Real Estate and Land Use

Real estate is at the foundation of nearly every energy project. Before a solar facility, wind project, oil and gas operation, geothermal development, carbon sequestration project, or other energy venture can move forward, someone has to determine who owns the property, what rights are available, how the land can be used, and what agreements are necessary to secure those rights. In California, those questions can become particularly complicated when property ownership, agricultural operations, mineral interests, environmental requirements, and local land use regulations overlap.

At Reed Energy Law, PC, we help energy companies, operators, producers, landowners, mineral owners, and other clients navigate the real estate and land use issues that can determine whether a project gets off the ground. Alyssa Reed has more than 20 years of experience working with energy companies and landowners on property acquisition, title analysis, leases, transactions, permitting, entitlements, and land use matters throughout California. Her experience includes projects in Kern County and other areas statewide where energy development and agricultural land uses frequently intersect.

We understand that acquiring or leasing property for an energy project is about much more than getting a contract signed. The underlying rights need to be identified, the agreement needs to fit the intended use, and the project needs a realistic path through California’s land use and permitting requirements.

Energy Project Real Estate Requires More Than a Standard Transaction

Energy projects often involve real property arrangements that are considerably more complicated than a conventional purchase or lease. A project may require multiple parcels, several different types of agreements, access across neighboring properties, rights to construct and maintain infrastructure, and coordination with existing agricultural or commercial uses.

The parties may also have different interests in the same property. One party may own the surface estate while another owns mineral rights. A property may be subject to an agricultural lease, grazing arrangement, easement, prior reservation, or other encumbrance. Existing rights can affect what a developer can build and operate and may need to be addressed before the project proceeds.

We help clients understand those overlapping interests and structure real estate arrangements around the actual needs of the project. Our experience includes all forms of purchase and sale agreements as well as agricultural leases, grazing leases, surface leases, building leases, commercial leases, easements, and other agreements involving real property. We work with both parties acquiring or leasing property and property owners evaluating what rights they are being asked to grant.

Purchase and Sale Agreements

Acquiring property for an energy or natural resources project can involve substantial due diligence before the parties are ready to close. The purchase agreement needs to address more than price and closing conditions when the property is intended for a specific development. We assist with purchase and sale agreements involving energy projects, commercial properties, development sites, and other real estate. We consider issues such as title, existing leases and encumbrances, access, permitted uses, development conditions, environmental concerns, and the rights necessary to support the client’s intended use.

For a developer, the objective may be to acquire property with enough flexibility to pursue permitting and development. For a landowner, the objective may be to ensure that the transaction clearly establishes the scope of the buyer’s rights and protects existing interests. We work to make those expectations clear in the transaction documents so the parties understand what they are agreeing to and what happens if the project changes during development.

Agricultural and Grazing Leases

California energy development frequently takes place on land that is also used for agriculture or grazing. A new project therefore may need to coexist with an existing agricultural operation or address an existing lease before development can begin. Agricultural leases and grazing leases require careful consideration because the rights and obligations of the parties can extend beyond simply allowing someone to occupy the property. The timing of possession, permitted activities, access, maintenance responsibilities, improvements, termination provisions, and interactions with future development can all become important.

We help clients negotiate and document agricultural and grazing arrangements while considering the broader objectives of the property and any proposed energy development. For landowners, that can mean evaluating whether an existing agricultural arrangement is compatible with a proposed energy project and making sure the property owner’s rights are preserved. For developers and operators, it can mean determining how existing uses may affect site control and project scheduling. Understanding the existing use of the land early can help prevent conflicts later.

Surface Leases and Surface Rights

Many energy projects depend on rights to use the surface of land even when the project does not involve acquiring the entire property. A surface lease, for example, may provide rights needed for equipment, facilities, access roads, pipelines, gathering systems, electrical infrastructure, monitoring equipment, or other project components. The scope of a surface lease can have long-term consequences. The agreement may need to address the location and extent of permitted activities, construction and maintenance rights, access, environmental obligations, restoration, indemnification, insurance, assignment, term, and what happens when the project ends.

We negotiate and draft surface leases with the intended project and long-term use in mind. We also help landowners evaluate proposed surface arrangements and understand how granting particular rights could affect their property. Our goal is to make the agreement sufficiently clear to reduce uncertainty while preserving appropriate flexibility for the project.

Building and Commercial Leases

Energy companies and related businesses may also need traditional commercial real estate arrangements. Offices, warehouses, yards, equipment facilities, storage locations, processing sites, and other business operations can require building or commercial leases. We assist with commercial leasing matters and consider the operational requirements that may make an energy-related lease different from an ordinary commercial tenancy. Depending on the property and intended use, issues involving access, equipment, improvements, environmental conditions, insurance, compliance obligations, and assignment may require particular attention.

A lease should support the business purpose for which the property is being used. We work with clients to identify the provisions that matter most to their operations and address them in the agreement.

Understanding Complex Property Titles

One of the most important parts of energy real estate work can happen before a transaction is signed: understanding exactly what rights exist in the property. California property records can contain decades of conveyances, reservations, leases, easements, restrictions, mineral reservations, rights-of-way, and other instruments. In energy-producing areas, the ownership history can be particularly complicated because surface and mineral interests may have been separated long ago.

