The Hidden Financial Danger For Fracking Holdouts

The Hidden Financial Danger For Fracking Holdouts

America's fracking boom has completely reshaped the global energy landscape. Previously unreachable natural gas deposits have helped create significant economic activity when the country needed it most while emerging from the Great Recession.

One thing to know about fracking is that many energy companies lease property from the owners instead of buying land outright. They then pay royalties from the material they are able to extract. That's all fine and well for those willing to lease their land, but what happens if you're opposed to fracking?

Reuters recently told the story of one Los Angeles man who blames Freeport McMoRan for the fact that his property's value has plummeted, leaving him unable to sell his house for anything near what he bought it for. The Motley Fool's Brian Stoffel discusses how those who hold out are being hurt, and what they are threatening to do.

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Fool contributor Brian Stoffel has no position in any stocks mentioned. The Motley Fool owns shares of Freeport-McMoRan Copper & Gold. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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