| In view of recent notable incidents and accidents involving oil and gas pipelines in Texas, California, and other parts of the nation, pipeline safety and its impact on residential neighborhoods has become a grave concern and a fundamental issue within the urban community and the oil and gas pipeline industry. This study examines the effect of crude oil and natural gas pipelines on residential property values. This is accomplished by locating areas where pipeline corridors affect urban development and other populated areas. The study employs Houston in Harris county Texas as an empirical case.;The effect is examined by comparing unit sales price of houses that are in proximity to pipeline corridors, with competitive unit sales that are more remote within the impact radius zone. A hedonic model using Ordinary Linear Regression (OLR) is employed to examine the effect of pipeline and property attributes to sales price within the potential impact radius of the pipeline. The resulting accessibility characteristics are compared to sales of non-influenced comparable properties and variables. A conceptual framework is developed utilizing ArcGIS software to overlay Census 2010 tract and pipeline data onto state and county base maps. To complement the above mentioned transaction analysis, a site specific survey was conducted.;The study begins by first reviewing relevant literature. The above mentioned approach is then followed by a narrative of data collection. Conclusions are drawn from data the analysis, as well as discussion from similar studies and the independent survey. Results for each dominant variable or attribute is identified and summarized, as well as the conditions that make property values vulnerable to the impact of transmission pipelines. Generally, the study analysis found that as distance to pipeline increases, property value increases and vice versa. Results from the survey indicated that respondents in some cases were unconcerned and in other cases, respondents felt that the proximity of underground pipeline facility negatively affect property value. Interestingly, of all the pipeline attributes, pipeline age concerned the residents the most.;Currently, there are limited studies and/or research on the subject matter. Nonetheless, existing literature by Fruits (2008), Boxall et al, (2005), Diskin et al. (2011) and others have resulted in either inconclusive or conflicting results, compelling some researchers to recommend further research using samples from specific geographical areas. Thus, the goal/objective of this study is to fill the gaps and at the same time be beneficial in predicting the long-term effect on property values near or within pipeline easements. At the most general level, the results from the study can be helpful to urban planners and developers in estimating the cost associated with risk and proximity of pipelines in residential neighborhoods during the planning stages of development. |
