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Oil and Gas Production limits new development

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Restrain

Thread Starter
Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
For those of you following the oil and gas development in Texas, especially the Barnett Shale in the DFW area, you are aware of the windfall in tax revenue from all the new production.

Now, the taxing jurisdictions are starting to whine. With the wells come the pipelines to get the oil and gas to the central collection areas, as well as salt-water lines to put it back into the wells, etc. The effect is a spider-web of pipelines that cannot be built over. So, large acreage tracts no longer can be purchased and cut-up into subdivisions, limiting the amount of tax revenue that the jurisdictions can receive.

So, from a purely individual viewpoint, the property owners are telling the jurisdictions, "TOUGH". We don't care. We like the large open spaces and have no intentions of ever subdividing just to make the developers and tax collectors happy.

From an appraiser's viewpoint, this is something to take into consideration. A large vacant tract may be attractive from the surface for redevelopment, but the pipelines may so restrict the development as to making it only usable for a single homesite.
 

murray stroupe

Senior Member
Joined
Apr 27, 2005
Professional Status
General Public
State
Tennessee
Re; A home where the deer & antelope play

Good, i like wide open spaces also;
they say everything is bigger in TX
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
The effect is a spider-web of pipelines that cannot be built over.
Frankly, it has not been a pretty sight. I am working on a new offering of a course on mineral rights and one of the issues raised are the negative impacts of development upon surface property. You gave me a good confirmation of what I suspect. Do you have a news link or something on the subject? I would like to read it.
 

murray stroupe

Senior Member
Joined
Apr 27, 2005
Professional Status
General Public
State
Tennessee
Re; The best of times & worst of times

For those of you following the oil and gas development in Texas, especially the Barnett Shale in the DFW area, you are aware of the windfall in tax revenue from all the new production.

Now, the taxing jurisdictions are starting to whine. With the wells come the pipelines to get the oil and gas to the central collection areas, as well as salt-water lines to put it back into the wells, etc. The effect is a spider-web of pipelines that cannot be built over. So, large acreage tracts no longer can be purchased and cut-up into subdivisions, limiting the amount of tax revenue that the jurisdictions can receive.

So, from a purely individual viewpoint, the property owners are telling the jurisdictions, "TOUGH". We don't care. We like the large open spaces and have no intentions of ever subdividing just to make the developers and tax collectors happy.

From an appraiser's viewpoint, this is something to take into consideration. A large vacant tract may be attractive from the surface for redevelopment, but the pipelines may so restrict the development as to making it only usable for a single homesite.
================
Thats the advantage of private property,choices;
here they put hay fields over pipelines[not saltwater pipes], not that there are the number of pipelines in TN as TX.

Interesting google link,typed in question''how do oil pipelines effect developement'',GOOG page 5,Alliance for Great lakes........
 
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