Wetsel & Lederle, LLPWetsel & Lederle, LLP2026-10-29T20:35:02Zhttps://www.wal.law/feed/atom/WordPress/wp-content/uploads/sites/1203618/2020/01/cropped-site-icon-1-32x32.jpgOn Behalf of Wetsel & Lederle, LLP<![CDATA[What happens if a battery storage developer goes bankrupt?]]>https://www.wal.law/?p=2566542026-10-08T12:59:56Z2026-10-08T12:59:56ZWho removes abandoned battery equipment?
Bankruptcy does not always mean a battery storage project will close. Another company may buy the facility and continue running it. However, if no buyer takes over, the equipment may remain on the property.
This creates a problem for landowners because removing battery storage equipment can be expensive. Workers must safely disconnect electrical systems, remove batteries and clear foundations. They may also need to repair damage to the land.
To address these concerns, Texas sets cleanup rules for certain battery storage agreements. The law requires developers to take responsibility for removing equipment and restoring the property.
However, bankruptcy can make it harder to enforce these duties. Landowners may need to resolve ownership and removal issues through the bankruptcy court.
How can landowners avoid cleanup costs?
Because removing equipment can cost thousands of dollars or more, landowners need financial protection if a developer cannot pay.
Under Chapter 303, covered agreements must include financial security for cleanup costs. Developers may provide this protection through bonds or letters of credit. The law also requires cost estimates and regular updates. These rules generally apply to agreements signed on or after September 1, 2025.
However, landowners should check whether the financial security will cover all cleanup costs. This includes battery disposal, equipment removal and land repairs. They should also understand how to access the money if the developer fails to meet its duties.
How can landowners prepare for financial problems?
Landowners can lower their risks by reviewing lease terms before signing. The agreement should explain who pays for cleanup, when equipment must be removed and what happens if the developer goes bankrupt.
If bankruptcy occurs, landowners should avoid removing equipment or ending the lease without first checking their legal rights.
Speaking with a Texas attorney who understands energy leases and bankruptcy law may be a good idea. An attorney can help landowners review these issues. This guidance can also help them protect their property and avoid unexpected costs.]]>On Behalf of Wetsel & Lederle, LLP<![CDATA[What happens when a Texas battery project shuts down?]]>https://www.wal.law/?p=2566352026-09-22T13:05:48Z2026-09-22T13:05:48ZBattery storage systems can operate for many years. At some point, though, operators must remove old batteries and other equipment. This raises key questions for Texas landowners. Who handles the cleanup? What happens to hazardous materials? Who pays to restore the land? Texas law now addresses these issues for certain battery storage agreements.
The operator handles dismantling
For covered agreements, Texas law gives the facility operator several cleanup duties. After a project shuts down, the operator must remove batteries, transformers and substations from the property.Some work may also take place below ground. The operator generally must remove foundations and buried cables to a depth of at least three feet. It must also fill holes with the same or similar soil and remove overhead lines it owns.
Some materials can be recycled
Not every part of an old battery facility needs to go to a landfill. When practical, the operator must reuse or recycle materials or send them somewhere that can do so.The operator must take materials that cannot be reused or recycled to a proper disposal site. If the law treats any waste as hazardous, the operator must send it to a facility allowed to handle those materials.
Landowners can request restoration
Removing the equipment may not leave the property ready for use. Texas law allows landowners to request certain steps to restore their land.Depending on the situation, the operator may need to remove roads it built or clear large rocks uncovered during construction. It may also need to return suitable land to a condition where farming can resume or reseed damaged pasture. A landowner generally has 180 days after receiving the required notice about a permanent shutdown or decommissioning to request certain restoration work.
Financial assurance helps cover cleanup
Closing a battery project can cost a lot of money. Texas law requires covered agreements to include financial assurance for the operator's cleanup duties. The amount generally considers the expected costs of removing equipment, handling waste and restoring the land. It may also account for the value of materials that the operator can recover.An independent professional engineer licensed in Texas must calculate the estimated costs of removal, recycling, disposal, and land restoration, net of any salvage value. The operator must deliver this estimate to the landowner by the 10th anniversary of commercial operations and post the required financial assurance by the earlier of the lease termination date or the 15th anniversary of operation.
