Property devalued 75%! Where’s your “Drill, Baby, drill” now?
It has been on the list of recommended posts for hours and has over 200 300 comments.
UPDATE: Oh come on, People! Who is surprised by this? What person in their right mind thinks that having gas wells on your property doesn’t devalue it?
While I’m updating, let me remind you
Cities and Counties have TCEQ authority over drillers
About Sharon Wilson
Sharon Wilson is considered a leading citizen expert on the impacts of shale oil and gas extraction. She is the go-to person whether it’s top EPA officials from D.C., national and international news networks, or residents facing the shock of eminent domain and the devastating environmental effects of natural gas development in their backyards.
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Being a Wise County taxpayer and a retired Realtor, I strongly disagree with the Wise County Appraisal Review Board's decision to reduce the property by 75% due to the fact the family is living in the house and using the five acres that is not contaminated.
Value in use is a standard used to determine the impact of contamination to property.
Recently Midland Appraisal District made a blanket 25% reduction to property owners due to chromium contamination to their water wells.
I will request the review board carefully monitor the impact of any contamination on this property and review carefully all the reports. Standard appraisal guidelines must be followed to make sure taxes are equal and fair throughout the county.
Your comment is illogical. The family can't just pick up and leave without ruining their credit. Where would they go? They can't sell it. Are you offering to buy it?
Anonymous Realtor: You're making statements without having any of the facts, or very little facts. We have literally hundreds of pages of documents, hours upon hours of videos and piles of environmental testing reports that all agree with one another. The ARB was provided with all of this information, and now that it a matter of public record, perhaps you could file a PIR to obtain the documents for your own review. That said, just because we're 'living in the house' doesn't mean that it hasn't been negatively impacted. We have proven that it has, and the ARB agreed. The 'remainder' of the property is impacted because it's use has been forever changed. Our horse barn leads directly out to the contaminated pasture, so our horses cannot graze there, reducing the use of the barn. The other pasture now has a gas pipeline running through it, and I think it's our choice of we want to expose our beloved horses to the dangers. Gas lines rupture and explode on a frequent basis as has been well reported in the press. What little land is left-essentially our front and side yard, is where we graze the horses. I'd just as soon not spend my weekends shoveling piles of manure out of our front yard, but we have little choice. As a Realtor, you should realize that no sane person would consider buying our home once they see even page one of all the disclosures that we are now legally and morally obligated to share. I'll check with my attorney if you'd like, and see if it's okay with them for you to list it. We'd LOVE the opportunity to move elsewhere and start over, and I would entertain the idea of selling for what we owe on it.
Anonymous Realtor: You're making statements without having any of the facts, or very little facts. We have literally hundreds of pages of documents, hours upon hours of videos and piles of environmental testing reports that all agree with one another. The ARB was provided with all of this information, and now that it a matter of public record, perhaps you could file a PIR to obtain the documents for your own review. That said, just because we're 'living in the house' doesn't mean that it hasn't been negatively impacted. We have proven that it has, and the ARB agreed. The 'remainder' of the property is impacted because it's use has been forever changed. Our horse barn leads directly out to the contaminated pasture, so our horses cannot graze there, reducing the use of the barn. The other pasture now has a gas pipeline running through it, and I think it's our choice of we want to expose our beloved horses to the dangers. Gas lines rupture and explode on a frequent basis as has been well reported in the press. What little land is left-essentially our front and side yard, is where we graze the horses. I'd just as soon not spend my weekends shoveling piles of manure out of our front yard, but we have little choice. As a Realtor, you should realize that no sane person would consider buying our home once they see even page one of all the disclosures that we are now legally and morally obligated to share. I'll check with my attorney if you'd like, and see if it's okay with them for you to list it. We'd LOVE the opportunity to move elsewhere and start over, and I would entertain the idea of selling for what we owe on it.
Being a retired Realtor also, I'm in full agreement with the comments made by the first Realtor. The home and five acres that are not negatively impacted should stand alone in assessing appraised value.
