Cabot Oil and Gas pays over $1B in royalties
Wednesday, June 14, 2017
Cabot Oil and Gas tapped into the Marcellus Shale, drilling its first vertical well in Susquehanna County in 2006. Skip ahead 10 years, 500 wells and approximately 2.9 trillion cubic feet of produced natural gas, and the company has paid over $1 billion in royalties to county landowners, according to Morning Times.
To celebrate the feat, Cabot invited industry, business and elected officials to its office to make the announcement.
Additionally, Cabot has paid out $60.6 million in impact fees, $500 million in signing bonuses, $48 million in road maintenance since 2009 and has donated millions more to the local community.
Learn more: Morning Times > Striking gas — Cabot Oil and Gas pays out $1B in 10 years
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.