Planning for the end of a project
Texas law makes cleanup planning an important part of covered battery storage agreements. Addressing equipment removal, waste, land restoration and costs early can help both sides understand their duties when the project eventually closes.]]>On Behalf of Wetsel & Lederle, LLP<![CDATA[Cow-voltaics: How solar panels benefit both ranchers and cattle]]>https://www.wal.law/?p=2566082026-07-01T15:36:52Z2026-07-01T15:36:52ZShaded pastures protect the health of your herd
During summer, cows often get too hot and uncomfortable. Solar panels block the sun, which could create shade for your herd, giving them relief from the heat. With the large structures shielding the dirt from burning rays, the soil might also keep its moisture longer. This extra moisture may help the grass stay green and fresh during dry weeks. Your cattle could then graze on nutritious food all through the summer months.
Solar setups provide steady help for ranchers
Managing a modern ranch often requires finding new ways to keep your business profitable. You might want to host solar panels because energy companies typically pay you rent to use your land. Securing these agreements could provide you a reliable stream of revenue even when cattle prices drop. This extra payout might help protect your family from market fluctuations so you could keep your livestock.
That said, leasing land for solar is not without its own financial risks. Texas law allows for special open-space land appraisals (commonly known as the ag exemption), which significantly lowers property taxes for active ranches. If you convert your land entirely to commercial solar, you could lose this status and face heavy rollback taxes. This is where cow-voltaics offer the best of both worlds: because it keeps cattle actively grazing on the property, it may allow you to maintain your agricultural tax status while collecting rent.
A bright future for Texas ranches
Cow-voltaics might offer a fresh way to look at traditional ranching. Dual-use land management such as this could help sustain family farms by securing an alternative source of income. Realizing those benefits, however, depends on getting the legal groundwork right. Lease terms, decommissioning obligations and the impact on your agricultural tax exemption are all things worth reviewing closely, ideally with an attorney, before signing any agreement. When the contract is sound and your ag exemption is protected, mixing technology with livestock can create a more resilient operation that allows your business to thrive.]]>On Behalf of Wetsel & Lederle, LLP<![CDATA[Can a solar lease affect your farm and agriculture tax exemption?]]>https://www.wal.law/?p=2564902026-06-11T08:17:38Z2026-06-11T08:17:38ZNot every solar project is the same
The effect on your agricultural valuation often depends on how much acreage you dedicate to solar panels and how you use the remaining property. Some developments remove large sections from production, while others allow limited farming or ranching activities to continue.
Before signing a lease, review the full scope of the proposed development and determine how it could affect your tax status. If you have concerns about the amount of acreage involved, ask a legal professional to review the agreement or negotiate the terms.
Rollback taxes can be expensive
If you convert land from agricultural use to solar development, you may trigger rollback taxes. These can require you to pay the difference between the property's agricultural value and market value for previous years.
To avoid the potential financial shock, you should consult with an energy lawyer first. They will help you understand your options and the potential consequences of the project on your agricultural tax exemption.
Consider the long-term financial picture
A solar project can affect more than just your agricultural valuation. It can also reduce the land you use for farming or ranching and lead to lower production, reduced grazing space and unexpected renovations.
Before you move forward, do a projection of your operations versus profits and expenses with the solar project in mind. If the additional costs and long-term effects do not seem worthwhile, consider rethinking the agreement.
What you should do next
Before signing a solar lease, slow down and evaluate what the project really means for your land, not just on paper. Speaking to an energy lawyer about how the proposal affects your land, operations and tax benefits will help you make informed decisions and decide if the risk is worth it.]]>On Behalf of Wetsel & Lederle, LLP<![CDATA[Powering up in Texas: How data centers connect to the ERCOT grid]]>https://www.wal.law/?p=2564862026-06-02T01:18:43Z2026-06-02T01:18:43ZLegal aspects of connecting to the ERCOT grid
Connecting a data center to the Texas power grid involves navigating a shifting landscape of state laws and rigid utility frameworks. Under Texas Senate Bill 6 and recently proposed rules by the Public Utility Commission of Texas (PUCT), any facility demanding 75 MW or more faces high regulatory hurdles designed to protect grid stability.
The ERCOT large-load process
To get connected, developers must navigate specific steps. Instead of checking requests one-by-one, ERCOT groups proposals together in a periodic "batch" study system to see how multiple large loads affect the grid simultaneously. Developers must complete transmission studies to see if existing 345 kV high-voltage lines can handle the power. If the grid is constrained, ERCOT might offer a phased "on-ramp" connection—giving you a portion of your power now and the rest once transmission upgrades are finished.
