Environmental

Mississippi's oil and gas producing regions may have abandoned wells on property. A seller must disclose known abandoned wells because they:

AIncrease property taxes automatically
BCan be a safety hazard and potential source of soil and groundwater contamination✓ Correct
CTransfer mineral rights automatically to the buyer
DMust be capped by MREC before closing

Explanation

Abandoned oil and gas wells can be safety hazards (collapse risk), sources of methane gas, and can contaminate soil and groundwater if improperly sealed. They are material facts requiring disclosure.

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