADM processes foodstuffs: soybeans, wheat, cocoa, and that new yellow gold-corn. It has good exposure to the growing use of ethanol as a fuel (biodiesel too), but with more than 5 billion gallons of capacity in North America, the additional 4.5 billion gallons of planned construction may put a lid on ethanol’s rising price.

DE
Deere & Company
MOLINE, IL. Here’s another way to ride the ethanol boom. DE has grown from a one-man blacksmith shop in 1837 into a global corporation that now employs approximately 47,000 people. Soaring ethanol prices have spiked demand for equipment from this industry leader.

BTU
Peabody Energy Corporation
ST. LOUIS, MO. Peabody owns a majority interest in mines located throughout most major U.S. coal-producing regions. Transportation bottlenecks have dampened earnings, but rail carriers are increasing capacity, particularly in the western U.S. PS. Thanks to their Australian mines, BTU also has good exposure to the burgeoning China and Pacific Rim markets. Earnings prospects are good.

DEL
Deltic Timber Corp.
EL DORADO, AR. DEL sells its lumber products to truss manufacturers and wholesalers and is a good way to participate in the eventual rebound in homebuilding. The company owns almost 440,000 acres of timberland, primarily in Arkansas and Louisiana, and it also develops real estate in Arkansas.

ICO
International Coal Group
SCOTT DEPOT, WV. ICO has more than 1 billion tons of coal (metallurgical quality and steam) in its reserves and has idled about 1.7 million tons of high-cost production, shifting production focus to lower-cost mines. If oil prices stay high, then coal and ICO should remain attractive.

JOE
The St. Joe Company
JACKSONVILLE, FL. Ever heard of the term snowbird? JOE has. Florida’s largest owner of private land (approximately 800,000 acres) is also one of the state’s largest real estate development companies. Northwest Florida remains an attractive location for retirees, and JOE’s 3-5 year prospects are equally attractive.

RYN
Rayonier (REIT)
JACKSONVILLE, FL. Rayonier is a forest products company that converted to a REIT in 2004. It owns or manages 2.7 million acres of timberland in the United States and New Zealand. Its specialty fibers group products are used in pharmaceuticals, LCD screens, and industrial processes. And thanks to long-term contracts for 80 percent of production, RYN is poised to weather a weak housing market.

WTR
Aqua America Inc.
BRYN MAWR, PA. WTR is the holding company for regulated utilities that provide water and wastewater services to customers in 13 states. The company received rate increases in 2006 and is expected to receive more in 2007, adding to revenues and earnings.

ROAC
Rock of Ages Corporation
GRANITEVILLE, VT. A vertically integrated granite quarrier, manufacturer, and retailer, ROAC has built its business on granite memorials. The company owns and operates 10 active quarry properties and 5 manufacturing and sawing facilities, predominantly in Vermont and Quebec. It also has 81 company-owned stores in 14 states.

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