Water Wells in Proximity to Natural Gas Development

Not our work

“Home prices fell in some parts of the Marcellus Shale region of the country after drilling began, and rose in other parts, and the difference was whether the families’ drinking water came from wells or municipal water mains, a study by Resources for the Future (RFF) reported in late June.  (Note RFF-“RFF research on energy focuses on key sectors, including electric power, transportation, and unconventional fuels, and evaluates options to promote new, efficient technologies and the sustainable development of energy resources.”)

For homes within about 1 mile of a shale gas well, sale prices rose 10% from 2004 to 2009 if families were served by piped-in water, most likely due to expectations of increased value from gas drilling leases, RFF concluded.

Prices of homes dependent upon well water fell 16% in that period, which the RFF researchers said may be linked to fears of potential groundwater contamination from shale drilling operations.  (Note- Could be linked to economy, the owner did not own the mineral rights, the house was over leveraged, etc etc)

The survey covered homes in Washington County, Pennsylvania, south of Pittsburgh, where the number of gas wells jumped from five in 2005 to more than 490 wells by 2009.

The swing in home values was a significant 26%. “Even if shale gas operations do not contaminate groundwater in the short run, the stigma from the possibility of future groundwater contamination may negatively affect property values, resulting in important long-term consequences for homeowners,” the researchers said.

RFF released this study and others June 27 from its 18-month examination of risks and regulations surrounding shale gas development.
Note – I did not find the study on their website or a pres release about the study

A theme in several investigations is the lack of credible data on the impacts of drilling operations, members of the RFF research teams said.

“We have no data whatsoever on actual degradation of groundwater. We don’t know,” said RFF’s Lucija Muehlenbachs, commenting on the housing prices study. “This is just perceptions” by county residents, but perceptions matter in this case, she said.

NGWA has published an information brief on wells that are in proximity to natural gas/oil installations.Click here to read the information brief.”   For specific guidance on Pennsylvania – get this booklet – proceeds benefit groundwater education in Pennsylvania.

Othere Resources from RFF
Survey of Regulations in 31 states -The maps are available through a user-friendly, online interface: www.rff.org/shalemaps.

My personal comments (From the Desk of Mr. Brian Oram)

1. Please note the words – stigma, possibility, and  no data whatsoever on actual degradation of groundwater.
2. I think this article is more a statement about fear, unknown, and a climate or environment that promotes spin over facts.
3. The lease terms and conditions and the ownership of the subsurface rights impacts value.  Therefore a bad lease or incomplete lease will impact value.
4. Baseline testing is needed and the real estate industry is just really getting to understand risk as it relates to the housing market, but there are a lot of risk issues – gasoline stations, airports, dams, floodways, mining, industrial development, agricultural manure management, roadways, landfills, pipelines , etc.
5. Until recently the real estate industry only requested water testing for bacteria and maybe nitrates even though the other problems were known.
6. The article I think is more about no really knowing the risk and a past history of understanding the risk.  Also – this County has a long history of abandon oil and gas wells.
7. Oil and Gas Database PA How to Access
8. Expect More from the NGWA when they recommend articles.
9. Movies that promote SPIN on either side over FACTS – create unknown – creates fear and lack of trust.
10. Lets not forget the economy
11. We have always recommended getting a complete baseline test on the water quality of your well water, inspection of your home, and my business does conduct online database searchs of known harzardous as part of real estate transactions.
12. Make decisions based on facts not fear.  I know we are humans so this is difficult.
13. I finally found the publication  (pdf – March 2013)

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