hunts_with_stick
5 year old buck +
I have the opportunity to buy some property next to a well pad. Any thoughts? Pros cons?
Thoughts on buying land near a well pad?
- Thread starter hunts_with_stick
- Start date
hunts_with_stick
5 year old buck +
It’s priced to market. No minerals, I don’t believe. Was told there is a chance they may want to put a pipeline in, which means making the selling price back, but that’s only a speculation. Seems like they don’t want any gas/oil, so theres a good chance that won’t happen.
Buckhunter10
5 year old buck +
Very common in Ohio. I have a lease with a pad on it - non active. It does typically impact the cost per acre and it’ll be reduced.
PatinPA
5 year old buck +
Is it an active well? Might have to deal with some activity occasionally. I'm sure the deer would get used to it. Not sure about the rules for using pads at capped wells. Seems it would make a nice flat food plot. You'd probably have to truck in topsoil to cover it. I've been involved in the construction of a couple of them. They usually strip all the topsoil and haul it away or if you're lucky it's stockpiled nearby.
Buckhunter10
5 year old buck +
I agree. One thing I’ve seen is to measure the area the pad consumes and then take some off that part of the offer.
So for example if it’s 40 acres and going rate is 3k an acre. Well if the pad is 10 acres - offer 3k for the 30 acres of ground you are actually getting. At least that is where I’d start!!
hunts_with_stick
5 year old buck +
Thanks. Yes Active. I'm just curious about future resale value too. Do people shy away from that type of property?
Buckhunter10
5 year old buck +
I think it will hurt future resale. However, I think it all depends on the buyer For example, I'd buy a piece thinking twice about what is next to my farm. If I can manage the timber, soil, and deer - I don't care about the well. However, the house and barn are a mile from where the pad is located.
If I was looking to buy a 40 and it had a gas well, I would really need to consider the pros/cons of the neighborhood and all.
hunts_with_stick
5 year old buck +
So here is the piece of property, in blue. Mine is the yellow boundary (I have 12 acres). I'd be able to access via 4 wheeler where it meets my property or via suv on the well pad road that is top right per the farmer. The one thing I don't like about it, is it is pasture with some very sparce oaks on the left. I have seen lots of big bucks using this portion of the field. As well as lot of does. It's been 3 season's since I bought my property and have been keeping my open for more. While there have been some that have come open, not too many near my property, or the wrong piece or more than I can afford (only paying cash). or do i pass and hope I find something down the road. I know they aren't making any more land and it seems to continue to go up in value/price.
hunts_with_stick
5 year old buck +
Also, there are some gasline right aways as well. He seems to think they may put in another line, which if that is the case the gas company would pay me.
If it borders your property, I'd seriously consider buying it. It would have nothing to do with the well pad or oil/gas rights though, I'd primarily just try to avoid having a new neighbor with a small parcel. There are lots of ways the wrong person there could screw up the hunting on your place.
hunts_with_stick
5 year old buck +
He would only sell the little piece to me. He may sell the whole thing in a few year (100 acres of all pasture, no woods), but I can't afford that.
hunts_with_stick
5 year old buck +
That’s kind of what I was thinking as well.
Buckly
5 year old buck +
I think you need to do some research on what the gas or oil brings in for revenue. I personally would never ever buy land without all rights. Sometimes that’s the only value to it. You end up paying for the land, upkeep and taxes and a third party takes all the revenue. Sounds like a good deal for the seller to me.
Telemark
5 year old buck +
I'd probably make a lowball offer. If I was buying a piece of property that adjoins land I already own, it would be to add to my tract, and I would not buy it with the intention of selling it. I think it's worth more as a part of your property than it is on its own. In fact, I can't imagine it being worth much at all on its own.
hunts_with_stick
5 year old buck +
That's kind of what I was thinking as well.
rocksnstumps
5 year old buck +
Farmer sounds like a shrewd fella. Probably figures he can get a bit more from a neighbor that would overlook the well pad aspect or at least not discount as much so can can add to their property vs. having the well pull down future pricing on the whole chunk he owns.
So give him a lower offer but a real low ball offer bet he thinks he can get from anybody and probably declines. But if he really needs some cash like right now who knows?
So give him a lower offer but a real low ball offer bet he thinks he can get from anybody and probably declines. But if he really needs some cash like right now who knows?
If a train-wreck of a neighbor buys that property, how much would it negatively impact your property? I've seen what a bad neighbor can do to a neighborhood, so I would seriously consider buying it if the price of that property isn't too much relative to the value of yours.
