I’m a newbie and need guidance. I received an email from a landman saying that we had spoken already (we hadn’t) regarding a surface waiver agreement for our mineral interest in Jones County. The email goes on to state the tract(s) that Funston Solar would like to request a waiver of surface rights for. They offer compensation in exchange for executing the waiver in the amount of $500 for the execution of the waiver, and 1,000 upon start of construction.
Questions: Will there by additional compensation? (There’s an attached agreement and W-9). What exactly is this? Is it fair compensation? Is this a lease? Forgive my lack of knowledge. Thanks in advance.
I sold 3 acres of land west of Anson for $35,000 in 2020 and those prices seem to be the norm here in Jones County even now. Consider that in your negotiations. $1500.00 seems to be a great deal for them so please try and not be taken advantage of…
Essentially, they want to put up solar panels that will restrict your ability to use the land, and pay you a pittance. I suggest getting a LOT more details and discussing with your neighbors. A united front will benefit everyone.
These “Solar” companies are using front companies to negotiate surface leases while their being built for Google, Microsoft and others. This way the price stays low, hidden from the land owners.
It would be wise to try to find a surface usage attorney to help with the answers. First offers are generally low to see who will bite. You want to make sure that you protect your mineral rights and that is important. First red flag was the assumption that you would believe that they had already spoken to you when they had not.
Even though the original poster only has mineral rights, it is a good idea to get a surface attorney to help with what the issues are regarding reserving a location with a certain amount of surface acres to allow for mineral drilling. They usually handle the surface leases and know the timing of construction, etc. Surface owners will have a completely different lease. In most states, the mineral rights have dominance. A mineral owner does not want to accidentally give their rights away without understanding what they are signing.
Not a busy area! Probably hasn’t been leased in 40+ years. My advice would be to take the money & let the non-existent oil & gas companies worry about locations!
Hello. Thank you for your response. Here are the answers to your questions -
Size of the tract? We have two tracts. 1) 161.75 acres, of which we own 2.4536% mineral interest for a total of 3.97 net mineral acres. 2) same exactly as number 1
Did they furnish a plat/drawing? Yes.
How long will the construction last? Unclear from the documents. Just says that the current surface owner of the property under which you own minerals would like to develop the surface of the property. It’s a solar energy facility titled “Solar project”)
Does this last forever or what you grant termed? Doesn’t specify that I can see.
At least a 30 year term + 5 years to test/evaluate. The surface owner gets a pittance up front, then more once it starts. Has it ever been leased for oil&gas?