Thread: homebuying and fracking

This isn't very applicable to me here in the big city but I figured I would share for those working out in rural states in case you haven't heard.
Apparently, developers who are building new suburban/semi rural subdivisions out west, Oklahoma, Colorado, etc. are retaining the mineral rights to the land that the houses they are building sit on. This is reportedly new and related to potential profits down the road from fracking. In the past of course it was the homeowners land. Reportedly all the legal jargon is in the sales contract and buyers aren't aware of it; because of course they don't read the docs, the developer doesn't verbally disclose, etc.
This could be a major property value ht down the road for a homeowner. For those who like to inform their clients about additional issues; this would be a big one. Could save a lot of buyers from a bad deal. Imagine you buy a house and 3 years later the fracking equipment shows up at the end of the block.

Originally Posted by Markus Keller

This isn't very applicable to me here in the big city but I figured I would share for those working out in rural states in case you haven't heard.
Apparently, developers who are building new suburban/semi rural subdivisions out west, Oklahoma, Colorado, etc. are retaining the mineral rights to the land that the houses they are building sit on. This is reportedly new and related to potential profits down the road from fracking. In the past of course it was the homeowners land. Reportedly all the legal jargon is in the sales contract and buyers aren't aware of it; because of course they don't read the docs, the developer doesn't verbally disclose, etc.
This could be a major property value ht down the road for a homeowner. For those who like to inform their clients about additional issues; this would be a big one. Could save a lot of buyers from a bad deal. Imagine you buy a house and 3 years later the fracking equipment shows up at the end of the block.

Good points but I have never waded in on the subject. Of course around here almost everyone knows that the mineral rights don't always go with the land.

Originally Posted by Markus Keller

Apparently, developers who are building new suburban/semi rural subdivisions out west, Oklahoma, Colorado, etc. are retaining the mineral rights to the land that the houses they are building sit on. This is reportedly new and related to potential profits down the road from fracking.

I don’t know about Oklahoma, but this has been the case in Colorado for decades in many subdivisions.

Originally Posted by Corn Walker

I don’t know about Oklahoma, but this has been the case in Colorado for decades in many subdivisions.

It has been true in Oklahoma for years. One would have to had the land for MANY years to have mineral rights.

Woodie
Edmond OK
Top 2 Bottom Home Inspections

As I type this, I can glance out of my office window at the pump jack a hundred yards away. I don't have mineral rights. The railroad kept them when the government paid them in land in the 1800's to put in the railroad. Fracking has been done since the 50's and despite the EPA's best efforts to find a case of fracking causing a problem, they have not found one case in the entire US. (Movie spoiler, Fracknation is a lie) Practically no land deals today include mineral rights. When my grandfather sold his Texas ranch in the 30's, he kept the mineral rights. So keeping the mineral rights when the surface is sold is nothing new.

City folks who have little to no understanding about how oil is produced get upset about this, but most of us who live with it never give it a thought.

Every house I've bought has come with mineral rights ... only there has never been any minerals to have a need to have rights to ... ... not unless "sand" is worth something - of course, though, there would be a problem with having a house on the surface if the "sand" was removed from underneath it ...

........I guess it's a regional thing (as Jerry mentions) - in NY the transfer of mineral rights with property ownership has always been the custom. Although since fracking for gas has become a hot button in this region, you more often see mineral rights discussions when property sells......Greg.

Howdy all, from Colorado-

“In the past of course it was the homeowners land.�

I’ve owned several houses in Colorado and never owned the mineral rights (or rail-road rights for that matter). Every house and property I’ve ever owned was from the grass to the sky, and no more.

I hope you all have a blessed and peaceful Easter.

CaoimhÃ*n


AMDG