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Posts made in March, 2015

Is Seismic Hazard the Same as Seismic Risk?

Posted by on Mar 24, 2015 in Geology | 0 comments

Seismic means “of or relating to earthquakes or other vibrations of the earth and its crust.” This can be of natural i.e. earthquakes, or manmade i.e. dynamite explosion, origin. A seismic hazard, therefore, is a phenomenon such as an earthquake.

However, this is distinct from seismic risk, which is a phenomena that has the potential to cause harm from exposure. An earthquake out in the middle of an uninhabited island is a hazard; there is no risk involved because no loss or damage is done to people. If the island was inhabited, the people would be vulnerable to loss and damage, and this constitutes a risk.

The factors considered in calculating a seismic hazard is different from that of a seismic risk. Determining a seismic hazard uses three geologic measurements: physical, spatial, and temporal. The level of severity of a potential quake, which recurs over a certain period in a specific area, determines if that area is a seismic hazard zone. To determine risk is more complicated because estimating vulnerability depends on many subjective factors.

There are several models used to estimate seismic risk, which can be expressed as seismic hazard x vulnerability One of the most commonly used is the Poisson model, but it is not any more accurate than other models. Calculating seismic risk using the Poisson model will yield different results from using as time-predictable or Brownian passage time models.

Perhaps because seismic risk is more volatile than seismic hazard, the California Geological Survey has chosen to load its dices, so to speak, by requiring cities and counties to contribute data to the Seismic Hazard Zonation Program. This will be included in the Seismic Hazard Maps for each area. Being on a designated Seismic Hazard Zone does not necessarily mean that you are in a zone of high seismic risk. However, it would be prudent to know, as forewarned is forearmed.

If you are selling a home, you have to access this data for the standardized National Hazard Disclosure (NHD) statement you will give to potential buyers. You can find out more easily if your property is in a seismic hazard zone by consulting with an excellent natural hazard disclosure company in your area.

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The Consequences of Patience and a Really Productive Land

Posted by on Mar 19, 2015 in Mineral Rights | 0 comments

One thing mineral rights owners are assured of if they decide to sell, rather than, lease their rights is the cash that is ready to be placed in their hands as soon as the sale is closed. With the US shale oil and gas industry at its height, many experts consider selling as the better option (compared to leasing); however, while the selling definitely offers lots of advantages, some still choose to just hold on to their rights, waiting for a much better opportunity or offer to come . . . but for no one knows how long.

For some owners, the hesitation to sell actually pays. With patience and a land that actually happens to be productive, leasing, instead of selling, has enabled them to enjoy continuous profits – profit that has become larger than the amount they would have received had they decided to sell. Others, however, were just not lucky enough, for after having leased their mineral rights, the lessor soon discovered that the land was either worthless or not as productive as thought of, resulting to the owner’s complete loss. Besides an unproductive land, whatever damage had been done on the land’s surface ends up as a concern of the property owner, not the lessor.

A decision to sell mineral rights, however, means sure money, regardless of whether the land is actually productive or not. And the amounts offered in sales are often very hard to refuse for some are even more than enough to afford the owner to retire early from work. Well, it is true that if the property were rich in oil or gas, the seller will no longer be able to enjoy any of the benefits from the produce since all rights have already been paid for in a one-time deal by the buying firm. But the profit from the sale of his/her mineral rights may also enable him/her to purchase another property or put up his/her own business, wherein lesser risks are involved and the profits, certain.

Just one crucial advise experts offer owners of lands within the shale region is to make sure that they consult a legal professional before making any decision as expert, legal advice will surely help them make the best decision.

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