We received a letter from a landman representing a large Solar company that is planning a solar farm in Lea County, New Mexico.
Between four family members, we own all the mineral rights in one section (640 acres). We have agreed to all negotiate the same price.
Apparently, the surface land owners have already signed contracts.
The landman’s initial letter offered a “signing bonus” of approximately $5 an acre one-time payment, and another one-time payment when construction starts (est. July 2027) of approx. $14 an acre.
In researching solar farm payments for mineral “waivers,” on this site and across the internet, there is very little info available.
Some said they received offers as low as a flat fee of $50 total and others were negotiating for up to $700 an acre (but never posted what they actually got.)
They’re wanting rights for 20 years with 20 year extension offer.
Our section is one of six adjacent sections being approached by the Solar company. Our section has never had a well on it as far as we know, and has not been under lease for drilling for many years.
Can anyone help with numbers we should ask for?
Do nothing!
You are in the cat bird seat.
They cannot put a solar farm in unless they have 51% of the minerals secured.
I would either ask for a large bonus with annual rentals of the same( ala 300.00 bonus 300.00 rentals for duration of solar farm. Or if you wanted to get complicated you can hire a solar attorney and get a portion of the electricity produced through a royalty position.
either way do nothing for now.
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It still has potential. I would refuse to lease without a clause that the minerals are superior and any solar panels in the way of developing a well will have to be moved at their expense without compensation in the event a party wishes to drill a well. The offers are pathetic. If they want the minerals, I’d want to make sure that they paid full price for them. Best I can tell any minerals in Lea County would fetch $2,000 and up per acre.
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Thanks for your input.
We had read your previous comment from last fall where you were asking to get the same price as the land owner from the solar company.
Did you end up making a deal with the solar company? If so, can you give an approximate percentage you got compared to the surface owner?
If you didn’t make a deal, did that mean the project went elsewhere or was cancelled?
The surface owners of our section are friends of the family, so we don’t want to kill the deal for them.
You need to have NM attorney who is familiar with issues between minerals and surface assist you with any contract because the written terms are important and you do not want to impeded mineral development. You should consider reserving one or more surface locations within the section and access to the future pads. I understand not wanting to hurt friends of the family, but you could ask if they are willing for the mineral owners to share in some of the 30 year revenues.
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@terrel, TennisDaze, A. Hamilton.
Thanks for the help.
We did make initial contact with the landman to let him know we were working together (4 family members) in negotiating a fair market value for our rights.
I’ll post results when we hear anything more from the solar company or see a contract.
Keep in mind that a contract prepared by the solar company will not be written to protect your minerals.
Where is this location in Lea County?