Living near an active oil field

Profile picture for Tap012
I'm looking at buying a newly built house from a builder. I like the community and people have moved into the new phases already. The problem is it's build on an oil field with some of the oil machines still actively pumping. I'd say they are located half a mile a way from the new houses. I could sense a slight bad smell when last visiting and thought it could have been because of the oil fields, but not sure. Are there possible health concerns with this or resale value concerns?
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December 22 2011 - US

Replies (14)

Profile picture for Tap012
BUMP. Any real estate agents or homeowners have experience with this? I figured the builders wouldn't have been allowed to build it there if it wasn't safe. It's kind of a downer because I was really interested until I started doing research on living near an oil field.
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December 22 2011
Profile picture for Cindy Quinton
I'm not a realtor, but oil wells are kind of standard in Oklahoma. And yes they often have a smell associated. I've never heard of health concerns, but between the noise (which you tend to get used to) and the smell I'm guessing some buyers would shy away.
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December 22 2011
Profile picture for Pasadenan
Oil is on the California required disclosure list of possible cancer causing agents.

If you can smell the oil, I wouldn't buy there.  But that doesn't mean others wouldn't.
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December 22 2011
Profile picture for Tap012
I've visited the place a few times. The first 2 times I didn't smell anything, but the third time I thought I smelled something not that good. Maybe they just drill at different times. Apparently, they do the oil extracting underground using a new technology. Wouldn't a home inspector figure out if it was dangerous?
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December 22 2011
Profile picture for Pasadenan
"Wouldn't a home inspector figure out if it was dangerous?" -

Absolutely NOT!  They are inspecting the home, not the environmental conditions in the neighborhood.

You would think the EPA would inspect and issue warnings... but if they approved the rigs and they are in compliance with the law, the EPA has no say.

There may be some non-profit environmental organizations that could provide additional data and research to assist your decision.
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December 22 2011
Profile picture for Pasadenan
"The first 2 times I didn't smell anything, but the third time I thought I smelled something not that good. Maybe they just drill at different times" -

Usually it is not "new wells", but just pumping of existing wells.  And new drilling is not usually when one smells the oil.

The "difference" is "wind direction".  Check it next time you are there.  And check local weather sites to see the typical directions of the wind in that area.

Besides, you wouldn't smell the oil if there were no leaks in the system, or if tanks were not "vented".  (Actually ventilation is required for most gas and oil tanks to avoid building up pressure with temperature changes, but they are usually required to trap and/or filter most harmful fumes).
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December 22 2011
Profile picture for Tap012
Thanks you have been helpful. The builder agent onsite said there are only a few active existing wells that are being drilled for oil, but after they run out then it would stop. If it was being drilled underground, then maybe I wouldn't have even smelled it and it probably just was something else I was smelling.

If I close my windows anyway, I wouldn't smell it or be exposed to it. The problem is going outside of course. A builder building a massive community of 500 houses probably thought about this issue before deciding to construct such a thing, but maybe he didn't care. Who knows.
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December 22 2011
Profile picture for Pasadenan
Builders don't care, as long as there are buyers.

Owners and occupants care.  Study it carefully to make sure you can live with the impacts.

And sure, they tell you the wells will be retired; but it is still highly unlikely they will all be retired in your lifetime.  It would make more sense to check the business plans with the local oil businesses, not a home builder.
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December 22 2011
Profile picture for Pasadenan
You also might check to see what the pipeline situation is from the wells to the refineries, or if there are holding tanks, and tanker trucks to ship the oil to the refineries.  Don't forget to consider the impacts of those trucks on the environment and driving conditions as well.  Every tanker truck on the road is an accident waiting to happen.  Sure, it might not occur for 10 years, but a tanker accident is no small matter.
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December 22 2011
Profile picture for SoCal Appraiser
An appraiser also would not factor this into his assessment, but would/should use comps in the same proximity to the adversity.

Personally, I would talk to local Realtors, and knock on doors of owners in the tract and ask them. Sunday is a great day to walk around the neighborhood and do some fact checking. USE your own Realtor for the purchase regardless if it is new from the builder, you need someone on your side to do some due diligence on the oil fields.
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December 22 2011
Profile picture for wetdawgs
Crude oil is indeed very toxic.  One would hope that the fumes are not released into the atmosphere, but it isn't something I'd count on.  

The assumption that they wouldn't have built there if it wasn't safe has been blown out of the water a number of times.  Love Canal anyone?



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December 22 2011
Profile picture for LUXURY HOME LOANS CA
Tap- If you really like the property and you are willing or the seller is willing or something could be negotiated between the two of you, I suggest receiving an Environmental Survey (not cheap) from a reputable firm in your area as provided in this link: http://www.hlenv.com/phase_1_environmental_site_assessments.htm

Best wishes and happy holidays, Rudi
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December 24 2011
Profile picture for Tap012
I know this is a late response, but I decided not to buy it. They are actively getting oil by some new method with pipes going sideways UNDER the houses and have vents, venting methane gas out right in the complex. It's crazy to me how a builder could build there. However, many people have bought houses there already. Wherever I buy, it would be for probably the rest of my life so chose not to buy there.
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January 02
Profile picture for wetdawgs
Thanks so much for stopping by to share an update.   I would have made the same decision you did.   Kudos for doing careful research.

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January 02
 
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