Need help with a utility lease.

[Vahunter]

Since this is a Texas forum , I figured there might be someone who knew about these.

I have been approached by a company to put a facility 'that will gather an energy producing resource' on land that I own . They are offering a nice long lease, decent $$$$....

For oil, NG, solar, wind etc., how long do the leases last? What do they pay? Who decommissions the facility when done? How do they fund the decommission - escrow? general operating funds?

What happens when the production company goes belly up?

What questions should I be asking this company?

Thanks.

 

[AvianQuest]

You have the right questions, but you need to ask them to the company that wants to use your land. I would also suggest you talk to landowners in your area that have dealt with that company.

 

[oleww]

In Louisiana, a permanent easement for underground pipeline, after you clear cut the trees will break even on the cost of land. And you get to keep and use the land!!!!

Buddy was approached about a solar lease. Would be income producing but he would NOT have access to the “gated” panels area. He declined when the salesman couldn’t answer real long term answers like clean up after lease expires.


In summery, underground will almost pay for the land, above ground lease requires a study.