• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Legally ababdoned oil well on property

Status
Not open for further replies.

Kevin Gregan

Thread Starter
Freshman Member
Joined
Dec 22, 2004
Professional Status
Certified Residential Appraiser
State
California
I have an assignment to appraise a SFR with a legally abandoned oil well on the property in Huntington Beach, CA. Does anyone have any knowledge about appraising property with oil wells on them or Do you think this is something I am not competant to complete? Any help is appreciated.

Kevin Gregan
Certified Residential Appraiser
 

Beth Stevens

Sophomore Member
Joined
Jan 14, 2007
Professional Status
Certified Residential Appraiser
State
Washington
Just my opinion, but if you have to ask if WE think you're qualified.........I think there's a problem. :leeann:
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Go check your state oil and gas website and locate the well (or call them) If it has been properly abandoned, then you likely cannot see the wellhead (because the casing has been cemented and cut off below the ground, then capped with a steel plate and covered over) or in some areas, there is a steel pipe with a number welded on it.
A well that has been plugged and abandoned and approved by the state should be "no problem"...just state that it was P & A according to state records. If it shows the well any other status, (active, unreported, producing) then the problem is expanded.

A couple issues. If you are appraising "Fee Simple" then that includes the mineral rights. If the mineral rights are severed, you are appraising fee in surface. Note that somewhere. And do the environmental disclaimer somewhere...'assumes the property value is not impacted by a legally abandoned well.." etc.

If you have one of these on the property its not "legally abandoned"..its just abandoned.

PS - If you have problems finding info on the well go to Long Beach and hunt up the Termo Company and ask if you could speak to a geologist or engineer about this. They're pretty nice folks from what I hear and Trent there I know is.
 
Last edited:

Kevin Gregan

Thread Starter
Freshman Member
Joined
Dec 22, 2004
Professional Status
Certified Residential Appraiser
State
California
Thank you that is very helpful information. I really appreciate it.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks