The recent developments of fracking and horizontal drilling have made the Marcellus Shale region valuable not just in the oil and gas industry, but in real estate as well. Here are 10 important things you should know about Marcellus Shale.

1. Your Education Solution.
Your Education Solution.
10 Things to Know
About Marcellus Shale
in Real Estate

2. Welcome to the
Modern-Day Gold Rush.
Five years ago, most sellers did not know (or
care) if they owned their gas rights. Today, it’s
a hot topic and can make or break a sale.
The recent developments of fracking and
horizontal drilling have made the Marcellus
Shale region valuable not just in the oil and gas
industry, but in real estate as well.
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3. What is
Marcellus Shale?
Marcellus Shale is a geological formation of
shale rock that starts in New York and stretches
through Pennsylvania, Ohio and West Virginia.
Trapped between the rock’s pores, there’s
enough natural gas to fuel the United States’
current usage for 14 years.
This makes the land extremely valuable, and
it’s your job as a real estate professional to
understand gas rights, royalties, rules and
regulations, so you can fully educate and
protect your clients. We know it’s a complex
topic, so here are 10 important things you
should know about Marcellus Shale.
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4. The Drinking Water
Is Protected.
1
The gas is extracted from beds that are
typically 1 to 2 miles below the earth’s surface.
All potential drinking water is found around
500 feet or less below the earth’s surface. So,
there’s thousands of feet of rock that protect
your client’s H20.
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5. 2
Gas Companies do not
have the Eminent Domain.
Landowners are able to keep their land and
sell their gas rights to the oil and gas
companies for large sums of money and
royalty payments.
They will still retain full ownership of the land
on the surface as long as only the rights are
sold or leased to an operator.
2
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6. Old, Non-Producing
Wells aren’t a Lost Cause.
Keep this in mind because your client’s gas
rights might not be worthless. Several things
can be done to revive old wells and have them
pumping again in no time.
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7. Your Clients are Entitled
to Royalty Payments.
Your clients are entitled to royalty payments,
even if the well isn’t directly on their land.
When a well is drilled, it extracts resources
from the surrounding area. All landowners
within the area that are designated for the well
will receive royalty payments.
4
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8. This Region is Booming
with Development.
There’s a surplus of new, high-paying jobs that
are directly related to the gas drilling industry.
Roads are being paved, infrastructure is being
put in place and new developments are on the
rise to support the growing environment.
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9. Stay in the Know and Up
to Date on Industry Trends.
Real estate prices can rapidly change
depending on the industry. If gas prices drop,
the drilling might slow down and property
values plummet.
If gas prices go up and drilling heats up, land
prices may rise. Be aware of current trends and
try to predict the future. It’s a wild industry
where anything can happen.
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10. Companies can Drill
on your Client’s Land.
Companies can drill on your client’s land, but
they can’t tear it up. The oil and gas companies
who lease the land must be able to explore,
drill and transport minerals, but they can’t tear
up your clients property. They are liable for any
excessive damage done to the land.
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11. Learn the Lingo.
Familiarize yourself with common terms of the
oil and gas industry to show your clients the
knowledge you have and better understand
industry personnel. For example, OGIP means
original gas in place and the amount of gas is
quoted in cubic feet.
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12. Inform your Clients
of Possible Risks.
Though highly unlikely, a big risk is the
restriction or ban of fracking. If fracking is
banned in the Marcellus Shale region, it will no
longer be profitable to drill wells there, which
will affect your clients.
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13. Knowledge is Power.
Don’t make the mistake of being unprepared.
If you aren’t sure on the details , don’t fake it.
Hire an attorney who specializes in gas rights.
Learn more about handling oil and gas rights in
our new 3-hour elective course, Drilling Down
to the Facts about Marcellus Shale.
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14. Your Education Solution.
Learn more about Marcellus Shale at McKissock.
• Enroll in Drilling Down the Facts on Marcellus Shale
• Visit McKissock’s Real Estate Leader blog for more information on
Marcellus Shale and other real estate industry news.
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