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Land Appraisal-gas Well Nearby

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BODEPHUS

Member
Joined
Jul 18, 2013
Professional Status
Certified Residential Appraiser
State
Texas
Good Morning AF-
Completed a Land sale for a lot through a builder. When originally accepted the assignment-I learned there was a gas well adjacent to our lot on the lot next to us in the southwest corner and it did raise concern prior to the inspection. Took a lot of pics the day of the inspect. Does anyone have any good comments regarding the recommendation of the lot being inspected by an Environmental Engineer?? Any thoughts? **Just looking for some good commentary here**.. our lot itself looked good, just next to this gas well and I am going to adjust accordingly.
It appears to be a small gas well.. two mid-size tank about 10-12 ft in the air with some other smaller tanks surrounding it.-(SEE ATTACHED PICTURE)..
 

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Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
You probably want to PM Terrel Shields directly with your questions.

But, did you check to see if the mineral rights under your subject property have been severed?

Ding, Ding, Ding, not everything is Fee Simple, and I would start questioning what rights you are appraising if there are gas wells near by.

.
 

BODEPHUS

Member
Joined
Jul 18, 2013
Professional Status
Certified Residential Appraiser
State
Texas
Hey Marion-
Good question.. How do we check that? through the County?? Sorry, but that's a new one for me..
 

BODEPHUS

Member
Joined
Jul 18, 2013
Professional Status
Certified Residential Appraiser
State
Texas
They sent over the Warranty Deed and Legal Description.. this is a purchase of multiple lots, but we are only appraising this one lot..
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
I don't know about Texas, but in PA I would,

Read the deeds, see if the mineral rights are included or if the title is only good for the surface of the land. Tell client about gas wells in neighborhood, ask client for title work about the minerals and gas. PA does not consider gas a "mineral" so we have different issues with the title between gas and oil rights.

You might PM Restrain also,

He is now in Florida but was in Texas appraising for years.

.
 

BODEPHUS

Member
Joined
Jul 18, 2013
Professional Status
Certified Residential Appraiser
State
Texas
Hey Marion-
From what the Deed states.. it looks like they waive any rights to the surface access, but retain the right to drill for gas under the property.
 

BODEPHUS

Member
Joined
Jul 18, 2013
Professional Status
Certified Residential Appraiser
State
Texas
Anyone have any good commentary to all this??
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
I think you're going to need either Terrel or Restrain or both.

So your subject has only Fee in Surface rights, not Fee Simple.

You may want to check these threads on the subject
https://appraisersforum.com/forums/...idential-properties-no-more-mortgages.197150/
https://appraisersforum.com/forums/threads/appraising-mineral-rights.105716/
https://appraisersforum.com/forums/threads/fee-simple-minus-mineral-rights.98304/


Terrel's website post about it.
http://www.roxnoil.com/pdf/Facts_for_Appraisers_about_Mineral_Rights .pdf

Dictionary Definition of the rights you are appraising:
fee in surface
n: an estate on the surface of land created when the owner separates or severs his or her mineral interests from the surface of the land.
http://www.hpogc.com/tabid/99/ArticleId/4485/fee-in-surface-4485.aspx
 

BODEPHUS

Member
Joined
Jul 18, 2013
Professional Status
Certified Residential Appraiser
State
Texas
Hey Marion-
Thank you so much for the comment and posts.. I'm thinking I may have gotten into something I just don't have time to deal with.. from reviewing those other posts. As usual, I am getting minimal help from the builder.. and I can see why they handed me this assignment so quickly for the fee I requested, it ALL makes perfect sense now! Good Grief!!
Will prob just need to cough this one up as a learning experience and finish it with an Appointment fee since I don't want my name or Cert number floating around with this file and lot..

Thanks Marion
 

BODEPHUS

Member
Joined
Jul 18, 2013
Professional Status
Certified Residential Appraiser
State
Texas
I will definitely keep those Mineral Rights posts and Facts on Mineral Rights by Terrel.. thank you for that!
 
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