There is another issue that is extremely important to land owners in North Carolina.  The Republican leaders passed fracking legislation that will allow energy companies to extract natural gas from property without the owner’s permission.  If fracking is to occur in this state, it should be done on property where the owner has given his/her consent.  This issue was discussed in the legislature and a Wake County Democrat tried to add a ban on fracking when the property owner did not consent.  But the Republican leaders rejected the measure, and agreed to allow fracking on your property, whether you like it or not.  Thus, a profit making industry is allowed to take away personal freedoms, with the blessing of the government.  This legislation, which was supported by ALEC, should be changed, and the Republican leaders who voted to pass it should be replaced.

An important issue for landowners is what happens if one’s property is damaged by the fracking operations.  The legislation passed by the Republican leaders does not require the energy company doing the fracking to compensate the property owner for damages.  Any payment for damages are spelled out in the lease between the property owner and the energy company, and the terms of the lease are drawn up by the energy company, not the property owner.  In some cased, the energy company’s insurance will not cover all damages.  Homeowners may have to sue for damages and, even if they win, may not get paid for all damages since drillers admit in their regulatory filings that they may not carry enough insurance.  The property owner’s homeowners insurance also typically does not cover damage from fracking.  Thus, the property owner may be left with a property with a greatly diminished value.

It should also be noted that many potential home buyers will not purchase properties in areas near fracking operations; this tendency also drives down home values.  Because of the risks inherent in fracking, the State Employees’ Credit Union in North Carolina has decided that it will no longer provide mortgage financing for properties that are subject to fracking.  Other lenders are likely to follow suit.

 

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