tag:blogger.com,1999:blog-8086456397451838852.post3223462224807867940..comments2012-12-02T22:45:09.863-06:00Comments on enjoy it!: Mineral Owners Lose In CourtEnjoy Gashttp://www.blogger.com/profile/02682631622099118833noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8086456397451838852.post-87474434122660290082008-03-02T08:29:00.000-06:002008-03-02T08:29:00.000-06:00Initialy, the developers will promise to drill far...Initialy, the developers will promise to drill far away and do no damage and that is what they will do. But secondary drilling and production activities are even more strongly dominant over surface rights than the primary drilling activity.<BR/><BR/>The first well in a pooled 640 acre drilling unit doesn't have to be close to homes. Tanks and wellhead valving will not be very intrusive and probably will have little effect on property values or safety of the neighborhood.<BR/><BR/>However, when the other 80 wells are drilled to fully develop the unit, where will all those well sites, tanks, christmas trees, compressors and pipelines be installed? Will any laws or regulations force all that equipment to be installed underground to make them safe and/or reduce their visibility and impact on the esthetics and property values of a subdivision?<BR/><BR/>So far, these have not been an issue and the government regulators will be reluctant to make any changes that the public and lease contracts do not FORCE them to make.<BR/><BR/>In rural areas, these issues are not very significant. But in suburbia, who wants a big set of valves and tanks right by the entrance of a gated community of $200,000 plus homes? Is there any doubt that property values will be reduced if they are suddenly near a giant compressor installation?<BR/><BR/>And what about pipelines? They have to be installed. They have to go somewhere and in a suburban neighborhood, they will be installed where they are the lowest cost for the pipeline company.<BR/><BR/>By emminant domain, they go where they are needed. If that is through your yard, say goodby to established landscaping, big trees and perhaps even to structures.<BR/><BR/>Oh sure, fences will be rebuilt and some type of dirt will be used to fill holes. Streets and sidewalks will eventually be repaired. But it will take time for those impacts to blend in with older surroundings.<BR/><BR/>I have seen nothing that will require any tree over four inches in diameter to be replaced with one of similar size. I have seen no evidence that it is even possible for any of the 25+ year old oaks and pecans that grace the area now to be replaced.<BR/><BR/>But trees will eventually grow and property values will eventually adjust. However if 80% of the value of the gas goes to the big companies, owners will have little to show for their trouble.<BR/><BR/>We have already invested over $500,000 per acre in our property. Sometimes MUCH more. Impacting that for a signing bonus (under $20,000 per acre) may not be the wise choice particularly if it will be 10 years or more before royalties will be significant.<BR/><BR/>IT'S YOUR GAS ... ENJOY IT!Enjoy Gashttps://www.blogger.com/profile/02682631622099118833noreply@blogger.comtag:blogger.com,1999:blog-8086456397451838852.post-71995639263152485942008-03-01T14:47:00.000-06:002008-03-01T14:47:00.000-06:00Veeeery interesting! I wonder, though, what is the...Veeeery interesting! I wonder, though, what is the likelihood that in a residential setting, a driller would actually want or need to do anything that would cause surface damage?<BR/><BR/>In other words, if I enter into a lease agreement in a traditional residential subdivision, is there a realistic chance the driller might want to plow up my yard, or tear down my garage as part of drilling ro production activities?Anonymousnoreply@blogger.com