2014-06-19 / Viewpoint

Check insurance coverage before signing fracking lease

For anyone considering signing leases with any oil company, you may want to review with your property insurance company if they provide any protection, should anything go wrong. Most companies do NOT write policies or cover any damages related to oil drilling including damage to your home and land. I called mine, and State Farm does NOT cover any damages related to oil drilling. The insurance industry has determined oil exploration, specifically “fracking” is too large a risk to insure. This leaves YOU, as property owner legally and financially responsible for any damages caused to your property and that of your neighbors. Remember, when the oil company lease ends in 5 or 10 years, they are no longer responsible for any problems that occur, post lease.

Government requires liability insurance to sell or build in our communities. Our local government should consider long term bonding and commercial insurance (70 years past drilling operation) for any drilling in our communities, especially since each bore hole operation can create a circle nearly 5 miles in diameter from each well head. This places any home under the bore holes at risk of potential drilling hazards for many years to come for which homeowners insurance protection is NOT available. — Don Dunklee, Davison

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