Abstract

Developable land is at a premium in urbanized areas such as Southern California. Oil well drilling properties in many areas represent a large percentage of the remaining open space which has captured the interest of real estate developers. Successful development is occurring in areas where past and present oil production has occurred. However, in response to increasing public environmental awareness, regulations have been developed to ensure public safety at oil well drilling properties which undergo residential, commercial and industrial development.

Environmental concerns include proper handling and storage of the crude petroleum from natural gas to heavy crude, handling and storage of oil field chemicals, disposition of drilling fluids (considered to be a hazardous waste in California) and proper abandonment of inactive wells. Regulatory agencies include state and local health departments, oil well drilling agencies (Division of Oil and Gas in California) and local building departments. Environmental investigation combined with agency compliance and cooperation prior to acquisition and construction can expedite successful real estate development of oil well drilling properties.