Penn State Live - Landowners can tap Penn State handbook for gas-leasing facts

Landowners can tap Penn State handbook for gas-leasing facts

Thursday, October 2, 2008

University Park, Pa. — If you own land in northern or southwestern Pennsylvania, you already may have been approached to lease your property for natural-gas exploration. But before you sign on the dotted line, you should gather — and understand completely — as much information as possible about the legal, economic and environmental implications for you and your neighbors.

To help Pennsylvania residents make informed decisions, Penn State Cooperative Extension is offering a free publication, "Natural Gas Exploration: A Landowner's Guide to Leasing Land in Pennsylvania." The guide complements information that has been delivered to more than 20,000 people at extension educational workshops across the state.

The pace of gas exploration accelerated this year after joint research by Penn State and the State University of New York at Fredonia suggested that the Marcellus shale, a geologic formation that stretches across a large part of northern and western Pennsylvania and into neighboring states, may contain more than 500 trillion cubic feet of natural gas, of which at least 10 percent — worth up to $1 trillion — could be recovered with new drilling technology. And that has gas companies, landowners and rural communities scrambling to tap into this energy bonanza’s potential profits.

"The flurry of activity and potential financial windfalls surrounding natural-gas reserves may be exciting for landowners, but the leasing and drilling processes can lead to a lot of confusion and may have unintended consequences," said Tom Murphy, extension educator in Lycoming County and a member of extension's natural-gas exploration and leasing team. "We hope this guide will help property owners better understand the issues so they can make better decisions for their land and their families."

The guide is organized into sections covering the following topics:

-- Location of the gas;

-- Where and how drilling would take place;

-- How landowners would be involved in the gas-exploration process;

-- Gas-leasing process and terms;

-- Components of a gas lease;

-- Making decisions about gas leasing;

-- Gas-lease language;

-- The role of legal counsel;

-- Extension’s role; and

-- Gas-leasing FAQs.

Single copies of "Natural Gas Exploration: A Landowner's Guide to Leasing Land in Pennsylvania" can be obtained free of charge by Pennsylvania residents through county Penn State Cooperative Extension offices, or by contacting the College of Agricultural Sciences Publications Distribution Center at (814) 865-6713 or by e-mail at AgPubsDist@psu.edu. For cost information on out-of-state or bulk orders, contact the Publications Distribution Center.

The publication also is available on the Web in PDF format at http://www.cas.psu.edu/spotlight/gasprimer08_web.pdf.