Hey there solar enthusiasts! Dirk here. Today, we’re going to delve into a fascinating facet of the solar world – the interplay between mineral and surface estates, especially as it pertains to massive solar power players like Texas and California. Understanding these dynamics is crucial for solar companies and homeowners looking to install solar panels for your home.
One of the interesting aspects about the leading solar states, Texas and California, is that they also have thriving oil and gas operations. This means the same plot of land is often shared by both solar arrays for home use and industrial power giants.
The mineral estate holders, typically the oil and gas firms, legally have the right to use as much of the surface as necessary to access the resources beneath. This right needs to be factored in when planning any solar projects because solar energy installations often cover almost the entire surface of the land they utilize.
So, how do solar companies navigate this rather complex domain?
1. Understanding the rights: The solar developer must identify whether the mineral estate has been severed and the current title holder. They must assess the risks related to surface use by the mineral estate and devise ways to reduce these risks or get title insurance to insure against the forced removal of solar facilities.
2. Determining the rights: Title companies typically provide information about the surface estate ownership but rarely offer data regarding the subsurface mineral estate. Hence, project developers often need landmen, professionals who research real property ownership, to establish who controls the mineral estate.
Overcoming the mineral estate challenge often involves using effective surface rights waivers or accommodation agreements. An ideal waiver completely prohibits the mineral owner from disturbing the solar project site. However, if a waiver is not feasible, accommodation agreements can be used to set aside areas dedicated to oil, gas, and mineral activities, with the rest remaining undisturbed for solar installations.
Sometimes, getting surface waivers or agreements from all mineral interest holders is not possible. However, many oil and gas firms are not willing to develop minerals on the lease of a minor fractional mineral owner, paving the way for solar installations.
In such instances, developers can also consider alternatives. They can review regulatory restrictions and drill site reservations. They can even assess the likelihood of commercially viable mineral production.
Finally, project developers must secure title insurance to cover mineral rights risk, which is essential in obtaining construction financing for the project.
Keep in mind, these strategies and insights are not just for big solar companies. They’re equally relevant if you’re researching about installing solar panels for your home or creating a personal solar array for home use.
Remember, the overall goal is to strike a balance where solar and mineral interests can coexist and thrive. Understanding the roadblocks and strategizing to navigate them is what takes us a step closer to this outcome. Stay tuned for more posts geared towards enlightening you on the fascinating world of solar energy! Cheers!
Original Articlehttps://pv-magazine-usa.com/2024/03/01/achieving-compatibility-between-solar-project-developers-and-mineral-estate-holders/
