Marcellus Shale Play
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Anyone getting involved in this.. seems to be quite the topic these days... I'm out in Wayne county, and it appears the natural gas companies are starting to knock on the doors. I know the northern and southern part of Wayne county are pooling their lands together to get better rates on the leeses and percentage of royalities. Anyone have any thoughts on this? Thanks
Chris
Chris
This is a topic in NY and from what I hear OH too.I guess they have a new way to get at that gas.From what I hear they use chemicals to fracture the shale.It's good that a bunch of people get together to pool their resources.Get a GOOD lawyer that knows mineral rights.Rember the gas co. hire the best and the brightest.The gas co. are not telling anyone what the chemicals are and in NY they are responsible for the cost of clean up.
DON
DON
here in Bradford county pa. leases are going for between 2500-3000 per acre. royalities are 15-20% 16% more common... 5 year lease the norm. prices go up closer to the main pipe lines.... I havent signed one yet but my buddies have.
in Texas for same type of shale .... leases are over 10000 dollars.....per acre....
in Texas for same type of shale .... leases are over 10000 dollars.....per acre....
- Richard S.
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A lot of those areas are "poor" farming communities. They dangle a couple thousand in front of farmer I wouldn't doubt they'd snatch it up. I see they are having a lot of presentations in a lot of communities. I hope they get the word out and a lot of people don't get taken advantage of.mwcougar wrote:in Texas for same type of shale .... leases are over 10000 dollars.....per acre....
My brother was looking at a couple hundred acres that was dirt cheap in one of these areas about 5 or 6 years ago, man is he kicking himself in the ass for not buying it. If I was in the position to sell these rights I'd sit on it for a while and wouldn't rush into anything.
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Looks like PSU is the big name getting the info out. Unfortunitly this play is more geared for the large land owner. I only have 1.5 acres, so even if I was part of a group getting royalties, it would be like 1.5 percent, maybe 300 or so a month. But then again, I could stay out of it, but my neighbor could sign up and I could have a well right next to my property whether or not I like it, and the only say I have is to say you can't drill under me lol. So even with my little 1.5 acres, I might as well try and get something if they should happen to come around my area. I've read of people getting 20,000 per month in royalties, and the wells could go as long as 20 years or more. At least it would pay for my new stove But for sure, a lawyer versed in oil and gas leeses is a must.
- Adamiscold
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I don't know if this works the same as oil does but if you neighbor has a well then in time whether or not you signed up for it he will be pumping out from under your land.
There Will Be Blood played this well at the end of the movie.
There Will Be Blood played this well at the end of the movie.
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Its a little different... The oil is free flowing where the gas is locked inside the shale. They have to drill into it and blast it apart with water and whatnot to free the gas. So if they want it, they have to drill to it.
- Adamiscold
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How big is a shale? I would think they would have to be of a very large size in order to make it worth the time and energy to drill for the gas inside of them. I could only assume that a shale knows nothing about property lines.
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Its not the shale they want, its the gas locked up inside of it....they "frac" fracture the shale with high pressured water. The shale is anywhere from 50 feet to hundreds of feet thick at about 5000 feet down. They have to go down, then turn the drill horizontially into the shale... The shale is in a layer that runs from NY state through PA and ohio into West Virgina. There is roughly 500 trillion cubic feet of gas, with about 100+ trillion that can be mined. Its about the equivelint to what the US uses in 2 years.
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That giant size is only equal to about 2 years worth used in the entire US? Man that doesn't sound like much at all.
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I thought the same thing actually, when I first started reading about it, but with the price of gas nowadays, I guess its well worth it to the gas co's. Infact, they are buying up all the land they can and leesing the rest. I mean, if they can pay someone 20k a month to pipe the gas off their property, I can't imagine what they are making a month off it. But thats it in a nutshell.
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http://geology.com/articles/marcellus-shale.shtml
We suck up a huge volume of energy in the US. They do not say if it is just the Nat gas or all energy consumed in the US.
This is based on 10% recoverable.In early 2008, Terry Englander, a geoscience professor at Pennsylvania State University, and Gary Lash, a geology professor at the State University of New York at Fredonia, surprised everyone with estimates that the Marcellus might contain more than 500 trillion cubic feet of natural gas. Using some of the same horizontal drilling and hydraulic fracturing methods that had previously been applied in the Barnett Shale of Texas, perhaps 10% of that gas (50 trillion cubic feet) might be recoverable. That volume of natural gas would be enough to supply the entire United States for about two years and have a wellhead value of about one trillion dollars! [5]
We suck up a huge volume of energy in the US. They do not say if it is just the Nat gas or all energy consumed in the US.
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Well the 2 years would be if it was the only source... as it is, there is a boat load being processed out west and south.... So this would be in conjunction with those sources, so this play as they call it... would probably go for 20 to 30 years and definetly be helpful to the demand. I guess the other thing that makes this so attactive, is how close it is to NY.