Land Appraisal-gas Well Nearby

[Meandering]

Sorry if any of this caused you an issue with your client or the assignment.

But things change and some of that is older information. Far as I know, Terrel would be the only one who would know the current status of things, and how best to proceed. He is usually on line in the evenings.

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[techbiker]

I'm not an expert on mineral rights but I am familiar with real estate in the DFW area.

-Mineral rights almost always appear to be severed here. Only 5-10% of surface properties I have researched still retain their mineral rights in my area.
-Since the 2014 fracking boom, I bet that severing mineral rights is only becoming more common.

 

[FMV]

No reason to be sorry, this is why I love this Forum for all appraisers..
great information to steer me away from possibly bigger problems with this assignment.
My children just lost their mother in December and I am SLAMMED and just don't have time to research this as much as I would like..

 

[Meandering]

Sorry for your loss.

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[FMV]

Thank you..
Makes perfect sense now why they assigned this to me so fast.. I already smell a rat..
Plus, I communicated to them about the gas well nearby-but i didn't get any response to it whatsoever-which also concerned me..

 

[Meandering]

Sit on it until this evening and see if Terrel comes on line and will respond to you.

 

[Terrel L. Shields]

The environmental engineer probably won't know much - you need to know how close the well is to the property and simply report it. Unless FHA or Fannie Mae, VA, etc. the distance is not an issue however. If legal, it is what it is. And there are tons of properties where wells exist and I bet your comps are near them though you may not even notice them due to screening or being a small wellhead (no pump jack).

You can disclose that from the sound of things you don't have the mineral rights but do have a limit on egress and ingress - they cannot site a well there. With horizontal drilling you may have a well underneath the property that originates a mile away. So that is not an issue. Simply state the absence of the mineral and it has no impact upon the property. The presence of a well nearby may have an impact upon value as an external obsolescence but if common to the area, it likely is minimal, particularly if no late night truck traffic or serious noise issues.

FYI the Railroad commission website can locate your well and tell you what it is and where.
http://www.rrc.state.tx.us/about-us/resource-center/research/gis-viewers/

 

[FMV]

Hey Terrel,
I was able to review some of the threads Marion sent over-what about adjustments for comps with mineral rights? From the rr site you sent it appears to be a gas well.. but I have no clue the distance.. I just know it is next to my lot.. we are also on the corner of a slightly busy blacktop country road and from what you say as far as truck noise.. I am positive there is some during working hours.

 

[FMV]

I feel a lot of Extraordinary Assumptions would need to be addressed here as well & the idea of an Environmental Engineer to at least comment on it maybe as well? IDK...

 

[Amy Perkins]

The subject property has a gas well adjacent to the lot in the southwest corner. The appraiser is not an environmental expert and is not qualified to determine whether it poses an environmental or safety hazard. Therefore, any environmental contamination is excluded from the appraisal. It is recommended that the subject property is assessed by an environmental expert. Should there be a clean up cost associated with the gas well; it should be deducted from the appraisal. (Now all you need to do is determine if there is a stigma associated with the gas well and extract out a percentage).

http://www.drillingmaps.com/texas.html#.WOBqUGnyuM8