A 75% decrease in value should be challenged by the Chief Appraiser Mickey Hand using the Midland case as an example.
I hope the Review Board will carefully monitor this case using sound apprasial guidelines in order to keep our taxes uniform and fair throughout the county.
Who said the home was not negatively impacted? Your comment shows that you do not have all the information. They are bombarded with toxic emissions night and day and they have testing from the TCEQ to prove that. Now their daughter has asthma when she had no hint of asthma previously. Testing INSIDE their home shows high levels of diesel exhaust and methane so they haven't been using their AC or heat since this happened. How would you like to go through a Texas summer with no AC?
Their neighbor has been testing and the same chemicals in the air are in her body.
I've got an idea! Why don't you and realtor #1 sign an agreement to sell this home. Then the problem will be solved.
I completely agree with both Realtor comments. This must be challenged to make sure taxes are equal and fair throughout the county.
The REALTORS are part of the problem with O&G contamination in Tx. They might as well be landmen!!
When your children's health is in danger, you would not live there. I agree with both Realtors on making sure taxes are equal and fair.
Dear Realtors:
It is clear that you are reacting this way because you know that this will impact all property near drilling.
Which of course means you will have to work a lot harder to sell these properties (if you can find someone to buy them) and make less money.
But, the fact is gas drilling has a negative impact on property values whether you own the minerals or not.
We are going to have to deal with this issue from this day forward. So stop whinning and do something about it. Contact our local, county, and state officials and tell them to wake up and make the gas industry take responsibility, use the best practices available and keep this away from all homes, even those in rural areas.
I have an idea! How about we just pick up and leave, drop the keys to the house at the bank, and pitch a tent or find a bridge somewhere. Then again, if we simply picked up and left, next I'll be hearing about how we failed to live up to our contractual and legal agreement of our mortgage when we had the financial ability to meet our obligations. If we were to leave, how do you expect us to 'qualify' for another mortgage when we failed the first one? Will you just simply say that it's our fault, when we could've just continued to live here and pay full taxes on a toxic waste facility? The house is appraised at $300K. Should be a STEAL at the balance we owe of roughly $200K. Let me know of any of you Realtors are interested in listing it, and I'll check with our attorney for the go ahead.
TJ, thank you!
I've been saying FOR YEARS that this would happen and that no one would buy any property in Texas once they figure it all out. The real estate community has been so stupid in this matter. I have even seen them pressure council members away from best practices! Shoot self in foot much!
The Realtor we used to purchase this now toxic waste facility failed to use FULL DISCLOSURE when we expressed interest in buying this place. Her excuse afterwards was that mineral estate is a legal matter, she's not an attorney, so she's not qualified to speak to such things, that as much as drilling occurs, we should've known on our own what the dangers were before buying, or had the presence of mind to consult with a real estate attorney with knowledge about mineral estate law.
>>Recently Midland Appraisal >>District made a blanket 25% >>reduction to property owners due >>to chromium contamination to >>their water wells.
You can fix that problem with a new water line, how do you propose Tim fix this issue? 1) He cannot use 1/2 of his property (phsyically) 2) The barn improvement is worthless because there is no place to graze or ride horses. 3) The house value is diminished because the property is a "horse property", or was. 4) There are ongoing health effects from living there. 5) Why would ANYONE buy this house when there are perfectly good houses with NO gas well hardware on them?
Please start waving your American flags, we have reduced our dependence on foreign oil and screwed your neighbor out of his American dream in the process. Go liberty!
Realtors: Here's one you can research on your own: At least one couple we know of in Wise County purchased a nice home 3 months PRIOR to Devon showing up and setting up shop in their backyard. How much would you like to bet that they, too were not fully informed by their Realtor? Do you think they are in agreement with you, that they should just continue to pay full taxes on property they no longer, and will NEVER get to use? And we haven't even talked about any contamination issues, yet. The AIR around our home is contaminated. The SOIL around our home is contaminated, and our drinking water is contaminated. Multiple testing from multiple labs has proven this. So, other than the loss of 3.6 acres, leaking and overflowing condensate tanks, thousands of gallons of produced water spills, repeated violations of the Texas Health Code, the above mentioned contamination issues and loss of use of the remainder, everything is good.
