The recent surge in oil prices, and speculation that this time they may stay, is apparently prompting some owners of mining and drilling rights to pursue their rights to drill for oil, under land owned by others.
Many community associations’ governing documents contain prohibitions against mining and drilling operations, but many others’ do not. And even if drilling is prohibited in the declaration, it may or may not impair the rights of an owner of the mineral rights to what lies under the surface. This Marketplace report, broadcast today, chronicles the woes of the residents of North Star Ranch, near Cheyenne, Wyoming, which faces the prospect of mineral exploration amongst their midst.
The story reports that the neighborhood association and the oil company are negotiating, and I’m quite certain that the oil company will make many assurances about safety and environmental care, but would you want BP, or even Chevron drilling in your association?
I know how the neighbors of Red Butte Creek would feel about that.