Replies to This Discussion

Permalink Reply by Nate on August 9, 2011 at 5:20am

The Cepository is anti-drilling just as much as the guy who wrote the comment on it. Fracing does not impact fresh water the fracing is down at 6500+ feet. And it's not new technology as the anti drilling people like to say as well. It's been done in Ohio since the early 50's and in other parts of the country since the 40's. And it is impossible in this state to be 3 miles from a hydraulic fracturing site because there are clinton wells (plugged or producing) ever 1000 feet or so all over the place.  This is is nothing more than propaganda.

 

You are all warned! The nameless bank is going to pull your financing...

Permalink Reply by Stark County Land Owner on August 9, 2011 at 6:04am

I contacted Third Federal and PNC Bank and spoke to a loan officer. Both had to get back to me after speaking with their underwriting department. Both stated that they would consider every loan on a case by case basis but that being within 16,000 ft of a hydraulic fracking well site more than likely would be a deal breaker in their decision to underwrite the loan.

I'm glad I called. I'm not some right wing environmentalist and I was seriously consderng leasing my property but this has me thinking more seriously about it. I could mitigate water contamination with addendums in the lease but I don't know how I'd mitigate the loss of my property value.

 

Permalink Reply by mbc on August 9, 2011 at 6:11am

This sounds like a scare tactic from someone who does not want drilling in their 'hood, or any "hood for that matter.  I just went through loan processing with a large Ohio bank whose mortgage department is based in Canton, Ohio.  Table talk got around to the shale activity in Ohio.  The bank never expressed any concerns.  In fact, they seemed quite excited about it!

Permalink Reply by Stark County Land Owner on August 9, 2011 at 6:38am

I'm not trying to scare anyone. I just want ALL the facts so I as a land owner can make an educated decision whether to lease my land. The last thing I want is to make a deal with the Gas company and then come to find out in the future I can't sell my house because banks won't make a loan on it. The bonus and royalty payments on my 2 acres hardly would compensate that. So my question to you mbc is Was the land you were getting the loan on under lease to a gas company or withn 3 miles of a new well? 

Permalink Reply by mbc on August 9, 2011 at 8:54am

Kevin, I didn't mean you were deploying scare tactics.  I was referring to the comment associated with the article you read.  Sorry for not making myself more clear.

The answer to your questions are no and no.  There are active wells all around the property (probably around you too.)  There used to be an O/G well on the property, but it is plugged and the property is not currently under lease. 

If we take a moment and think about it, that comment from the article you read doesn't make any sense.  If you have two acres and someone a mile down the road has leased a hundred acre tract which will entail hydraulic fracking, of which they all do and have for 50 years - then what "they" are now suddenly saying about everyone's property in that three mile radius being "contaminated," and the banks wanting nothing to do with them is bunk.  If this were true, nobody in almost all of Ohio would be, or would have been, buying or selling property for the last 50 years.

If we look at the oil and gas well locator map posted in Ohio's DNR website, the well locations are so thick they look like a solid blob on the map.  They are everywhere.

If you don't lease your two acres, but the guy a mile down the street does - all that means is he leased and you didn't, or vice-versa.  He can't make you lease and you can't stop him from leasing, or, again, vice-versa.  Which makes the worry of the three mile radius scare moot.

I have found that the best information is usually located where the subject has been researched and vetted, not in the comment section of an on-line newspaper.  Even an article in a newspaper itself can be suspect as to its' veracity.   The facts in their entirety and unbiased aren't even found at this website, but it's a good source to begin our fact-finding venture.

Again, sorry if my comment to your earlier post was misleading.

Best to you,

mbc

 

Permalink Reply by Sherry on August 10, 2011 at 2:56am

Please note from the Susquehanna County Deed Transfers (http://rocket-courier.com/news/content/susquehanna-county-deed-transfers-20): Harold N. and Jennifer Lewis to World for Christ Crusade, Inc. in Dimock Township for $780,000 on June 15.  The Lewis's lived in the affected Consent Order area AND across from one of the litigants.  This same piece of acreage would maybe have fetched a third of this price five years ago.  It has at least one active well on it (I believe a vertical).

BTW, they did not leave because of the drilling; in fact Harold speaks very much in favor of drilling on the Cabot website.

Many areas finding themselves in the beginning stages of drilling sometimes show initial property value drops, but as the locals become more knowledgeable of the practices, including bankers, drastic INCREASES are shown to be the norm.