Put your money where your mouth is, and YOU sell it. Lots of talk from Y'all, no action so far. If you really seriously disagree with me, then come on out, take a look for yourself, and LIST it. As I mentioned before, this place should be a steal and am easy money maker for you.
To both realtors, and any others who care to post on this subject. My next door neighbor tried to sell her beautiful, well kept,nicely landscaped home with, sprinkler system, pool, granite, etc. There is what is now an abandoned well site(another story) which can easily be seen behind the 8' tall fence, the pad is a bout 7' tall and on the fence line. Five, yes 5, cinco, families all said they would buy this lovely home IF the pad site and unsure status of the drilling was not a factor. The home was listed, under value for 6 months. Wake up, the Rugggiero family story is about to be repeated throughout all shale plays. People in their right minds would not expose themselves to the health hazards at these sites. There will be a domino effect and your industry will definitely feel it. I for one will NEVER buy any property anywhere without 100% of all rights. Do you have any idea how much time and money are spent by those of us who are trying to keep the drilling away from our homes? Did you know you have to hire an attorney, if you can find one, to appear on your behalf in Austin to represent something you OWN? You need to do more research and learn the facts. Wake up, Drill Baby Drill has just paid a visit to your wallet and will soon pay visits to every taxpaying citizen in the shale drilling areas. Hardly anyone who leased stopped to look beyond their immediate windfall, they obviously did not give a damn about all the others they affected. Who knows what the price tag will be, the first operator behind us filed bankruptcy. The property behind us was mortgaged on a Fannie Mae/Freddie Mac loan for 1.252 million, now 5 acres of the 12 have been altered and can not be used. I wonder what that appraisal will be? I was told by a title company that they DO NOT do mineral estate research for closings. Anon 12:13, Erin Brockovich has been investigating the water contamination in the Midland area, the contamination is spreading through an aquifer. Again, wake up, it's time to pay up. People, write, call, e-mail, go see, your representatives, get involved.
Realtors: Please know I am not angry with you, and am certainly not attacking you or your profession. We have an obvious disagreement, and I would like nothing more at this point to be proven incorrect. This is what I would ask: If you really believe this property is worth far more than what the county taxing authority ruled it, then please do the following: Do your research. (we had to, there's no reason why you can't) Start by making easy on yourself, and file a public information request from the County Appraiser's Office. You should receive then ALL the videos, documents, environmental testing reports, etc. Since not one of you is likely a scientist, you'll have to hire a scientist (like we did) to not only conduct the testing, but interpret the results as well. After you do this, you'll then know as much as we do and the AB now does about everything that has happened over the course of the year. Now you will be obligated, I would think, to now share that same information with any potential home buyer, since you are now fully aware. Once you know, you cannot not know. List the property, and then sell it. Make us an offer we cannot refuse. We'll be waiting for you, but don't everyone rush over here at once.
This is the last I have to say on the matter until after you've followed through on my request. Have a great day!
I don't know why Tim and Christine won't follow the advice in the BEST COMMENT EVER on this blog: "Shut up and take your cancer like a true patriot."
Wave flag here
These REALTORS are in it to make a buck, just like big gas! The realtors love to sell a junk property for a high price–and the best way to convince a gullible buyer is to point to a high appraisal value to justify a high price for junk. Realtors are not helping us in Tx. Realtors need to be taken to the cleaners to clean up their act! After all, the realtors still must deal with the seller's disclosure relative to O&G and contamination! And on top of that, most of these appraisal boards in Tx are loaded up with realtors–another reason for little or no help with property taxes. But, at least this board in Wise county did a good and proper thing for Tim & co.
