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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A recent report by two environmental nonprofits found San Miguel to have the highest rates...

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 family has accused San Miguel of contaminating its groundwater with toxic coal ash and failing to adequately clean up after mining the brown, or lignite, coal that fuels its plant. Environmental organizations have backed up the family’s claims. The Peelers sued San Miguel in federal court in Austin in March 2021, an action separate from the eminent domain case. They were looking to force the cooperative to shut down its on-site landfill and waste pits, dispose of its coal ash and other solid waste on or near the ranch, and conduct the “cleanup and restoration of the Peeler Ranch and adjacent properties.”

Around that time, the family sold the more than 8,000 acres to San Miguel for $38 million, well above the land’s appraised value. “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.San 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 cooperative says on its website that “to produce affordable, reliable electricity, we mine more than 3 million tons of lignite annually, working closely with the landowners who have trusted us to be caretakers of their property since the 1970s.”

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