A title report may identify an apparent owner, but understanding the actual rights available for a proposed project can require looking beyond the most recent conveyance. Prior instruments may contain reservations or restrictions that affect the current property. An easement may provide access but limit how that access can be used. A mineral reservation may create rights that are separate from the surface estate.

Alyssa Reed has extensive experience reviewing and understanding these title complexities. We analyze the documents and property interests relevant to a transaction and help clients determine what rights need to be acquired, confirmed, released, or otherwise addressed. This work can be particularly important before a company invests substantial resources into development. Discovering a significant title problem after a project has already been designed, permitted, or financed can create unnecessary expense and delay.

Mineral and Surface Ownership

The distinction between surface rights and mineral rights is fundamental to many California energy projects. A person or company may own the surface of a property without owning the minerals beneath it. Separate owners may have rights to oil, gas, or other minerals, and existing agreements may grant particular rights to explore, extract, develop, or access those resources. This can create complicated questions when a proposed project involves both surface development and subsurface interests. A solar or wind project may need to account for existing mineral rights. An oil and gas operation may need surface access across property owned by someone else. A carbon sequestration project may involve subsurface rights that require careful examination before development. We help clients identify and understand these interests and incorporate them into real estate transactions and project planning.

Land Use Planning and Project Entitlements

Securing control of property is only one step in developing an energy project. The proposed use must also have a viable path through the applicable land use and permitting process. California projects may encounter zoning requirements, general plan provisions, conditional use requirements, environmental review, agency approvals, and other entitlement issues. Local requirements can vary significantly depending on the jurisdiction, location, and type of project.

We assist clients in evaluating land use restrictions and developing strategies for pursuing the necessary approvals. Our experience includes working on projects involving oil and gas, solar, wind, carbon sequestration, and other energy developments. We look at permitting questions from the beginning rather than waiting until a project has already been designed around assumptions that may not hold up under applicable regulations.

CEQA and Other Permitting Challenges

The California Environmental Quality Act, commonly known as CEQA, can be a significant consideration in energy and land development projects. Depending on the project and the circumstances, environmental review can affect project timing, entitlement strategy, agency decisions, and litigation risk.

We assist clients with project permitting strategies and legal issues involving CEQA and other permitting requirements. Our goal is to help clients understand the available pathways, identify potential obstacles, and make informed decisions about how to structure and pursue a project. Attorney Alyssa Reed’s experience includes defending energy projects against challenges involving CEQA and other environmental laws. She has worked on complex litigation concerning oil and gas permitting, including challenges involving the issuance of drilling permits by CalGEM.

That experience provides an important perspective during project development. Understanding how a project could potentially be challenged can help inform decisions about permitting strategy and project design before significant resources are committed.

Working With Counties and Government Agencies

Land use and entitlement decisions frequently require direct interaction with local governments. County planning departments, boards of supervisors, and other agencies can play important roles in determining whether and how a project proceeds. We understand the importance of communicating effectively with public agencies while advocating for our clients’ interests. Alyssa has experience working with counties throughout California as well as state and federal agencies involved in energy and environmental regulation.

We also understand that successful agency interactions require more than submitting documents. A project may involve questions from planning staff, concerns from neighboring property owners, environmental issues, technical information, and community considerations. Identifying those issues early can make the process more manageable. Our experience allows us to help clients anticipate questions, evaluate options, and work toward a permitting strategy that aligns with the project’s objectives.

Real Estate Counsel From Project Development Through Operations

Real estate issues do not necessarily end when a project is entitled or construction begins. Energy projects can operate for decades, and property arrangements may need to be modified, assigned, extended, or enforced over time. Changes in ownership, project expansion, refinancing, new infrastructure, operational requirements, and disputes with property owners can all create new legal questions.

We help clients address those issues as they arise while keeping the original project objectives in mind. Because we understand both the transactional and operational sides of energy development, we can approach a property issue with an understanding of how it may affect the business. That continuity can be valuable for companies with extensive land portfolios or projects that involve multiple property owners and long-term agreements.

A Practical Approach to California Land and Energy Development

The most effective real estate strategy for an energy project begins with understanding the land, the rights attached to it, and the intended use. It also requires recognizing the regulatory and practical issues that may affect development. At Reed Energy Law, PC, we bring more than 20 years of experience to these issues. Alyssa Reed understands the complexities of California property rights and has worked directly with energy companies, landowners, public agencies, and other stakeholders on projects throughout the state. Whether you are acquiring property, negotiating a surface lease, reviewing an agricultural or grazing lease, analyzing a complicated title, seeking project entitlements, or addressing a CEQA or permitting challenge, we can help you evaluate the legal and practical issues involved.

If you are planning an energy or natural resources project in California or need help protecting or negotiating your interests in real property, get in touch with Reed Energy Law, PC. Contact us to discuss your property, project, transaction, or permitting needs with Alyssa Reed and learn how our experience can help you move forward.