In Tx, you can't just move and abandon your home and property. Because if you do, you will loose your homestead exemption and your homeowners insurance will quadruple! Check me out. Then there are proplems with the morgage holder (if there is one) and then there are the thieves, etc. Welcome to Tx.
My real estate agent is kind, generous and honest. These comments are from a few predators. There are lots of good people in real estate.
No one should have to suffer because someone else damaged their property – I think the entire Ruggiero neighborhood should hire an attorney and EVERYONE file suit for property damages. The community is not at fault – Aruba, the RRC, and TCEQ are at fault here – and probably a bunch of other assholes.
Oh, and those real estate agents can have a heart-to-heart re my booty.
And Sharon, I love "Shut up and take your cancer like a true patriot." That is one for the record books. Right up there with my favorite: "I found your blog via “colon cleansing” actually. And “Threesomes in Texas”
Just this morning I left a note for the home owner that has a drill site in their back yeard literally near my son's junior high. I told them to look up the Denton article and to not pay taxes on the full value because they can NOT sell their home now at full value. I usualy do not leave notes on people's doors but his morning I did when I dropped my son off to school at Bailey.
Protest at Poston's house. We'll show up with a bulldozer and let the dogs out. If he complains, he would be a hypocrite. You'd be surprised how much noise you can make outside a person's home (intermittently) and not violate the law. I suggest some large amps with taped compressor engine noises. It would only be fair.
In 2005, after learning about gas drilling in Fort Worth, I contacted the FW Association of Realtors. I asked if they would recommend that area agents begin disclosing gas well activity to potential buyers. I was told that the agency does not require disclosure but leaves it up to individual agents. If that happened, any north Texas agent with a clear conscience would be out of business in short order.
In a way I feel sorry for realtors. They were forced into bed with gas drillers and contracted Barnett Shale disease by default. BUT… if they had spoken out en masses in 2005 or 2006, before things got out of hand, they would have been a force to reckon with at the Statehouse in Austin. Instead, they chose to do what most other property owners and elected officials did. Bury their little heads in the Barnett Shale sand. Some greedy agents even capitalized on public ignorance and knowingly sold property that was or would be tainted. Some even double-dipped. They bought up mineral estates, then sold the surface property separately.
I forget which level of Hell Mr. Dante Alighieri assigned such sinners but I think it deeper than the Barnett.
Realtors understand the methods of appraising property as they have to list properties for sale. I'm a retired Realtor that understands how property can be appraised based on replacement cost. The Appraisal Review Board did not consider value of use or consider the nature and extent of contamination. The surface area used by the drilling of the gas well was the only consideration in reducing the appraised value for taxing purposes.
Air contamination does not end at the property lines. All properties in Wise County must be appraised using uniform methods; therefore, any air contamination from any source could drive down the value of property? We don't live in a world free of contamination; in the air, in water or in the food we eat. Since the family is still living in the home, it would appear the health danger is not life threatening.
The property, the house and five acres has "value in use" that was not considered. The property owner was paid a generous amount for damages to the surface area. The Review Board could use that amount to lower the value less any improvements made to restore the property.
You're an idiot.
>>The property owner was paid a >>generous amount for damages to >>the surface area
He wasn't paid 175k and it wasn't like he had much choice, the drilling was coming no matter what, faced with getting 0 or getting something, he took something. You can rationalize all you want, it's wrong, and deep down, everyone knows it's wrong.
Apply this scenario to 51% of the Texas senators and congressmen and the law would change, but since it hasn't, no one does anything. Fine me a person who says this is "right", not "legal" and who will sign their name to it, you won't find one.
The little bit of money they did get they have spent in testing their water and air, boarding their horses, hotel bills when the pollution was too bad to tolerate even with doors and windows closed and etc.
Oh retired Realtor (9:24) above–you sound more like an "Investor" and not a Realtor!! Anyway, you're wrong, wrong, and wrong!
