I was recently contacted by solar company regarding a large solar farm they are planning on minerals that we own (ark/la/tx). They had already signed surface owner 2 years ago. They were looking for a waiver and offered an unrealistic offer. After several weeks of going back and forth they have indicated that they have to have an agreement with me before they can move on. I refuse to tell them what i want other than i want the same terms as the surface owner. Is this unrealistic? AlexanderHamilton
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Your question is too general as it depends on all the facts and circumstances, such as your fractional mineral ownership - such as 1% or 15% or 100% - and whether your minerals under all or only a portion of the acreage. This affects your negotiating power. The project finances may not be able to work if the costs are doubled. In that case, the surface owner’s financial deal might have to be reduced. From a minerals prospective, any agreement should address a reservation of a drilling location(s) and other issues, which do not matter to the surface owner. You need to consult an attorney experienced in solar farm deals and minerals as these are long and complex documents.
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Thank you for the input. I should have started with I own 100% of the minerals. Although there are producing formations in this county as well as coal and lignite I would forgo development 35 years if the terms were financially adequate. From what I have read in this forum there is a wide range of dollar amount per acre for mineral rights. Ala kingfisher county Texas 400.00 an acre for 35 year commitment. I am sure there are cases were the surface and mineral owners were treated the same. Your are correct in recommending a solar attorney. Unfortunately the ones I have researched to date want a percentage of deal as opposed to an hourly fee. I will keep looking. Thank you Alexander Hamilton
There are attorneys who represent mineral owners (and surface owners) and have experience with solar and other surface use agreements and charge hourly fees. As opposed to attorneys who primarily represent the lessees. There are attorneys listed on this site who charge hourly. Graves Daugherty also represents individuals. Do you know the surface owner? You might consider talking directly with surface owner about joining together for the deal.
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Unfortunately they were leased 2 years ago. I was going to contact after this deal is resolved for any future deals in the county.
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Have you ever leased your minerals before? I would never in my life sign a 35 year lease if there was any kind of activity near me.
A 35 year lease should be valued at selling the minerals outright in my opinion. With production in your county, I would be extremely hesitant to sign that deal. Are they offering any kind of royalty on the energy production? If not, what’s in it for you, outside of a one time payment and tying up your minerals in a producing county for 3 decades? Those are the questions I would be asking them.
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Try to Google solar leases in the counties your minerals are located in or the state. It’s possible there may be solar farm mineral leases filed in the entirety for you to look at. Good Luck, be careful.
thank you so much.
there are a few in this county
but there under missile manufacturer old base
Not sure if there is any paperwork since they have owned this large (10,000 acre) plant since the 40’s
FYI. You are in an excellent position if you own all of the minerals. I own a 1/8 of the minerals in about 2000 acres, and a company wants a mineral accommodation agreement. They have agreed to minimal drill site locations. However, I’m not sure if this would be sufficient. Also, it’s doubtful that a 3D Seismic survey could be performed. There has been excellent production on the property in the last 20 years but no leasing activity during the last ten years. An attorney tells me that if they secure half or more of the minerals, they can proceed, so I am not in as good of a position as you are. As far as what they will pay, they started at $50.00 an acre and are now at $700. Although unconfirmed, I understand that the surface owner, who also owns an undivided interest in the minerals, will potentially receive millions annually when fully developed. I hope this helps. You may be in the “catbird seat,” so to speak. Good luck.
Thank you so much for your input!
Your 700.00 an acre is a one time payment? Or is it like the surface agreement leases? For 35 years?
I’m not in any hurry. If it’s an attractive 35 year lease I might be willing to do it. If it’s not we will do nothing and hope for future.
Thx again
A Hamilton
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It is a one-time payment. At this point, it would not expire. We are still talking.
One approach I know of is a very large land owner that has about 2,200 acres was approached to do a solar lease. He counter offered them to buy the surface at a very high price instead of a lease. He hardly owned an minerals under the numerous tracts in the 2,200 Acres.