On Thursday, a Bureau of Land Management committee will hold a public meeting in Durango to consider whether a master leasing plan is necessary to designate land for new gas wells in La Plata and Montezuma counties.
The federal agency estimates up to 2,000 new wells are destined for Southwest Colorado over the next 30 years, which will mean another wave of concerns for property owners who fear their land will soon abut the noise, eyesores and hazards of hydraulic fracturing activity.
In 2002, La Plata County commissioned a report studying oil and gas impacts locally, which examined property sales data to determine if there was a connection with property values. The analysis concluded that, “although the overall property values in the study area have not been significantly (less than 1 percent) affected by coal bed methane (CBM) wells, the model indicates that properties with a CBM well located on them (12 of 754 properties studied) have had a net reduction in sales value of 22 percent.”
A 2014 analysis conducted by Duke University and Resources for the Future found on-site wells diminished property values by 13 percent.
And an economic assessment report prepared for the New York State Department of Environmental Conservation in 2011 said while gas development helped increase property values in the region because of the economic boost, residential properties near new gas wells were likely to see “downward pressure on price.”
A blight is in the eye of the beholder. Local brokers claim that reactions to gas wells – La Plata County has 4,479 well sites with 3,122 of them being classified as “producing” – include indifference, often from property buyers who work in the oil and gas industry.
But it’s more common for buyers to cast a wary eye on existing – or potential – drilling activity before purchasing a home.
In fall 2009, BP America notified the residents of the Meadows subdivision off State Highway 172 that four months of 24/7 drilling just behind the neighborhood was in the near future.
Residents told The Durango Herald at the time that the activity, while in compliance with local and state regulations, simply “wasn’t compatible” with residential development so close.
“There are definitely different views, but a buyer’s concern is the safety and the impediment upon the enjoyment of the property,” said 24-year appraiser Pete Sakadinsky, who has witnessed two gas booms hit La Plata County. “You can get the site tested so you’re comfortable that you’re safe, but if it can be viewed through the normal course of living, or it impedes a view, the property will generally sell for less.
“While you can’t quantify it, it’s more difficult to sell a home with gas impacts than the exact same home without the well.”
If a new well site is destined for the area, property owners are required to disclose that to prospective buyers. But sometimes the information is obvious to a potential buyer, particularly if homes are listed at discounted rates.
“When something abnormal appears in the market place – if every house on the block goes up for sale, or you see four adjacent listings that haven’t had sales in 10 years – you have to wonder,” Sakadinsky said. “People get the heads-up before it comes and try to get out early.”
Tim Blake bought his property on County Road 503 in 1988, prior to drilling activity, which he said is benign if a responsible operator is handling stable wells, but perception is everything.
“My philosophy is, if I can’t see it, can’t smell it, I don’t have a problem,” Blake said. “But, when we have huge levels of activity and heavy traffic, it’s a devastating situation from the perspective of safety, quality of life and disruption.”
Most regulatory authority on wells lies with the Colorado Oil and Gas Conservation Commission. La Plata County, which acts as liaison between the commission and property owners, has a small portion of command, but that is limited to surface regulations.
“The county can be involved with screening and buffering,” said County Planning Director Damian Peduto. “What we most commonly hear are noise and traffic complaints. I’ve seen successful applications for noise mitigation with structural screening around the equipment and natural landscaping.”
Regardless, gas wells can negate natural assets like a river view.
“It’s just a negative impact that cannot be offset with positive attributes,” Sakadinsky said.
Next week, La Plata County will have a chance to weigh in to the BLM, which has made no commitment to creating a master leasing plan. A master leasing plan, which has strong support from county officials, environmental groups and residents, would consider location factors sucy as impacts to water and proximity to recreational areas, national parks and residential development. If the BLM opts for the plan, there may be thousands of new gas wells on the way, but they’ll come with guidelines.
jpace@durangoherald.com
La Plata County well sites (PDF)
If you go
The Bureau of Land Management will hold a master leasing plan meeting at 10 a.m. Thursday at La Plata County Fairgrounds, 2500 Main Ave.
