Marcellus Shale impact
Michelle Crown
Issue date: 11/9/09 Section: News
Deep beneath the earth's surface in an area spanning more than half of Pennsylvania lies the Marcellus Formation, a sedimentary rock unit capable of impacting Pennsylvania's economy, residents and environment.
Marcellus shale, a rich organic material formed from plants and animals trapped in sediment and compressed through geologic pressures and time, also contains natural gas within its vertical fractures, pore spaces and mineral grains.
The reservoir, which lies 5,000 to 8,000 feet beneath nearly 60 percent of Pennsylvania's land mass and portions of New York, West Virginia and Ohio, holds more than 500 trillion cubic feet of natural gas worth more than $1 trillion.
"The opportunities for economic growth presented by the Marcellus Shale formation are truly astounding," Tom Rathbun, information specialist for Pennsylvania Department of Environmental Protection, told the Voice.
"If we apply the mandated minimum royalty percentage of 12.5 percent to the estimated value of the natural gas the formation contains, Pennsylvania's landowners could receive as much as $125 billion in royalty payments."
Sarah McCluan, a property owner in Lenoxville, Susquehanna County, said Pennsylvania landowners, particularly farmers, stand to earn millions of dollars in gas royalties.
"Most landowners in the county have already temporarily leased their mineral rights to drilling outfits and have been paid handsomely for the right to enter and drill on a piece of property," McCluan told the Voice.
But royalties are just a small piece of the anticipated economic growth. Penn State University's Office of Economic and Workforce Development estimates for every $1 billion in royalty income paid to Pennsylvania residents, nearly 24,000 new jobs will be created. Population will increase by 10,000 over the next three years.
New natural gas infrastructures will be developed, and existing infrastructures will need upgraded or replaced.
Marcellus shale, a rich organic material formed from plants and animals trapped in sediment and compressed through geologic pressures and time, also contains natural gas within its vertical fractures, pore spaces and mineral grains.
The reservoir, which lies 5,000 to 8,000 feet beneath nearly 60 percent of Pennsylvania's land mass and portions of New York, West Virginia and Ohio, holds more than 500 trillion cubic feet of natural gas worth more than $1 trillion.
"The opportunities for economic growth presented by the Marcellus Shale formation are truly astounding," Tom Rathbun, information specialist for Pennsylvania Department of Environmental Protection, told the Voice.
"If we apply the mandated minimum royalty percentage of 12.5 percent to the estimated value of the natural gas the formation contains, Pennsylvania's landowners could receive as much as $125 billion in royalty payments."
Sarah McCluan, a property owner in Lenoxville, Susquehanna County, said Pennsylvania landowners, particularly farmers, stand to earn millions of dollars in gas royalties.
"Most landowners in the county have already temporarily leased their mineral rights to drilling outfits and have been paid handsomely for the right to enter and drill on a piece of property," McCluan told the Voice.
But royalties are just a small piece of the anticipated economic growth. Penn State University's Office of Economic and Workforce Development estimates for every $1 billion in royalty income paid to Pennsylvania residents, nearly 24,000 new jobs will be created. Population will increase by 10,000 over the next three years.
New natural gas infrastructures will be developed, and existing infrastructures will need upgraded or replaced.