Why a strong legal team matters
Having an experienced energy legal team is critical to successfully navigating site selection and utility coordination. When selecting a location, a data center relies entirely on power availability, yet complex regional rules govern where and how a high-voltage connection can occur. A skilled legal team performs deep due diligence to ensure your chosen site has clean land titles and is free from dominant mineral rights that could disrupt construction. Furthermore, lawyers are essential for structuring behind-the-meter or hybrid power agreements, especially since Texas law places strict notice and review requirements on co-locating large loads with existing natural gas generation.]]>On Behalf of Wetsel & Lederle, LLP<![CDATA[What landowners should know before signing a solar lease]]>https://www.wal.law/?p=2564812026-05-14T12:24:04Z2026-05-14T12:24:04Z5 Important details you should review carefully
Solar agreements usually last 20 to 40 years. Some continue even longer through renewal rights. During that time, the company generally gains substantial surface-use rights over the leased area. Those rights can limit farming, grazing or future building plans.
Before you agree to those limits, it helps to review the provisions that shape daily land use. Key provisions include:
Lease terms can last decades: The agreement should explain renewal rights, extension periods and how long the company controls the property.
Payment methods vary: Fixed annual payments and production-based income can create very different long-term results. Inflation terms also matter.
Some activities become restricted: Certain contracts limit farming, timber work, fencing or future building plans near the project area.
These contracts often require experienced input: Solar agreements usually contain terms that differ from traditional oil and gas leases. You may benefit from speaking with an attorney who handles solar project contracts before signing a long-term agreement.
Tax obligations can change: In Texas, a shift from agricultural use could trigger rollback taxes under state property tax rules. The Texas Comptroller explains that changes to agricultural appraisals can create additional tax obligations.
Those contract terms can shape property use in different ways. A solar project often occupies a large portion of the surface. The project’s access rights, maintenance needs and operational limits can affect other income-producing uses on the same property.
Looking ahead before making a commitment
A solar lease can provide another source of revenue for rural landowners. At the same time, these agreements may reshape how a property functions for years. Minor contract details can become significant legal and financial limits later.
Before moving forward, you may want to compare payment terms and tax effects carefully. A more detailed contract review can help protect your financial expectations, property rights and future use of the land.]]>On Behalf of Wetsel & Lederle, LLP<![CDATA[Leasing Texas land for data centers? Read the power clause.]]>https://www.wal.law/?p=2564432026-01-30T07:26:47Z2026-01-30T07:26:47ZThe power clause decides who covers grid upgrade costs
Your lease should clearly state who’s responsible for bringing in the extra power a data center will need, and that includes transformers, substations and any new utility lines. These upgrades don’t happen automatically, and if the contract doesn’t spell out who covers them, the utility may look to you.
Some leases assign those costs to the tenant, others try to shift them to the landowner or avoid the topic altogether. Make sure the clause spells out not just who pays, but how and when and whether any shared use later could affect your rights or costs.
Missing terms can expose you to long-term liability
If the lease doesn’t set limits, you could be on the hook for more than just construction. Some contracts leave you responsible for permitting, delays or coordination with the utility, all of which can eat up time and money, especially if the tenant expands or walks away. Without clear boundaries around what upgrades are allowed and who absorbs the risk, you’re not leasing, you’re gambling.
Get legal review before you sign a high-load lease
Before a single pole goes in the ground, have a lawyer review the power clause and flag any vague or one-sided terms. A solid review can help you avoid future disputes, preserve your land’s value and make sure you are not unknowingly taking on someone else’s infrastructure bill. If the clause doesn’t make sense to you, that’s exactly why it needs a second look.]]>On Behalf of Wetsel & Lederle, LLP<![CDATA[How to efficiently remove a solar facility on your land in Texas?]]>https://www.wal.law/?p=2564272026-01-05T11:28:25Z2026-01-05T11:28:25ZYou signed a 30-year solar lease and it feels like it will last forever. But eventually, every project reaches its final sunset. When that day comes, you don't want thousands of tons of steel, glass and wiring left behind on your property.
Picture walking your land years from now and finding abandoned panels rusting in your fields. The good news? Texas law gives you strong protections to prevent this scenario. You just need to know how to use them.
How Texas law protects your land
Under Texas law, every solar agreement must include specific decommissioning obligations. Solar companies cannot skip this step. Even better, you cannot accidentally sign away these rights. Texas treats any waiver of decommissioning requirements as void. This means the law stands on your side, even if a contract says otherwise.However, having legal protections on the books is only part of the equation. You still need a well-written lease to enforce these protections effectively. Fortunately, recent state legislation makes these safeguards even stronger.
