Oil & Gas

Started by SallyL • 8 replies • 1539 views

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SallyL (Colorado)
Posts: 24

Posted:

I have another question.In 2008 a Oil & Gas company bought a 35+ acre lot in our subdivision..In 2006 they bought the mineral rights to over 500 acres in our subdivision..At the time they bought the land they told the assc.that they where going to build a employee retreat on the land..But what they are doing now is,they are planning to drill for oil...In out covenants it states that you are not allowed to run a business from your property.Everyone in our assc.is terrified of our water wells being contaminated. My question is,how can an Oil& Gas come into a residential area under false pretense, and drill hundreds of feet from peoples homes? Has anyone else have this happen to them in their HOA..Thank You

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

I would start with the regulating agency for oil drilling in your state.

SallyL (Colorado)
Posts: 24

Posted:

But as a assn. can we do anything to stop them.They flat out lied when they bought the property..They would not have been allowed to buy out here,due that they are a business.And it clearly states in the covenats that no business is allowed.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Well you can sue anyone for anything. Start by looking at their deeds. Are they really part of the subdivision?

If yes, I think the best advice for this situation would be to find a lawyer and try to stop them from drilling.

Even if they did lie, you couldn't prevent them from buying the property, but you may be able to prevent drilling. Depends on the state laws.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Sally,

Carefully check your declaration for a provision which prohibits oil drilling. The declaration of my former HOA had the following provision: "No oil, drilling oil development operations, oil refining, quarrying or mining operations of any kind shall be permitted upon or in any of the lots, nor shall oil wells, tanks, tunnels, mineral excavations or shafts be permited upon or in any of the lots. No derrick or other structure designed for use in boring for oil or natural gas shall be erected, maintained or permitted upon any of the lots."

It may be a good idea for the BOD to consult their attorney for his advice.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Sally,

Who owned the 35 + acres and the 500 acres at the time that the Gas and Oil company bought them? I am guessing that the Developer did and were probably not turned over to the association yet? Otherwise the association would have approved the sale of this land and with a "No Drilling" in the subdivision, the Board at that time would be held responsible for an illegal sale to the company.. As for the no business allowed, that would be extremely insignifficant for an arguement against any drilling. More importantly would be what the State laws say as to where an oil company can drill.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Donna,

Sally has not stated whether or not the declaration states "no drilling." IMO, if it doesn't, and the sales contract did not specify no drilling, no matter who sold it, it would be a legal sale.

SallyL (Colorado)
Posts: 24

Posted:

I can't find anything any where that says no drilling.And a private person sold the lot the gas people bought...I guess what really upsets our assn.is the noise,lights,traffic,etc that comes with drilling..And what damage they will do to our drinking wells..Thank You for all your input

GlenL (Ohio)
Posts: 5,491

Posted:

Sally as others have stated the HOA Board needs to contact the Association attorney ASAP. They will probably also have to hire an attorney that specializes in mineral rights. Bottom line, look for this to be an expensive and drawn out fight.

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