Land & Renewables Connection

Renewable energy, zoning and land use issues will shape the future of growth in the region. Houston Harbaugh’s Renewable Energy, Zoning and Land Use practice focuses on assisting clients maximize and protect the value of their properties, whether related to renewable energy, commercial or residential development opportunities.

Know What Land You Are Leasing For Solar Development

A property owner considering a solar lease should take care to understand how much of their property they may be leasing for solar development. Leasing more land than necessary for solar energy facilities could negatively impact the value of the property and restrict the use of the land for other economic activities.

Land contracts commonly refer to property by identifying it by tax parcel or tax map number. Land is also frequently identified in contracts by referring to the deed that vested ownership in the leasing party. It is the simplest way of identifying surface property because (approximate) details about the property can be easily located in the tax assessor’s office or in the recorder’s office. Solar leases are no different. A solar lease proposal, including a solar option agreement, will likely identify a tax parcel, or tax parcels, as the land subject to the lease or option agreement.

Solar farms generate electricity by maximizing the surface area of photovoltaic panels exposed to the sun. Therefore, solar energy facilities can use large amounts of land. But solar panels cannot be located anywhere. Siting decisions about solar farm developments are informed by things like shade, topography, wetland and potential flooding issues. In hilly areas of Pennsylvania, it is unlikely that the entirety of a property could be used for solar energy generation. So, from that perspective, a solar company’s desire to take a lease that applies to all of a property makes sense. It allows the most flexibility.

But, that does not mean that leasing all of a property for solar energy facilities is beneficial for a landowner. While solar option agreements and solar leases are contracts that are governed by their own specific terms, it is likely that they grant exclusive rights to a solar energy company to use and develop the land. That could severely restrict the landowner’s ability to use and develop the land. It could also impact the value of the land. A potential buyer would likely not be interested in acquiring land where exclusive development rights have already been granted to someone else.

Also, while solar option and solar lease proposals are accompanied by monetary consideration, those contracts may be structured so that the longer-term payments during solar energy generating operations are only based on the acreage where the solar panels are located; not the entire acreage of the property subject to lease. That can result in acreage being subject to a lease but not generating income to the property owner. That is less than ideal.

Undoubtedly, solar energy development offers property owners the potential to derive an economic benefit from their land. But, as we have written before, solar leases can be long-term commitments for property owners. So, property owners should understand exactly what parts of their land that they are leasing, whether those areas of the property are necessary for solar development to occur and how all payments are calculated. If it is unlikely that the entirety of a parcel would not be developed, there are few compelling reasons to lease it. If all of a parcel will not be generating payments under the solar lease, there is little reason to lease all of the land. If less than the entirety of a parcel is being leased, landowners may consider appending detailed maps to the solar agreement in order to show the specific areas of their property that would be subject to a solar option or lease.

Solar option agreements and solar leases are complex contacts. The Renewable Energy, Zoning and Land Use attorneys at Houston Harbaugh assist clients who have been approached with potential solar option agreements or solar leases. If you need assistance with a solar option or solar lease agreement that you have been presented with, please contact Brendan A. O’Donnell at (412) 288-2226 or odonnellba@hh-law.com

About Us

These are cutting edge legal issues. The law of the future. Renewable energy, zoning and land use issues will shape the future of growth in the region. Houston Harbaugh’s Renewable Energy, Zoning and Land Use practice focuses on assisting clients maximize and protect the value of their properties, whether related to renewable energy, commercial or residential development opportunities.

As renewable energy becomes more reliable, efficient, inexpensive and technologies associated with carbon capture and storage advance, Pennsylvania, West Virginia and Ohio are in position to benefit from these two parallel energy development opportunities. The region’s geographic location and existing infrastructure presents unique opportunities for property owners to participate in solar, wind, geothermal, other renewable energy developments, as well as for carbon capture, carbon sequestration and carbon storage projects. Additionally, legacy oil, gas and coal infrastructure may be repurposed and reused in connection with new energy developments.

With any development, whether renewable energy, commercial or residential, there are a host of zoning and land use issues that directly impact the most basic parts of daily life of both individuals and communities. Determining where and how land can be developed impacts property ownership, property value, quality of life and the economic development and wellbeing of communities. Zoning and land use issues are, on one hand, matters of local concern but, on the other hand, potentially subject to county or state regulations.

The Renewable Energy, Zoning and Land Use practice draws on Houston Harbaugh attorneys’ experience in energyoil and gas and real property matters to advance clients’ interests in both transactional and litigation matters. Houston Harbaugh’s Renewable Energy, Zoning and Land Use attorneys assist clients with matters including:

  • Solar energy leases;
  • Wind energy leases;
  • Pore space ownership for carbon capture / carbon sequestration / carbon storage, geothermal and waste disposal;
  • Ownership of legacy oil, gas and coal infrastructure for repurposing/renewable energy usage;
  • Compliance with existing solar, wind and renewable energy leases;
  • Surface and subsurface accommodation between competing land uses;
  • Variance, Special Exception and Conditional Uses applications/hearings;
  • Land use appeals;
  • Eminent domain
Head shot photo of Pittsburgh, Pennsylvania Oil and Gas Lawyer Brendan O'Donnell at Houston Harbaugh

Brendan A. O'Donnell

An attorney in Houston Harbaugh’s Oil and Gas Practice, Brendan O’Donnell has represented oil and gas owners across Pennsylvania in a wide array of oil and gas matters for over a decade. This experience has involved not only the Marcellus shale and the Utica shale, but more traditional oil and gas development as well.

Brendan maintains a diverse practice, representing clients in all matters involving oil and gas spanning the transactional and litigation realms. On the transactional front, Brendan routinely assists landowners with negotiating oil and gas leases, pipeline rights of way and surface use agreements and subsurface easements related to horizontal drilling as part of Marcellus and Utica shale development.  Brendan also frequently reviews royalty statements and oil and gas ownership issues as well as preparing deeds and title curative documents. Brendan also maintains an active litigation practice, representing clients in state and federal courts, as well as private arbitration matters. This litigation often involves title disputes, pooling and unitization challenges, lease termination questions and royalty/ post-production cost claims.

Assisting clients across the spectrum from contract negotiations through litigation and appeals gives Brendan valuable first-hand knowledge about how oil and gas agreements are prepared, how disputes arise and how courts resolve these issues. Brendan stays up-to-date on developments in oil and gas law and writes frequently on the these topics. Additionally, as alternative energy generation like wind and solar are increasingly being developed in oil and gas producing regions, Brendan assists clients with navigating the interplay between these complex energy developments and evaluating solar agreements.

Brendan complements his oil and gas practice by representing property owners, including oil and gas owners, in zoning and land use matters. Brendan has represented clients before municipal bodies and in appeals to court. Brendan is also active in the firm’s Energy and Environmental Law Practice.

Regardless of the type of representation, Brendan prides himself in providing clients with realistic, pragmatic advice. Hiring an attorney is an investment and Brendan focuses on how he can provide value to clients.

Outside of the office, Brendan serves on the Town of McCandless Planning Commission and lives with his family in McCandless. Brendan has visited every one of Allegheny County’s 130 municipalities.