Story Created:
Jul 9, 2008 at 5:07 PM EST
Story Updated:
Jul 9, 2008 at 6:37 PM EST
More and more land owners are signing leases to cash in on the boom in natural gas drilling.
But what if you plan on moving in the future?
Or, you want to purchase a piece of leased property.
As Action News Reporter Jessica Light tells us, it could be a tough sell.
Natural gas drilling makes a lot of land like this lucrative in the Twin Tiers.
Some land owners have formed coalitions.
Others are bargaining individually, trying to work out the best possible deal with gas companies.
But property owners need to know, leasing could also lower your home's value.
"The closer the drilling occurs to the building the bank has a concern that the value of that property will go down, because of noise, because of the ugliness of a drilling rig next to the building or near it." says Attorney Fredrick Xlander.
Property value might not matter if you're planning on staying put.
But Xlander says if there's a chance you might move within the term limits of your lease agreement, you might want to re-draft.
"It will complicate the process it will raise more issues and it will definitely make it harder to sell {cover and cut to} that's not to say that the oil and gas lease shouldn't be considered by the landowner." says Xlander.
If you're on the opposite end looking to buy leased land, you could also face difficulties.
"If the lease for instance prohibits drilling any where within say 100 or 200 feet of the dwelling a bank will probably accept that and provide a mortgage for the purpose of that property. But if there's no language to that effect it might become problematic and the bank might back off." says Xlander.
If one bank turns you down for a mortgage, Xlander says you can always try your luck with another one.
Also, don't count on getting the lease and royalties with the sale.
It's up to the current property owner whether to retain those rights.
In Johnson City, Jessica Light, WBNG-TV Action News.
Xlander says setting aside a piece of land in the lease to be exempt from drilling could help retain property value.
That could be a 5 acre lot around your home for example, or if you own an open stretch of land, an empty lot where a home could be built in the future.
Whatever the case, you're encouraged to seek legal advice.