New recycling rules updated last 2025
Texas lawmakers recently passed House Bill 3228, which took effect last September 2025. This new law creates stricter requirements for how solar companies must handle facility removal. As a landowner, you benefit directly from these new standards.The law requires solar companies to meet these three key obligations:
Recycle all reusable materials: Companies must collect and reuse or recycle all components that can practicably be recycled, including solar panels and related equipment.
Dispose of waste properly: Non-recyclable components must go to appropriate facilities authorized by state and federal law. Hazardous materials go to specialized disposal sites, while non-hazardous materials go to approved municipal solid waste landfills.
Secure financial guarantees: Companies must obtain financial assurances to cover the estimated costs of facility removal, recycling and property restoration.
These rules ensure that decommissioning meets modern environmental standards. They also reduce your potential liability as a landowner. Still, even the best laws require proper enforcement through your lease agreement.
Secure your future with legal guidance
These legal protections only work when your lease clearly enforces them. An experienced energy law attorney can review your agreement before you sign. They ensure your contract includes proper decommissioning timelines, financial guarantees and removal standards. With the right legal help, you protect both your land and your peace of mind. Don't wait until the project ends to discover gaps in your agreement.]]>On Behalf of Wetsel & Lederle, LLP<![CDATA[How to protect your land when leasing for AI or mining]]>https://www.wal.law/?p=2564252025-12-10T23:06:29Z2025-12-10T23:06:29ZGet the power terms in writing from the start
Power is the biggest issue, so make sure the lease explains exactly who handles hookups, upgrades and monthly costs. These sites draw more electricity than most commercial setups, and unless your agreement spells out who’s paying for what, you could end up footing the bill for infrastructure you never needed before.
Limit how much control the tenant has over the land
Your lease should set firm boundaries around what parts of the land they can use, what they can build and how much access they have beyond the main site. If you leave those terms vague, you risk losing use of roads, water or nearby space you weren’t planning to give up.
Include end-of-lease cleanup and exit terms
You need a clear clause that requires the tenant to remove all equipment and restore the property once the lease ends or the project shuts down. Without this, you could be stuck with leftover fencing, damaged ground or electrical infrastructure that no one’s maintaining.
Watch the fine print on noise, zoning and resale limits
Some leases restrict what you can build, sell or lease in the future, even on nearby land. Others create noise, light or permitting issues that make it hard to repurpose your land later. You won’t spot this unless you read the fine print line by line.
Protect first, profit second
Before you commit to leasing your land for a data center or mining project, run the agreement through a legal check that puts your interests first, not just the money. A well-drafted lease now will save you from bigger problems later.]]>On Behalf of Wetsel & Lederle, LLP<![CDATA[What developers must know about Texas battery-storage permits]]>https://www.wal.law/?p=2564122025-11-11T14:58:38Z2025-11-11T14:58:38ZPermitting isn’t centralized in Texas
Texas intentionally keeps its energy market decentralized, which means no single agency handles the whole process. The Electric Reliability Council of Texas (ERCOT) manages grid connection, the Public Utility Commission oversees certification and local governments control land use. That independence gives developers flexibility but also increases risk, since a missed filing with one authority can ripple through the others. When you identify which regulators apply early, you prevent the domino effect of delays that often stalls construction schedules.
Environmental and fire-safety rules vary by jurisdiction
Because counties set their own safety and environmental standards, every project site tells a different story. One county might prioritize groundwater protection, while another enforces strict fire-safety systems after lithium-battery incidents. Larger projects often trigger state or federal reviews for waste management and air quality, which can overlap with local inspections. Knowing these layers ahead of time helps you design for compliance instead of redesigning under pressure. That difference saves both time and investor confidence.
ERCOT standards drive project viability
ERCOT is where technical approval meets market reality. The agency decides whether your battery counts as generation, load or hybrid. That label defines how your project earns revenue, trades energy and reports performance. With new storage capacity reshaping the grid, ERCOT continues refining interconnection studies to avoid congestion. Understanding that evolving framework before construction keeps your system adaptable and ready for future market shifts.
Informed developers stay ahead in Texas
Battery storage keeps growing across Texas, and developers who understand its permitting maze turn that complexity into an edge. When you know how deregulation shapes approvals and how ERCOT’s standards evolve, you build smarter and avoid preventable stalls. If you’re unsure where a rule applies, a quick conversation with a Texas energy attorney can help you clarify the path before costly missteps appear. Projects that start informed rarely end in surprises.]]>