Fracking could come to Chapel Hill's Legend Oaks neighborhood

As fracking moves closer to legalization in North Carolina, DR Horton homeowners across the state worry their homes could be a site for this controversial method of oil extraction.

A bill legalizing fracking passed in committee Wednesday, making applications available for permits as early as July 2014 if the bill passes in N.C. General Assembly’s short session in May.

Since DR Horton homeowners don’t own the mineral rights on their property, a subsidiary energy company of DR Horton could frack under homeowners’ property with or without their permission.

And homeowners would see no financial benefit from oil or natural gas extracted.

Despite multiple phone calls, the company could not be reached for comment on whether they would pursue fracking.

Some of the DR Horton homeowners in Chapel Hill believe the process, which involves extracting natural gas or oil using pressurized fluid, could destroy their neighborhood if used.

“Fracking raises all sorts of questions about water pollution, traffic, noise and ruining both the property values and the environment,” said Bill Arthur, resident of the Legend Oaks neighborhood in Chapel Hill.

“The drilling affects all of the neighbors and has to be approached on a wider range.”

Legend Oaks contains houses built by Orleans Homes and newer houses built by DR Horton. But those who live in Orleans houses own their mineral rights.

Arthur said because his neighbor was not comfortable waiving his mineral rights, DR Horton wouldn’t sell the home to him.

Jim Floyd, a Legend Oaks resident and DR Horton homeowner, said he was aware of the mineral rights issue when he bought the house and that the company was very up-front about it.

“We were told that the possibility of fracking happening was very slim,” he said. “We were also told they would stay a certain great distance away from our lot if indeed the mineral rights were to be exercised.”

If fracking does come to the area, Arthur said it will affect him too — despite the fact that his house was built by Orleans and he owns the mineral rights.

The energy company could drill in the area if it obtained mineral rights to a certain percentage of the land, even if some homeowners don’t consent.

“I don’t think fracking should be allowed in a residential area. If they want to exploit oil, they should buy the properties and rezone the area to non-residential,” Arthur said.

Representatives from both Newland Communities and M/I Homes, other homebuilders, said they don’t sell mineral rights away from properties.

Noelle Talley, spokesperson for the attorney general, said in an email that the Consumer Protection Division is preparing a report for the legislature about issues related to fracking, which is due May 1.

“(The Department of Environment and Natural Resources) has shared with our office any public comments that relate to consumer protection matter, which is how we learned of the issue involving mineral rights and properties sold by DR Horton,” she said.

William Clarke, another resident of Legend Oaks, said he and his wife oppose fracking.

“Whether fracking is made legal or illegal, it is just immoral,” Clarke said. “We paid for our property and I own it to the center of the earth.”

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