Active Oil/Gas Wells on Prospective Property - TX

[AntebellumAcres]

Wife and I are looking at some places closer to my parents in Eastland County, one of the places that we like has an abandoned oil well - on the other side of the property there is an active gas well. The property is about 80 acres, and there are separate entrances but the active well is in viewing distance of the house - maybe 2-300 yards. How much should this factor in to the price and resale ability of the place?

My family land hasn't got any production on it - most of the neighbors don't seem to care much unless trash is left or something, but I'm concerned how much it affects the price down the road. Luckily this area is largely played out, but I'm afraid to overlook potential issues.

Any thoughts or experiences welcomed.

Thanks

 

[callmefence]

Could be entertaining
Oilfield workers are hilarious. The only thing bigger than their egos is their tire's. You want to get a laugh ask one why he needs those big tires and that lift kit ...

 

[AntebellumAcres]

Could be entertaining
Oilfield workers are hilarious. The only thing bigger than their egos is their tire's. You want to get a laugh ask one why he needs those big tires and that lift kit ...

Someone told me you can typically gauge how the oil and gas industry is going based on how new and lifted the trucks get at the used lot.. lol

 

[Brute 23]

Buy it and make sure to lead with an oilfield joke when you introduce yourself.

Be sure to let us know how it goes.

 

[Allenw]

Could be entertaining
Oilfield workers are hilarious. The only thing bigger than their egos is their tire's. You want to get a laugh ask one why he needs those big tires and that lift kit ...

Or ask him what the 4 slice toaster wuth the cord shut in his truck door is for.

 

[kenny thomas]

People in Eastland have been looking at oil wells all of their life. I doubt most even notice it anymore.

 

[AntebellumAcres]

People in Eastland have been looking at oil wells all of their life. I doubt most even notice it anymore.

You're right about that... I've never paid much attention to them. It's almost unusual to find property that has never had production.. just the combo of activity with a homesite is why I'm looking harder at it.

 

[kenny thomas]

You're right about that... I've never paid much attention to them. It's almost unusual to find property that has never had production.. just the combo of activity with a homesite is why I'm looking harder at it.

I worked in Eastland Co and stayed in town in the fall of 2018. Loved the food at the stockyard restaurant and Mae's Meat Market.

 

[tater74]

Get your Realtor or Real Estate Attorney, (you have one, correct?) and have them look at the current agreements on the property. What property rights are granted. Do they have to clean up and restore the property when they are finished or can they pull out and leave a mess. Find out about access to you property. Make sure there is a bond/insurance in place to protect you from accidents/damage to your property, etc.

It is too late once you have closed. You make your money when you buy, not when you sell.

 

[hurleyjd]

Who ever owns the mineral estate has the dominant right to do as they please in extracting the minerals. Some of these lease agreements go back to the 1930s and 1940s land men were dishonest and the local land owners did not have the education to get the best deal. The land owners who was the mineral owner at that time was only looking at the dollar signs. I own land that has the minerals owned by some else. My thoughts if the minerals that were reserved has value then they need to be taxed. If they were the mineral owners would turn the minerals back to the surface owner. Mineral estate owners may have a thousand or so owners as the heirs keep growing in number. Some or owners to these minerals and not even know it. A land mans nightmare to clear the title to drill or explore.

 

[Brute 23]

The reason it is not taxed is because no one can see down there to know if it has value or not.

 

[kenny thomas]

Coal rights are taxed here. Other than core drilling I'm not sure how they came up with the value.
I'm not sure if the natural gas is taxed or not.

 

[Little Joe]

We pay property tax on mineral rights in Arkansas, it's based on what was gathered from the well in your section. Ours are all natural gas.

 

[TCRanch]

At least around here, aesthetically, it really isn't a big deal - they're all over. Mineral rights were transferred when we purchased the ranch & we were able to negotiate the lease; we have final say when, where & if another well is drilled. @tater74 has some good advise. I'm assuming the mineral rights won't transfer? In which case, you are at the mercy of the of the producer, pumper, various crew to maintain the property and not leave trash, leave gates open, make ruts in the road/pasture/field, etc. Plus, the inevitable spill. If you're running cattle on the property, make sure each well is enclosed with some sort of fencing. And leases are bought out all the time (we're on our 3rd owner). But the royalties are nice.

 

[AntebellumAcres]

Get your Realtor or Real Estate Attorney, (you have one, correct?) and have them look at the current agreements on the property. What property rights are granted. Do they have to clean up and restore the property when they are finished or can they pull out and leave a mess. Find out about access to you property. Make sure there is a bond/insurance in place to protect you from accidents/damage to your property, etc.

It is too late once you have closed. You make your money when you buy, not when you sell.

Yes our agent is currently going over everything. I also have a friend at church who used to be a landman. I might be able to have him look up ownership. I appreciate all the advice, helps me have a list of questions for my agent.

 

[AntebellumAcres]

At least around here, aesthetically, it really isn't a big deal - they're all over. Mineral rights were transferred when we purchased the ranch & we were able to negotiate the lease; we have final say when, where & if another well is drilled. @tater74 has some good advise. I'm assuming the mineral rights won't transfer? In which case, you are at the mercy of the of the producer, pumper, various crew to maintain the property and not leave trash, leave gates open, make ruts in the road/pasture/field, etc. Plus, the inevitable spill. If you're running cattle on the property, make sure each well is enclosed with some sort of fencing. And leases are bought out all the time (we're on our 3rd owner). But the royalties are nice.

We believe the mineral estate separated a few owners back unfortunately. They can't be worth much at this point.. it would just be nice to have the leasing rights for peace of mind. Thank you for your input.

 

[kenny thomas]

We believe the mineral estate separated a few owners back unfortunately. They can't be worth much at this point.. it would just be nice to have the leasing rights for peace of mind. Thank you for your input.

You think mineral rights might not be worth much but who knows what the future holds. Coal mineral rights sold for .25 an acre 100 years ago. Worth millions now. Well was before a president killed the industry

 

[bird dog]

The abandoned well probably was owned by a company that has long been bankrupt. If not the state would have insisted on clean up after a certain amount of time of no production. Its not an idea situation having it on your property but I would not let it defer me from buying the place if its what I wanted. The Texas Railroad Commission my be able to help you out getting it plugged and cleaned up if there is no owner to pursue.