If anyone has ever had this experience, I sure would like to hear some input and advice. Thanks in advance for your responses.
I know of someone that did and they got $5000 a month, that was at least 8 years ago.
Terry, I abstracted all the BellSouth sites along I-20 back in the late 90's when oil & gas went to crap. I would think the price is mainly dependent on the location.
Much like TD, I think landmen ended up doing some of this type of work whenever other things got slow. I ended up working on a few of these in the late 90s and early 2000s even when I came back from doing telecomm ROW...
I would have the agent bring a written offer along with their map. Cell tower acquisition is usually location dependent based upon existing coverage area and overlap with other towers in the vicinity.
The standard map usually includes a "bull's eye" pattern on it - the closest that the agent can obtain a lease to the center of the bull's eye is optimal. Outside of that, not so much. Usually there is a circle that delineates between "close enough" and "don't bother". Anyone within the near vicinity of the center of the bull's eye is also a possibility. If it's just you, congratulations, you have good negotiation stature. Much like shale leasing, the carrier / operator has other options to cover the same area within reason, so there is an upper limit to all this. However, if there are several parties within the "high priority" area, he just has to make a deal with one of you; the rest are out of luck.
Contracts usually are long term (10 - 25 years), with options for renewal / extension (usually at least once, more commonly twice). Rentals are usually paid either monthly or annually. A graduated rental schedule is preferable, adjusted annually, but some operators insist on flat rentals paid on intervals during each term, only allowing for increases upon each renewal or extension period. A map is commissioned delineating the exact area that lessee is leasing. Make sure that positioning of the site is such so as to minimize impact to your remaining property (along property boundaries and corners, not in the middle of fields, etc. - nothing like having a cable-stayed tower taking up 5 acres in the dead middle of your 40.)
Also, it goes without saying, lessee should pay for all improvements, pay all applicable taxes, etc. Standard indemnity and hold harmless of Lessor from all claims of third parties for all of lessee's activities should be included. At the end of the period of use, lessee should file a release of record, and remove all equipment from the site within a reasonable period (90 - 180 days) - however, I would request the option to have any access or utility improvements in place. Road cuts, culverts, and electrical drops cost money to anyone that wants them, and if leaving them in place suits your present or future purposes - it doesn't cost lessee any more to leave same, and time and labor to have same removed. They may have to sign it over and release it to you - oh no, you own a good road access and a pre-paid utility drop on your property. If it is a problem, tell them to pull it.
I would want some type of environmental rehab - obligation and indemnity. There are examples of these elsewhere on GHS (or there were) - if not, consult an attorney to iron this out for you. Transformers, backup generators, and battery arrays are commonly used and serviced in-place on these sites, along with commercial and light industrial vehicles, lifts, and erection equipment - people spill stuff, equipment leaks. Make sure they are obligated to clean up their own messes and settle their own fines and violations, or at least ensure that it's not your problem going forward.
That's what comes to mind right off the top. As with OGMLs, these agreements can last for generations, so I would always advocate having a professional see to the details. Even if it's not me. IANAL.
I knew of a landowner in North Caddo who landed a tower because he was in the target and had the highest (elevation) tract around. I was told by a landman they were to pay the landowner a sum of 1700 a month for over a generation. I do not know what kind of agreement he nailed but he was pleased with it, the landowner was pleased as reported by the landman. This particular landman was in O&G but hunted hogs on this guy's tract up near Mooringsport. I would imagine 5000 a month is the high end, huh?
Francis I would think the same way at the $5000 figure. When I was involved the $1500 dollar was at the high end in downtown Shreveport. Most were at $300 to $600.
Yeah, that is what I thought and this landman told me that the guy was singled out because of the vantage point on his property. Made it sound like he got a good deal, this was related to me around June of this year. I do not know what comm company was involved.
we were approached for 500$/month
Thanks Francis, I hope you are right! I appreciate your response.
Sure thing, Tony. Sounds like if they contact you for something like that you are odds wise a Publishers Clearinghouse winner. Talk about easy money.
I keep waiting for them to show up at the door with one of them BIG CHECKS and I can look like all the idiots before me! HA!!
Thank you very much, Dion. I appreciate your advice and expertise.