In oil and gas-producing states like Colorado, commercial and residential developers often purchase property in which a separate entity owns the underlying minerals.
Solar farm developers who do not enter into surface use agreements with Pennsylvania oil, gas and mineral owners (and their lessees) could create legal jeopardy for their solar farm.
A recent Texas case,
Lyle v. Midway Solar, S.W. 3d, 2020 WL 7769632 (Tex. App. Ct., El Paso 83
rd Dist. 2020), addressed a challenge that many solar developers wrestle with: how to handle minerals owners. The El Paso Court of Appeals clarified this complex issue and demonstrated the importance of properly addressing the minerals on a site prior to developing a project.
Key Takeaways for Renewable Energy Developers:
This is an important case that renewable energy developers can look to in assessing the minerals on a project site. First, the court actually acknowledged that Texas was a leader in energy and produced the largest share of oil and gas, but that public policy favors adding renewable energy sources into the State’s energy portfolio, which is a great development for renewable energy developers. This case focuses on the conflict between the surface/solar owner and mineral owner/developer, which is always an issue especially for solar developers. The opinion does not add