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Background

More than a mile beneath parts of Pennsylvania lies a mostly untapped reservoir of natural gas.

Geologists and energy companies have known for decades about the gas in the Marcellus Shale, but only recently have figured out a way to extract it from the thick black rock about 6,000 feet underground.

Now gas drillers are looking to lease local land in an attempt to find and remove the gas, whose value increases as energy prices soar.

In January 2008 leases were being signed for values near $100 per acre. By May that value had increased to over $2000 per acre.

With lease values changing so rapidly, landowners are unsure at what price to accept a lease offer.

Kenneth L. Balliet, a forestry and business management educator with the Penn State Cooperative Extension, recently took a trip to Fort Worth to see the economic impacts of those deposits. He said leases are being signed for $18,000 per acre in areas where production has proven strong.

Though there are only about 20 wells in Pennsylvania so far, Balliet expects local production to eventually rival Texas’ Barnett Shale. He said a gas company confided it plans to spend $1 billion this year in leasing agreements in Pennsylvania.

That kind of investment could mean a big boost to the area's economy as a whole.

Primary Author

Rory Sweeney
rsweeney@timesleader.com

Natural Gas Leases - Marcellus Shale

Latest Headlines

February 5, 2010

Gas drilling meeting draws lots of interest

PITTSTON TWP. – Members of the gas-drilling industry acknowledged on Thursday evening a failure to inform the public about their procedures, and the audience at the WVIA call-in show reminded them of that often.

February 5, 2010

Lease will pay for township drilling

Tunkhannock Township in Wyoming County announced this week it received the signed agreement for its gas-drilling lease with Chesapeake Energy for about 76 acres of public land.

February 4, 2010

Drilling prompts DEP to get Scranton office

For some time, local legislators and environmentalists have complained that local oversight of natural-gas drilling is too difficult because the closest inspectors are in Williamsport.

February 1, 2010

Rep. backs state control of drilling

Concern over environmental damage from natural-gas drilling in the Marcellus Shale region has increased enough to attract federal attention, but at least one state representative believes regulation should be left to the states.

January 30, 2010

WVSA sees profit in treating drill water

The Wyoming Valley Sanitary Authority is looking to join the ranks of regional sewer authorities profiting from natural gas drilling.

January 29, 2010

Law on gas drilling still in flux, public told

BENTON – With interest increasing in drilling for natural gas in the Marcellus Shale, there’s a whole swirl of legislation related to it being considered in Harrisburg, but much of it comes down to money.

January 28, 2010

Lawmakers seeking public input on gas drilling

With questions, concerns and accusations increasing with the rise of drilling for natural gas in Pennsylvania, state legislators and officials have been on the road to hear from voters and explain what they’re doing in Harrisburg.

January 27, 2010

Reps withdraw drill bill support over ‘forced pooling’

Several local legislators have removed their support from a bill purported to protect landowners from unwanted gas drilling near their property, after learning about potential unintended implications in the legislation.

January 14, 2010

Drilling for gas raising issues

With more than 150 acres between her and her parents, Maria Rinehimer’s family could stand to make a tidy profit off natural-gas leasing. But their banker won’t need to worry about clearing out room in the vault any time soon – the family’s not interested.

January 7, 2010

County board speeds drilling for natural gas

WILKES-BARRE – After more than two hours of testimony on Tuesday night that mostly didn’t address the issues before the board, the Luzerne County Zoning Hearing Board unanimously approved temporary permits and special exception uses to develop natural-gas drilling sites in Fairmount and Lake townships, among the first in the county.

December 30, 2009

Lehman Twp. confronts drill issue

LEHMAN TWP. – After more than a year of rising interest in the Marcellus Shale just outside the county, Lehman Township supervisors will in January set the tone for natural-gas drilling in Luzerne County.

December 21, 2009

Natural gas shines in energy scene

An unlikely source of energy has emerged to meet international demands that the United States do more to fight global warming: It’s cleaner than coal, cheaper than oil and a 90-year supply is under our feet.

December 18, 2009

Gas drilling has Back Mountain group concerned

DALLAS TWP. – Lehman Township Supervisor Doug Ide informed members of the Back Mountain Community Partnership Thursday afternoon at Misericordia University about the latest natural gas drilling news in the area.

December 6, 2009

Activists advocate gas drilling regulations

According to a state environmental advocacy group, Pennsylvania needs to do more to ensure that gas drilling creating profits today won’t end up like the coal mining of yesterday that left a costly environmental legacy for the next generation.

November 27, 2009

DEP mulls changing discharge standards

Anyone concerned with pollution threats from increased natural gas drilling in Pennsylvania has likely encountered the phrase, “total dissolved solids” and recognizes its potential to be a problem.

November 14, 2009

Large gas company eyes area for drilling

EnCana Corp., perhaps the largest natural-gas producer in North America, has chosen Luzerne County as its entry point into the Marcellus Shale, thanks to an exploratory agreement with WhitMar Exploration Co.

November 7, 2009

WVSA may treat wastewater from gas-drilling

The Wyoming Valley Sanitary Authority is investigating the feasibility of treating wastewater created from natural-gas drilling.

November 6, 2009

Energy company vows it’s cautious

PLAINS TWP. – As negative issues arise related to natural-gas drilling in the Marcellus Shale, at least one company is being careful to keep residents informed about the industry’s benefits and distance itself from concerns.

November 5, 2009

Pa. officials fine Texas drilling firm

DIMOCK — State regulators are fining a Houston-based company because its natural-gas drilling operations polluted residents’ water wells in northeastern Pennsylvania.