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Natural Gas Storage Well


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During my appraisal today, it was noted that there is a gas well located approximately 200 feet from the house (within the 300 foot limit for FHA), and the appraiser has to contact the operating company to determine the status. The FHA guidelines read as follows:

 

"No existing dwelling may be located closer than 300 feet from an active or planned drilling site. Note that this applies to the site boundary, not to the actual well site."
The well in question, according to the ODNR, is a storage well as of approximately 1989, and has not been in production since at least 1977. This leads me to my question: is a storage well considered an "active" well per FHA guidelines? Or is the active designation reserved only for production wells, with storage wells being inactive?
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The appraiser will simply report what is there, that the gas well is 200 ft from your home and have zero decision on the loan or underwriting calls. It's nice that the appraiser is contacting the operating company, well above the course of normal business.

 

FHA 'person' will make the final call. You will need additional documentation to support what you said above.

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Would the FHA "person" you refer to be my loan officer? The appraiser is getting the additional information, as he is not able to submit the report yet until he gets more information on the well. I am just wondering if a storage well is considered active per FHA guidelines.

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As an appraiser, we simply report what is there. We do not make the call or decide if the property conforms to the rules.

 

With this report information in hand provided by the appraiser, the FHA 'person' (underwriter I would assume) makes the final call on how to move forward, if applicable.

 

Please note: It is not the appraisers scope of work, or job, to provide you with documentation from the state as noted below.

 

--------------------------

 

3. Abandoned Well

A letter may be obtained from the responsible authority

in the state government stating that the subject well

was safely and permanently abandoned.

o When such a letter is provided, a dwelling may be

located no closer than 10 feet from the abandoned

well.

o When a letter is not provided, the dwelling must

be located at least 300 feet from the abandoned

well.

The lender is responsible for obtaining the letter; the

appraiser must note the location of the well and verify

the existence of the letter.

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The last post in this topic was posted 2790 days ago. 

 

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