Hi all, I’ve received several offers to lease my inherited mineral rights in Eldorado Illinois. Aka: Illinois Basin crude oil area. The offers came from a company called Sol Systems under a project called the Eldorado Solar Project. I have about 270+ acres of mineral rights handed down from my father. I am not the surface owner.
They sent an original offer of $200 to sign the legal lease agreement (lol). After I didn’t sign it, they increased the offer to $1,000, and subsequently to $2,000. They did say that oil companies can drill sideways and set aside some areas to drill. However, I have heard horror stories about solar projects and definitely don’t want to get involved. I’m sure they want me to sign so I don’t come in later and demand them to rip out panels.
Anyway, I haven’t taken any of their offers because I have hired a landman to go check out the properties. With all my research I can see capped wells, natural gas, and a possible active well. At this time, I have not signed the documents because I’ve heard companies like this will lock up the land for any future drilling opportunities.
Has anyone else here seen offers like this and what kind of deals did they give to you?
I would like to start researching possible oil companies to start drilling however I think it’s not likely to happen with the current president. Later in 2024 we shall see what happens. Any advice about this would also be appreciated. Thank you!
In Texas I know of a family that leased the mineral rights to a solar company for $500/net mineral acre with a lot of other terms in their favor to protect the mineral rights future possible production. If you own 100% of the mineral rights that would be 270 x $500 = $135,000. I would say that you have gotten “insulting” offers.
the issue becomes use of the surface estate as a solar farm, which would infringe upon your rights to develop the minerals beneath them, if you do not also own the surface. If this is the case, the only day to develop the minerals (oil and gas) would be through horizontal drilling from an off-site pad (surface) location. Normally, the Solar Farm would only develop after the mineral interests were accounted for and a Surface Waiver (relinquishment of the mineral owners rights to use the surface to develop minerals) executed by the mineral owner. There would be a concept worth researching, being an Accommodation Agreement (setting aside a portion of the surface estate specifically for the use of the mineral owners as a well pad site and tank storage facility.)
The mineral owner can and needs to set aside drill sites, pipeline right of ways, power line right of ways and so on. This applies even if you don’t own the surface. Depending upon the size of the tract of land.
Interesting, thank you for the replies and information. I’ll have to get some additional information from the solar farm such as a plot map and design before I go anywhere with it.
Additionally, does anyone know how to start scouting potential oil companies to see if they are interested in doing some drilling in the area?
Start with the Illinois Oil and Gas commission to see who is active (or has been) in the area near to you. I suspect that there is not a whole lot going on right now, but haven’t looked in a while.