N.C. Attorney General's Office releases draft report on fracking, consumer protection | News
News
INDY Week's news blog

Archives | RSS

Thursday, April 26, 2012

N.C. Attorney General's Office releases draft report on fracking, consumer protection

Posted by on Thu, Apr 26, 2012 at 1:32 PM

The N.C. Department of Justice's Consumer Protection Division released its draft report today on the impacts of fracking on landowners. In a word: If you're a landowner in North Carolina and you've signed away your mineral rights—or have been liberated of them by a homebuilder—you could be in trouble.

The report was presented at a meeting of the Environmental Review Commission, which is composed of 18 state legislators.

You can read it here: Oil_and_Gas_Study.pdf

Some key points of the DOJ's presentation include:

Strong landowner protections are needed before the state moves forward on legalizing fracking.

There is no requirement in North Carolina for a property seller to disclose up front to a prospective buyer that the mineral rights on a parcel of land have been sold or conveyed to another person or company. The disclosure can happen as late as the closing. This is important because homebuilder D.R. Horton had assigned mineral rights on at least 426 properties in the Triangle to its subsidiary, DRH Energy. In some cases, homeowners said they were not fully informed of the ramifications of this deal, or if they were informed, it happened at closing.

As for signing leasing agreements to oil and gas companies, landowners need a "cooling off period," during which time they can cancel the deal without penalty. Land men—brokers working for energy companies or independently—often show up at someone's home and pressure the owner to sign a leasing agreement. Property owners need to talk to an attorney and their mortgage lender to fully understand the implications of signing that agreement. Some mortgages prohibit the granting of these rights to a third party; a homeowner could technically be foreclosed on for doing so.

We're working on a longer piece for next week's paper. However, the DOJ is taking public comment on the draft report. The DOJ is expected to make recommendations in its final version.

Tags: , ,

Pin It

Comments

Subscribe to this thread:

Add a comment

INDY Week publishes all kinds of comments, but we don't publish everything.

  • Comments that are not contributing to the conversation will be removed.
  • Comments that include ad hominem attacks will also be removed.
  • Please do not copy and paste the full text of a press release.

Permitted HTML:
  • To create paragraphs in your comment, type <p> at the start of a paragraph and </p> at the end of each paragraph.
  • To create bold text, type <b>bolded text</b> (please note the closing tag, </b>).
  • To create italicized text, type <i>italicized text</i> (please note the closing tag, </i>).
  • Proper web addresses will automatically become links.

Latest in News



Twitter Activity

Comments

@ Hunter23 "A combination of investors and loans" is not specific, and nowhere in the article is the phrase "private …

by RJO_III on North Carolina FC and John Kane Want to Put a Big Ol' Soccer Stadium in Downtown Raleigh (News)

The article clearly states the building would be privately funded with the state/local gov pitching in for infrastructure enhancement. The …

by Hunter23 on North Carolina FC and John Kane Want to Put a Big Ol' Soccer Stadium in Downtown Raleigh (News)

Most Recent Comments

@ Hunter23 "A combination of investors and loans" is not specific, and nowhere in the article is the phrase "private …

by RJO_III on North Carolina FC and John Kane Want to Put a Big Ol' Soccer Stadium in Downtown Raleigh (News)

The article clearly states the building would be privately funded with the state/local gov pitching in for infrastructure enhancement. The …

by Hunter23 on North Carolina FC and John Kane Want to Put a Big Ol' Soccer Stadium in Downtown Raleigh (News)

I truly admire the passion and support the message. But it seems standing on an overpass during rush hour traffic …

by Diane Alenezi on High Above I-40, Protesters Call for "Health Care 4 All" (News)

This will turn the Mordecai neighborhood & surrounding neighborhoods (one of the only places in downtown Raleigh with any character …

by RJO_III on North Carolina FC and John Kane Want to Put a Big Ol' Soccer Stadium in Downtown Raleigh (News)

Oh Leanne, don't you know the GA laid them all off? And that people always crap on their own public …

by biIIy on North Carolina FC and John Kane Want to Put a Big Ol' Soccer Stadium in Downtown Raleigh (News)

© 2017 Indy Week • 320 E. Chapel Hill St., Suite 200, Durham, NC 27701 • phone 919-286-1972 • fax 919-286-4274
RSS Feeds | Powered by Foundation