Low natural gas prices drive down royalty payments from Pennsylvania’s state forests
Wednesday, February 3, 2016
Drilling on Pennsylvania’s state forest land is garnering less royalty money than in past years. StateImpact Pennsylvania reports that last year, natural gas drilling leases on about 40,000 acres of state forest land were terminated because contract terms were not met.
In a recent analysis from the Pennsylvania’s Independent Fiscal Office, data shows that royalty payments are down more than 50 percent during the first six months of the fiscal year, compared to the same period last year.
Once more pipelines are added, royalty payments should recover.
Via: StateImpact Pennsylvania > Gas royalties from state forest land drop sharply
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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.