Making the Most of What You HaveMaking the Most of What You Have

If you have ever watched "The Beverly Hillbillies," you know how the catchy song goes. The family finds oil on their land and becomes filthy rich, prompting them to move to Beverly Hills. Although the show is a comedic work of fiction, there may be some hidden truth to it in modern America. Fracking, the process of extracting oil using high pressure liquid, has become increasingly popular on private property. If an exploration company finds oil on your property, yours could be the next rags-to-riches story. If you're interested in finding oil on your property, consider these four things first. 

You Must Own the Mineral Rights

In most cases, property owners have rights to all minerals found deep within the ground on their property. However, this is not always the case. Some properties are sold with "reserved rights," meaning that someone else retains the rights to certain resources found on the land. You can find out if you own all the rights on your property by looking at your deed. Your title transfer should be labeled as "free simple."

You Should Own Lots of Land

If you own a small parcel of land, you probably won't find many oil companies interested in drilling on your property. They like to have access to lots of acreage, so they can place their drills strategically. In order to attract oil companies, you should have dozens of acres to work with. 

There Are Well Placement Restrictions

As you can imagine, there are laws regarding oil well placement. For example, in Ohio, wells must have designated land equaling 40 acres or more for each well if the well is more than 4,000 feet deep. Shallow wells can be placed closer together, but there are still spacing requirements. Wells must also be placed a certain distance from the property line. Wells and certain components cannot be placed next to buildings or other structures.

You Will Have Traffic

If you have a well on your property, you should expect a certain amount of traffic. In addition to the crew required to install the well, service personnel will inspect the well regularly. Well tenders are also common visitors on properties where wells are located. 

As you can see, there are several things you should consider before looking for oil on your property. In addition to being eligible for fracking, you should also be ready for lots of traffic and inconveniences.  To learn more, contact an oil and gas exploration company.