Monday, May 01, 2017

And Then The House Exploded [Due Diligence]

by Osman Parvez
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Buying a house?  It's not just air quality from fracking that you should be worried about.  

First, let's catch up on the facts: A house exploded in Firestone a couple of weeks ago, killing two people. In response, Andarko shut down 3,000 wells. Meanwhile, Boulder County's oil and gas inspector admits that 40% of the wells tested are leaking

To say there is renewed interest in the potential dangers of oil and gas infrastructure is an understatement. I encourage all of my buyers to conduct complete and thorough due diligence. It's why we offer our clients a detailed checklist of over 20 areas to consider. One of those areas includes oil and gas concerns.  

Where are the oil and gas wells?  Here's a new map provided by the Denver Post.  Just plug in your address and go. 

Colorado Oil and Gas Map

Think Boulder is immune? Wrong. The map shows multiple old, plugged wells within the city limits including one directly across from Creekside Elementary in Martin Acres. As you head north and east into the county, the number of inactive and active wells starts to increase dramatically. If you live in Erie or Lafayette, odds are strong that you have an old oil and gas well (or maybe even an actively producing one) nearby. 

Remember:  Environmental concerns typically move in one direction.  Radon, Mold, Lead Paint, EMF, and Asbestos are common issues with property.  Most, but not all can be mitigated at a reasonable cost. Just because the property is impacted doesn't mean it's a bad deal, but it's important for buyers to understand the issue before they purchase the property. 

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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate. 

2 comments:

  1. interesting issue - would think most of Boulder is safe from all of this. i wonder what's going to happen after they determine the cause of that explosion

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  2. City of Boulder? Yes. Boulder County, not so much. Click the link to check out how many active and inactive wells exist. It's startling.

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