As a taxpayer, I disagree with 9:24 and the Review Board decision because the owner received value for using the surface area. To me it would be like renting the area for a large sum for years or selling the acreage for more than you paid for it. The buyer gained capitol and should continue to pay the same property taxes.
I also disagree with 10:46 statement the owner had no choice. The choice was made when he bought a small acreage property in rural Texas with oil/gas development and didn't buy the mineral interest. The buyer has the responsiblity to read the title committment regarding the mineral lease.
As a taxpayer I think the Review Board failed in reviewing reports of environmental contamination and the impact on future protests. The distance of the gas well was within the legal limits for drilling and the State is responsible for monitoring contamination. Reports from the State must have priority over any report paid by the property owner.
This case is extremely rare since few property owners pay to prove their property has been contaminted unless they plan to file a law suit for damages.
Now that the owner has reports, they must be disclosed to any potential buyer. I think the owners will be living on this property for many, many years to come.
As a taxpayer, our schools, firefighters, law enforcement will have fewer tax dollars to use to make our county a safe and good place to live. The Review Board went too far in decreasing the value by voting against the Cheif Appraiser Mickey Hand.
Man! Your logic is whacked!
To me it would be like someone coming taking your property, giving you a tiny payment that did not nearly cover the value, then setting about endangering your family while making a huge profit. You have no say in the matter. You cannot negotiate what they do with your property or how much they pay you.
There was no full disclosure. In fact, in Texas this issue has been largely covered up. Watch for the lawsuits because they are coming.
I think the failure is in the county and state in not reining in this industry and making them have respect for our property and environment. Watch for the lawsuits because they are coming.
This case is not rare! More and more people are testing everyday because the state is failing. Watch for the lawsuits because they are coming.
You seem to believe it would be better had the owner not done environmental testing to see what they being exposed to. Your main issues seems to be that now they will have to disclose the damage to future buyers. I guess you think it would be smarter for them to shut up and let some poor unsuspecting person buy their heartache. That would be unethical and immoral. You think like Big Gas. You must work for industry.
Our county should have thought about they tax base before they completely rolled over to Big Gas.
Anon 6:45 obviously has not read or paid very close attention to any of the previous posts, particularly mine. The State was and is involved, and their reports, along with hours and hours of video, both from myself, passers by, neighbors, TCEQ, EPA and others were PROVIDED to the ARB. Since you, along with all the other 'realtors' were NOT present at the hearing, and haven't been anywhere near our place, are speaking to things you have no knowledge of.
You are repeating what I've heard from a number of other unethical and immoral 'taxpayers' – don't perform any testing, don't get the State involved, and don't ask any questions, then you can 'honestly' say that you were 'unaware' of any dangers, contamination, polluted drinking water or poisoned soil, sell the place and leave the new home owner with the problem. I guess if you don't inspect for COCKROACHES, you can say you didn't know your home was infested with them.
As far as the money we received, it came at the point of a gun. Please tell me what you would have done if you were in my shoes? Are your morals so high that you would have refused the money on your high principles of right and wrong? I doubt it. Seriously doubt it.
Since you are so knowledgable about it, maybe you should, along with all the other 'Realtors' who disagree with the ruling, should make me an offer on the house. It's appraised at $250K with $50K worth of improvements- improvements that I would point out that did not go unnoticed by the chief appraiser.
We owe $200K on this toxic waste facilty. Since you obviously don't have a problem with it, and dipsute 'our' reports, then none of these poisons, contaminants or ruined property values exist to you.
So either make me an offer on the house and live in it, bringing your children, of course, and drink the water that has tested positive for MTBE, Boron and Strontium, breathe in deep those fugitive emissions, run the A/C at full tilt, sucking in all those emissions, or sell it at a profit and make yourself a killing.
