Bay City Attorney Shea Krauskopf talks about three things you should know in negotiating land leases for wind farms and solar farms. You should always talk with a knowledgeable attorney before you sign any agreements. Call our Bay City office for an appointment with Mr. Krauskopf at 979-245-5445 or call or text 800-929-1725 anytime.
Summary of the Wind Farms and Solar Farms Video
Hello, my name is Shea Krauskopf, and I’m an attorney with the law firm of Wadler Perches Hundl and Kerlick. I’m principally located here in our Bay City office at 2233 Avenue G, Bay City, Texas.
I’m here today to speak with you about solar farm and wind farm and battery storage leases. They’re becoming an increasingly popular phenomenon here in Matagorda County and The Great State of Texas as a whole. There are three important things you should be looking for in these leases if you’re the landowner.
Check the Compensation Offered and the Term of the Lease
Number one is the compensation offered and the term of the lease. Generally the solar farm, wind farm and the new battery leases are on a per acre basis. The landowner will get payments per year or per quarter. These payments vary depending on the size and location of your property. Generally speaking, it is tough to negotiate the prices up, but it can be done.
As for the term of the lease, you’re looking at a five to 10 year option period upfront. During the option period the solar, wind or battery farm operator will conduct a general study of your property to figure out if they actually want to develop this property with a solar or wind farm.
If they do want to move forward and set up a wind farm, solar farm or battery storage farm, then you’re looking at a 25, 30 or 40 year term with an extension. So these are longterm deals.
Check How Taxes Will Be Handled
The next most important thing you need to determine is how the taxes are going to be handled. You want to make sure that if the property is currently taxed for Ag-usage, that the wind, solar or battery farm will pay for any tax increases you may see due to the loss of that Ag-exemption.
You also want to make sure that the property taxes for the farm personal property such as the solar panels or the wind turbines or their facilities themselves are paid by the wind, solar or battery farm owners.
Check that a Restoration Bond Is In Place
Lastly and probably most importantly, we want to make sure there is a restoration bond in place. This restoration bond or some other form of security is needed in the event the company goes under or something else happens and they attempt to leave their personal property on your property. In that case, you would use the bond to pay for the removal and decommissioning of any of their personal property located on your property.
So those are the three most important things to look for in a solar farm, wind farm or battery storage lease. If you have any questions regarding one, please feel free to contact us at 979-245-5445. Thank you.
Don’t Sign a Lease without Talking with a Lawyer
It’s much easier to negotiate a lease before it’s signed than it is to change a lease after it’s signed. Call our Bay City office at 979-245-5445 for an appointment with Attorney Shea Krauskopf. You can also make an appointment by calling or texting 800-929-1725 anytime. And you can request an appointment by clicking the button below!