Better yet, until you learn the full facts, and put in the time to research, spend thousands of dollars on testing, hours and hours on the phone with the TCEQ, EPA, TRC and scientists, write and send hundreds of emails to same, and every politician out there, spend hours and hours videotaping and documenting all these issues, keep your mouth shut.
Law suits are coming; however, it will take money to pay for environmental appraisal consultants with the research and knowledge that will stand up in court. Wise County appraisers are not trained or have the experience to value contaminated residential properties.
A property owner has to disclose any reports of known defects in the property. That is why I predict the owner will be living on the property for many years to come. Law suits take time and are very expensive. Big dollars have been won for water contamination in Wise County to be overturned years later in appeal.
Oh, now I get it. A quick glance at my statcounter and I see that you are that nut who lives in Flower Mound.
I predict the operator will try to settle with the owners and require them to sign a not disclosure agreement because we all know that Big Gas wants them to shut up.
There's only one 'nut' in FM? I thought there were a few…is it our friend Chris? Oh, wait, I'll check his blog, I'm sure he's ranted on and on about this.
Nope- not our freind Shiloh. He hasn't posted anything on his blog since late MAY. Maybe he's too busy counting his royalties?
Oh no! Not Chris. Unlike Chris, this nut can spell.
The authorities shut Chris down after the physical threats to women in the community posted on his blog. NOT well played, sir.
Do any Realtors and/or Wise County tax payers wish to comment on their perceived "value" of the Parr's home? Ready to move in?
Perhaps a 25% reduction across the board in Allison Texas is in order. After all, it not hexavalent chromium and it hasn't happend at your house yet. To heck with your neighbors, you have a living to make and for some reason you won't take on the cause of the pollution even though it is in your home town.
Some day you will have to explain why diminishing it and covering it up was easier than addressing it.
"Here honey, have a glass of hexavalent chromium. It's good for the economy. Then go outside and breath in Aruba's fresh air… Don't forget your inhaler Dear."
Explaining how you sleep at night would be helpful as well.
Thank God not everyone sees it your way.
Well shoot realtors,
I just read in a Wise County Messenger article:
“Tony Walker, regional director for TCEQ, said his agency can't shut down polluting facilities. However, it can set the wheels in motion to do so.
‘We don't have the authority to shut down (a facility)," Walker said. "But if we have to we can contact the attorney general and ask them to step in.”
So, does a homeowner have to disclose that they have a “polluting facility” on their land 300 feet from their home? Does the homeowner have to disclose that the Texas Commission on Environmental Quality cannot shut it down? What is the statute of limitations on these disclosures?
Please understand that I am asking these questions so that you might ask them too. We would never consider not disclosing all documentation we have regardless of any statute of limitations.
I have decided to put together a brief video that will include many of the offenses that have occurred on our property. Many have said that we “should have known”. Fine.
I will be delivering this video once complete to every Title Company in Denton and Decatur and asking them to show it at every closing before anyone signs on the dotted line ‘acknowledging’ that they are entering into a split estate agreement.
I wish someone would have shown us the video I am now preparing before we signed.
Christine Ruggiero
Great idea. Maybe we should include some of the larger Realty firms, and as many as we can in Wise County. Once you know, you can't not know. I think the video should be some video we've taken from other Aruba sites in addition to the one in our backyard. Then those Realtors wonlt be able to say it's just an isolated case. Nope, it's Aruba's business model, which basically consists of: Measure distance from home, preferably one with children and go out no more than 300 feet. Go in as close as 200 feet if it's easier and closer to that county road we'll need and soon destroy. Take as much property as you need..I mean that's 'reasonable'. Use only diesel powered drill rigs. Need to get that NOx at a high constant level. Use nearby stock pond instead of drilling for water. Use whatever you need. Ignore those pesky homeowners. Repeat.
How about video from any operator. Aruba is not the only bad operator. In fact, please name one good operator. Just one.
Right on TxSharon–I have never heard of a "good" operator. The best thing you can say about them is that "they are not nice people"! Keep up the good work on this site.